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Stocks on the move: IBM shares jump on spin off plans, McDonald's rises on positive sales

Yahoo Finance's Adam Shapiro breaks down the stocks to watch Thursday.

Video Transcript

ADAM SHAPIRO: And now we want to move to some stocks on the move. And have you seen what's been going on with IBM? Shares are up more than 7% in the first 30 minutes of trading, and right now they're still up about 7%. This after news that they're going to split the company. They're going to spin off their infrastructure services unit.

To put this in perspective, that unit alone accounted for $27.4 billion in revenue last year. The focus now is going to be on the cloud. Here's what the CEO Arvind Krishna had to say to our team at Yahoo Finance moments ago.


- What this does is unlocks growth for both companies. Each can have its own investment models, its own business models. It creates financial flexibility to invest in both companies. Both will have their own partnerships, and so we're so excited. One company, focused on hybrid cloud and AI. The second company focused on managed infrastructure services with improved growth trajectories for both companies.


ADAM SHAPIRO: Now there are also going to be some layoffs in regards to this spinoff. IBM has not said exactly how many people will be laid off as they go through that.

Then there's McDonald's. Perhaps if you're feeling beleaguered by all of the politics, you deserve a break today. McDonald's essentially flat. It's off about 1/4%. This morning it was trading up at the opening bell but again, off about 1/4%. The fast food giant reported third-quarter same-store sales, better than people were expecting. They raised their dividend to $1.29 a share up from $1.25. This will be payable on December 15th.

But same-store sales for the quarter ending September 30th, although they were down 2.2% percent from a year ago, it beat what people were expecting. There was a prediction of a 5% decline. And in the US, same store sales grew 4.6%, which was also a beat. So right now McDonald's is trading down slightly, but to give you a sense, the 52-week range on McDonald's has been $124 to $229, and you can see they are trading at the higher end of that range.