Stocks Muted Before the Open With Earnings in Focus

December S&P 500 E-Mini futures (ESZ25) are up +0.01%, and December Nasdaq 100 E-Mini futures (NQZ25) are down -0.08% this morning as investors digest quarterly results from major companies, including Tesla and IBM, and await a new batch of corporate earnings reports.

Tesla (TSLA) fell over -3% in pre-market trading after the EV maker posted weaker-than-expected Q3 adjusted EPS despite a sales surge. Also, International Business Machines (IBM) slumped more than -6% in pre-market trading after the technology services giant reported disappointing Q3 revenue in two key software categories. On the positive side, Medpace Holdings (MEDP) surged over +18% in pre-market trading after the company posted upbeat Q3 results and raised its full-year guidance.

Higher bond yields today are weighing on stock index futures. Treasury yields climbed as higher oil prices reignited concerns about inflation. Oil prices jumped more than +5% after U.S. President Donald Trump imposed sanctions on Russia’s two biggest oil companies over the Ukraine war.

In yesterday’s trading session, Wall Street’s three main equity benchmarks closed lower. Netflix (NFLX) plunged over -10% and was the top percentage loser on the Nasdaq 100 after the streaming giant reported weaker-than-expected Q3 EPS. Also, Texas Instruments (TXN) slid more than -5% to lead chipmakers lower after issuing underwhelming Q4 guidance. In addition, Lennox International (LII) slumped over -10% and was the top percentage loser on the S&P 500 after the climate control solutions innovator posted mixed Q3 results and cut its full-year guidance. On the bullish side, Intuitive Surgical (ISRG) jumped more than +13% and was the top percentage gainer on the S&P 500 and Nasdaq 100 after the company reported upbeat Q3 results and raised its full-year da Vinci procedure growth guidance.

Thomas Lee at Fundstrat Global Advisors said that the post-earnings drop in companies like Netflix and Texas Instruments “is not thesis-changing.” “We are not necessarily concerned about stocks selling off, short-term,” Lee said. He outlined the main reasons for a strong final 10 weeks of 2025: solid corporate earnings, a dovish Fed, sustained strength in AI visibility, and positive fourth-quarter seasonality.

Third-quarter corporate earnings season continues in full flow, and investors look forward to fresh reports from notable companies today, including Intel (INTC), T-Mobile US (TMUS), Ford Motor (F), Blackstone (BX), and Union Pacific (UNP). According to Bloomberg Intelligence, companies in the S&P 500 are expected to post an average +7.2% increase in quarterly earnings for Q3 compared to the previous year, marking the smallest rise in two years.

Meanwhile, the U.S. government shutdown has entered its 23rd day, with no clear signs of compromise between Republicans and Democrats. In light of the government shutdown, the publication of weekly jobless claims, originally set for today, will be delayed. Still, investors will focus on the National Association of Realtors’ existing home sales data, which is set to be released in a couple of hours. Economists foresee this figure coming in at 4.06 million in September, compared to 4.00 million in August.

Fed Governor Michael Barr is scheduled to deliver a speech later today at the Novogradac 2025 Fall New Markets Tax Credit Conference. With Fed officials in a blackout period before the October 28-29 policy meeting, Barr is likely to avoid commenting on interest rates.

U.S. rate futures have priced in a 96.7% probability of a 25 basis point rate cut and a 3.3% chance of no rate change at the upcoming monetary policy meeting.

In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 3.990%, up +0.96%.

The Euro Stoxx 50 Index is up +0.18% this morning, hovering near a record high as investors cheered a slew of positive corporate earnings reports. Energy stocks led the gains on Thursday as oil prices surged after U.S. President Donald Trump imposed sanctions on Russia’s two biggest oil companies over the Ukraine war. Also, EU member states formally approved the 19th package of sanctions against Russia on Thursday, targeting Russian energy infrastructure. Meanwhile, data released on Thursday showed that France’s manufacturing business climate index climbed to a 1-1/2-year high in October, surpassing its long-term average of 100 for the first time since early March 2024. Investors now await the Eurozone’s preliminary consumer confidence data for October, due later in the session. In corporate news, Nokia Oyj (NOKIA.H.DX) surged about +10% after reporting much stronger-than-expected Q3 profit, driven by demand for AI and cloud services. Also, Kering SA (KER.P.DX) climbed more than +8% after the Gucci owner posted better-than-feared Q3 sales. In addition, Unilever Plc (ULVR.LN) rose over +1% after reporting Q3 sales that beat estimates. At the same time, Dassault Systemes (DSY.FP) plunged more than -16% after the company cut its full-year revenue growth guidance.

France’s Business Survey was released today.

The French October Business Survey came in at 101, stronger than expectations of 96.

Asian stock markets today closed mixed. China’s Shanghai Composite Index (SHCOMP) closed up +0.22%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.35%.

China’s Shanghai Composite Index reversed earlier losses and closed higher today on hopes for fresh stimulus measures and de-escalation in U.S.-China trade tensions. Financial stocks led the gains on Thursday. Sentiment improved after China’s commerce ministry confirmed on Thursday that Vice Premier He Lifeng will meet with U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer in Malaysia from Friday through Monday to discuss economic and trade matters, as the world’s two largest economies seek to ease an unexpected flare-up in tensions ahead of a potential Trump-Xi meeting in South Korea next week. Meanwhile, U.S. President Donald Trump said on Wednesday that he and Chinese President Xi Jinping would “make a deal on, I think, everything.” Trump noted the talks would cover topics ranging from soybean purchases to rare earth exports and the Russia-Ukraine war. Capital Economics estimated that U.S. tariffs have likely shaved about 0.3% off China’s GDP so far this year. A White House official said on Wednesday that the Trump administration was considering export restrictions on China that would ban the purchase of a broad range of critical software, in retaliation for Beijing’s latest round of rare earth export curbs. In corporate news, Pop Mart slumped over -9% in Hong Kong amid concerns about the Labubu maker’s long-term revenue growth outlook. Chinese officials conclude their Fourth Plenum gathering in Beijing, with investors eagerly awaiting a communique detailing the government’s economic, political, and social priorities along with its development plans for the next five years.

Japan’s Nikkei 225 Stock Index closed lower today as investors took profits following a recent rally fueled by expectations for fiscal dove Sanae Takaichi’s new government. Technology stocks led the declines on Thursday. Kazuaki Shimada, chief strategist at IwaiCosmo Securities, said, “Investors had scooped up stocks ahead of the parliamentary vote to elect Takaichi as prime minister, and as soon as she was elected, they started a selloff as all the good news was priced in.” Notably, foreign investors bought a net 752.6 billion yen ($4.99 billion) worth of Japanese stocks during the week ended October 18th in anticipation of Takaichi’s victory in the parliamentary vote to become the country’s prime minister, according to data from the Ministry of Finance. Sentiment was also dampened by ongoing U.S.-China trade tensions after the Trump administration said it was considering restrictions on software exports to China. Meanwhile, defense stocks climbed on expectations that Japan may propose increasing defense spending as Takaichi and U.S. President Donald Trump are set to meet next week. In other news, the Bank of Japan said on Thursday that the country’s financial system remains broadly stable, with banks maintaining a strong capital base and steady funding to withstand potential stresses. In corporate news, SoftBank Group fell over -4% after raising about $2.9 billion through an offering of U.S. dollar- and euro-denominated bonds to fund its AI investments. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed down -6.89% to 27.42.

Pre-Market U.S. Stock Movers

Tesla (TSLA) fell over -3% in pre-market trading after the EV maker reported weaker-than-expected Q3 adjusted EPS despite a sales surge.

International Business Machines (IBM) slumped more than -6% in pre-market trading after the technology services giant reported disappointing Q3 revenue in two key software categories.

Molina Healthcare (MOH) plummeted over -18% in pre-market trading after the insurer again cut its full-year earnings guidance.

Medpace Holdings (MEDP) surged over +18% in pre-market trading after the company posted upbeat Q3 results and raised its full-year guidance.

Quantum computing stocks jumped in pre-market trading after The Wall Street Journal reported that the Trump administration was considering taking equity stakes in several firms in exchange for federal funding. IonQ (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS) are up more than +9%.

You can see more pre-market stock movers here

Today’s U.S. Earnings Spotlight: Thursday - October 23rd

T-Mobile US (TMUS), Blackstone (BX), Intel (INTC), Union Pacific (UNP), Honeywell (HON), Newmont Goldcorp (NEM), Norfolk Southern (NSC), Digital (DLR), Freeport-McMoran (FCX), Roper Technologies (ROP), Ford Motor (F), Valero Energy (VLO), Baker Hughes (BKR), PG E (PCG), Tractor Supply (TSCO), Comfort Systems (FIX), CenterPoint Energy (CNP), VeriSign (VRSN), Dover (DOV), Rogers Communications (RCI), SS&Cs (SSNC), West Pharmaceutical Services (WST), TransUnion (TRU), Dow (DOW), TechnipFMC (FTI), Deckers Outdoor (DECK), Textron (TXT), Healthpeak Properties (DOC), Nextracker (NXT), Carpenter Technology (CRS), Mobileye Global (MBLY), Pool (POOL), Kinsale Capital (KNSL), Hasbro (HAS), Old Republic (ORI), EastGroup Properties (EGP), FirstService (FSV), AutoNation (AN), American Airlines (AAL), Popular (BPOP), Ryder System (R), Valley National (VLY), SLM (SLM), Alaska Air (ALK), Millrose Properties (MRP), FTI Consulting (FCN), MSC Industrial Direct (MSM), Darling Ingredients (DAR), Phillips Edison Co (PECO), Lazard (LAZ), AllianceBernstein Holding LP (AB), Brunswick (BC), Associated Banc-Corp (ASB), Integer Hld (ITGR), Eastern Bankshares (EBC), Euronet (EEFT), First Bancorp (FBP), Visteon (VC), McGrath (MGRC), WSFS (WSFS), TRI Pointe Homes (TPH), Enova International Inc (ENVA), Bread Financial Holdings (BFH), Sonic Automotive (SAH), Western Union (WU), Atlantic Union (AUB), Simply Good Foods (SMPL), Garrett Motion (GTX), First Financial Bancorp (FFBC), Ardagh Metal Packaging (AMBP), Customers Bancorp (CUBI), Hilltop (HTH), Knowles Cor (KN), Iridium (IRDM).