US Open: Mixed sentiments on Wall Street 📊IBM loses, Honeywell surges 7%

Wall Street sentiment was mixed at the opening of the U.S. trading session. As of October 17, about 12% of S&P 500 companies had reported third-quarter results. An impressive 86% of them delivered earnings per share (EPS) above analysts’ expectations — a rate higher than the five-year average of 78% and the ten-year average of 75%. However, the average earnings surprise was 5.9%, below the five-year average of 8.4%.The overall earnings growth rate (as of October 17), which includes both reported results and estimates for companies yet to report, currently stands at 8.5%, compared with 7.7% last week and 7.9% at the end of September, according to FactSet Research Systems data. The US100 index is struggling to hold above the 25,000-point level. In the medium term, the benchmark may move back toward testing the 50-day exponential moving average (EMA50, orange line), especially if bulls fail to push it decisively above this psychologically important barrier. Today, after the US session, Intel (INTC.US) will report earnings.

Source: xStation5

Tesla opened the session with a nearly 3% downside gap.

Source: xStation5

Industrial giant Honeywell benefited from a strong quarterly report, with its shares returning above the 200-day exponential moving average (EMA200, red line), attempting to reverse a medium-term downtrend.

Source: xStation5

Company News

• Tesla (TSLA.US) fell 3.5% after profits plunged despite a record number of vehicle sales.

• Dow Inc. (DOW.US) rose 6% after the U.S. chemical company beat third-quarter operating EBITDA estimates.

• Honeywell (HON.US) gained 4% following better-than-expected adjusted earnings per share (EPS).

• IBM (IBM.US) declined 7% as revenue in key software segments — including the Red Hat unit — fell short of expectations.

• Las Vegas Sands (LVS.US) advanced 5% after reporting third-quarter EPS above analyst forecasts.

• LendingClub (LC.US) jumped 11% after providing upbeat Q4 loan origination guidance; JPMorgan upgraded the stock to overweight.

• Moderna (MRNA.US) dropped 4% after its cytomegalovirus vaccine failed to meet its endpoint in a late-stage trial.

• Molina Healthcare (MOH.US) plunged 18% after cutting full-year adjusted profit guidance due to higher medical costs across all business segments.

• T-Mobile US (TMUS.US) slipped 1% following its third-quarter results.

• Tractor Supply (TSCO.US) fell 3% after narrowing its full-year sales forecast, with the midpoint near the lower end of the previous range.

• Ribbon Communications (RBBN.US) sank 14% after disappointing Q3 profit and weak Q4 revenue guidance.

• Ventyx Biosciences (VTYX.US) soared 105% after mid-stage clinical trial results showed significant reductions in cardiovascular risk factors among obese patients.

Nvidia in Consolidation

U.S. stock indices have entered a consolidation phase, perfectly mirrored by Nvidia’s share price, which is currently trading around the 50-day exponential moving average (EMA50, orange line).

Source: xStation5