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Futures down: Dow 0.2%, S&P 500 0.06%, Nasdaq 0.1%

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Tesla falls after Q3 profit misses estimates

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IBM ( IBM ) slumps on recording cloud software slowdown

(Updates prices)

By Pranav Kashyap and Twesha Dikshit

Oct 23 (Reuters) - Futures tracking Wall Street's main

indexes dipped on Thursday as disappointing quarterly updates

from Tesla and IBM ( IBM ) weighed on sentiment, while investors treaded

cautiously amid simmering U.S.-China trade tensions.

Tesla's third-quarter profit missed expectations,

dragging its shares down 3.1% in premarket trading. A revenue

beat offered little relief, as Wall Street grappled with

tempered optimism through the week.

The electric-vehicle maker kicked-off the "Magnificent

Seven" earnings parade - a cohort that forms nearly 35% of S&P

500's weight, with the strength to dictate the market's next

move.

IBM ( IBM ) dropped 6.8% after the company recorded a

slowdown in growth in its key cloud software segment, eclipsing

a third-quarter beat.

U.S. equity markets have lost steam amid a whirlwind of

earnings reports and profit-taking, with trade tensions also

weighing on sentiment.

While most companies have outpaced analyst estimates,

cautious outlooks have cast a shadow over the rally as investors

look for justification behind sky-high equity valuations.

"Attention now turns to how much further positioning could

be shaken out as we head toward next week's deluge of U.S.

corporate earnings, the October FOMC meeting, and (as) we roll

into the business end of the U.S.-China trade talks," Chris

Weston, head of research at Pepperstone, said in a note.

At 07:15 a.m., Dow E-minis were down 69 points, or

0.15%, Nasdaq 100 E-minis were down 32 points, or 0.13%

and S&P 500 E-minis were down 4 points, or 0.06%.

Quantum computing firms were a bright spot after the Wall

Street Journal reported that U.S. President Donald Trump's

administration was in talks with several of them to take equity

stakes in exchange for federal funding.

IonQ ( IONQ ) and D-Wave Quantum ( QBTS ) surged more than

10% each, while Rigetti Computing ( RGTI ) added 6.6%.

Energy stocks gained following a jump in crude prices on

fresh U.S. sanctions against Russia. Chevron ( CVX ), Exxon

Mobil ( XOM ) and Halliburton ( HAL ) rose between 1.5% and

2.9%.

Health insurer Molina Healthcare ( MOH ) plunged 20% after

slashing its annual profit forecast. Centene ( CNC ) and

UnitedHealth ( UNH ) fell 7.8% and 1.6%, respectively.

Honeywell ( HON ) raised annual profit forecast on strong

aerospace demand, sending its shares up 4.4%.

American Airlines ( AAL ) shares gained 1.8% after the

carrier raised its profit forecast for the year.

T-Mobile gained 2.4% after adding

more-than-expected wireless subscribers during the third

quarter.

Intel ( INTC ) was down 0.7% ahead of its results

aftermarket.

DATA DROUGHT DRAGS ON

With the U.S. government shutdown now in its twenty-third

day, key economic releases, including Thursday's usual reading

of weekly jobless claims data, remain frozen, leaving investors

without crucial signals.

That puts Friday's core CPI print, expected to hold steady

at 3.1%, in sharp focus as the Federal Reserve's only clear

inflation guide ahead of next week's policy meeting.

Markets have already priced in a 25-basis-point rate cut,

with traders betting the Fed will ease again in December.

Meanwhile, a Reuters report said the Trump administration

was weighing sweeping curbs on high-tech exports to China in

retaliation for Beijing's latest restrictions on rare-earth

shipments. The report had pushed markets lower on Wednesday,

injecting fresh uncertainty.