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Futures down: Dow 0.21%, S&P 500 0.17%, Nasdaq 0.3%

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Tesla falls after Q3 profit misses estimates

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IBM ( IBM ) slumps on recording cloud software slowdown

(Updates with analyst comment, prices before the bell)

By Pranav Kashyap and Twesha Dikshit

Oct 23 (Reuters) - Wall Street is poised for a rocky

start on Thursday as lackluster earnings from Tesla and IBM ( IBM )

dampened investor mood, while brewing trade tensions between the

U.S. and China threatened to deepen the market's unease.

Tesla's third-quarter profit missed the mark,

dragging its shares down 3.6% in premarket trading. A revenue

beat did little to lift a market reeling from a week of tempered

optimism.

The electric-vehicle maker's results fired off the

"Magnificent Seven" earnings parade - a heavyweight group

commanding nearly 35% of S&P 500. Even minor missteps from these

names could ripple across global markets, setting the tone for

the rest of the season.

IBM ( IBM ) dropped 7.3% after the company recorded a

slowdown in growth in its key cloud software segment, eclipsing

a third-quarter beat.

Amid a whirlwind of earnings reports, profit-taking and

escalating trade tensions, the equity rally is showing signs of

fatigue. While many companies have topped analyst expectations,

a string of cautious outlooks is prompting investors to reassess

whether sky-high valuations can still hold.

"The numbers are not high-profile enough and not rampant

enough to really drive a market through these big milestones,"

said Chris Beauchamp, chief market analyst at IG group.

"The caution does feed in and big earnings are to come

through next week and that might just be the wait and see

approach."

Intel ( INTC ) was down 1.5% ahead of its results

aftermarket.

At 08:25 a.m., Dow E-minis were down 96 points, or

0.21%, S&P 500 E-minis were down 11.25 points, or 0.17%,

and Nasdaq 100 E-minis were down 75.5 points, or 0.3%.

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 ) rose 7.4%, while D-Wave Quantum ( QBTS )

surged more than 12%. Rigetti Computing ( RGTI ) added 8.6%.

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%.

Health insurer Molina Healthcare ( MOH ) plunged 18% after

slashing its annual profit forecast. Centene ( CNC ) and

UnitedHealth ( UNH ) fell 7.8% and 1.8%, respectively.

Honeywell ( HON ) raised annual profit forecast on strong

aerospace demand, sending its shares up 4.1%.

American Airlines ( AAL ) climbed 4.6% after raising

full-year profit forecast, while Southwest Airlines ( LUV )

slipped 1.2% following its results.

T-Mobile smashed estimates for wireless subscriber

additions, but its shares fell 1.4%.

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.