Beat the Street: US earnings remain centre stage

(Video Transcript Summary)

Fuel costs, labour contracts impact American Airlines

In this edition of Beat the Street, our host Jeremy Naylor provides a sneak peek into the US market open and what to watch out for. Today, investors are a bit cautious due to various factors such as companies reporting their earnings and the ongoing situation in the Middle East.

We start off with a look at American Airlines, which unfortunately reported a loss for the quarter due to soaring jet fuel costs and new labour contracts. In contrast, UNITED and Delta Air Lines seem to be doing better in this regard.

On a positive note, AT&T has raised its annual free cash flow target and subscriber additions forecast, which is expected to have a favourable impact on the market.

US indices holding strong

Jeremy then dives into the current trading activity and mentions that the Dow Industrials, S&P 500, and NASDAQ are likely to hold onto the losses from the previous day. He also takes a look at the euro-dollar chart and discusses economic data, such as the Philadelphia Federal Reserve manufacturing index and continuing jobless claims.

Additionally, he mentions that Federal Reserve (Fed) officials are set to speak and most economists predict that there won't be a rate hike at the next Fed meeting.

Moving on, Jeremy focuses on the dollar basket and its downward trend, while still maintaining an overall upward trend. He also touches on the recent rise in gold prices, which is driven by tensions in the Middle East. He shares insights from his colleague Sean Mirrison about gold and its price levels.

Next, the video covers the earnings reports of American Airlines and AT&T. Despite the loss, American Airlines' stock is expected to open slightly stronger. On the other hand, AT&T has beaten estimates with its quarterly subscriber additions and raised its annual free cash flow forecast, leading to a significant rise in its stock price.

Tesla stock drops over 8%

Other notable news includes Tesla's stock dropping over 8% after reporting third-quarter earnings below expectations. Jeremy discusses Elon Musk's concerns about interest rates impacting car buyers and the company's decline in gross margin.

However, Netflix has some good news, with strong third-quarter earnings that surpass subscriber forecasts. This positive performance prompts the company to raise prices for some customers, resulting in a significant rise in its stock price.

Lastly, there's mention of Alcoa reporting a loss for the quarter and the partnership between Foxconn and NVIDIA to build artificial intelligence factories. The video wraps up with a recap of the market indices and a reminder of the ongoing situation in the Middle East.