Ray: Good morning, this is Biscuits and Tickers for Tuesday, October twentieth. I'm Ray.

Nora: And I'm Nora. Today: the AI rebound stalls after a data center IPO flop in Seoul, General Motors slides despite an earnings beat, and 3M jumps on an Amazon deal. Netflix reports after the close.

Ray: Start with the futures. Reuters reports Nasdaq 100 futures down about half a percent, S and P 500 futures off about a tenth of a percent, and Dow futures up about a tenth. Index tracking funds tell the same story in early trading. The Nasdaq 100 fund is down about seven tenths of a percent, while the Dow fund is roughly flat.

Ray: That follows a mixed Monday. The S and P 500 rose four tenths of a percent to 7,690. The Nasdaq Composite gained 1.1 percent as chip stocks snapped a nine-day losing streak. The Dow slipped less than a tenth of a percent, and the Russell 2000 added a quarter of a percent.

Nora: In rates, the ten-year Treasury yield is about 5.12 percent, down two basis points, according to Investrade. The dollar is weaker against major currencies, per Tickmill. Oil is firm. Brent is near 110 dollars a barrel, close to a five-month high, and U.S. crude is around 99 dollars. Gold is near 4,140 dollars an ounce. The VIX is about 18.8, a bit above Monday's close of 18.4.

Nora: Overseas, Asia was weak. South Korea's Kospi fell 3.7 percent to its lowest close since early April, and Japan's Nikkei and Hong Kong's Hang Seng also declined. China's third-quarter growth came in at 4.5 percent, above expectations. European stocks are lower, with Germany's DAX and London's FTSE both down and French unrest still weighing on sentiment.

Ray: On the calendar. At 8:30 Eastern we get September housing starts, expected around 1.35 million at an annual rate, and building permits, expected near 1.4 million. Pending home sales follow at 10 o'clock, seen down about half a percent. The Fed is in its blackout period ahead of its next decision, so no Fed speakers today.

Ray: Earnings are heavy. Before the open we heard from General Motors, 3M, GE Aerospace, RTX, Northrop Grumman, Synchrony, Hasbro, Halliburton, KeyCorp and MSCI. After the close come Netflix, United Airlines, Capital One, Intuitive Surgical, Chubb and Alaska Air.

Nora: Our first story. The buy-the-dip rally in AI stocks is losing steam. Reuters reports that Elice Group, a South Korean AI cloud and data center company, closed its Seoul debut at 60,500 won, about 33 percent below its IPO price of 90,500 won. That was despite institutional orders of nearly 389 times the shares on offer.

Nora: Reuters says investors are growing more skeptical about AI spending, competition and profits, and that higher borrowing costs tied to inflation from the Iran war make AI debt costlier. Other AI listings have stalled too. SoftBank Group shares fell about 6 percent in Tokyo, and Tickmill notes SoftBank's credit default swaps hit their highest level in nearly four years. That is weighing on U.S. chip and data center names this morning.

Ray: Next, General Motors, ticker G M. The automaker beat third-quarter expectations, with adjusted earnings of 3 dollars and 70 cents a share against estimates of 3 dollars and 63 cents, and revenue of about 50 billion dollars. It raised its full-year automotive free cash flow outlook to between 11.5 and 12.5 billion dollars and approved a new 20 billion dollar buyback.

Ray: Even so, the stock is down about 7 percent before the bell. Invezz reports investors focused on rising costs. GM now sees commodity inflation of about 2 billion dollars, at the top of its earlier range, including memory chip costs. It also trimmed the regulatory benefit it expects and narrowed its profit range without lifting the midpoint. Analysts had flagged that the 2027 outlook would matter more than the quarter.

Nora: Our third story is a strong morning for industrials. 3M, ticker M M M, beat estimates and raised its profit outlook. It also expanded a data center partnership with Amazon, which received a warrant to buy about 521 million dollars of 3M stock, vesting as Amazon buys data center products. Benzinga had 3M up more than 4 percent early, though that gain has narrowed.

Nora: GE Aerospace, ticker G E, raised its 2026 adjusted earnings forecast to between 8 dollars and 8 dollars and 10 cents a share, according to Reuters, on strong demand for engine maintenance and parts. But the shares are down about 3 percent in early trading. Reuters notes airlines are cutting capacity as jet fuel prices climb. Defense names RTX and Northrop Grumman both topped estimates and are modestly higher.

Ray: One more story, on oil. Iran's Revolutionary Guard warned that its blockade could extend to the Bab al-Mandeb Strait and the Suez Canal, according to FXStreet. That threat is offsetting Monday's relief from the Russia sanctions waiver, and Tickmill reports Asian liquefied natural gas prices at their highest since 2022 after tanker attacks.

Nora: Now the movers. General Motors is down about 7 percent and GE Aerospace about 3 percent. 3M is higher on the Amazon deal. Halliburton, ticker H A L, is up about 4 percent after beating estimates, helped by firm oil. Hasbro, ticker H A S, is up about 2 percent after raising its annual revenue forecast. Steel Dynamics, ticker S T L D, is down nearly 6 percent on weaker-than-expected results, per Benzinga.

Nora: By sector, semiconductors and AI infrastructure are under pressure again after Monday's bounce, while energy is supported by crude near five-month highs. Industrials and defense have earnings support, and the Russell 2000 is roughly flat before the open.

Ray: Here's what to watch today. Housing starts and permits at 8:30 Eastern, and pending home sales at 10. Whether chip stocks can hold Monday's rebound. Oil and any further shipping headlines from the Gulf and Red Sea. The ten-year yield near 5.1 percent.

Ray: After the bell, Netflix, ticker N F L X. Consensus compiled by Hudson Labs is for revenue near 12.9 billion dollars, about 12 percent growth, with ad revenue and margins in focus. Also United Airlines, with jet fuel costs a key theme, plus Capital One and Intuitive Surgical. Tesla and Meta are up tomorrow.

Nora: That's Biscuits and Tickers for Tuesday, October twentieth. This briefing is information, not investment advice. I'm Nora.

Ray: And I'm Ray. Have a good trading day.