Ray: Good morning, this is Biscuits and Tickers for Friday, October twenty-third. I'm Ray.

Nora: And I'm Nora. Futures are a little lower after Thursday's sharp chip-led selloff, Brent crude is pushing toward a four-year high on fresh Middle East tensions, and American Express and SLB kick off a busy Friday of earnings.

Ray: Start with where we closed. According to Reuters, the S and P 500 fell 1.2 percent on Thursday to 7,663. The Nasdaq Composite dropped 2.6 percent to about 26,009, and the Nasdaq 100 lost roughly 2.9 percent. The Dow was essentially flat, up 12 points to 52,868, held up by gains in Procter and Gamble, Lockheed Martin and Union Pacific.

Nora: This morning, Yahoo Finance reports S and P 500 futures down about a quarter of a percent, Dow futures down about six tenths of a percent, and Nasdaq 100 futures roughly flat. Russell 2000 futures are off about six tenths of a percent. The VIX, Wall Street's fear gauge, is near 19.8.

Ray: In other markets, the 10-year Treasury yield is around 4.95 percent, down from above 5 percent earlier this week as investors sought safety in bonds. Brent crude is up about 1 percent to near 114 dollars a barrel, and U.S. crude is above 101 dollars. Bitcoin is a touch lower, around 81,500 dollars.

Nora: On today's calendar, the University of Michigan releases its final October consumer sentiment reading at 10 a.m. Eastern. Watch the inflation expectations component closely, given the oil spike. The Fed is in its quiet period ahead of next Tuesday and Wednesday's policy meeting, and Reuters says markets are pricing some chance of another quarter-point rate hike before year end.

Ray: On earnings, American Express and SLB reported this morning, along with First Citizens BancShares, Booz Allen Hamilton, Rogers Communications, Autoliv and Eni. Infosys and Deckers reported overnight. It's a light slate after the close.

Nora: Our first story: the AI trade took a hard hit on Thursday. Reuters says earnings from high-profile AI companies revived fears about the cost of the AI spending race. The Philadelphia semiconductor index fell 6.7 percent, its biggest one-day drop since June. AMD, ticker A M D, Intel, ticker I N T C, Sandisk and Marvell each fell more than 8 percent. Nvidia, ticker N V D A, lost about 4.4 percent.

Ray: The new wrinkle since yesterday's show is Meta. Meta, ticker M E T A, closed down 7 percent. Reuters reports the company posted its first cash outflow in more than a decade because of AI spending, and plans to issue non-voting shares through a two-for-one split to raise capital. Meta is down another half percent before the bell.

Nora: Elsewhere in the AI build-out, CoreWeave hit a 17-month low on Thursday amid concerns about its debt, according to Yahoo Finance, and Nvidia's Jensen Huang told CNBC there is, in his words, a scarcity of capital for AI infrastructure. This morning chips are trying to stabilize, with AMD up nearly 1 percent and Nvidia slightly higher in early trading.

Ray: Story two is a follow-up on oil. Brent rose above 112 dollars on Thursday and is above 114 this morning, close to the four-year high of 114 dollars and 44 cents set in May, according to Trading Economics.

Nora: What's new: Trading Economics cites reports that the U.S. and Israel are preparing renewed strikes on Iran after the midterm elections, with energy infrastructure a likely target. Houthi forces have attacked Saudi targets including the Red Sea port of Yanbu and an airport in Dammam. The U.S. ordered non-emergency government staff to leave Saudi Arabia, and Aramco reportedly told staff to evacuate its Dhahran headquarters.

Ray: Reuters notes the five-month high in crude has revived worries about inflation and about further Fed hikes, which is part of why rate-sensitive and growth stocks have struggled this week.

Nora: Story three: Friday earnings. American Express, ticker A X P, reported third-quarter revenue of about 20.1 billion dollars, up 9 percent. Adjusted earnings were 4 dollars and 68 cents a share, up 13 percent and ahead of estimates. Card member spending rose 8 percent. Amex raised its full-year GAAP earnings guidance to between 18 dollars 30 cents and 18 dollars 60 cents, in part reflecting a gain from selling its stake in Global Business Travel Group.

Ray: Even so, Amex shares are down about 1.6 percent in pre-market trading.

Nora: SLB, ticker S L B, the oilfield services giant, reported revenue of 9.45 billion dollars, up 6 percent from a year ago. Earnings excluding charges were 64 cents a share, slightly ahead of estimates. CEO Olivier Le Peuch said the company sees a very compelling outlook for 2027, with further upside as Middle East activity recovers. SLB shares are up nearly 2 percent before the bell.

Ray: Now the pre-market movers. Deckers Outdoor, ticker D E C K, is down about 8 to 9 percent. Benzinga reports earnings beat but revenue missed, and the company cut its fiscal 2027 sales guidance below estimates. Infosys, ticker I N F Y, is down about 8 percent after its quarterly report. SS and C Technologies is off about 3.5 percent on fourth-quarter guidance below estimates.

Nora: Western Digital, ticker W D C, is down about 2 percent despite beating on its fiscal first quarter and giving an upbeat outlook. Moderna, ticker M R N A, is down about 4 percent after falling nearly 18 percent on Thursday as its cancer-vaccine rally reversed. On the upside, SK Hynix's U.S. listing is up nearly 5 percent, and CoreWeave is up about 2 percent.

Ray: On sectors, technology and semiconductors were Thursday's weak spot, while consumer staples, defense and railroads held up, and money moved into Treasuries. Energy names are getting support from higher crude this morning.

Nora: Here's what to watch today. The University of Michigan sentiment and inflation expectations at 10 a.m. Eastern. Whether chip stocks can steady after their worst day since June. Brent crude near its four-year high, and any headlines from Saudi Arabia, Iran or the Red Sea. The 10-year yield near 4.95 percent. And positioning ahead of next week's Fed meeting on Tuesday and Wednesday, plus Intel's results next Thursday.

Ray: That's Biscuits and Tickers for Friday, October twenty-third. I'm Ray.

Nora: And I'm Nora. This is market news, not investment advice. Have a good weekend.