My top 10 things to watch Tuesday, Oct. 20
1. Nasdaq futures are under pressure this morning after yesterday's bounce-back rally. Spillover from South Korea's Kospi again? Seoul-based neocloud Elice plunged 32% in its market debut, pressuring the broader artificial intelligence trade. Seems extreme on the downside, but the deal was placed really badly in a bad tape.
2. Oil is not helping things today. WTI crude for December delivery is up over 2% to nearly $101 a barrel, and international benchmark Brent is up almost 2% to trade north of $111, its highest price since May. With oil rampaging and the data-center cohort (including CoreWeave) weak thanks to some little-known South Korean company, is this just a Johnson & Johnson kind of day?
3. GE Aerospace reported some very strong numbers, but shares are off 3%. Top and bottom line beats, with orders up 49%, which is practically unheard of. Not just commercial either. Defense orders look strong too. The engine maker also upped its full-year guide for adjusted profit, revenue growth, operating income and free cash flow. RTX Corp's earnings were also better than expected this morning. Good read-throughs for Club name Boeing.
4. General Motors is down more than 7% despite reporting better-than-expected revenue and adjusted earnings, and announcing a $20 billion stock buyback program. Boosted its free cash flow outlook, but it's seeing inflationary pressures, including logistics and memory chips. The company said in its earnings slides "the path forward is more challenging," but expects a strong 2027 assuming resilient demand and moderating cost pressures.
5. 3M is up about 1% after third-quarter revenue matched essentially expectations, but earnings topped consensus. Adjusted EPS was up 12% year over year, the third quarter in a row of double-digit growth. Buybacks are helping here. Innovation is working, with five-year new product sales up 34% year to date. CEO Bill Brown is seeing results two-plus years into his tenure.
6. Morgan Stanley raised its Seagate price target to $1,200 from $1,187 and kept its buy rating. The analysts reinstated the storage stock as their "top pick" in IT hardware. However, they lowered their Western Digital price target to $643 from $676, while keeping their buy rating. They see no cessation of demand. They expect beat-and-raise quarters from both.
7. Loop Capital downgraded its rating on Club name Apple to hold from buy and cut its price target to $330 from $370. On its last earnings call, Apple noted that supply constraints will impact iPhones. Now, Loop is worried the demand won't be there next year to compensate. After its recent surge to record highs, the analysts argued that Apple stock needs a "fundamental catalyst reset." Is this note trying to get ahead of cuts?
8. Another day, another price target boost for Club name Eli Lilly. Following Bank of America's move yesterday, Goldman Sachs went to $1,413 from $1,371 and kept its buy rating. Goldman expects Lilly to deliver a beat-and-raise print next week, helped by international GLP-1 sales (a key source of upside lately). Just how big will the guidance raise be? That's the debate.
9. Williams-Sonoma picked up a pair of price target hikes. Piper Sandler went to $286 from $259 and reiterated its buy recommendation. Evercore ISI went to $255 from $240, though it stayed at a hold. Been a tough year for most consumer discretionary stocks, but not for Williams-Sonoma. Shares are up almost 40% in 2026. CEO Laura Alber has done a remarkable job despite a terrible housing market.
10. ServiceNow was named a top pick at BMO Capital Markets, and Bernstein raised its price target to $266 from $248. That implies some serious upside (83% to be exact) from yesterday's close of $145.36. The comeback for enterprise software names has been incredible. Almost as if the "SaaSpocalypse" narrative was nonsense. ServiceNow reports earnings next Wednesday evening.
