US EQUITY OPEN: NDX underperforms as memory name sell-off continues as US earnings season begins

OPEN: US indices opened mixed with the Nasdaq 100 (-0.3%) the clear laggard and continues to be weighed on by weakness in memory chip names, following a sharp decline in the Kospi overnight, and comes after reports on Monday that China's CXMT unveiled key progress on chip structures that would compete with Samsung and SK Hynix. Given this, Technology is the clear sectoral underperformer, with most other sectors in the green and Energy sitting atop the pile, despite weakness in crude benchmarks. US Q3 earnings season started today, and has been a mixed bag so far, with JPM, GS, and UNH firmer post-numbers, while WFC, JNJ, and C see losses (more details below).

The Dollar Index is lower amid easing yields and a pullback in energy prices, to the benefit of global G10 FX peers. For the Yen, source reports earlier said the BoJ is reportedly leaning against back-to-back hikes in October but could hawkishly adjust inflation language. Precious metals are slightly divergent, as spot gold sees strength, while spot silver resides in the red. On the energy footing, benchmarks saw a bit of pressure following the OPEC MOMR, whereby Saudi Arabia produced 8.372mln bpd of crude in September, up from 6.238mln bpd in August. Meanwhile, in the Middle East Houthi Spokesperson stated, "Yemeni Armed Forces warn all employees and citizens in the vicinity of any Aramco oil facility to evacuate and stay away from it, as it is a legitimate target for our forces".

Elsewhere, there is no tier 1 US data or further earnings on Tuesday, while Fed speak comes via Barkin (2027 voter), and Collins (2028 voter). Earlier, Waller said that higher yields could do some of the Fed's work on demand.

• JPMorgan (JPM): Choppy post-earnings; initially lower on EPS, rev., net income & FICC sales miss, but reversed after raising FY26 NII guidance.
• Goldman Sachs (GS): EPS, rev. & NII top Wall St. consensus.
• Wells Fargo (WFC): Rev. & NII light.
• Citi (C): Major metrics beat, as did FICC sales & trading rev., but equities & sales trading rev. fell short.
• Johnson & Johnson (JNJ): Top line short but did lift FY profit outlook.
• UnitedHealth (UNH): Q nos. impressed & MCR lower than exp alongside lifting FY profit outlook.
• Domino's Pizza (DPZ): SSS fell short of exp.

• Navitas (NVTS) collabs w/ NVDA on 800 V-to-12 V power delivery board for next-gen AI infrastructure.
• SentinelOne (S) to offer $1.25bln of convertible senior notes due 2031.
• SixFlags (FUN) had one person die & several injured following a roller coaster incident at a Six Flags amusement park.
• BioNTech (BNTX) AHEAD-MERIT Phase 2/3 clinical trial did not meet its first dual primary endpoint.
• Syndax Pharmaceuticals (SNDX) Phase 2 idiopathic pulmonary fibrosis study misses endpoint.