ZACKS·2025-10-22 23:46Market Overview - Market indexes experienced a downward trend, with the Dow dropping -334 points (-0.71%) after reaching an all-time high, while the S&P 500 and Nasdaq fell -35 points (-0.53%) and -213 points (-0.93%) respectively [1] - The small-cap Russell 2000 index decreased by -1.41% [1] Trade Relations - Ongoing trade talks between the U.S. and China have contributed to a "risk-off" sentiment in the market, with the potential for an additional +100% tariff on Chinese imports looming [2] - Recent market surges were largely based on expectations of a trade agreement between the two nations, but uncertainty is now causing concerns about market stability [2] Q3 Earnings Reports - Tesla reported mixed Q3 results, with earnings of $0.50 per share, missing expectations by $0.03, and down from $0.72 a year ago. However, revenues of $28.1 billion exceeded expectations of $26.5 billion, with EV credits contributing +40% to profits [3] - IBM shares fell -4.8% despite beating earnings expectations with $2.65 per share (expected $2.44) and revenues of $16.3 billion (expected $16.1 billion). Infrastructure growth was +17%, but revenue guidance of +5% for the year was seen as disappointing [4] - Southwest Airlines reported a Q3 earnings beat of $0.10 per share but missed revenue expectations with $6.95 billion (expected $6.97 billion). The stock rose +2.5% in late trading, with expectations for record-high operating revenues in Q4 [5] Upcoming Economic Indicators - No Weekly Jobless Claims data will be released this week, but Existing Home Sales data is expected to show a slight increase to 4.06 million units from 4.0 million the previous month [6] - Additional earnings reports from companies such as Intel, Ford, American Airlines, and Newmont Mining are anticipated, with a focus on how tariff impacts may affect their performance [7]