US Open: Wall Street indices lose slightly, GE Aerospace tumbles 7% despite solid earnings report📉

• Slightly weaker opening of the US trading session. US100 and US500 lose between 0.4% to 0.5% range
• GE Aerospace shares lose more than 7%. Philip Morris and General Motors gain more than 6%
• US dollar, precious metals and oil gain; IMF raises US GDP forecast to 2.2% growth in 2025

Sentiment in the U.S. market at the opening of today's session is mixed, with most indexes posting modest declines; General Motors shares rose after solid quarterly results, and the steelmaker sector is posting declines, led by Nucor, where sentiment fell on the wave of another downward impulse in global steel prices. Tesla shares are losing nearly 1% on the eve of its earnings release. Amazon is retreating slightly despite its announcement to create a platform to compete with China's Temu (owned by PDD Holdings, PDD.US). Until now, S&P 500 companies that posted better-than-estimated Q3 earnings that outperformed the S&P 500 by a median of 1.7% on the day of reporting earnings. According to Bloomberg Intelligence, it's the strongest rate in BI’s records going back to 2019.

Most US companies are losing early in the session. Paint manufacturer Sherwinn-Williams (SHWN.US) loses nearly 5%; Pinterest (PINS.US) loses over 4%. In the chip sector, AMD (AMD.US) and TSMC (TSM.US) are losing. Source: xStation5

Despite the drop at the beginning of today's trading, buying volume prevails today in the first 30 minutes of trading on US100. Source: xStation5

Solid General's Electric Aerospace's results disappointed Wall Street

One of the top US defense contractors and engine producers, GE Aerospace, reported results today that, while impressively good year-on-year, failed to please Wall Street expectations. Earnings per share rose 25% year-on-year to $1.15 vs. $1.13 forecasted by FactSet, but revenues rose 6% to $8.9 billion, vs. $9 billion expected. 

• The company's orders rose 28% to $12.6 billion, with nearly 30% growth in orders for engine supplies and related services. Orders for equipment and services rose 20% year-on-year, compared to a 19% increase in the defense sector in Q3. Revenue from commercial engines and services rose 8% to $7 billion, against a $7.13 billion forecast. Technology and propulsion sales totaled $2.24 billion, passing the $2.33 billion forecast, showing a 2% year-on-year increase. The company expects a 10% drop in LEAP engine deliveries and estimates that delays in Boeing 777X deliveries will not affect its business in any way
• The company raised its operating profit guidance from $6.7 billion to $6.9 billion, compared to $6.5 billion to $6.8 billion previously forecast. It estimated adjusted earnings per share of $4.2 to $4.35, versus $3.95 to $4.20 previously. It also raised its expected full-year free cash flow to $5.6 billion to $5.8 billion, up from $5.3 billion to $5.6 billion previously expected. General Electric also expects mid- to high-single-digit revenue growth in the propulsion and defense sector, with low- to mid-double-digit revenues growth in the commercial aircraft engine sector.

Source: xStation5