The Morning Briefing · Wednesday, 21 October 2026 · Published 07:25 CET · 5-minute read
Good morning. Strong earnings lifted the Dow by more than 500 points on Tuesday, while oil swung sharply on hopes and doubts about US–Iran talks. Today brings UK inflation data and results from Tesla and Meta.
☕ Today in 30 seconds
- Blue chips lead. The Dow rose 1% and small caps 1.7% as Treasury yields eased; the Nasdaq was flat.
- Netflix slips. Shares fell about 6% after hours on a weaker fourth-quarter outlook.
- Oil whipsaws. Brent touched almost $112 before settling below $109 on reports of peace efforts.
- Big day ahead. UK inflation is out at 08:00 CET; Tesla and Meta report after the US close.
📈 Markets
| Index/Asset | Last close | Change |
|---|---|---|
| S&P 500 | 7,712.57 | +0.28% |
| Nasdaq Composite | 26,424.82 | −0.02% |
| Dow Jones | 52,495.88 | +1.02% |
| Euro Stoxx 50 | ↓ lower | ↓ lower |
| IBEX 35 | 19,092.40 | +0.28% |
| Brent crude | $108.79 | −0.7% |
| Gold | ↓ lower (above $4,100/oz) | ↓ lower |
| EUR/USD | 1.124 | ↑ higher |
| US 10-year yield | 5.12% | ↓ 2–3 bp |
Tuesday’s closes. Health care stocks hit a record high and the Russell 2000 gained 1.65%, while big tech lagged (CappNotes, Benzinga). In Madrid, Amadeus and Aena led a late IBEX rebound as oil and French bond yields eased (Estrategias de Inversión). Early on Wednesday, Japan’s Nikkei rose about 1%, Brent was back near $110 and S&P 500 futures were up 0.4% (HDFC Sky).
🌍 Economy
US housing hits a wall. Housing starts fell to an annual pace of about 1.22 million in September, well below the 1.30 million expected, and pending home sales dropped 7.3% in a single month. With the 10-year Treasury yield above 5%, high mortgage costs are keeping buyers away (Benzinga, Saxo).
UK inflation is expected to climb. Economists forecast that September consumer prices rose 3.4% from a year earlier, up from 3.1% in August, largely because of higher energy costs. A reading in line with that or higher would strengthen expectations of a Bank of England rate rise in November (FXStreet, ActionForex).
Japan’s exports lose some steam. Exports rose 16.7% from a year earlier in September, a 13th straight gain driven by chip and AI demand, but short of the roughly 20% forecast. The trade deficit was also wider than expected (investingLive, HDFC Sky).
⚡ Energy & bills
Oil swings on Iran headlines. Brent climbed to almost $112 on Tuesday after attacks on Gulf shipping and Houthi strikes on Saudi energy sites, then reversed on reports that mediators were exploring ways to revive US–Iran talks. A diplomat later said a deal was not imminent, and Brent settled at $108.79 (Kitco, Saxo). Iran’s Revolutionary Guards also claimed that mines set two tankers on fire in the Strait of Hormuz, with no independent confirmation (Al Arabiya).
Heating oil is the winter pinch point. With crude near $110, the US Energy Information Administration’s forecast from earlier this month still looms: households that heat with oil could pay about 21% more this winter. Oil-heated homes are concentrated in the US Northeast (CNBC, Bloomberg).
🏢 Companies
Netflix beats on profit but disappoints on outlook. Third-quarter revenue of $12.87 billion matched forecasts, and earnings of 87 cents a share beat the 82 cents expected. But Netflix guided fourth-quarter profit below estimates and cut its 2026 advertising revenue goal to about $2.7 billion, and its shares fell nearly 6% after hours (Kaohoon, Stocktwits).
GM falls despite a beat. General Motors reported third-quarter revenue of $50 billion and adjusted earnings of $3.70 a share, both ahead of forecasts, but its full-year profit outlook fell short of hopes and the stock dropped almost 7%. 3M went the other way, jumping nearly 6% after its results to lead the Dow (Benzinga, Yahoo Finance).
🔢 One number to know
−7.3%
The monthly fall in US pending home sales in September, far worse than economists expected (Yahoo Finance, Saxo).
🗓 What to watch today
| Time (CET) | Event | Why it matters |
|---|---|---|
| 08:00 | UK inflation and producer prices (September) | Forecast 3.4%; key for a November BoE rate rise |
| Before 15:30 | AT&T, Abbott, Thermo Fisher, NextEra Energy and Philip Morris results | Telecoms, health care and power demand |
| 16:30 | US EIA weekly crude inventories | A big draw could push oil higher |
| After 22:00 | Tesla, Meta, IBM, Lam Research, Texas Instruments and SAP results | AI spending and chip demand |
| 22:30 / 23:30 | Meta earnings call / Tesla webcast | Guidance on AI investment and car sales |
Full week in our economic calendar.
📚 Read more
- Shoppers spent 0.8% more. Did they actually buy more?
- Xcel asks to freeze Minnesota electric base rates until 2028
- Week Ahead: Tesla & Meta Earnings, UK CPI, China GDP (Oct 19–25)
- Tool: see what rising prices do to your money with our inflation calculator.
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Market data is for information only and is not investment advice.
Written by The Daily Economy editorial team with AI assistance and checked against the linked sources. Read our editorial policy.