Major indices are moving lower this morning as investors digest a handful of notable earnings misses, a possible escalations in the US-China trade negotiations, and weakness across mega-cap names. The Street is also awaiting Tesla’s (TSLA) earnings report after the bell today (more below).

Netflix (NFLX) is dragging other mega-cap names lower after the company missed EPS estimates due to a dispute with Brazilian tax authorities.

Four sectors are in the green, with the more defensive sectors such as Health Care (XLV) and Consumer Staples (XLP) leading the way. Health Care is being led higher by several favorable earnings, including Intuitive Surgical (ISRG) and Boston Scientific Corporation (BSX).

On the other hand, Technology (XLK) is lagging and being led lower mostly by semiconductors, after Texas Instruments (TXN) reported a miss on earnings yesterday after the bell.

Tesla (TSLA) is scheduled to report its third quarter results, after the bell, today. The stock’s past earnings reactions have alternated between green and red; however, on average the stock tends to increase in a one-week period. It will be a key report as it will give insight into whether some of the headwinds earlier in the year have subsided. In addition, investors are awaiting progress updates for Robotaxis, robots, and new vehicle launches.

Gold is still consolidating following yesterday’s move lower, but holding above the 4,000 level.

Alphabet (GOOG/L) unveiled a new quantum algorithm for their Willow Quantum chips, named Quantum Echoes. This takes a big step forward, being the first independently verifiable quantum algorithm, and making it the first quantum algorithm to show a 13,000x speed-up over classical supercomputers on the "Quantum Echoes" benchmark. Independently verifiable means that it can be confirmed by running it on non-Alphabet quantum computers using publicly shared protocols and data.

However, the news was not enough to stop the recent consolidation action amongst the pure plays in Quantum.

A reminder that the special Town Hall on Fox Business airs today at 2 PM ET.

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