Sasha Jovanovic
7 min read
The Morning Bull – US Market Morning Update Thursday, Oct, 22 2026
US stocks look set to open weaker, with futures pointing lower as investors react to a sharp upside surprise in UK inflation. The move is feeding a more cautious mood around global central bank policy.
UK CPI printed at 3.5% in September, with core inflation at 2.8%, both above recent trends and prior readings. These numbers have raised expectations that tight policy in major economies may persist longer than markets had been assuming.
Higher for longer policy thinking tends to pressure longer term bond yields, which directly affects borrowing costs for US households and companies. That can compress valuation multiples for growth heavy indices and complicate earnings plans for capital intensive businesses.
The key question now is whether upcoming US data breaks or confirms this stickier inflation story, particularly initial jobless claims today and PMIs on Friday. If US numbers echo the UK pattern, investors may need to reassess how much policy relief is realistically priced in.
Stocks to Watch Before the Opening Bell
Southwest Airlines (LUV)
Record Q3 2026 earnings from Southwest Airlines beat Wall Street expectations, supported by all time high unit revenues and strong overall operating revenues. The carrier also issued guidance for the current quarter and full year. Investors now have two dates to mark: the first Southwest Icon Lounge opens in 2027, and a Capital Markets Day is set for March 2, 2027.
Reliance (RS)
Reliance posted record Q3 2026 results, with net sales of US$5.21b and non GAAP diluted EPS of US$8.02, 120% higher year over year and ahead of analyst forecasts. The metals service center business expanded its share repurchase program to US$2.5b and declared a US$1.25 quarterly dividend. Management also issued Q4 EPS guidance of US$7.40 to US$7.60.
Teledyne Technologies (TDY)
Teledyne Technologies reported all time record quarterly sales, operating profit, and non GAAP diluted EPS for Q3 2026. The company also agreed to acquire Varex Imaging in a US$1.1b deal that is expected to close in early 2027. Strong cash flow supported US$224.6m of stock buybacks, indicating ongoing capital return alongside expansion in imaging hardware.
Top Movers
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Skydance (SKYD) jumped 10.85% after John Malone flagged a potential US$8b to US$10b SpaceX investment and content partnership.
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Zscaler (ZS) gained 7.84% as investors reacted to upbeat commentary on cybersecurity demand for securing AI agents and data.
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Space Exploration Technologies (SPCX) climbed 7.79% following strong Q3 results and fresh Tesla merger talk that kept AI optimism elevated.
