It was another mixed day for U.S. stocks, with Chinese names remaining the core focus for traders looking for quick moves to the upside. Elsewhere, the attention is shifting to fundamentals as earnings and other company-related news drive the latest moves. 👀

Today's issue covers Tesla’s delivery miss, why Humana is getting hammered, Levi’s looking to sell the Dockers brand, and an under-the-radar tax software stock making new highs. 📰

Here’s the S&P 500 heatmap. 4 of 11 sectors closed green, with energy (+1.02%) leading and consumer discretionary (-0.85%) lagging.

And here are the closing prices: 

Most bullish/bearish symbols on Stocktwits at the close: 📈 $HKD, $TIGR, $JOBY, $MTC, $XAIR 📉 $LEVI, $API, $NTLA, $LCID, $ETSY*

*If you’re a business and want to access this data via our API, email us.

Tesla shares were turned away from their year-to-date (YTD) highs after the electric vehicle (EV) maker reported its third-quarter vehicle numbers.

Deliveries of 462,890 fell short of the 463,310 expected by analysts, while production of 469,796 potentially indicated weak demand as the company produced more than it could sell. 😐

The numbers show that Tesla is continuing to face competitive pressure, especially in China, where BYD, Geely, Li Auto, and Nio are aggressively pursuing consumers in the region. In the U.S., competitors like Rivian are furthering their progress, while Ford and General Motors are taking a scaled-back but more effective approach to the EV market.

While Tesla hadn’t issued specific guidance for 2024 deliveries, management did say it expects a lower delivery growth rate compared to last year, as high interest rates and economic uncertainty continue to pressure overall EV demand. 📉

Tesla shares stabilized intraday, but the Stocktwits community remains ‘bearish’ on the stock despite its recent comeback. All eyes now turn to the RoboTaxi event on October 10th and earnings on October 23rd. 🧸

Health insurance giant Humana has been under pressure for much of the last year as higher medical costs pressured margins. That decline accelerated this week following the government’s Medicare decisions.

Yesterday, shares fell after the company announced its Medicare Advantage and Medicare Prescription Plan offerings for 2025, which included benefits like vision and comprehensive dental coverage that members requested. 📋

Today, its shares fell further on reports that the government is set to cut its rating on one of the health insurer’s large Medicare Advantage plans because it missed several performance measures. Preliminary 2025 data suggests only 25% of members will be enrolled in Medicare Advantage (MA) plans with star ratings of 4 or higher, which is down sharply from 2024’s 94%.

Star-rating details are expected to be formally released on October 10th. One analyst says the ratings drop will “significantly impact 2026 rebates and quality payments from the government.” 🌠

Overall, the news spells higher costs and reduced government payments (revenue), which will pressure earnings. Additionally, the drop in care quality means members have further incentive to explore different providers. 🔻

Shares fell back toward their 2020 lows and found a bid, though Stocktwits community sentiment remains in ‘bearish’ territory as traders and investors discuss the continued fundamental headwinds. 😬

Levi Strauss failed to impress with its latest earnings report, though the Stocktwits community remains ‘extremely bullish’ on shares. Let’s see why. 🤔

The company reported adjusted earnings per share of $0.33, vs. the expected $0.31, while revenues of $1.52 billion missed estimates of $1.55 billion. Earnings improved from last year as management focused on cost cuts, though sales were essentially flat.

Levi’s brand sales were up 5% YoY, while gross margins jumped 4.40% because of the company’s direct-selling strategy. Levi’s direct channel was up 10%, driven by strength in the U.S. and e-commerce. However, overall direct sales were just 44% of total revenue, well below its long-term target of 55%. 🛒

Sales at Dockers were a major drag on U.S. performance, falling 15% YoY to $73.70 million. The growth in its athleisure brand, Beyond Yoga, was not enough to offset that weakness, given its small base (+19% YoY to $32.20 million).

As a result, management is looking to exit the underperforming Dockers brand, improving its overall margins and reducing top-line volatility. Bank of America will lead the sales process as both companies look to operate independently and maximize each other’s values. ❌

Levi reaffirmed its full-year adjusted earnings guidance but cut its revenue growth guidance from 1%-3% to 1%. Europe remains an area of strength and China is a challenge, though it only composes 2% of overall revenue.

Long-term, investors are optimistic about the company’s core brand and excited for it to spin off Dockers and focus on growth. Management has stabilized earnings through cost cuts and is now focusing on revenue growth, which retail thinks it can do successfully. 👍

Time will tell. But for now, shares are down 11% after hours. 🤷

Tax compliance software and services may not be sexy, but they can make for good businesses. With software stocks being the latest tech industry group to catch a bid, the industry is seeing renewed attention on underfollowed names.

Stocktwits user @Dr_Stoxx highlighted Vertex Inc.’s breakout to new all-time highs just over two years after it fell 75% from its 2021 peak. He and others in the Stocktwits community are looking for further upside in this mid-cap name with just 335 followers on our platform. 🕵️

Economic data: Initial/Continuing Jobless Claims (8:30 am ET), S&P Global Composite PMI (9:45 am ET), ISM Services PMI (10:00 am ET), Factory Orders (10:00 am ET), and Fed Bostic Speech (10:40 am ET). 📊

Pre-Market Earnings: Constellation Brands ($STZ) and AngioDynamics ($ANGO). 🛏️

After-Hour Earnings: Phoenix Motor ($PEV). 🎧

P.S. You can listen to all of these earnings calls and more straight from the Stocktwits app or website. You’ll find them on the calendar page and individual symbol pages once they’re set to begin! We’ll see you there. 👍

🚕 Toyota puts another $500 million in an air taxi startup

🪙 Costco adds platinum bars to its precious metals lineup

🛢️ OPEC+ panel sticks to output policy, doubles down on compliance

🍔 Wendy’s is celebrating SpongeBob’s 25th anniversary with a Krabby Patty meal

🤑 OpenAI closes funding at $157 billion valuation, as Microsoft, Nvidia, SoftBank join round

⚖️ The president could invoke a 1947 law to try to suspend the dockworkers’ strike. Here’s how

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