TLDR
- Stock futures rose Wednesday as investors waited for Meta Platforms to report earnings after the close.
- SpaceX shares jumped after revenue grew 161% and CEO Elon Musk said merger talks with Tesla are underway.
- Netflix fell about 6% after weak revenue guidance and its slowest sales growth in three years.
- Intuitive Surgical dropped 7.6% after disclosing a $450 million antitrust matter.
- Capital One gained 3.3% after saying it will spend more on marketing.
Stock futures moved higher early Wednesday as investors looked over a new round of company earnings. Attention turned to Meta Platforms, which reports after the market closes.
S&P 500 futures rose 0.11%, and Nasdaq-100 futures gained 0.44%. Dow futures slipped almost 0.1%, a drop of 42 points.
A day earlier, the Dow Jones Industrial Average climbed nearly 530 points, or 1%. The S&P 500 rose 0.3%, and the Nasdaq Composite finished slightly lower.
SpaceX, Netflix and Other Earnings Movers
SpaceX shares jumped about 9% in premarket trading. The company said its third-quarter revenue grew 161%.
The rocket and AI company also topped analyst expectations for third-quarter earnings. At one point, the stock was up 10%.
Musk said SpaceX and Tesla have formed special committees to discuss a possible merger. Tesla shares rose more than 2% before the open. Tesla is due to report earnings after the close.
Netflix shares dropped about 6% in premarket trading. The streaming company beat Wall Street’s third-quarter earnings target but gave weak revenue guidance.
Netflix also posted its slowest sales growth in three years. The report did not ease worries about slowing engagement.
Intuitive Surgical fell 7.6% even though its third-quarter results beat estimates. The surgical robot maker disclosed a $450 million antitrust matter and narrowed its outlook for procedure growth.
Capital One gained 3.3% after its earnings call. The credit card company said it will spend more on marketing as rivals step up their own efforts.
On Tuesday, 3M rose more than 5% after raising its full-year profit guidance. The industrial products company helped lift the Dow.
Meta and the AI Trade
Meta shares slipped 0.3% before the opening bell. It is the first Big Tech hyperscaler to report this earnings season. Investors will watch its capital spending guidance because of its heavy AI investment.
Earlier this month, Meta released a new AI model called Muse Wonder. It is only available to paying users.
Worries about the AI trade have weighed on market mood lately. Traders are focused on debt-backed AI spending and whether demand for infrastructure justifies it. Seagate Technology rose 2% on Tuesday, and CoreWeave gained more than 1%.
Christian Mueller-Glissmann of Goldman Sachs Research said earnings support, lighter positioning and lower valuations should help stocks into year-end. He noted that AI concerns, Middle East tensions and midterm elections could bring volatility in the near term.
West Texas Intermediate crude futures rose 1.25% to $99.04 a barrel. In Asia, South Korea’s Kospi gained 3.29%, and Japan’s Nikkei 225 added 0.85%. Europe’s Stoxx 600 rose 0.14%.
Meta reports after the close Wednesday. IBM, Southwest Airlines, Lam Research, SAP and Texas Instruments are also due to report.
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