TLDR
- U.S. stock futures dropped early Thursday after Tesla and Meta Platforms released third-quarter earnings.
- Tesla beat estimates, but it lowered its 2026 capital spending forecast to about $20 billion.
- Elon Musk said Tesla and SpaceX set up a special committee to study a possible merger.
- Metaās revenue grew 26% to $64.6 billion and topped Wall Street estimates.
- Brent crude traded above $110 a barrel, and Franceās 10-year yield reached its highest level since 2002.
Wall Street looked set for a weaker open on Thursday as investors weighed third-quarter results from Tesla and Meta Platforms. Both companies reported after the close on Wednesday.
S&P 500 futures were down between 0.7% and 0.9%. Nasdaq 100 futures lost between 1.3% and 1.6%, while Dow futures eased by up to 0.5%.
Markets in Asia also traded lower. Japanās Nikkei 225 slipped 0.73%, South Koreaās Kospi dropped more than 1%, and Hong Kongās Hang Seng fell more than 2%.
Tesla and Meta Report Third-Quarter Results
Tesla topped analyst forecasts for both earnings and revenue. Even so, its shares fell between 3% and 5% in extended trading.
The carmaker lowered its 2026 capital spending forecast to about $20 billion. It had earlier pointed to more than $25 billion.
Elon Musk said Tesla and SpaceX have set up a special committee to look at a possible merger. He said no terms have been agreed and a deal is not guaranteed.
SpaceX shares dropped more than 2% in extended trading. The company had reported strong results and mentioned the potential tie-up with Tesla.
Meta reported earnings of $3.83 per share, above the $3.57 analysts expected. Revenue grew 26% from a year earlier to $64.6 billion, ahead of the $63.34 billion forecast.
Advertising growth and stronger engagement across its apps supported the quarter. A large legal settlement added to costs.
Meta shares rose between 1% and 2% in extended trading. The company gave a positive outlook for the current quarter and narrowed its range for full-year data center spending.
Dan Ives of Yorkville Ives said the quarter showed AI investment paying off in the core business. He added that spending was ābetter controlled than feared.ā
Wall Street, Oil and Bond Markets
U.S. stocks closed higher on Wednesday. The Nasdaq Composite rose 1.1%, the S&P 500 gained 0.6%, and the Dow added 0.7%.
Strong results from SpaceX and Super Micro Computer helped lift the session. Super Micro also raised its fiscal first-quarter revenue outlook.
Brent crude traded above $110 a barrel in Asia on Thursday. Inflation worries also kept the focus on the Federal Reserve meeting next week.
In Europe, Franceās 10-year bond yield rose nearly 6 basis points to 5.0514%. It closed Wednesday near 5.02%, the highest level since 2002. The CAC 40 fell 1.33% in early trade as Hermes dropped 6.3% after missing revenue expectations.
Procter & Gamble, Lockheed Martin, Valero Energy, Honeywell and Western Digital report results on Thursday. Weekly initial jobless claims are also due in the morning.
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