META

We have a third of S&P 500 members on deck to report Q3 results this week, including three Mag 7 members – Alphabet GOOGL and Microsoft MSFT on Wednesday and Amazon AMZN on Thursday. By the end of this week, we will have seen Q3 results from more than 50% of S&P 500 members. With results from about a quarter of S&P 500 members already out, we see a continuation of the broad-based strength we've seen in the last few reporting cycles. While the growth pace remains strong, it does not compare favorably with other recent periods, particularly when some of the outlier numbers are excluded. Most importantly, the revisions trend remains positive, with estimates for 2026 Q4 and full-year 2027 continuing to rise. Looking at overall expectations for the quarter, combining the actual results from the 121 S&P 500 members that have reported already with estimates for the still-to-come companies, Q3 earnings are currently expected to increase by +26.2% from the same period last year on +12.2% higher revenues, the 8th straight quarter of double-digit earnings growth for the index. The Tech sector continues to be a major growth contributor, but the momentum is broad-based, with 14 of the 16 Zacks sectors on track to enjoy positive earnings growth and 6 generating double-digit earnings growth in Q3. The quarterly chart below details actual results alongside Q3 2026 growth expectations and forward projections. Image Source: Zacks Investment Research As noted earlier, the revisions trend has been positive, sustaining the favorable trend in place for almost a year. Estimates for Q3 increased after the quarter got underway, and we are seeing a similar trend at play for 2026 Q4 estimates, as the chart below shows. Image Source: Zacks Investment Research This positive revision behavior is not new; it extends a tailwind that has been building for nearly a year. The positive revisions were at first concentrated in Technology and, more recently, Energy following Middle East supply disruptions. However, for 2026 Q4 and also what we saw for Q3, the favorable estimate revisions have broadened significantly, rising across 7 of the 16 Zacks sectors—including Industrials, Basic Materials, Finance, Aerospace and Conglomerates alongside Tech and Energy since the start of October. On the negative side, Q4 estimates have come down since the start of October for 9 sectors, with the major declines at the Transportation, Autos, Consumer Staples, Consumer Discretionary, Construction, and Utilities sectors. It is important to note that estimates for full-year 2027 have also been similarly trending higher, which we show a little later in this note. Sector Focus: Broad-Based Strength This week's reporting line-up, comprising 172 S&P 500 members, is a representative sample of the index as a whole, ranging from the aforementioned Mag 7 members to Coca-Cola, Boeing, Caterpillar, Visa, Eli Lilly, and a host of Finance and other companies. The 6 sectors expected to enjoy double-digit earnings growth in Q3 are Aerospace (up +186.7%), Energy (+128%), Tech (+45.3%), Basic Materials (+32.6%), Transportation (+11.1%), and Industrial Products (+14.4%). Q3 earnings growth for the S&P 500 index drops to +21.6% from +26.2% once the Energy sector's contribution is excluded from the index. Excluding the Tech sector, Q3 earnings growth for the rest of the index drops to +16.1%. For the Mag 7 group, we already have actual results from Meta META and Tesla TSLA, and this week will bring results from Alphabet, Amazon, and Microsoft. The expectation is that Q3 earnings for the Mag 7 will increase by +22.3% on +23.1% revenues, as the chart below shows. Image Source: Zacks Investment Research Excluding the Mag 7 group's contribution, Q3 earnings for the rest of the index would actually improve to +27.6% (from +26.2%). The chart below shows quarterly earnings and revenue growth expectations for the Tech sector as a whole. Image Source: Zacks Investment Research The Q3 earnings and revenue growth rate drops to +23.1% from +45.3% once the substantial contributions from Nvidia NVDA, Micron MU, and Alphabet GOOGL are excluded, as the chart below shows. Image Source: Zacks Investment Research Q3 Earnings Season Scorecard Through Friday, October 23rd, we have seen Q3 results from 121 S&P 500 members, or 24.2% of the index's total membership. Total earnings for these companies are up +31.5% from the same period last year on +12.2% higher revenues, with 80.7% beating EPS estimates and 69.7% beating revenues estimates. The comparison charts below show the earnings and revenue growth rates for these companies compared to other recent periods. Image Source: Zacks Investment Research The very strong earnings and revenue growth pace for this group of 45 S&P 500 members is mostly due to Micron, whose Q3 earnings increased +1075.7% from the year-earlier level. Excluding the Micron contribution, Q3 earnings for the remaining 120 index members that have reported would be up +14%. The chart below shows the Q3 earnings growth pace for the companies that have reported, with and without Micron, across recent periods. Image Source: Zacks Investment Research The comparison charts below show the Q3 EPS and revenue beat percentages for these companies compared to other recent periods. Image Source: Zacks Investment Research For the Finance sector, we now have Q3 results from 55.3% of the sector's market capitalization in the S&P 500 index. Total earnings for these Finance sector companies are up +10% from the same period last year on +8.7% higher revenues, with 80.6% beating EPS estimates and 52.8% beating revenue estimates. The comparison charts below put the Q3 earnings and revenue growth rates in a historical context. Image Source: Zacks Investment Research The comparison charts below show the Q3 EPS and revenue beat percentages in a historical context. Image Source: Zacks Investment Research As you can see above, not only are the growth rates tracking below other recent periods, but Finance sector companies also seem to be struggling to beat consensus EPS and revenue estimates. The Earnings Big Picture The chart below shows the aggregate growth picture for the S&P 500 index on a calendar year basis. Image Source: Zacks Investment Research As we noted earlier, estimates for full-year 2027 are experiencing the same positive and broad-based revisions trend that we noted earlier in the context of 2026 Q4. The chart below shows how aggregate 2027 earnings expectations have evolved since the start of July. Image Source: Zacks Investment Research For a detailed view of the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Q3 Earnings Season Ramps Up, Outlook for Q4 and Full-Year 2027 Improves Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Bloom Energy (BE) shares plunged more than 11% on Friday, Oct. 23, despite the fuel-cell maker reporting better-than-expected third-quarter earnings and raising its full-year outlook. The sell-off comes as investors grow increasingly sensitive to AI-related headlines. Meta Platforms (META) shares also fell this week following its latest earnings report, as concerns over the cost of massive AI investments overshadowed strong results. Bloom Energy makes fuel-cell systems that supply electricity to data centers and semiconductor factories. The company joined the S&P 500 last month. "What began with hyperscalers is rapidly moving across market segments because every business needs reliable power to grow," Bloom Energy founder and CEO KR Sridhar said in a statement. The stock has rallied 122% year-to-date, benefiting from surging AI demand. But now investors are questioning whether its rapid growth can justify its valuation. The company reported third-quarter adjusted earnings of 94 cents per share, well above analysts' expectations of 69 cents. Earnings were also up sharply from 15 cents a share a year earlier. Revenue jumped 138% year over year to $1.24 billion, beating Wall Street's forecast of approximately $1.06 billion. Also read: Meta stock falls despite Wall Street analysts raising price targets Bloom also raised its full-year 2026 guidance, now expecting earnings of $3.10 to $3.40 per share on revenue of $4.4 billion to $4.6 billion. Despite the rosy numbers above, Bloom reported more than $180 million in negative free cash flow in the third quarter. "This quarter we used cash from operations. But that's not the beginning of a trend," Bloom's CFO Simon Edwards explained on the earnings call. "We generated positive [cash flow from operating activities] year-to-date." "We really do believe that this business will be a free cash flow positive business as we think about continuing to be able to fund our own growth," Edwards said. Wall Street analysts offered mixed reactions to Bloom's latest results. JPMorgan lowered its price target on Bloom Energy to $292 from $314 while maintaining an Overweight rating, according to The Fly. The firm attributed the reduction to lower trading multiples among comparable companies rather than concerns about Bloom's operating performance. JPMorgan noted that Bloom's third-quarter results were well above expectations and that the company had significantly raised its 2026 guidance for the third time this year. The company's execution "continues to impress," JPMorgan said. Morgan Stanley is more bullish on the stock for similar reasons. The analyst raised the price target on Bloom Energy to $335 from $310 while maintaining an Overweight rating. More Artificial Intelligence: - AI's biggest business opportunity may not look like AI - AI racks are outgrowing old power: 2 chipmakers have a strategy - BofA splits software into winners and losers as AI agents arrive The firm said Bloom exceeded both Wall Street consensus and buy-side expectations for revenue and EBITDA (earnings before interest, taxes, depreciation and amortization). "Another beat and raise continues Bloom's strong execution," the analyst said. Bloom's sell-off is just part of a broader shift in investor sentiment, with even strong earnings struggling to lift tech stocks amid concerns over risks. "For the last two weeks, investors have been sprinting from tech stocks and data center beneficiary stocks to safe stuff, and eventually, you run out of people willing to do that sprint, and that's what today looks like and feels like," Jed Ellerbroek, portfolio manager at Argent Capital Management, said in a CNBC interview. Ellerbroek said strong earnings from tech companies could help ease investors' fears. "Emotion and fear play a really big role," he said. But, "we've gotten a few tech companies' [latest quarterly financial reports] and their earnings results have been good." Related: Cathie Wood sells $16 million of surging tech stock This story was originally published by TheStreet on Oct 23, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

- Current Price: $827.42 - Target Price (Mid): ~$3,000 - Street Target: ~$1,224 - Potential Total Return: ~262% - Annualized IRR: ~36% / year __Now Live: Discover how much upside your favorite stocks could have using TIKR's new Valuation Model (It's free)__ >>> GE Vernova (GEV:NYSE) closed at $827.42 on Thursday, October 22, down 10.64%, the session after Meta Platforms (META) reported third-quarter results. Meta's release showed capital spending, including finance lease principal, of $34.91 billion, free cash flow of negative $2.12 billion, a 2026 capex range narrowed to $135 billion to $145 billion, and new non-voting Class C shares created partly for capital raising. Barron's blamed AI financing fears tied to Meta, and Investor's Business Daily asked whether Meta was to blame. GE Vernova's only release that day covered a GE Vernova Foundation education program in the UK. The selling hit the group. Vertiv (VRT) fell 7.81%, and Bloom Energy (BE) fell 8.70% ahead of its own report that evening, while the S&P 500 lost 1.21%. GE Vernova shed about $26 billion of market value and closed 29.57% below its June 30 record close of $1,174.86, though it remained up about 27% in 2026. The market priced a question about how AI buyers fund equipment. GE Vernova's gas customers pay early. At Morgan Stanley's Laguna conference on September 16, CEO and President Scott Strazik contrasted wind's early-stage selections with "a gas slot reservation agreement that has like 25% down." Second-quarter cash from operations reached $5.49 billion against an average estimate of about $1.55 billion, and TIKR shows $9 billion of net cash. That cash has bought stock in sell-offs before: 12.4 million shares at an average of $560 from the buyback's launch through June 30, 2026, which Strazik described as "taking advantage of moments of disruption." Strazik also called the 2035 target for Power Services revenue, $22 billion from $12 billion in 2025, "a conservative marker," as turbines shipped late this decade reach their first outages about four years later. He said that over time "a large majority of these data centers will be grid connected," though many customers only hope to connect within five to seven years, without a guarantee. Two things cut the other way. Second-quarter adjusted EPS of $2.41 missed the $3.01 estimate, and consensus has free cash flow falling around 35% in 2027. TIKR tracks 38 analysts on GE Vernova. How many say "Buy"? See the full breakdown of Buy, Hold, and Sell ratings on GE Vernova, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See GE Vernova's Analyst Ratings - Current Price: $827.42 - Target Price (Mid): ~$3,000 - Potential Total Return: ~262% - Annualized IRR: ~36% / year The mid case runs to December 31, 2030, and from $827.42 it implies around 36% a year. Consensus on TIKR has normalized EPS rising from around $15 in 2026 to around $59 in 2030, so earnings growth carries the return. Wall Street's mean target of around $1,224 rests on 25 Buy, 6 Outperform, 7 Hold, and 2 No Opinion ratings in TIKR's data, which does not include the $470 Sell rating GLJ Research initiated on September 14. Upside comes if third-quarter commitments beat expectations. Downside comes if slower hyperscaler orders arrive alongside the 2027 cash dip, removing the deposit cushion. The output is a scenario, not a forecast. GE Vernova reports before the open on October 28. BofA Securities analyst Andrew Obin expects $21.0 billion of orders, below a $22.2 billion consensus, plus about 13 gigawatts of gas contracts, a figure that counts slot reservations alongside firm orders. Orders at or above consensus, with operating cash again ahead of earnings, would answer the October 22 fear. Orders below $21 billion would give it the first company-reported evidence. Meta's Class C shares take effect on January 19, 2027, so the financing question will outlast one quarter. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what GE Vernova could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Analyze GE Vernova on TIKR Free →

VANCOUVER, BC, Oct. 23, 2026 /PRNewswire/ -- Stock Preachers News Commentary - Stocks closed a volatile earnings week with a split verdict: the Dow gained 0.64% and the Russell 2000 jumped 2.07%, while the Nasdaq Composite fell 0.45% and the S&P 500 slipped 0.22%. The VIX rose to 19.40 and the VXN climbed to 28.13 as traders weighed a wave of third-quarter results. Gold dropped 3.47% and silver fell 4.90% on the week, while WTI crude rose 3.74% on Thursday alone. The 10-year Treasury yield eased 11 basis points to 4.99%. Active Companies from around the markets with current developments this week include: Meta Platforms, Inc. (Nasdaq: META), Texas Instruments Incorporated (Nasdaq: TXN), RTX (NYSE: RTX), IBM (NYSE: IBM), and First Citizens BancShares, Inc. (Nasdaq: FCNCA). Large-cap benchmarks diverged sharply this week. The Dow closed at 52,337.54, up 0.64% for the week despite a 1% drop on Friday, while the S&P 500 ended at 7,642.22, down 0.22% weekly after touching a week high of 7,770.40. The Nasdaq Composite settled at 26,022.45, down 0.45% on the week, dragged by a rough stretch for megacap tech following a batch of earnings reports. The Russell 2000 was the standout, closing at 2,777.63 for a 2.07% weekly gain, outperforming its large-cap peers as investors rotated toward smaller names. RSI readings show the Nasdaq at 38.9 and the S&P 500 at 43.5, both in cooler territory, while the Dow's RSI of 54.1 reflects its relative strength this week. Volatility ticked higher into the weekend, with the VIX up 0.96 points for the week to 19.40 and the VXN up a full point to 28.13. In commodities, natural gas spiked 8.66% on Thursday alone even as it remained down 0.65% for the week, while copper rose 2.44% daily. The dollar firmed slightly against the euro, with EUR/USD down 0.24% on the week to 1.12. The full report also breaks down key support and resistance levels for each index, additional earnings movers, and sentiment heading into next week's sessions. CONTINUED... Read this and more news for Meta Platforms, Inc. (Nasdaq: META), Texas Instruments Incorporated (Nasdaq: TXN), RTX (NYSE: RTX), IBM (NYSE: IBM), and First Citizens BancShares, Inc. (Nasdaq: FCNCA) at: https://stockpreachers.com/articles/small-caps-lead-big-tech-lags-as-earnings-season-shakes-the-tape/ In other industry developments and happenings in the market this week include: Meta Platforms, Inc. (Nasdaq: META) Meta reported third-quarter revenue of $64.60 billion, up 26% year over year, but net income of $9.86 billion reflected a $9.89 billion charge tied to an agreement with 52 state attorneys general over teen mental health and social media litigation. Diluted EPS was $3.83, up 265% year over year; excluding the litigation charge, EPS would have been $7.40. Operating margin fell to 20% from 40% a year earlier, while costs and expenses rose 68% to $51.61 billion. Capital expenditures, including finance lease payments, totaled $34.91 billion, and free cash flow was negative $2.12 billion for the quarter. "We hit major milestones this quarter toward delivering personal superintelligence for everyone - including launching Muse and Muse Wonder, our first frontier model," said Mark Zuckerberg, Meta founder and CEO. "Our investments are paying off, the core business is strong, and we're seeing velocity across the board." The company guided fourth-quarter revenue to a range of $73-76 billion and raised full-year 2026 total expense guidance to $175-179 billion. Read the release. Texas Instruments Incorporated (Nasdaq: TXN) Texas Instruments reported third-quarter revenue of $6.06 billion, up 28% from a year earlier, with net income of $2.43 billion and earnings per share of $2.62. Operating profit rose 73% to $2.87 billion, and revenue increased 11% sequentially. "Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center," said Haviv Ilan, TI's chairman, president and CEO. Trailing 12-month cash flow from operations was $9.9 billion, with free cash flow of $8.4 billion. The company returned $5.8 billion to shareholders over the trailing 12 months and guided fourth-quarter revenue to a range of $5.80 billion to $6.30 billion, with earnings per share expected between $2.45 and $2.79. Read the release. RTX (NYSE: RTX) RTX reported third-quarter sales of $25.0 billion, up 11% versus the prior year and 12% organically, with adjusted EPS of $2.26, up 33% from a year earlier. GAAP EPS was $1.89. Operating cash flow was $2.9 billion and free cash flow was $2.1 billion, with results including $0.25 of IEEPA cost recovery per share. The company's backlog reached a record $340 billion, including $176 billion commercial and $164 billion defense, after over $81 billion of new awards including Tomahawk and AMRAAM multi-year production contracts. "Our strong execution and operational focus in the third quarter enabled RTX to deliver double-digit organic sales growth across commercial aerospace and defense," said RTX Chairman and CEO Chris Calio. The company raised its full-year adjusted EPS outlook to $7.65-$7.75 and adjusted sales guidance to $97.0-$97.5 billion. Read the release. IBM (NYSE: IBM) IBM reported third-quarter revenue of $17.1 billion, up 5% as reported and 6% at constant currency, with Software revenue up 8% and Infrastructure revenue up 4%. GAAP diluted earnings per share were $2.31, up 26% year over year, while operating (non-GAAP) EPS was $2.95, up 11%. The company generated $4.0 billion in net cash from operating activities in the quarter and $3.0 billion in free cash flow, up $0.7 billion year over year. Year to date, free cash flow reached $7.8 billion. "Disciplined execution throughout the quarter drove accelerated revenue growth and strong free cash flow," said Arvind Krishna, IBM chairman, president and chief executive officer. IBM now expects full-year free cash flow to increase by more than $1 billion year over year, while continuing to guide constant currency revenue growth of four to five percent. Read the release. First Citizens BancShares, Inc. (Nasdaq: FCNCA) First Citizens BancShares reported third-quarter net income of $606 million, down from $672 million in the linked quarter. Net income available to common stockholders was $577 million, or $51.23 per common share, a $63 million decrease from the prior quarter's $640 million. Net interest income rose to $1.70 billion, up $43 million from the linked quarter, while net interest margin declined 3 basis points to 3.07%. The company completed its BMO Branch Acquisition on September 4, 2026, assuming approximately $4.9 billion in deposits and acquiring approximately $650 million in loans. "We returned $600 million to our stockholders through share repurchases and further optimized our balance sheet by repaying another $8.0 billion of the Purchase Money Note," said Chairman and CEO Frank B. Holding, Jr. The board approved a new repurchase plan authorizing up to $1.2 billion of Class A common shares through 2027. Read the release. Contact Information: https://stockpreachers.com Media Contact: [email protected] DISCLAIMER: Nothing in this article should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a market commentary and is not a paid advertisement. This article is being distributed by Stock Preachers, which is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. This is an independent market commentary published on a non-paid basis. MEL has not been paid any fee by any company mentioned in this article for its production or distribution, and MEL has no advertising or digital media agreement with any company mentioned in this article. The companies mentioned have not reviewed or approved this article. Market Equities and its owners, operators, directors, and affiliates may, from time to time, hold positions in securities mentioned in this article or in the broad-market index funds that track them, and reserve the right to buy, sell, or hold such securities at any time without further notice. Information in this article was obtained from sources believed to be reliable, including company news releases and public market data, but its accuracy cannot be guaranteed. Market data is as of the time stated and may be delayed. Portions of this commentary were produced with the assistance of automated tools from that data and reviewed against it. Investing in securities involves risk, including the possible loss of some or all of your investment. Technical analysis describes past price and volume behavior and does not predict future results; support and resistance levels can fail at any time. References to the companies named in this article are provided solely as market and sector context and as summaries of each company's own public news releases. No partnership, affiliation, or endorsement is implied, and nothing in this article is a recommendation to buy, sell, or hold any security. Quotations attributed to company executives are reproduced from those companies' own news releases. Forward-Looking Statements: This article may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements made by the companies mentioned in their own news releases. Such statements involve risks and uncertainties, and actual results may differ materially. Readers should review each company's filings with the SEC and applicable Canadian securities regulators. Eagle Eye is an investor signal-intelligence platform affiliated with the publisher of this article. Eagle Eye is not a broker-dealer, and nothing it provides is investment advice. Data may be delayed. Always do your own research. View original content to download multimedia:https://www.prnewswire.com/news-releases/dow-and-small-caps-climb-weekly-while-nasdaq-slips-on-megacap-earnings-charges-302918459.html View original content to download multimedia: http://www.newswire.ca/en/releases/archive/October2026/23/c0679.html

By Lewis Krauskopf NEW YORK, Oct 23 (Reuters) - US stock investors face a pivotal week, with corporate earnings reports led by major AI players and a Federal Reserve meeting posing critical tests for a suddenly shaky market rally. Weakness in technology shares left investors on edge about the state of the AI trade that has ‌driven the US equity bull market that just marked its fourth anniversary. The Nasdaq Composite posted a slim loss on Friday, a day after the tech-heavy index suffered ‌its biggest daily drop since June. Investors were disappointed by quarterly reports from Meta and Lam Research. Meta is one of the hyperscalers spending massively to build out data centers, while Lam is a high-flying semiconductor company, one of ​a group that has been among the biggest AI stock winners. Three other hyperscalers -- Alphabet, Microsoft and Amazon -- headline a packed week of quarterly results, including about one-third of S&P 500 companies. The Fed's interest rate policy meeting on Wednesday also could rattle markets. "There are a lot of balls in the air," said Nick Giorgi, chief equity strategist at Alpine Macro. "Next week, you have a lot more tech earnings, and right now the market is taking a discerning eye as it relates to all the spending that goes along with artificial intelligence," Giorgi said. "The market's just not giving the benefit of ‌the doubt to companies that are spending a ton of money ⁠on building this all out, which to us is actually very healthy, but still does augur for some short-term pain." Investors also have their focus trained on the US midterm elections on November 3, with growing bets that the Democrats will wrest control of the US Congress away from President Donald ⁠Trump's Republican party. The series of market catalysts could ratchet up volatility over the next couple of weeks and challenge optimism that has helped lift the benchmark S&P 500 index up 11% in 2026. HYPERSCALERS ON THE HOT SEAT Robust US profit growth has underpinned the stock market's gains this year in the face of headwinds including spiking Treasury yields and rising energy costs stemming from the Middle East conflict. With more than ​100 ​companies having posted results so far, third-quarter S&P 500 earnings are on pace to have climbed more than ​32% from a year ago, according to LSEG IBES data. Next week ‌is the busiest of the reporting season. "I think earnings will determine whether this ... tech pullback is a buying opportunity, or is there a deeper correction ahead," said King Lip, chief strategist at BakerAvenue Wealth Management. "What we need is just another round of really strong earnings." Alphabet and Microsoft report on Wednesday. Amazon's results are due Thursday. Focus will be on the guidance the companies give on capital spending plans and whether they are seeing returns on the massive outlays. Capital spending from hyperscalers, expected to be around $800 billion this year, is boosting the bottom lines for a wide swath of companies involved in the AI buildout. But investors are wary of the sustainability of such spending amid mounting financing costs. "Earnings are critical to the overall confidence level of the ‌AI trade and how much longer the spend will continue," said Kevin Mahn, president and chief investment officer ​at Hennion & Walsh Asset Management. FED EXPECTED TO PAUSE ON RATES, FOR NOW Quarterly reports next week from chip companies Intel ​and Sandisk also could influence the AI trade. Elsewhere, other high-profile companies set to report ​next week include drugmaker Eli Lilly, oil majors Exxon and Chevron and industrial equipment giant Caterpillar. The prospect for more interest rate hikes also comes into ‌focus with the Fed meeting. The Fed raised rates in September for ​the first time since 2023, in an effort ​to control above-target inflation, but Fed funds futures late on Friday suggested a less-than 10% chance the Fed will hike again when it gives its policy statement on Wednesday, according to LSEG data. One factor: Investors are dubious that the Fed will want to increase rates just a week before the midterm elections. However, markets are leaning toward a hike ​at the next meeting in December, with futures suggesting a roughly ‌80% probability of such a move then. Walter Todd, chief investment officer at Greenwood Capital, said he will be watching for any hints about the rate path at Fed ​Chair Kevin Warsh's press conference following the decision. "Does he say something to give an idea about December, because right now the expectation is there is going ​to be a hike," Todd said. (Reporting by Lewis Krauskopf, editing by Colin Barr and David Gregorio)

December S&P 500 E-Mini futures (ESZ26) are down -1.03%, and December Nasdaq 100 E-Mini futures (NQZ26) are down -1.78% this morning as the first round of Big Tech earnings reignited concerns about the sustainability of the AI trade, sparking a selloff in chipmakers and other AI-related stocks. Meta Platforms (META) raised the lower end of its full-year capital expenditure guidance while leaving the upper end unchanged and offered no specific details on its 2027 spending plans beyond saying it would continue "investing aggressively." Quilter Cheviot's Ben Barringer said the absence of a substantial increase means "there's not much there for the AI CapEx trade." Meanwhile, Tesla (TSLA) cut its full-year capital spending forecast. Taken together, these developments reignited concerns about AI investments, sending chipmakers and AI infrastructure stocks sharply lower in pre-market trading. Marvell Technology (MRVL), Intel (INTC), and Advanced Micro Devices (AMD) each fell -4% or more. - 'No Question Tesla's Going to Merge With SpaceX' — Kevin O'Leary Says If You Own Tesla Stock, You'll Own the New Company After Flying Roadster Demo - Jensen Huang Says the Next Wave of AI Is Physical. Forget Nvidia and Tesla, I'd Bet on These 2 Mid-Cap Stocks Instead. - AST SpaceMobile Stock Gets a New Catalyst. Wall Street Sees 93% Upside. - Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Adding to the downbeat mood, WTI crude climbed more than +2% on Thursday after deadly attacks in Saudi Arabia raised concerns that escalating Middle East tensions could disrupt oil supplies. A drone attack on Saudi Aramco's Shaybah field left two people dead but did not disrupt operations, while a separate strike on King Fahd International Airport in Dammam killed one person. The attacks heightened fears that the U.S. and Israel could resume direct military action against Iran. The New York Times reported that the U.S. and Israeli militaries have drawn up detailed plans for renewed strikes on Iran after the U.S. midterm elections. Treasuries climbed across the curve as the selloff in AI-related stocks prompted investors to seek refuge in safe-haven assets. The 10-year T-note yield fell eight basis points to 5.05%. Investors are now awaiting a new wave of corporate earnings reports. In yesterday's trading session, Wall Street's three main equity benchmarks ended in the green, buoyed by strong results from SpaceX and Super Micro. SpaceX (SPCX) climbed over +7% and was the top percentage gainer in the Nasdaq 100 after the rocket and AI company reported upbeat Q3 results, while CEO Elon Musk outlined an ambitious 2027 ARR forecast and endorsed the prospect of a merger with Tesla. Also, Super Micro Computer (SMCI) surged more than +9% and was among the top percentage gainers in the S&P 500 after the AI server maker reported preliminary Q1 revenue and gross margins above its previous guidance. In addition, chip and AI infrastructure stocks advanced as strong results from SpaceX and Super Micro boosted sentiment toward the AI trade, with Western Digital (WDC) and Advanced Micro Devices (AMD) gaining more than +3%. On the bearish side, Netflix (NFLX) slid over -5% after the streaming giant issued below-consensus Q4 guidance. Third-quarter corporate earnings season is in full swing, with investors awaiting results from major companies today, including Western Digital (WDC), Procter & Gamble (PG), Union Pacific (UNP), Lockheed Martin (LMT), and Bloom Energy (BE). According to Bloomberg Intelligence, S&P 500 companies are expected to post an average +25% jump in third-quarter earnings from a year earlier. On the economic front, investors will be watching U.S. initial jobless claims data, set to be released in a couple of hours. Economists expect applications for U.S. unemployment benefits to come in at 200K in the week ended Oct. 17, compared with 199K in the prior week. The Conference Board Leading Economic Index for the U.S. will also be released today. Economists expect the September figure to fall -0.1% m/m, matching the drop recorded in August. U.S. rate futures are currently pricing in an 87.3% probability of no rate change and a 12.7% probability of a 25-basis-point rate hike at the upcoming monetary policy meeting. In the bond market, the yield on the benchmark 10-year U.S. Treasury note is at 5.05%, down -1.56%. The Euro Stoxx 50 Index is down -1.77% this morning, pressured by declines in heavyweight banking, technology, and luxury stocks on a busy day for earnings. Rising oil prices amid escalating tensions in the Middle East further dampened sentiment. Bank stocks led the declines on Thursday as turbulence in the Eurozone bond market weighed on the sector. Tech stocks also sank as mixed earnings results from major U.S. tech companies failed to sustain the rebound in the AI trade. In addition, luxury stocks slumped, weighed down by a slide of more than -7% in Birkin bag maker Hermes (RMS.FP) after it posted weaker-than-expected Q3 revenue. Data released on Thursday showed that France's manufacturing business climate index climbed in October to its highest level since July 2022. Meanwhile, French government bond yields jumped on Thursday amid growing investor concerns over France's weakening fiscal position and mounting debt load, while German bunds gained on safe-haven demand. In other corporate news, Nestle (NESN.Z.IX) rose over +1% after the Swiss packaged-food group reported better-than-expected Q3 organic sales growth. France's Business Survey was released today. The French October Business Survey came in at 105, stronger than expectations of 101. Asian stock markets today closed in the red. China's Shanghai Composite Index ($CHSC) closed down -1.48%, and Japan's Nikkei 225 Stock Index ($NKY) closed down -2.65%. China's Shanghai Composite Index closed lower today, hitting its lowest level in more than a year as a selloff in technology stocks and waning hopes for additional economic stimulus weighed on sentiment. Tech shares tumbled on Thursday as growing concerns about the profitability of the nation's AI companies sparked another wave of selling. Investor confidence was also undermined by diminishing hopes for substantial stimulus from Beijing following China's relatively strong Q3 GDP data. While policymakers have taken steps to ease selling pressure and stabilize the equity market, analysts warned that those measures alone may not be enough to reverse the downturn. The selloff in mainland Chinese stocks has wiped out $2.4 trillion in market capitalization since a recent peak, according to Bloomberg-compiled data. "Investor sentiment remains very poor for China's onshore and offshore markets, and without new policy or tech catalysts, this kind of volatile, directionless environment may persist into early 2027," said Homin Lee at Lombard Odier. Meanwhile, Chinese President Xi Jinping called for meaningful improvements in economic quality and reasonable quantitative growth in a speech on Thursday, according to Xinhua. "We must resolutely promote high-quality development and continuously meet the people's ever-growing needs for a better life," Xi said. Elsewhere, Bloomberg News reported on Thursday that Chinese AI startup DeepSeek raised roughly 100 billion yuan ($14.98 billion) in its latest funding round. In corporate news, Alibaba Group sank over -6% in Hong Kong after Chinese authorities summoned e-commerce companies and urged stricter product-quality standards. Japan's Nikkei 225 Stock Index closed sharply lower today as U.S. megacap earnings failed to sustain the rebound in the AI trade. Rising oil prices amid escalating Middle East tensions also weighed on sentiment. Chip-related stocks cratered on Thursday, erasing the previous session's gains as investors grew increasingly concerned about the outlook for AI spending. The selloff followed Tesla's decision to lower its full-year capex forecast. "[The market] frets when companies ramp spending, and it frets when they pull it back, as we've just seen with Tesla. In this environment, it's almost impossible to get the balance right," said Tim Waterer at KCM Trade. The Nikkei closed below the 63,000 mark for the first time since Sept. 14. Meanwhile, Japanese government bonds climbed on Thursday, pushing yields to multi-week lows as the equity selloff prompted investors to seek refuge in safe-haven assets. In other news, Japan's largest labor union federation, Rengo, said it will seek wage increases of at least 5% during the annual spring wage negotiations between the country's unions and employers, known as shunto. Elsewhere, foreign investors sold a net 66.5 billion yen worth of Japanese stocks in the week ended Oct. 17, reversing course after substantial net purchases of 3.55 trillion yen the previous week, according to Ministry of Finance data. Market participants are now turning their attention to Japan's September national core CPI, preliminary October PMIs, and the Bank of Japan's Financial System Report, all due on Friday. The Nikkei Volatility Index, which takes into account the implied volatility of Nikkei 225 options, closed up +16.60% at 35.97. Pre-Market U.S. Stock Movers Tesla (TSLA) sank nearly -5% in pre-market trading after the EV maker cut its full-year capital spending forecast. Meta Platforms (META) dropped more than -2% in pre-market trading despite reporting record Q3 revenue that topped expectations, as its shares were caught up in the broader AI selloff. Other Magnificent Seven stocks declined amid risk-off sentiment, with Alphabet (GOOGL) and Amazon.com (AMZN) falling over -2%. Chip and AI infrastructure stocks slid in pre-market trading after earnings from Tesla and Meta Platforms reignited concerns about the sustainability of AI spending. Marvell Technology (MRVL), Intel (INTC), and Advanced Micro Devices (AMD) each fell -4% or more. Lam Research (LRCX) slumped about -8% in pre-market trading after the semiconductor capital equipment company issued soft FQ2 guidance. You can see more pre-market stock movers here Today's U.S. Earnings Spotlight: Thursday - October 22nd The Procter & Gamble Company (PG), Union Pacific (UNP), Western Digital (WDC), Blackstone (BX), Lockheed Martin (LMT), Valero Energy (VLO), Newmont (NEM), Comcast (CMCSA), Norfolk Southern (NSC), Bloom Energy (BE), Honeywell International (HON), Nasdaq (NDAQ), Comfort Systems USA (FIX), Roper Technologies (ROP), CBRE Group (CBRE), Huntington Bancshares (HBAN), PG&E Corporation (PCG), VeriSign (VRSN), Dover (DOV), Quest Diagnostics (DGX), Omnicom Group (OMC), Dow Inc. (DOW), PulteGroup (PHM), SS&C Technologies Holdings (SSNC), Snap-on (SNA), Carpenter Technology (CRS), Tractor Supply Company (TSCO), Allegion (ALLE), Deckers Outdoor (DECK), TTM Technologies (TTMI), Popular (BPOP), Old Republic International (ORI), FirstCash Holdings (FCFS), Ryder System (R), Rexford Industrial Realty (REXR), Kinsale Capital Group (KNSL), American Airlines Group (AAL), Columbia Banking System (COLB), AppFolio (APPF), MSC Industrial Direct Co. (MSM), Valley National Bancorp (VLY), RingCentral (RNG), MaxLinear (MXL), Pool Corporation (POOL), Glacier Bancorp (GBCI), Associated Banc-Corp (ASB), Selective Insurance Group (SIGI), Ameris Bancorp (ABCB), Boyd Gaming (BYD), Eastern Bankshares (EBC), Enova International (ENVA), SLM Corporation (SLM), First BanCorp. (FBP), Bread Financial Holdings (BFH), Kilroy Realty (KRC), WSFS Financial (WSFS), Badger Meter (BMI), The Vita Coco Company (COCO), Lazard (LAZ), Robert Half (RHI), First Interstate BancSystem (FIBK), Curbline Properties (CURB), Knowles (KN), Ardagh Metal Packaging (AMBP), Customers Bancorp (CUBI), Visteon (VC), Hilltop Holdings (HTH), 1st Source (SRCE), The Boston Beer Company (SAM), S&T Bancorp (STBA), Byline Bancorp (BY), Gentherm (THRM), ConnectOne Bancorp (CNOB), Amalgamated Financial (AMAL), Universal Insurance Holdings (UVE), Amerant Bancorp (AMTB), Heritage Financial (HFWA), Lindsay (LNN). On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

By Jiaxing Li HONG KONG, Oct 22 (Reuters) - Asian stocks struggled to stay above water in early trade on Thursday, as tech earnings optimism provided only fleeting support amid lingering ‌concerns over AI and uncertainty in the Gulf. MSCI's broadest index of Asia-Pacific shares outside Japan ‌was down 0.2%, on track for a fourth straight week of decline. Japan's Nikkei stock index gave up earlier gains to trade ​0.4% lower, while Korean shares were down more than 1%. US stock futures, the S&P 500 e-minis, were down 0.4% at 7,765.8. Overnight, the tech-heavy Nasdaq led Wall Street to a higher close as better-than-expected earnings reports from market heavyweights helped ease some concerns over the sustainability and profitability of massive AI build-outs. Space X posted ‌its first profit as a public ⁠company, Meta reported third-quarter revenue that beat expectations, while AI server maker Super Micro forecast quarterly revenue and profit margin that both topped estimates. However, Meta's plan to issue ⁠non-voting Class C common stock drew renewed scrutiny on AI spending. "There's a lot of noise out there at the moment and investors are still digesting this morning's results," said Kyle Rodda, senior financial market analyst at Capital.com. "Also, ​we're really ​only at the start of the meaty part of ​earnings season, which is coming at the ‌same time that investors are tackling the uncertainty from an upcoming Fed decision, geopolitical risks, and US mid-terms." In a sign of subdued risk sentiment, the yield on benchmark 10-year Treasury notes was down 4.2 basis points at 5.1065%, while the yield on 30-year notes was at a one-week low of 5.3968%. Meanwhile, Brent crude rose 1.1% to $110.03 a barrel, near a five-month high. The US ordered diplomats to leave Saudi Arabia amid ‌Houthi strikes, while the New York Times reported the ​US and Israeli militaries had developed specific plans for renewed attacks ​on Iran after the US midterm elections, ​which take place on November 3. In currencies, the dollar index, which tracks the ‌greenback against a basket of currencies of other ​major trading partners, dipped to ​102.2. The euro was little changed at $1.1231. The yen was also flat at 158.125, after Deputy Bank of Japan Governor Ryozo Himino signalled his readiness to raise borrowing costs. The Korean won ​was muted at 1325.9, after the ‌Bank of Korea left its benchmark interest rate unchanged at 3.00% on Thursday. Gold was slightly ​lower at $4115.5 per ounce. [GOL/] Bitcoin was down 0.4% at $84,284.05, while ether was 0.6% lower at $2,476.34. (Reporting by ​Jiaxing Li in Hong Kong; Editing by Kate Mayberry)