TSLA

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

Investing.com - U.S. stock index futures fell sharply on Thursday as investors assessed quarterly results from Meta Platforms and Tesla, while renewed concerns about the sustainability of artificial intelligence spending weighed on technology shares. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » The earnings reports put the focus on whether heavy investments in AI infrastructure, robotics and autonomous driving can deliver sufficient returns. By 07:16 ET, S&P 500 futures had fallen 1.1%, Nasdaq 100 futures had dropped 1.7%, and Dow futures had retreated 0.7%. Meta Platforms shares fell more than 1% in premarket trading despite the Facebook and Instagram parent beating third-quarter revenue and earnings estimates and forecasting stronger-than-expected revenue for the current quarter. Revenue rose 26% year over year to $64.60 billion, ahead of the $63.33 billion consensus, while earnings per share came in at $3.83, compared with estimates of $3.57. Advertising revenue also climbed 26% to $63.06 billion, with CEO Mark Zuckerberg saying engagement on Facebook and Instagram had reached record levels. Meta forecast fourth-quarter revenue of $73 billion to $76 billion, above expectations at the midpoint, but raised its annual capital spending outlook to $135 billion-$145 billion from $130 billion-$145 billion as it continues investing heavily in AI infrastructure. Earnings also included a $9.89 billion legal charge related to a settlement with 52 state attorneys general over teen mental health litigation. Tesla shares dropped 5.0% in premarket trading to $367.20 as investors reacted to the company's outlook for spending, vehicle sales and future growth. The electric-vehicle maker reported adjusted earnings per share of $0.48, beating estimates of around $0.43-$0.44, while free cash flow reached $1.53 billion, well above expectations. However, net income attributable to common shareholders fell 29% year over year to $787 million, and automotive revenue declined 3% amid lower average selling prices and battery supply constraints. Tesla also cut its full-year capital expenditure forecast to around $20 billion from more than $25 billion, raising questions about the pace of its AI and robotics investments. CEO Elon Musk said the company was targeting 5 million vehicle sales by the end of the decade, well below his earlier projection of 20 million. Tesla expects to begin shipping Optimus humanoid robots to corporate customers by the end of 2027, while meaningful robotaxi revenue is not expected until 2027-2028. Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » International Business Machines shares slid 5.7% before the opening bell despite the technology company's third-quarter earnings and revenue beating analyst estimates. IBM reported adjusted earnings per share of $2.95, above the $2.86 consensus, while revenue of $17.1 billion topped forecasts of $16.82 billion. However, the company's adjusted gross margin of 58.5% fell short of the 59.1% estimate, and IBM left its full-year constant-currency revenue growth forecast unchanged at 4%-5%. Comments from CEO Arvind Krishna about corporate customers questioning whether AI investments were generating measurable returns also weighed on sentiment. Lam Research fell 8.4% in premarket trading even after the chip-equipment maker reported record fiscal first-quarter revenue and beat earnings estimates. Revenue for the quarter ended September 27, 2026, reached $8.22 billion, up 54% year over year, while adjusted earnings per share came in at $2.20, narrowly above the $2.18 consensus. The operating margin also exceeded 40% for the first time in the company's history. Despite the strong reported results, investors appeared focused on what the company had not delivered, with the shares coming under pressure amid renewed concerns around technology and AI-related stocks. CSX shares rose 2.4% in premarket trading after the freight railroad reported stronger-than-expected third-quarter results the previous evening. Adjusted earnings reached $0.57 per share, topping the $0.53 analyst estimate, while revenue rose to $4.02 billion from the $3.95 billion forecast. Operating income totaled $1.57 billion and net earnings reached $1.05 billion. CEO Steve Angel attributed the performance to disciplined execution that helped the company move more freight while maintaining its safety and service standards. Rollins, the parent of pest-control company Orkin, dropped 7.3% after reporting third-quarter results that missed analyst expectations. Revenue increased 6.2% year over year to $1.09 billion but fell short of the $1.11 billion consensus. Adjusted EBITDA of $257 million also missed estimates, while the operating margin contracted 140 basis points to 20.5%. Adjusted earnings per share of $0.34 came in below the $0.35 consensus. CEO Jerry Gahlhoff said the company was disappointed with its performance and was taking action to address the challenges affecting results. Dow shares rose more than 2.5% in premarket trading after the chemicals maker reported third-quarter adjusted profit above Wall Street expectations, as higher polyethylene prices and cost-cutting measures helped offset rising raw material and logistics costs. Revenue from its Packaging and Specialty Plastics segment increased more than 18% year over year to $5.8 billion, supported by higher polyethylene and functional polymer prices across all regions. Dow has also been restructuring its operations, including plans to cut 13% of its workforce and close higher-cost assets. Lockheed Martin gained nearly 2.5% in premarket trading after the defense contractor raised its full-year sales and profit forecasts following higher quarterly earnings, as geopolitical conflicts continued to support demand for military equipment. The company now expects 2026 sales of $80 billion to $82 billion, up from its previous forecast of $79.75 billion to $81.75 billion, while its earnings-per-share outlook increased to $30.35-$30.75 from $29.95-$30.65. Lockheed's backlog rose 27% sequentially to a record $292 billion, bolstered by a $52.5 billion multiyear award for PAC-3 Missile Segment Enhancement interceptors. The company joined RTX and Northrop Grumman in raising its outlook this week amid strong demand for missile-defense systems, munitions and military aircraft. Spotify shares climbed more than 3.8% in volatile premarket trading after the music-streaming company forecast fourth-quarter operating income above analyst expectations, betting that AI-powered features will help drive user growth during the holiday season. The Swedish company expects operating income of €820 million ($920.53 million), compared with the analyst consensus of €813.4 million. In the third quarter, operating income came in at €672 million, broadly in line with expectations, while revenue of €4.97 billion fell slightly short of the €4.98 billion forecast. Original Article Premarket movers: Tesla, IBM slide; Meta earnings fail to lift sentiment Meta dips 3% despite earnings beat; capex outlook narrowed amid AI spending surge J.P. Morgan backs Benelux insurers on valuation discount, shareholder returns

Tesla TSLA reported third-quarter 2026 adjusted earnings of 48 cents per share, beating the Zacks Consensus Estimate of 45 cents by 6.67%. However, earnings declined 4% from 50 cents in the year-ago quarter, reflecting higher operating expenses. Revenues totaled $28.05 billion, down marginally from $28.1 billion a year ago. Revenues surpassed the Zacks Consensus Estimate of $27.78 billion by 0.96%. Growing Full Self-Driving (FSD) adoption and strength in services supported results. Tesla, Inc. price-consensus-eps-surprise-chart | Tesla, Inc. Quote Tesla produced 464,391 vehicles during the quarter, up 4% year over year. Model 3/Y production increased 5% to 457,387 units, while production of other models declined 40% to 7,004 units. Vehicle deliveries declined 2% year over year to 486,532 units. Model 3/Y deliveries slipped 1% to 478,237 units, while other model deliveries plunged 48% to 8,295 units. Global vehicle inventory was 11 days of supply compared with 10 days a year earlier. Management highlighted record quarterly deliveries across several markets, including Canada, Australia, Japan and Taiwan. Tesla exited the quarter with its highest passenger vehicle order backlog in four years. Deliveries were primarily constrained by production, with battery availability remaining a key bottleneck in increasing vehicle output. Automotive revenues declined 3% year over year to $20.56 billion. Automotive sales contributed $20.09 billion, while regulatory credit revenues dropped to $113 million from $417 million. Automotive leasing revenues totaled $353 million compared with $429 million a year ago. Despite lower revenues, automotive gross margin improved to 18.5% from 17% in the year-ago period. Excluding regulatory credits, automotive gross margin expanded sequentially to 18.1% from 16.3%. Management attributed the sequential improvement to a favorable regional delivery mix, particularly increased deliveries in Asia Pacific. However, lower vehicle average selling prices and reduced regulatory credit revenues remained headwinds. Energy generation and storage revenues decreased 16% year over year to $2.88 billion from $3.42 billion partly due to tariff-related customer refunds. Energy storage deployments reached 13.7 gigawatt-hours, up 10% year over year. Energy gross margin improved sequentially to 33.1% from 20.4%, primarily benefiting from tariff refunds and warranty-related adjustments. The company commenced production at Megafactory Texas, which has planned annual capacity of 50 GWh. Management highlighted record energy storage orders and backlog, supported by growing demand from data centers. Tesla also shipped its first Megapacks incorporating domestically manufactured lithium iron phosphate battery cells. Services and other revenues surged 33% year over year to $4.61 billion. Segment gross profit reached a record $734 million, increasing $86 million sequentially, while gross margin improved to 15.9% from 14.1%. Growth was supported by charging, insurance and parts sales. Meanwhile, active paid FSD customers climbed 67% year over year to 1.74 million. More than 75% of new vehicle deliveries in North America included paid FSD subscriptions at delivery. Tesla also expanded its autonomous transportation operations by introducing Cybercab rides in Austin. Cumulative unsupervised Robotaxi miles increased eightfold sequentially, approaching 2 million miles by quarter-end. Total gross profit increased 9% year over year to $5.49 billion, while gross margin expanded 160 basis points to 19.6%. However, operating expenses surged 39% to $4.78 billion, driven by higher research and development spending, stock-based compensation and administrative costs. Consequently, operating income declined 56% to $718 million, with operating margin contracting to 2.6% from 5.8%. Adjusted EBITDA declined 8% to $3.90 billion. Its corresponding margin contracted to 13.9% from 15%, underscoring continued profitability pressure from investments in artificial intelligence, robotics and manufacturing expansion. Tesla generated operating cash flow of $6.26 billion, broadly flat year over year. Capital expenditures increased to $4.73 billion from $2.25 billion, while free cash flow declined 62% to $1.53 billion. Cash, cash equivalents and short-term investments totaled $45.45 billion as of Sept. 30, 2026, up from $43.52 billion at the end of June. Management trimmed its 2026 capital expenditure outlook to approximately $20 billion from $25 billion guided earlier. Spending priorities include Robotaxi fleet expansion, Optimus production, semiconductor manufacturing, solar capacity and additional computing infrastructure. Tesla is targeting annual vehicle production capacity of approximately 5 million units by 2030. Management also expects Optimus deliveries to external customers toward the end of 2027, while Robotaxi operations are projected to make a more meaningful contribution to revenues and profitability during the second half of next year. TSLA currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Genuine Parts Company GPC reported third-quarter 2026 adjusted earnings of $2.07 per share, missing the Zacks Consensus Estimate of $2.09. The bottom line increased 4.5% from $1.98 in the year-ago quarter. Revenues rose 4.2% year over year to $6.52 billion and surpassed the consensus estimate of $6.5 billion. Comparable sales increased 2.9%, led by strong Industrial demand. Genuine Parts ended September with $2.4 billion of liquidity, including $763 million in cash. General Motors GM delivered strong third-quarter 2026 results yesterday. Its earnings per share grew 32.2% year over year to $3.70 and topped the Zacks Consensus Estimate of $3.55. Revenues of $50.02 billion increased 3% year over year and outpaced the consensus mark of $48.21 billion.On a further encouraging note, General Motors raised its adjusted automotive free cash flow forecast to $11.5-$12.5 billion from $9.5-$11.5 billion and authorized a $20-billion multi-year share repurchase program. 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Genuine Parts Company (GPC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Earnings season is in full swing, and Big Tech calls are about more than the heavy use of "superintelligence," which some read as a bid to please the White House after it reportedly disliked the term "artificial intelligence." Here are three moments from the earnings calls of Tesla (TSLA), Meta (META), and IBM (IBM) on late Wednesday that stuck with us. Much of the focus today is on Tesla cutting its capital spending plans for this year to $20 billion from the $25 billion it guided to three months ago. A key factor appears to be that its Optimus robots need more training before they're released into the real world. Elon Musk said investors should think of Optimus as a baby: "A big difference with Optimus versus the cars is we don't have this vast fleet of cars from which we can gather training data. With Optimus, we have to bootstrap it by making the robots and having them do self-play, which is really how a human learns to navigate the world. You can see this when you have a toddler, and they grow up, and initially, they're sort of wobbly, and they don't know how to do things. Eventually they learn to wipe their own ass, which is a big milestone. As anyone who's had kids knows. Then they learn to read and do all sorts of things and be able to do these things. They learn this by playing. We actually need Optimus to play at scale in order to have it be really good at tasks in the real world." Are early users of Meta's (META) Muse AI agent overspending? Mark Zuckerberg's comments on credit limits during the earnings call suggest they might be. That raises a bigger question: Could AI agent shopping end badly for retailers and banks, in the form of unpaid debts and write-offs? "The most common use case for Muse is shopping, with more than a quarter of people who are using Muse engaging in this with an average purchase size of over $200," Zuckerberg said on the call. "Plaid told us that they hadn't seen activity like they're seeing with their connector on any other service before. In the first week, we had to work with Stripe to raise credit limits since the volumes were above what any of us expected." IBM (IBM) CEO Arvind Krishna seemed to be in a better place this earnings call compared to three months ago, which came on the heels of a shock earnings warning that sent the stock reeling. It was interesting to hear Krishna call out some C-suite concerns about the current spending on AI tools: "I think what we are seeing is that at least larger enterprises are becoming a lot more cognizant and a lot more aware of what is the true ROI of all of their AI spend. They are also getting worried if some of the AI spending completely out of control with no real return. But the way I have always characterized it is, there is no question to us, and this is the advice I give every C-suite member that I meet, that what we are trying to give people on AI, the productivity, the advantages of AI, the way it is going to change work, is very real. Let me not make any confusion around that." Follow Brian Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email him at [email protected].

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

- Elon Musk's space company reported its first quarterly profit since going public in June, driven mainly by growth in its superintelligence segment. - Netflix stock tanked nearly 6% in overnight trading after its forecast disappointed markets; 3M stock closed nearly 6% up after beating Wall Street estimates and raising its full-year outlook. - Markets will now turn to earnings from Meta, Tesla, IBM and AT&T, slated to report results on Wednesday. U.S. stock futures were mixed in the overnight session late Tuesday as markets await a slew of technology company earnings this week and SpaceX posted stellar third-quarter (Q3) results. As of 10:56 p.m. EDT, Nasdaq-100 futures climbed more than 1%, and S&P 500 futures gained 0.35%. Dow futures, however, slipped about 0.01%. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox On Tuesday, the three benchmark indexes closed mixed. The Nasdaq Composite closed 0.02% lower, but the Dow Jones Industrial Average added more than 500 points, closing up more than 1%. The S&P 500 climbed 0.28% at close. Index | Move | Close Dow Jones Industrial Average | 1.02% | 52,495.88 S&P 500 | 0.28% | 7,712.57 Nasdaq Composite | -0.02% | 26,424.82 Earnings from marquee names, including SpaceX (SPCX) and Netflix Inc. (NFLX) dominated the narrative on Tuesday. Elon Musk's space company reported its first quarterly profit since going public in June, driven primarily by growth in its superintelligence segment. SpaceX reported Q3 revenue of $14.58 billion, surging past estimates of $13 billion, and earnings per share of $0.35 against an expected $0.13. AI-related revenue came in at $7.56 billion, surpassing Starlink's print for the first time, partly due to the company's August acquisition of Cursor and additions to cloud service deals. Musk hinted that $1 trillion in revenue in 2028 could be on the cards, even as he downplayed a potential combination of SpaceX and Tesla (TSLA), despite creating special committees of independent directors to explore the possibility. Deepwater Asset Management's Gene Munster put the odds of a merger within two years at 95%, saying in a post on X, "The stars are lining up for Elon to fully realize his vision of $SPCX being a vertical AI company, with the odds of a $TSLA merger increasing." Energy stocks, including Bloom Energy (BE), Oklo (OKLO) and NuScale Power (SMR), among others, climbed in the overnight session after Musk said that power and cooling infrastructure were the actual constraints on growing "superintelligence" rather than semiconductors, boosting sentiment for the stocks amid the AI boom. Meanwhile, Netflix and 3M Co. (MMM) also posted quarterly prints on Tuesday. NFLX stock tanked nearly 5% overnight after its forecast disappointed markets, while MMM stock closed nearly 6% up after beating Wall Street estimates and raising its full-year outlook. Markets will now turn to earnings from Meta Platforms Inc. (META), Tesla Inc. (TSLA), International Business Machines Corp. (IBM), and AT&T, Inc. (T), which are slated to report on Wednesday. Christian Mueller-Glissmann, head of asset allocation at Goldman Sachs Research, reportedly said in a note that this earnings season could help stocks rise as the year winds down. "Near term there might be more volatility due to [AI] concerns, Middle East tensions and midterm elections, but we think earnings support with lighter positioning and lower valuations should help equities into year-end," he wrote, according to a CNBC report. Meanwhile, tensions between the U.S. and Iran remained high. U.S. Defense Secretary Pete Hegseth said the country was prepared to take more military action against Iran if President Donald Trump ordered it. U.S. Secretary of State Marco Rubio told the media that a peace deal with Iran seemed extremely difficult and that the U.S. would continue to exert economic pressure until Tehran stopped attacks on commercial ships in the Strait of Hormuz. Iranian Foreign Minister Abbas Araghchi said that the critical waterway would remain closed until the U.S. accepts Tehran's conditions, even as indirect talks between the two countries continue through Pakistan and Qatar. Oil prices soared amid the ongoing tensions. Brent crude futures were trading at $110.24 a barrel, up more than 1%, while WTI crude futures traded at $99.05 per barrel. SpaceX (SPCX): The rocket company's shares were on retail radar after its Q3 results beat Wall Street expectations. Super Micro Computer Inc. (SMCI): The technology stock rallied about 17% in overnight trading late Tuesday after it reported preliminary financial figures for the quarter ending Sept. 30 that were significantly higher than Wall Street expectations. Netflix Inc. (NFLX): The streaming giant drew retail attention after posting a bottom-line beat on its Q3 results, but a soft outlook weighed on investor sentiment. GE Aerospace (GE): The company was on the retail radar after beating third-quarter estimates and raising its 2026 outlook. Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) climbed overnight, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was flat. Meanwhile, U.S. long-dated Treasury yields continued above 5%. At the time of writing, the 10-year U.S. Treasury yield was 5.127%, and the 30-year Treasury yield was 5.439%. The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.34% amid 'neutral' sentiment. Asian markets opened mixed on Wednesday, with South Korea's KOSPI and Japan's Nikkei 225 trading in the green territory at the time of writing, while China's SSE Composite and Australian stocks traded lower. For updates and corrections, email newsroom[at]stocktwits[dot]com. Aashika Suresh has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - CAPR Stock on Track For Worst Month Since July AdCom Vote On Deramiocel As November FDA Decision Nears - SKYD Surges After Media Baron John Malone Predicts $8–10B SpaceX Investment - Meta Reportedly Hit With $25B Penalty in New Mexico Over Cambridge Analytica Deception

Tesla (TSLA) came out with quarterly earnings of $0.48 per share, beating the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.67%. A quarter ago, it was expected that this electric car maker would post earnings of $0.5 per share when it actually produced earnings of $0.33, delivering a surprise of -34%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Tesla, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $28.05 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 0.96%. This compares to year-ago revenues of $28.1 billion. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Tesla shares have lost about 16.9% since the beginning of the year versus the S&P 500's gain of 12.7%. While Tesla has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Tesla was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.50 on $28.31 billion in revenues for the coming quarter and $1.69 on $106.09 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the bottom 16% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Rivian Automotive (RIVN), another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 29. This a manufacturer of motor vehicles and passenger cars is expected to post quarterly loss of $0.67 per share in its upcoming report, which represents a year-over-year change of +4.3%. The consensus EPS estimate for the quarter has been revised 1% higher over the last 30 days to the current level. Rivian Automotive's revenues are expected to be $2.02 billion, up 29.7% from the year-ago quarter. 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 Tesla, Inc. (TSLA) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Tesla (TSLA) reported better-than-expected third quarter earnings, with its free cash flow and capex spending coming in ahead of Wall Street estimates. Tesla reported Q3 revenue of $28.05 billion vs. Bloomberg consensus of $28.13 billion. Tesla posted adjusted EPS of $0.48 vs. the $0.44 estimate, with adjusted EBITDA of $3.90 billion vs. $3.66 billion. Tesla stock was volatile in after-hours trading. Tesla reported free cash flow of $1.53 billion vs. an estimated -$4.92 billion, with capital expenditures climbing to $4.732 billion vs. an estimated $7.96 billion for the quarter. On the earnings call, Tesla updated its full-year capex guidance to $20 billion from $25 billion previously. Tesla CFO Vaibhav Taneja said the savings would come from "managing our capital deployment efficiently, and plan to fund [capex] primarily from our cash flows from operations," he said. "I think capex is actually ending up being a little lower than we anticipated, but we'll start to become more meaningful next year. And then noticeable in the tens of billions in '28," CEO Elon Musk said on the call. The money is going to Optimus production lines, AI compute, the Cybercab ramp, and the Terafab chip plant Tesla is building with SpaceX. Tesla revealed its Optimus robot started production at its Fremont factory. "While we will continue to iterate on the hardware and manufacturing process, we have proven that the current manufacturing process for Optimus is suitable for a commercial product," the company said in its earnings release. "I would expect that it takes us probably at least a year — maybe a little longer — to get to that annualized rate [1 million units], to get to 20,000 units a week," Musk said on the earnings call. Musk added that Tesla may release an Optimus demo video in about a month, stressing that he didn't want the robot's movements to be preplanned. Regarding its other AI efforts, Tesla said it plans to reach 400 MW of AI training compute by the end of the year. Tesla said its active FSD (full self-driving) subscriptions climbed to 1.74 million. "The biggest driver of demand is full self-driving," Musk said regarding vehicle sales. "The Cybercab fleet in Austin has grown by a factor of 10," Musk added while discussing Tesla's robotaxi fleet. He added, "I don't think there's any company in the world that can match our scale with autonomous vehicles." Musk also stirred the pot recently with comments about a possible tie-up with SpaceX, his other company. "I think both SpaceX and Tesla have formed special committees to discuss this idea," Musk said during SpaceX's earnings call Tuesday night. "At the request of shareholders, and these special committees consist of independent directors. And because I'm a conflicted party, I can't actually be in the discussions of the special committees." He added, "I don't think we should necessarily assume that I think some people out there assume that a SpaceX and Tesla merger is a certainty. And I think that would be overstating it. Do I think it would be a good idea? Yes." On the Tesla call, Musk briefly touched on it but added nothing new. "With regard to a potential merger with SpaceX, I think I said everything that should be said yesterday [Tuesday]," Musk said. Tesla reported Q3 deliveries of 486,532, down 2% from a year ago but well ahead of the Bloomberg consensus of 463,000. Energy storage deployments came in at 13.7 GWh, up from 12.5 GWh a year ago and Q2's 13.5 GWh. Tesla began commercial Cybercab service in Austin on Sept. 3, but federal regulators have questions. The National Highway Traffic Safety Administration (NHTSA) issued Tesla a special order with 21 requests on how it self-certified the Cybercab, which has no steering wheel or pedals, as compliant with federal safety standards. Tesla asked for an extension to Nov. 20. NHTSA granted 30 days instead, making answers due Oct. 30. Tesla also finally revealed its long-delayed Roadster last Thursday at SpaceX's (SPCX) facility in Waco, Texas. The car used cold-gas thrusters to jump over several Teslas, including a Semi. Tesla said the Roadster hit 0-60 mph in 0.81 seconds in a test at the event, and Musk said production starts in 2028. Deepwater's Gene Munster called it an "engineering flex" with little commercial value, and Morningstar expects the Roadster to sell fewer than 2,000 units a year. Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram. Click here for the latest stock market news and in-depth analysis, including events that move stocks Read the latest financial and business news from Yahoo Finance

Mag 7 companies are now being heard from in Q3 earnings season. Meta Platforms META — parent company of Facebook, Instagram, WhatsApp, Messenger and Threads — outpaced estimates on both top and bottom lines after the closing bell today. Earnings of $3.83 per share surpassed the $3.45 analysts were looking for, on revenues of $64.6 billion in the quarter, its highest ever, and up +26% year over year. Earnings were still well off the pace set in the year-ago quarter, and that's because Meta was hit with a $10 billion charge (of an $18 billion settlement overall) in a multi-state deal regarding social media addiction in young people. Revenue guidance was increased to a $73-76 billion range for the current quarter, as the company also projects between $135-145 billion in additional capex spending on AI infrastructure. Finally, the company is rewarding shareholders with a 2-for-1 stock split. META stock is up +3.9% on the news in late trading, adding to its slim +5.67% gains year to date. Tesla TSLA also outperformed the Zacks consensus on earnings and revenues, with $0.48 per share coming in 3 cents higher than estimates on revenues of $28.05 billion, beating the $27.78 billion estimate. Auto Gross Margins (minus EV credits) were up +18.1%, better than analysts had projected. Full-Service Driving (ESD) subscriptions rose +67% year over year to 1.74 million in the quarter.The Tesla robotaxi has now clocked 2 million unsupervised miles, and its Optimus robot production has begun at its Fremont, CA auto plant. It's been a busy week for Tesla CEO Elon Musk, who saw his SpaceX SPCX Q3 numbers skyrocket (no pun intended) after Tuesday's close. He has also been implicated in the Starlink slowdown in Ukraine that hampered the U.S. ally's ability to conduct its war against Russia. Tesla shares are up +1.4% in late trading, but still down more than -12% year to date. IBM Corp. IBM kept the Q3 tech earnings beats alight this afternoon, with earnings of $2.95 per share surpassed the $2.88 in the Zacks consensus on $17.10 billion in revenues, which beat the $16.87 billion forecast. Software and Infrastructure revenues beat consensus estimates, and the tech giant is looking for full-year revenue growth of between 4-5%. IBM shares are up +3.5% in the after-market. Zacks Rank #2 (Buy)-rated Texas Instruments TXN came in well ahead of expectations on its Q3 bottom line after today's close: $2.62 per share versus $2.40 estimated. Revenues of $6.06 billion improved over the $5.93 billion analysts were looking for. Analog revenues and guidance numbers came in better than expected. Investors are selling the news a bit, sending shares down marginally after +64% gains year to date. Questions or comments about this article and/or author? Click here>> 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 Texas Instruments Incorporated (TXN) : Free Stock Analysis Report International Business Machines Corporation (IBM) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report Space Exploration Technologies Corp. (SPCX) : 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