U.S. stock futures fall as investors weigh Tesla, Meta earnings
U.S. stock futures fall as investors weigh Tesla, Meta earnings
U.S. stock futures fell on Wednesday evening as investors assessed quarterly results from Meta Platforms (NASDAQ:META) and Tesla (NASDAQ:TSLA), with attention shifting to whether strong artificial intelligence spending can justify elevated valuations across the technology sector.
S&P 500 Futures fell 0.4% to 7,768.25 points, while Nasdaq 100 Futures slipped 0.7% to 29,800.00 points by 20:58 ET (00:58 GMT). Dow Jones Futures edged 0.3% lower to 52,879.0 points.
The reports from the two companies, released after the regular market close, marked a key test for investor appetite for large-cap technology stocks as Wall Street moved deeper into the third-quarter earnings season.
Tesla shares fell more than 3% in extended trading despite beating analysts' expectations for quarterly earnings and revenue.
Tesla reported adjusted earnings of 48 cents per share on revenue of $28.05 billion for the third quarter, topping analysts' estimates of 45 cents per share and $27.92 billion in revenue. However, heavy investment in artificial intelligence and robotaxis continued to weigh on profitability, keeping investors focused on the returns from its spending.
Meanwhile, Meta shares rose more than 2% after reporting stronger-than-expected revenue and a positive outlook for the current quarter.
Meta reported earnings of $3.83 per share, ahead of the $3.57 expected by analysts, while revenue climbed 26% from a year earlier to $64.6 billion, exceeding estimates of $63.34 billion. Its results were supported by advertising growth and increased engagement across its platforms, although a large legal settlement added to quarterly costs.
The contrasting share-price reactions highlighted investors' scrutiny of both earnings performance and companies' spending plans, particularly as technology groups pour billions of dollars into AI infrastructure and new products.
Earlier in Wednesday's session, U.S. equities had drawn support from strong results from SpaceX (NASDAQ:SPCX) and Super Micro Computer (NASDAQ:SMCI).
SpaceX shares surged after the company reported its first profit as a public company, while investors also weighed the possibility of a closer relationship between Elon Musk's SpaceX and Tesla.
The NASDAQ Composite rose 1.1% during Wednesday's regular session, while the S&P 500 gained 0.6% and the Dow Jones Industrial Average ended 0.7% higher.
Investors were also monitoring elevated oil prices and interest-rate risks. Brent crude traded above $110 a barrel in Asian trading Thursday amid geopolitical uncertainty, while U.S. inflation pressures have raised concerns about the Federal Reserve's policy outlook ahead of its meeting next week.
Attention now turns to Thursday's earnings from companies including Procter & Gamble (NYSE:PG), Western Digital (NASDAQ:WDC), Lockheed Martin (NYSE:LMT), and Honeywell (NASDAQ:HON).