How Are Dow, S&P 500, Nasdaq Futures Trading After META, TSLA Earnings?

• Meta’s board approved a new class of non-voting Class C common stock that is to be distributed via a one-time stock dividend, functioning as a 2-for-1 stock split.
• Tesla cut its full-year capital expenditure guidance to about $20 billion from more than $25 billion and revised the timeline for scaling the Optimus robot.
• Meanwhile, tensions between the U.S. and Iran remained high, keeping oil prices elevated.  

U.S. stock futures declined in the overnight session late on Wednesday following results from Meta Platforms Inc. (META) and Tesla Inc. (TSLA) as earnings season kicks into full throttle this week.

As of 10:39 p.m. EDT, Nasdaq-100 futures were down 1%, S&P 500 futures fell 0.49% and Dow futures slipped 0.21%.

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On Wednesday, the three benchmark indexes closed higher. The Nasdaq Composite led the climb, adding 278 points to end the session 1.05% higher. The Dow Jones Industrial Average and S&P 500 climbed 0.69% and 0.58%, respectively, at close. 

Key US Market Drivers

Earnings from Meta Platforms and Tesla dominated Wednesday as markets grappled with the reality of the AI trade. 

Meta’s revenue for the third quarter climbed 26% to $64.6 billion, surpassing Wall Street expectations of $63.4 billion. Meanwhile, earnings per share of $3.83 missed projections of $5.46 a share due to a $9.89 billion legal charge. 

The Facebook parent also said its board had approved a new class of non-voting Class C shares to be distributed through a one-time dividend that effectively creates a 2-for-1 split.

The company said the fresh stock would help raise capital, structure employee compensation, and fund potential acquisitions amid AI competition.

Meanwhile, CEO Mark Zuckerberg highlighted the success of Meta’s Muse, noting that it has attracted over 10 million users in the U.S. and Canada since its Sept. 8 launch. Zuckerberg said that even as growth remains strong, the company is eyeing a billion users in the next few years.

Deepwater Asset Management managing partner Gene Munster noted in a post on X that Zuckerberg’s commentary suggests Muse models and agents will become the center of Meta’s universe. “My take: In three years, Muse will become the lens consumers engage with Instagram, FB, WhatsApp, Reels,” he said.

Meanwhile, Elon Musk’s Tesla also posted its Q3 print, reporting revenue of $28 billion, missing analyst estimates of $28.3 billion. Earnings per share came in at $0.48 per share, against an expected EPS of $0.45. 

However, shares slipped overnight after the company cut its full-year capital expenditure guidance to about $20 billion from more than $25 billion and revised the timeline for scaling the Optimus robot.

Meanwhile, media reports suggest that a merger between Tesla and Musk’s rocket company SpaceX (SPCX) could potentially be announced as soon as the first half of 2027, to close during Trump’s presidency. Bloomberg reported that the companies have a combined market value of about $3.7 trillion, but their independent committees are yet to agree on deal terms.

Brett Winton, an analyst at Cathie Wood’s ARK Investment Management, said on X that a merger between Musk’s two companies could benefit both shareholder groups. ARK’s model puts Tesla shareholders about five times better off after a merger and SpaceX shareholders about 1.3 times better off by 2036, compared to the companies staying independent.

Markets will now turn their attention to earnings from other marquee names, including Procter & Gamble (PG), Western Digital (WDC), Lockheed Martin (LMT), Honeywell (HON), and Bloom Energy (BE), among others. 

Meanwhile, tensions between the U.S. and Iran remained high, keeping oil prices elevated. Brent crude futures were trading at $110.40 a barrel, up 1.45%, while WTI crude futures traded at $98.34 per barrel.

Trending Stocks To Watch 

Alibaba Group Holding Ltd. (BABA): The Chinese internet stock fell more than 4% in the overnight session late on Wednesday as weakness in the Hong Kong-based Hang Seng Tech Index weighed on the company. 

Meta Platforms Inc. (META): The Facebook parent was on the retail radar due to its Q3 results announcement, which has set the tone for AI earnings going forward. 

Strategy (MSTR): Shares were on the retail radar after the company reversed to red after closing more than 7.5% higher amid rising bitcoin prices. 

Robinhood Markets Inc. (HOOD): The brokerage firm slipped nearly 3% in the overnight session on Wednesday, ahead of its Q3 results expected next week. 

Other Market Trends 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and SPDR Dow Jones Industrial Average ETF Trust (DIA) were down at the time of writing.   

Meanwhile, U.S. long-dated Treasury yields continued above 5%. At the time of writing, the 10-year U.S. Treasury yield was 5.088%, and the 30-year Treasury yield was 5.377%. 

The iShares 20+ Year Treasury Bond ETF (TLT) was up 0.55% amid ‘bearish’ sentiment. 

Asian markets opened lower on Thursday, with South Korea's KOSPI, Japan’s Nikkei 225, China’s SSE Composite, and Australian stocks trading in negative territory. 

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