Earnings from marquee names, including SpaceX, Netflix, 3M and GE Aerospace dominated the narrative on Tuesday.
- 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%.
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 |
Key US Market Drivers
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.
Trending Stocks To Watch
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.
Other Market Trends
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.
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