U.S. equity futures showed little clear direction early Thursday as investors weighed a flood of earnings reports against renewed trade headlines. Shares of Tesla, Inc. (NASDAQ:TSLA) fell in after-hours trading following weaker-than-expected third-quarter results, while Intel Corporation (NASDAQ:INTC) is set to take center stage later in the day. Meanwhile, Beyond Meat, Inc. (NASDAQ:BYND) pulled back after a volatile session dominated by retail traders.
U.S. futures edge mixed
Futures pointed to a muted open, with investors digesting earnings and looking for signs of progress in U.S.–China trade discussions. As of 02:55 ET, Dow futures slipped 36 points, or 0.1%, while S&P 500 futures ticked up 11 points, or 0.2%. Nasdaq 100 futures gained 66 points, or 0.3%.
Wall Street had retreated the previous session, led by a sharp selloff in Netflix, Inc., (NASDAQ:NFLX) whose shares tumbled more than 10% after its quarterly operating margin spooked investors worried about stretched valuations. Texas Instruments Incorporated (NASDAQ:TXN) also weighed on sentiment, issuing a disappointing forecast that sent its stock down 5.6%.
Despite some soft spots, the early earnings season has mostly been encouraging. Roughly 86% of companies reporting so far have beaten expectations. Aggregate earnings for the S&P 500 are projected to climb 9.3% year-over-year, according to LSEG data cited by Reuters.
Trade remained another key theme. President Donald Trump said he expects to strike agreements with President Xi Jinping when the two potentially meet in South Korea next week.
Tesla earnings fall short
Shares of Tesla slid more than 3% in extended trading after the automaker’s Q3 results missed analyst forecasts. Robust sales were undercut by rising costs as the company braces for a slowdown in domestic demand following the end of an EV tax credit.
For the third quarter, Tesla posted adjusted EPS of $0.50 on $28.1 billion in revenue, shy of Wall Street expectations of $0.54 a share and $26.22 billion in sales. Vehicle deliveries climbed 7% year-on-year to 497,098 as buyers rushed to secure a $7,500 credit before its expiration. That surge was offset by higher operating expenses.
Gross margins excluding regulatory credits came in at 17%, roughly flat compared with last year.
“[I]t’s clear that margins have taken a solid hit from tariffs — both directly through higher material costs and indirectly by forcing more ad-hoc inventory management, traditionally one of Tesla’s strengths,” said Thomas Monteiro, Senior Analyst at Investing.com.
Intel set to report
Intel will headline Thursday’s earnings lineup after the close. Shares of the chipmaker have climbed in recent weeks on the back of capital infusions from NVIDIA Corporation (NASDAQ:NVDA), SoftBank Group Corp., and a 10% U.S. government stake announced by Trump in August. The president also said Intel CEO Lip-Bu Tan should step down over conflict-of-interest concerns.
While Tan has sought strategic partners, Intel’s near-term outlook remains uncertain. It continues to trail competitors like NVIDIA and Advanced Micro Devices, Inc. (NASDAQ:AMD) in AI development, and its contract manufacturing unit lags Taiwan Semiconductor Manufacturing Company Limited.
The company is expected to report roughly break-even results, with pressure from its data center and AI businesses contributing to a projected 1.2% decline in revenue to $13.12 billion.
Beyond Meat retreats after meme-stock surge
Beyond Meat shares sank more than 11% after hours, pulling back from a dizzying rally earlier in the week. The stock closed down 1.1% at $3.58 after soaring earlier in the session amid heavy meme-stock activity. More than 2 billion shares changed hands, according to FactSet data cited by The Wall Street Journal.
The plant-based meat maker’s stock had hovered near $0.52 just last week as investors fretted over its debt situation. But a Tuesday announcement that Walmart Inc. would expand its product distribution triggered a massive short squeeze.
Over the past year, the stock has mostly traded between $2 and $4 amid weak demand, layoffs, and financial pressures.
U.S. sanctions Russian oil giants
In a policy shift, Trump announced sanctions against Lukoil PJSC and Rosneft, citing Moscow’s “lack of serious commitment to a peace process to end the war in Ukraine.” Treasury Secretary Scott Bessent added that the firms funded “the Kremlin’s war machine” and pledged additional action if needed.
The move lifted oil prices by easing fears of oversupply. Benchmark Brent crude rose 3.3% to $64.67 a barrel, while West Texas Intermediate futures climbed 3.5% to $60.50.
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