US stock futures rose on Wednesday, October 21, as strong earnings from SpaceX and a higher sales outlook from Super Micro Computer lifted technology shares. Netflix fell after cutting its advertising forecast, while oil prices increased amid continued tensions involving Iran.
Nasdaq Futures Lead Gains Before Wall Street Opens
At 7:34 a.m. Eastern Time, Nasdaq 100 futures gained 0.67%, while S&P 500 futures rose 0.27%. Dow Jones Industrial Average futures added 64 points, or 0.12%. Those gains came before the regular U.S. trading session and followed a mixed Tuesday, when the Dow gained nearly 530 points and the S&P 500 advanced 0.3%.
Technology stocks led premarket gains after several companies reported stronger results or raised their outlooks. Nvidia rose 2.1%, Intel added 2.3%, and Advanced Micro Devices gained 1.9%. The gains followed eight straight losses for the Philadelphia Semiconductor Index, its longest such run in 18 years.
SpaceX Shares Climb After Quarterly Profit
SpaceX shares rose 7.2% before the opening bell after the company reported third-quarter revenue of USD 14.6 billion, up 161% from a year ago. Its October 20 filing showed net income of USD 4.4 billion, compared with a loss of USD 1.1 billion a year before.
The company’s Super Intelligence business generated USD 7.56 billion in quarterly revenue, surpassing the USD 5.25 billion reported by its Connectivity division, which includes Starlink. SpaceX also reported USD 1.77 billion from its space operations.
Elon Musk told investors that merging SpaceX with Tesla would be “a good idea.” Both companies have formed special committees to assess a possible transaction, although no deal has been announced. Tesla shares gained 1.4% in premarket trading ahead of its own earnings release.
Super Micro Raises Revenue Outlook as Chipmakers Gain
Super Micro Computer shares jumped 10.9% after the server manufacturer raised its preliminary revenue estimate for the quarter ended September 30. It now expects sales between USD 18.5 billion and USD 19.5 billion, compared with its previous forecast of USD 14.5 billion to USD 15.5 billion.
In its October 20 filing, Super Micro attributed the higher estimate “primarily due to increased demand for AI platforms.” The company also projected gross margins of 12% to 12.5%, above its previous range of 10.4% to 10.8%. These figures remain preliminary. Super Micro plans to release full results on November 3.
The update also lifted other server and computing stocks. Dell gained 5.5%, Hewlett Packard Enterprise rose 4.5%, and CoreWeave added 2.5% before the bell.
Netflix Stock Falls After Lower Advertising Forecast
Netflix shares dropped more than 6% in premarket trading after the streaming company revised its full-year advertising revenue forecast to about USD 2.7 billion from approximately USD 3 billion. Netflix said delays in rolling out some advertising products contributed to the change.
Third-quarter revenue reached USD 12.87 billion, up nearly 12% from the previous year, while net income increased to USD 3.66 billion. However, the company projected fourth-quarter revenue of about USD 13.4 billion, below analysts’ expectations. Its quarterly earnings exceeded forecasts despite weaker guidance.
Netflix recently announced staff cuts affecting about 6% of its workforce. Separately, AT&T shares fell 3.5% before trading opened, even after the telecommunications company exceeded quarterly revenue and profit estimates.
Oil Prices Rise as Investors Await More Earnings
Brent crude futures climbed 1.9% to USD 110.85 a barrel on Wednesday, while U.S. West Texas Intermediate crude rose 2.2% to USD 99.95. Prices increased as tensions with Iran continued to threaten shipping and energy supplies around the Strait of Hormuz. Preliminary industry data also showed U.S. crude inventories fell by 4.9 million barrels last week.
Investors also awaited third-quarter earnings from Meta Platforms and Tesla after Wednesday’s closing bell. IBM and Southwest Airlines were scheduled to report results. Meanwhile, the Federal Reserve is due to meet next week, following data showing that U.S. inflation pressures have spread beyond energy prices.
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