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Nasdaq and S&P 500 Decline Amid AI Spending Concerns
The Nasdaq and S&P were broadly lower amid renewed concerns over AI spending and an increase in oil prices. Meta shares slid despite strong revenue growth as investors weigh rising AI spending and legal costs, while Tesla is under pressure as its investment plans raise questions about returns. Oil prices were more than 2% higher amid continued tensions between the U.S. and Iran, as President Trump accused Iran in a Truth Social post of "doing everything they can to drive up the price of oil" prior to midterms.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Metareported mixed Q3 results, narrowed its FY26 capital expenditure guidance, and announced the establishment of a new Class C common stockTeslareported better-than-expected Q3 earnings, with CEO Elon Musk saying it will take at least a year to get Optimus robot production to 20,000 units per weekIBMreported upbeat Q3 results, with the company saying it is executing "solidly" against its prioritiesTexas Instrumentsreported better-than-expected Q3 results and provided upbeat Q4 earnings guidanceLockheed Martinprovided a "beat and raise" report for Q3 and announced a framework agreement with the Department of War for F-35 Lightning II fighter jets2. WALL STREET CALLS:BMO upgraded Blockto Outperform on Square volume accelerationNetflixdowngraded to Peer Perform at Wolfe ResearchCLSA and BNP Paribas upgraded Teslato Hold on potential SpaceXmergerRBC downgraded Dutch Broson competition, tough comparisonsBMO upgraded Ionisahead of Q3 report3. AROUND THE WEB:SB Energy, the SoftBank Group-controlleddeveloper of a massive planned Ohio data center project for OpenAI, is considering going public in December or possibly waiting until next year, The Information reportsA Sixth Circuit panel appeared reluctant to overturn Ford's$13.2M trade secrets verdict, Bloomberg Law reportsInfineum, a U.K.-based chemicals joint venture owned by Shelland ExxonMobil, has selected Bank of America to run a sale of the business, FT saysTSMCis looking into alternatives to rare-earth components in factory equipment, hoping to reduce the potential for Beijing export controls to disrupt plant operations, Reuters reportsSamsungand SK Hynixare upgrading their factories in China to produce more advanced memory chips, Reuters reports4. MOVERS:Biohavengained after the FDA accepted its new drug application resubmission for VyglxiaSpotifyincreased in New York after reporting Q3 results and providing guidance for Q4Kohl'swas higher after Gordon Haskett upgraded the stock to BuyTTM Technologieswas lower after reporting Q3 results and providing guidance for Q4, FY26, and FY27Hexcelfell after reporting Q3 results and increasing its buyback program to $750M5. EARNINGS/GUIDANCE:Honeywell Technologiesreported Q3 results and raised its guidance for Q4 and FY26Cencoraprovided guidance for FY26Badger Meterreported Q3 results, with EPS beating consensusFirstServicereported Q3 results, with CEO Scott Patterson noting he was "pleased" with the resultsPool Corp.reported Q3 results and backed its guidance for FY26INDEXES:The Dow rose 11.89, or 0.02%, to 52,867.98, the Nasdaq lost 694.00, or 2.60%, to 26,008.86, and the S&P 500 declined 93.74, or 1.21%, to 7,663.43.
Meta Shares Slide, Tesla Faces Investment Pressure
The major averages were broadly lower near noon amid renewed concerns over AI spending and an increase in oil prices. Meta shares are sliding despite strong revenue growth as investors weigh rising AI spending and legal costs, while Tesla is under pressure as its investment plans raise questions about returns.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Metareported mixed Q3 results, narrowed its FY26 capital expenditure guidance, and announced the establishment of a new Class C common stockTeslareported better-than-expected Q3 earnings, with CEO Elon Musk saying it will take at least a year to get Optimus robot production to 20,000 units per weekIBMreported upbeat Q3 results, with the company saying it is executing "solidly" against its prioritiesTexas Instrumentsreported better-than-expected Q3 results and provided upbeat Q4 earnings guidanceLockheed Martinprovided a "beat and raise" report for Q3 and announced a framework agreement with the Department of War for F-35 Lightning II fighter jets2. WALL STREET CALLS:BMO upgraded Blockto Outperform on Square volume accelerationNetflixdowngraded to Peer Perform at Wolfe ResearchCLSA and BNP Paribas upgraded Teslato Hold on potential SpaceXmergerRBC downgraded Dutch Broson competition, tough comparisonsBMO upgraded Ionisahead of Q3 report3. AROUND THE WEB:Infineum, a U.K.-based chemicals joint venture owned by Shelland ExxonMobil, has selected Bank of America to run a sale of the business, FT saysTSMCis looking into alternatives to rare-earth components in factory equipment, hoping to reduce the potential for Beijing export controls to disrupt plant operations, Reuters reportsDayOne Data Centers is weighing options for its U.S. IPO, including a potential delay or size cut, as volatility around data centers increases, Bloomberg saysSamsungand SK Hynixare upgrading their factories in China to produce more advanced memory chips, Reuters reportsSoutheastern Asset Management, an activist investor and big Mattelshareholder, has been considering whether to nominate new directors as part of a proxy fight and push the company toward a sale, Semafor says4. MOVERS:Biohavengains after the FDA accepted its new drug application resubmission for VyglxiaSpotifyincreases in New York after reporting Q3 results and providing guidance for Q4Kohl'shigher after Gordon Haskett upgraded the stock to BuyTTM Technologieslower after reporting Q3 results and providing guidance for Q4, FY26, and FY27Hexcelfalls after reporting Q3 results and increasing its buyback program to $750M5. EARNINGS/GUIDANCE:Honeywell Technologiesreported Q3 results and raised its guidance for Q4 and FY26Cencoraprovided guidance for FY26Badger Meterreported Q3 results, with EPS beating consensusFirstServicereported Q3 results, with CEO Scott Patterson noting he was "pleased" with the resultsPool Corp.reported Q3 results and backed its guidance for FY26INDEXES:Near midday, the Dow was down 211.23, or 0.40%, to 52,644.86, the Nasdaq was down 604.82, or 2.26%, to 26,098.04, and the S&P 500 was down 102.23, or 1.32%, to 7,654.94.
Tech Stocks Plummet, Tesla Down 3%
Stock futures are tumbling as renewed concerns about the returns on artificial-intelligence investments trigger a broad technology selloff. Oil prices are rising, with Brent crude up nearly 3% to around $112 a barrel and West Texas Intermediate approaching $100, as escalating tensions in the Middle East heighten concerns about disruptions to global energy supplies. The 10-year Treasury yield is easing toward 5.05%, while gold is falling toward $4,073 an ounce as investors reassess the outlook for interest rates and risk assets. Corporate earnings remain in focus. Meta shares are sliding despite strong revenue growth as investors weigh rising AI spending and legal costs, while Tesla is under pressure as its investment plans raise questions about returns.In pre-market trading, S&P 500 futures fell 0.92%, Nasdaq futures fell 1.57% and Dow futures fell 0.50%.Check out this morning's top movers from around Wall Street, compiled by The Fly.UP AFTER EARNINGS -Spotifyup 7%Dow Inc.up 4%Lockheed Martinup 4%Procter & Gambleup 2%CSXup 3%DOWN AFTER EARNINGS -Tesladown 3%Meta Platformsdown 2%Lam Researchdown 9%IBMdown 7%Nokiadown 6%America Airlinesdown 4%Blackstonedown 3%Honeywell Technologiesdown 1%Barclaysdown 1%
Nasdaq Composite Rises Over 1%, Tesla Falls 3.3%
All the major averages were up, though the outsized bounce in technology stocks helped Nasdaq Composite to post an outsized increase of over 1%. AI-exposed Industrials and Technology were also the top two performing sectors in the S&P 500, where Semiconductors as well as Enterprise Software marched in step to the upside. Software iShares ETF (IGV) was up for the second consecutive day, rising 1.8%, while iShares Semiconductorsrallied over 2%. In turn, rising Treasury yields punished the rate-sensitive sectors - REITs was among the worst performing areas of the market.The afterhours earnings session saw mixed results for high-profile Tech and AI-driven names: Lam Research and IBM were down, though Meta Platforms and Texas Instruments were modestly higher. Tesla initially rallied on earnings, but the stock retreated during the earnings call as the company cut its capex view for this year to $20B from $25B. Subsequently, in the opening hours of the evening session, the Nasdaq 100 contract is down by 0.7% while S&P e-Minis are down by 0.5%.Check out this evening's top movers from around Wall Street, compiled by The Fly.HIGHER AFTER EARNINGS -Liberty Energyup 8.8%CSXup 3.7%Knight-Swift Transportationup 3.3%Meta Platformsup 2.5%SAP SEup 2.3%Kinder Morganup 2.0%Texas Instrumentsup 1.2%United Rentalsup 0.6%DOWN AFTER EARNINGS -Lam Researchdown 6.8%IBMdown 4.4%Tesladown 3.3%Las Vegas Sandsdown 2.7%
Company Raises 2023 Software Growth Outlook to 7%-8%
In prepared remarks for its Q3 conference call, the company stated, " Given our strong third quarter Software performance, our confidence in the full-year outlook has increased. We now expect full-year Software growth of approximately 7% to 8%, with about 7% as the revised base case. For the full year, we expect double-digit growth in Hybrid Cloud, mid-teens growth in Data and low-single digit growth in Automation. For Transaction Processing, we are raising our expectations for the full year with growth expected to be flat. Infrastructure growth accelerated in the third quarter with significantly stronger program-to-program performance of z17 underscoring the durability of the platform and the value it delivers to clients. Combined with continued strength in Distributed Infrastructure, we continue to expect low-single-digit Infrastructure revenue growth for the full year. In Consulting, backlog quality and momentum in generative AI continue to support a modest acceleration to low-to-mid single-digit revenue growth for the year. We continue to expect 100 basis points of operating pre-tax margin expansion for the full year, reflecting the flow-through from the third-quarter earnings beat and continued operational discipline. And our operating tax rate expectation for the year remains in the mid-teens. "
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