SpaceX rose more than 8% in U.S. premarket trading, while SMCI surged 13%. Netflix plunged after its earnings release, and the market is shifting its focus to Tesla and Meta's earnings announcements.
Futures were mixed in premarket trading during U.S. Eastern Time, with earnings from SpaceX and SMCI driving technology stocks, while higher oil prices and inflationary pressures capped gains. Netflix fell in after-hours trading following its earnings release, and investors are watching Tesla and Meta's earnings announcements.
SMCI forecast first-quarter fiscal 2027 revenue of $18.5 billion to $19.5 billion and projected a gross margin of 12% to 12.5%, significantly exceeding its previous outlook. SpaceX was reported to have posted a substantial year-on-year increase in third-quarter revenue, with net income and EPS also solid. Musk acknowledged the formation of an independent committee to consider a potential merger between the two companies, but no agreement has been reached at this time.
Netflix reported a year-on-year increase in third-quarter revenue, while its fourth-quarter outlook fell below market expectations, with delays in introducing advertising-related features also having an impact. Intuitive Surgical reported strong earnings, but concerns spread over its share price after the company recorded a settlement payment and indicated downside risks to its 2027 revenue outlook. The market remained active ahead of Tesla and Meta's earnings announcements.
Other market news included U.K. consumer prices rising to 3.5%, Japan recording its fifth consecutive month of trade deficit, Micron signing a labor agreement with a local labor union in Taiwan, and SK hynix completing its share buyback ahead of schedule. Key data due for release include wage data from the U.S. Bureau of Labor Statistics and EIA inventory statistics.