U.S. stock futures were mixed early Thursday as investors balanced corporate earnings with renewed trade developments. Shares of Tesla, Inc. (NASDAQ:TSLA) slid in after-hours trading following disappointing quarterly results, while Intel Corporation (NASDAQ:INTC) is set to report later in the day. Meanwhile, Beyond Meat, Inc. (NASDAQ:BYND) pulled back sharply after a volatile meme-stock rally.
Market mood cautious
Equity futures showed little conviction before the opening bell, reflecting a tug-of-war between solid earnings overall and geopolitical uncertainty. At 02:55 ET , Dow futures fell 36 points, or 0.1%. S&P 500 futures gained 11 points, or 0.2%, and Nasdaq 100 futures rose 66 points, or 0.3%.
Wall Street ended lower on Wednesday as tech weakness dragged the indexes down. Netflix, Inc. (NASDAQ:NFLX) shares plunged more than 10% after its quarterly operating margin raised concerns about lofty valuations. Texas Instruments Incorporated (NASDAQ:TXN) also disappointed investors with a soft outlook for both revenue and earnings, sending its stock down 5.6%.
Still, the third-quarter earnings season has started on a strong footing. Around 86% of companies that have reported so far beat analyst forecasts, with aggregate S&P 500 earnings expected to rise 9.3% from a year ago, according to LSEG data cited by Reuters.
Investors are also monitoring trade headlines. President Donald Trump said Wednesday that he expects to secure deals with Xi Jinping when they potentially meet in South Korea next week.
Tesla slides after Q3 miss
Tesla shares fell more than 3% in extended trading after the EV maker reported third-quarter results that came in below Wall Street estimates. Although sales were strong, higher costs weighed on the bottom line as the company faces cooling U.S. demand after the expiration of a federal EV tax credit.
For the quarter, Tesla delivered adjusted earnings per share of $0.50 on $28.1 billion in revenue. Analysts had expected $0.54 per share and $26.22 billion in sales. Deliveries climbed 7% year-on-year to 497,098 vehicles as buyers rushed to take advantage of the $7,500 credit before it expired. However, that surge was offset by rising expenses.
Gross margins excluding regulatory credits came in at 17%, nearly unchanged from the prior 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 earnings up next
Intel is one of the most closely watched companies reporting on Thursday. The chipmaker’s shares have rallied recently, boosted by capital injections from NVIDIA Corporation (NASDAQ:NVDA), SoftBank Group Corp., and a U.S. government decision to acquire a 10% stake. That announcement came after Trump publicly called for CEO Lip-Bu Tan to step down over conflict-of-interest concerns.
Despite renewed backing, Intel continues to face headwinds. It lags behind rivals like NVIDIA and Advanced Micro Devices, Inc. (NASDAQ:AMD) in AI chip development, and its manufacturing unit has struggled to keep pace with Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM).
Intel is forecast to post roughly break-even earnings for the quarter, with weakness in its data center and AI segments expected to drive a 1.2% year-over-year revenue decline to $13.12 billion.
Meme frenzy fades for Beyond Meat
Beyond Meat shares tumbled more than 11% after hours, reversing gains from a wild week of trading. The stock ended Wednesday down 1.1% at $3.58 after surging earlier amid a retail buying spree. Over two billion shares changed hands during the session, according to FactSet data cited by The Wall Street Journal.
The stock had plunged to around $0.52 last week after a debt exchange disclosure, but a Tuesday announcement that Walmart Inc. (NYSE:WMT) would expand distribution of its products sparked a sharp rebound.
For much of the past year, the stock has hovered between $2 and $4 as weak sales, layoffs, and debt concerns weighed on sentiment.
Trump targets Russian oil giants
The White House unveiled sanctions against Lukoil PJSC and Rosneft, with Trump citing Moscow’s “lack of serious commitment to a peace process to end the war in Ukraine.” Treasury Secretary Scott Bessent added that the companies funded “the Kremlin’s war machine,” and said more measures could follow.
Oil prices jumped after the announcement as traders anticipated tighter supplies. Brent crude rose 3.3% to $64.67 per barrel, while West Texas Intermediate gained 3.5% to $60.50.