Title: Stock Futures Steady After Volatile Day, Tesla Shares Drop on Earnings Miss
Image Caption: A trader works on the floor of the New York Stock Exchange. Peter Kramer | CNBC
Stock futures showed little movement on Wednesday evening, following a tumultuous day of trading. Futures tied to the Dow Jones Industrial Average added 10 points, or 0.03%, while S&P 500 futures ticked up 0.06% and Nasdaq 100 futures gained 0.1%.
In after-hours trading, Tesla, the electric vehicle giant, saw its shares slide 4% after the company missed expectations on earnings and revenue in the third quarter. Tesla reported adjusted earnings of 66 cents per share on revenue of $23.35 billion, falling short of analysts’ predictions of 73 cents per share on revenue of $24.1 billion.
On a positive note, Netflix shares surged nearly 13% in extended trading after the streaming service posted third-quarter profits of $3.73 per share, surpassing analysts’ expectations of $3.49 per share.
During regular trading hours, stocks experienced a sharp sell-off as Treasury yields reached multi-year highs. The 10-year Treasury yield crossed 4.9%, its highest level in 16 years. As a result, the S&P 500 tumbled 1.3%, the Dow dropped over 330 points (0.98%), and the Nasdaq Composite underperformed, declining by 1.6%.
Moving forward, traders will closely monitor a key speech by Federal Reserve Chair Jerome Powell on Thursday, focusing on interest rates and monetary policy. Additionally, economic data to be released includes weekly jobless claims and existing home sales for September.
Several banks, including KeyCorp, Fifth Third, and Truist Financial, will report their quarterly results on Thursday. Furthermore, American Airlines, Union Pacific, and CSX are slated to release their earnings.
Disclaimer: This story includes contributions from CNBC’s Jeff Cox. Please note that LSEG is formerly known as Refinitiv.
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