Weekday edition
Meta revenue beat, Netflix's weak outlook, and cash savings yields
Lam Research fell after hours despite an earnings beat, and the Fed decision is the next test.
At Wednesday’s close: S&P 500 +0.58%, Nasdaq-100 +1.13%, Dow +0.69%
Meta Platforms rises after hours as quarterly results beat estimates
Meta Platforms (META) reported third-quarter revenue and adjusted earnings above analyst estimates after Wednesday's close. Its shares climbed 2.2% in after-hours trading to $712.65. In the regular session before the report, the stock rose 0.5% to close at $697.52.
Meta's report showed revenue grew from a year earlier. Its count of daily users across its apps also increased. Before the results, the stock had fallen 10.3% from its 52-week high of $777.59. After-hours trading is often thin, and prices may shift when regular trading opens.
For readers
What it means for you: Meta's earnings beat does not change what cash savings pay. Those yields follow short-term Treasury bill rates, with the 3-month bill at 4.25%. Bill rates move with expectations for the Fed's benchmark rate. The Fed's decision on Wednesday, Oct. 28, 2:00 p.m. ET is the next test for savers.
Markets
Wednesday’s close
| Market | Level | Change |
|---|---|---|
| S&P 500 | 7,757.17 | +0.58% |
| Nasdaq-100 | 29,822.52 | +1.13% |
| Dow | 52,856.09 | +0.69% |
| 10-Yr | 5.13% | +1 bp |
| Bitcoin (24 hr)As of this edition | $81,763 | −1.66% |
The day ahead
Thursday’s setup
After the S&P 500 rose 0.6% on Wednesday, company results lead Thursday's list: IBM shares fell in late trading even though the company reported results above analyst estimates.
Before open Procter & Gamble earnings. The company's latest quarterly sales and profit figures could move its shares and give shareholders an update on how its business performed.
After hours International Business Machines. Shares fell 4.6% in late trading; the company also reported third-quarter revenue and adjusted earnings above analyst estimates, with software sales growing from a year earlier.
After hours CSX. Shares rose 3.7% in late trading after the company reported third-quarter earnings and revenue above analyst estimates, which it tied partly to higher fuel surcharge revenue.
If you own
Netflix shares tumbled 5.3%, and the company lost $15 billion in market value, leaving it worth $270 billion. Many broad index funds hold the stock, and their holders could feel part of the move too.
Tech funds tracking the Nasdaq-100 gained with the index, which rose 1.1% to 29,822.52. A move that size could show up quickly in a tech-heavy fund, since such funds often swing more than broad market funds.
Sector funds showed a wide split: technology companies rose 1.7%, while communication services companies slid 1.1%. Funds tied to a narrow slice of the market could swing more than a broad index fund.
S&P 500 index funds rose 0.6% with the index, which ended at 7,757.17. That move added $6 for every $1,000 held. A gain that size may matter little on its own to a long-term holder of an index fund.
Need to know
Top stories
- 1
NFLX · −5.31% Netflix tumbles after weaker fourth-quarter outlook. Netflix shares tumbled 5.3% to $65.04, a new 52-week low. The company lost $15 billion in market value. Netflix beat third-quarter profit estimates, but its fourth-quarter guidance came in below expectations. Reports said the outlook raised concerns about viewer engagement, advertising growth and competition. The stock now sits 47.6% below its 52-week high. Read more
- 2
LRCX · −1.00% Lam Research falls after hours despite narrow earnings beat. Lam Research shares tumbled 7.4% in after-hours trading, the session after the official close. The chip-equipment maker reported quarterly earnings and revenue that narrowly topped analyst estimates. The stock had already slid 1.0% in regular trading. After-hours prices can shift once the full market opens. Read more
- 3
TMO · +0.97% Thermo Fisher gains after lifting full-year profit outlook. Thermo Fisher Scientific shares rose 1.0% to $694.02, closing near their 52-week high. The lab and life-science supplier beat third-quarter estimates for profit and sales. It also raised its full-year adjusted earnings guidance, a profit measure that excludes one-off items. The company pointed to continued strong customer activity. Read more
AI corner
Three changes that matter
Topics: Regulation, Energy
Trump orders new AI data centers to generate their own power
The mandate, posted on Truth Social, could raise costs for data center builders, while BlackRock's Larry Fink warned that slower construction could push up inflation.
Topics: Big Tech, Markets
SpaceX shows AI revenue growth outpaced by heavy computing spending
According to its third-quarter results, SpaceX's AI computing unit is growing fast but costs far more to build than it earns, leaving Starlink to carry most operating profit.
Topics: Chips, Deals
Amkor expands Nvidia chip packaging deal in South Korea
The agreement aims to sharply expand advanced packaging, the step that assembles chips into finished AI processors, to meet rising demand for AI computing, the companies said.
How it works
After-hours trading
Thin trading can exaggerate moves. After-hours trading takes place once the regular session closes at 4 p.m. ET. Far fewer buyers and sellers take part. A handful of large orders can push a price further than it would move during the day. Lam Research shares tumbled 7.4% after hours, after the company narrowly beat quarterly earnings and revenue estimates. Such moves may shrink or reverse once the full market opens at 9:30 a.m. The pattern tends to come up when companies report results after the close.
Coming up
University of Michigan Surveys of Consumers, October (final). How confident households feel about their finances and the economy, plus their inflation expectations.
Verizon earnings. Results are due before the opening bell.
Fed interest-rate decision. The Fed announces its rate decision, followed by the chair's press conference.
The close
The big picture. Earnings season is doing much of the sorting now. Results lifted Meta and Thermo Fisher but sent Netflix and Lam Research lower. Technology led Wednesday's gains, but they reached further: 757 stocks rose and 542 fell. The S&P 500 has gained 1.4% in October. A broad index fund holds winners and losers alike, so no single report decides its course.
On the calendar. Third-quarter figures on the homeownership rate and rental vacancies arrive Wednesday, Oct. 28. They could show how renters and would-be buyers are coping with higher borrowing costs. The same day, figures on job gains and losses at opening and closing businesses give a slower-moving read on hiring.
Not investment advice.