U.S. Stocks May See Further Upside On Upbeat Earnings News

The major U.S. index futures are currently pointing to higher open on Wednesday, with stocks likely to extend the upward move seen over the two previous sessions.

Strength in the technology sector may contribute to an early advance on Wall Street amid a positive reaction to some of the latest earnings news.

Shares of SpaceX (SPCX) are surging by 8.8 percent in pre-market trading after the Elon Musk-led rocket company reported better-than-expected third quarter earnings as revenues skyrocketed.

Musk also confirmed SpaceX and Tesla (TSLA) have formed independent special committees to explore a potential merger.

Data center server company Super Micro Computer (SMCI) is also soaring by 12.2 percent in pre-market trading after boosting its fiscal first-quarter revenue outlook.

On the other hand, shares of Netflix (NFLX) are plunging by 6.8 percent in pre-market trading after the streaming giant reported better than expected third quarter earnings but provided disappointing revenue guidance.

Telecom giant AT&T (T) is also tumbling by 5 percent in pre-market trading despite reporting third quarter results that beat expectations on both the top and bottom lines.

Some traders may be reluctant to make significant moves ahead of the release of quarterly results from Tesla, Meta Platforms (META) and IBM Corp. (IBM) after the close of today’s trading.

After recovering from an early pullback and moving mostly higher early in the session, stocks gave back ground over the course of the trading day on Tuesday. The tech-heavy Nasdaq pulled back slightly below the unchanged line, although the Dow held on to a strong gain.

The Dow reached its best closing level in over a month, jumping 529.85 points or 1 percent to 52,495.88. The S&P 500 also rose 21.84 points or 0.3 percent to 7,712.57, but the Nasdaq edged down 6.07 points or less than a tenth of a percent to 26,424.82.

The notable advance by the Dow partly reflected a sharp increase by shares of 3M (MMM), with the industrial conglomerate spiking by 6 percent.

3M rallied after the Scotch-tape and Post-it maker reported better than expected third quarter earnings and raised its full-year profit forecast.

Dow components Amgen (AMGN), Merck (MRK) and UnitedHealth (UNH) also posted significant gains on the day.

Buying interest was also generated in reaction to a substantial downturn by the price of crude oil, with U.S. crude oil futures tumbling after skyrocketing earlier in the day.

The sharp pullback by crude oil partly reflected a report by Al-Araby Al-Jadeed indicating negotiators from Qatar and Pakistan have presented a compromise proposal to end the U.S.-Iran war.

Though the U.S. nor Iran confirmed the report, the agency cited a source stating that a breakthrough to halt the escalation of the conflict between the U.S. and Iran could be announced possibly this week.

However, traders may have been reluctant to make more significant moves ahead of the release of earnings from key tech companies.

Pharmaceutical stocks showed a significant move to the upside on the day, driving the NYSE Arca Pharmaceutical Index up by 2.8 percent to a two-month closing high.

Considerable strength was also visible among housing stocks, as reflected by the 2.6 percent jump by the Philadelphia Housing Sector Index.

Biotechnology, healthcare and airline stocks also saw notable strength, moving higher along with most of the other major sectors.

Commodity, Currency Markets

Crude oil futures are rising $0.17 to $97.99 a barrel after sliding $0.72 to $97.82 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,147.40, up $4.80 compared to the previous session’s close of $4,142.60. On Tuesday, gold fell $17.50.

On the currency front, the U.S. dollar is trading at 157.94 yen compared to the 158.16 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.225 compared to yesterday’s $1.1236.

Asia

Asian stocks ended mixed on Wednesday, with Chinese and Hong Kong markets declining on earnings concerns while markets elsewhere rose following reports of progress towards renewed U.S.-Iran negotiations.

The U.S. dollar was on the back foot in Asian trading after slipping to a three-week low in the previous session.

Treasury yields edged lower, while gold was largely unchanged at $4,121 an ounce on reduced expectations of a Federal Reserve rate hike in October.

Brent crude prices rose about 1 percent to hover near $110 a barrel after witnessing sharp swings in the previous session as investors weighed conflicting headlines on efforts to end the U.S.-Iran war.

China’s Shanghai Composite Index fell 0.6 percent to 3,713.03 after CATL reported third-quarter results that fell short of market expectations. Shares of the battery giant plummeted 12 percent. Hong Kong’s Hang Seng Index slid 0.9 percent to 23,651.87.

Japanese markets closed higher as data showed Japanese exports rose 16.7 percent year-on-year in September, extending growth to a 13th straight month but below the 20.1 percent forecast.

The Nikkei 225 Index jumped 0.9 percent to 64,621.24, while the broader Topix Index settled 0.9 percent higher at 4,043.73.

Tech stocks rose on renewed optimism over AI demand, with SoftBank Group climbing 1.5 percent and Kioxia Holdings surging 2.8 percent.

Seoul stocks soared, with semiconductor leaders driving the recovery after steep losses in the previous session. The Kospi Index rallied 3.3 percent to 5,735.66 on easing concerns over artificial intelligence spending and investments.

Investors also digested data that showed South Korean producer prices rose 7.7 percent year-on-year in September, easing from a 7.9 percent increase in August.

Market bellwether Samsung Electronics soared 5.7 percent and chip giant SK Hynix surged 5.8 percent following better-than-expected earnings from U.S. AI server maker Super Micro Computer.

Power equipment maker LS Electric added 7 percent after reporting better-than-expected third quarter earnings, driven by robust demand from AI data centers.

Australian markets edged up slightly despite rising oil prices and a hawkish RBA warning. The benchmark S&P/ASX 200 Index inched up 0.2 percent to 8,831.30, led by banks and communication stocks. The broader All Ordinaries Index closed 0.1 percent higher at 8,956.60.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index surged 1 percent to 13,761.29, snapping a three-day losing streak ahead of CPI inflation data for the third quarter, which is due on Thursday.

Europe

European stocks have moved mostly higher on Wednesday as investors digest U.K. inflation data and await a raft of earnings for direction.

Higher oil prices served to limit potential gains after Iranian President Masoud Pezeshkian said that the United States must end pressure and threats, cease regional pressure, and lift economic sanctions before any negotiations.

In economic news, U.K. consumer price inflation rose to a one-year high in September on motor fuel prices, the Office for National Statistics said.

Consumer prices registered an annual growth of 3.5 percent after rising 3.1 percent in August. The rate was the highest since last October and also came in above forecast of 3.4 percent.

Core inflation that excludes energy, food, alcohol and tobacco, accelerated to 2.8 percent in September from 2.6 percent in the prior month.

A separate set of data revealed the U.K. budget deficit widened more than estimated in September.

The German DAX Index is up by 0.9 percent and the French CAC 40 Index is up by 0.7 percent, while the U.K.’s FTSE 100 Index is posting a more modest gain, up 0.1 percent.

In corporate news, German sportswear giant Adidas has moved to the upside after lifting its full-year profit outlook.

Aroundtown shares have soared. The real estate company said its subsidiary Grand City Properties SA has acquired a 20.04 percent stake in German residential property company LEG Immobilien SE. Shares of the latter rallied 3.3 percent.

Randstad has also skyrocketed. The staffing company flagged an improvement in trends after reporting better-than-expected third-quarter results.

Medical technology company Getinge has also advanced after surpassing third quarter profit forecasts.

Spanish electric utility Iberdrola has also risen after raising its profit target for this year for the second time.

Testing group Eurofins Scientific has also moved notably higher after confirming its objectives for 2027.

Meanwhile, Aberdeen shares have fallen in London. The company said its assets under management and administration rose 4 percent at the end of September from the end of 2025.

French payment service provider Edenred has also plunged after trimming its 2026 EBITDA guidance.

Swedish engineering group SKF has also tumbled despite posting improved profit and margins in the third quarter.

U.S. Economic News

The Energy Information Administration is due to release its report on crude oil inventories in the week ended October 16th at 10:30 am ET. Crude oil inventories are expected to dip by 0.8 million barrels after tumbling by 8.6 million barrels in the previous week.

At 1 pm ET, the Treasury Department is scheduled to announce the results of this month’s auction of $13 billion worth of twenty-year bonds.