Pre-Market Briefing — October 21, 2026: SpaceX Soars, Oil Surges, AI Earnings Test

Overview

Good morning. It's Wednesday, October 21st. US equity futures are pointing to a mixed open this morning. S&P 500 futures are up about 0.3%, while Nasdaq futures are showing strength, up over half a percent. The Dow is flat. Overseas, Asian markets closed mixed, with Japan's Nikkei gaining while Hong Kong and Shanghai f

In this show

• Good morning. It's Wednesday, October 21st. US equity futures are pointing to a mixed open this morning. S&P 500 futures are up about 0.3%, while Nasdaq futures are showing strength, up over half a percent. The Dow is flat. Overseas, Asian markets closed mixed, with Japan's Nikkei gaining while Hong Kong and Shanghai fell. Europe is also mixed in its morning session. In commodities, WTI crude is nearing one hundred dollars a barrel amid rising tensions, and the 10-year Treasury yield is steady around 5.12%. We've got a busy day ahead. With us are our Markets and World correspondents.
• Looking at the calendar, the main economic data point today is the EIA Crude Oil Inventories report at 9:30 AM Eastern. But the real focus is on earnings. Before the bell, we'll hear from giants like AT&T and Abbott Laboratories. Then, after the close, the spotlight intensifies with two Magnificent 7 members reporting: Tesla and Meta Platforms. Also on deck are IBM and Texas Instruments. We'll be watching those reports closely. The Federal Reserve, meanwhile, is in its quiet period ahead of next week's FOMC meeting, so no scheduled speakers are on the docket.
• The big single-stock story this morning is SpaceX, which is soaring in pre-market trading. The company reported its first-ever quarterly profit as a public company, posting net income of $4.4 billion. Revenue surged an incredible 161% to $14.6 billion, driven by its Super Intelligence and Connectivity divisions. Adding fuel to the fire, CEO Elon Musk commented that a merger between SpaceX and Tesla would be a 'good idea'. Those comments, combined with the blowout results, have sent SpaceX shares jumping over 8% before the opening bell.
• The AI hardware boom continues to accelerate. AI server maker Super Micro Computer saw its stock explode nearly 16% higher in extended trading. The company issued a stunning upward revision to its revenue forecast, now expecting between $18.5 billion and $19.5 billion for the first quarter. That figure absolutely demolishes previous guidance and analyst estimates. Super Micro credited the surge to overwhelming demand for its AI platforms. The news provided a lift to the entire sector, with shares of Dell and Hewlett Packard Enterprise also gaining in sympathy.
• Turning to the energy markets, oil prices are climbing this morning as geopolitical risks intensify. Brent crude futures have pushed above $110 a barrel, while West Texas Intermediate is approaching the psychological $100 mark. The moves come as escalating tensions in the Middle East raise significant supply disruption fears. Recent attacks on at least 18 commercial vessels near the critical Strait of Hormuz have put markets on edge, while Yemen's Houthis have also claimed responsibility for attacks on key Saudi Aramco facilities, adding to the instability.
• Netflix shares are under pressure this morning despite a third-quarter earnings beat. The streaming giant reported earnings of $0.87 per share, topping estimates of 82 cents. Revenue also grew nearly 12% year-over-year. However, the company's outlook spooked investors. Netflix lowered its full-year 2026 advertising revenue forecast to $2.7 billion, down from a prior estimate of around $3 billion. The company cited a slower-than-expected rollout of its ad product capabilities, and the disappointing guidance sent the stock lower in after-hours trading.
• The energy crisis is deepening in Europe. EU energy ministers are now set to discuss potential bloc-wide measures to cut consumption as prices soar. A leaked document suggests governments may formally ask households and businesses to ration energy if supply disruptions through the Strait of Hormuz continue. The situation is critical, as European natural gas prices have already surged 140% since the start of the recent Middle East conflict. With Brent crude trading around $110, the pressure is mounting for drastic action to secure the continent's energy supply.
• Later today, we get a major test for the Magnificent 7 with earnings from Meta and Tesla. For Meta, the street is looking for earnings per share of $5.86 on revenue of around $63.4 billion. Investors will be laser-focused on growth in its core advertising business, updates on user engagement across its family of apps, and, critically, the company's commentary on capital expenditures. The spending on AI and the Metaverse has been a major overhang, and the market will want to see signs that those massive investments are beginning to pay off.
• And for Tesla, the focus will be on margins and demand. Analysts are forecasting adjusted earnings of $0.45 per share, which would be a decline from the 50 cents reported a year ago. Revenue is expected to come in around $28.34 billion. After a series of price cuts, investors are anxious to see the impact on the company's closely-watched automotive gross margins. Any commentary on production ramp-ups for new models and the outlook for deliveries in the crucial fourth quarter will be key to the stock's reaction after the close.
• Finally, a look at the market action across Asia overnight, which was decidedly mixed. Japan's Nikkei 225 was a bright spot, rising 0.9% to close at 64,621. The rally was fueled by strong economic data, including a 16.7% jump in September exports that beat expectations. It was a different story in China, however, where concerns about the economy weighed on sentiment. The Shanghai Composite Index fell 0.6% to 3,713, and Hong Kong's Hang Seng Index saw a steeper decline, dropping 0.9% to finish its session at 23,651.
• Beyond the mega-caps, we have a slate of other important earnings. Before the bell, AT&T's report will give us a read on the state of the US consumer and competition in the telecom space. Medical device makers Abbott Labs and Thermo Fisher Scientific will provide insight into healthcare spending trends. After the bell, it’s not just about tech giants. We'll get results from legacy tech bellwether IBM, and a crucial check on the semiconductor industry from Lam Research and Texas Instruments, which could influence the entire chip sector tomorrow.
• Shares of Braze skyrocketed, closing up more than 51% after it was announced the company would be acquired by Salesforce for $47.50 per share. The all-cash deal values the AI-powered marketing platform at an enterprise value of approximately $5.66 billion. This move highlights the continued consolidation and high-stakes investment race within the artificial intelligence software sector, as larger players absorb innovative technologies to enhance their platforms.
• Equifax rallied today, closing up over 11 percent after the company reported strong third-quarter results that beat analyst expectations. The credit reporting agency posted adjusted earnings of $2.26 per share, surpassing forecasts, driven by strong performance in its diversified business segments which helped offset a weaker mortgage market. The results demonstrated resilience and investors responded positively to the firm's expanding profit margins and cost savings from AI initiatives.
• Apollo Commercial Real Estate Finance saw its stock climb as the company moves forward with its plan of complete liquidation and dissolution. The real estate investment trust recently received shareholder approval to sell off its assets and return the capital to investors. The company announced it expects to voluntarily delist from the NYSE around November 6th. The stock's movement is now tied to the expected net proceeds from the asset sales rather than traditional market drivers.
• So, the one thing to watch today is the AI spending test. After seeing AI-fueled beats from SpaceX and Super Micro, all eyes turn to Meta and Tesla after the close. Can these two giants justify their massive capital expenditures on artificial intelligence? Their results, and more importantly their forward-looking guidance on spending and profitability, will be a critical barometer for the health of the tech sector. That will likely set the tone for the rest of the week as we head towards the opening bell. We'll be here to cover it all.