SpaceX, Netflix Awaited, Oil Up, and Chips Reverse

Published as of: October 20, 2026, 9:13 a.m. ET

1. Netflix, SpaceX earnings preview: Netflix reports following recent layoffs and leadership changes. Customer engagement is key after Netflix reassured in July it was "healthy." Back then, shares fell on guidance disappointment. Analysts expect quarterly earnings of $0.82 per share on revenue of $12.9 billion. SpaceX, which went public in June, could provide AI spending plan updates and potentially address a report from Barclays that SpaceX and Elon Musk's other firm, Tesla (TSLA), might merge. Another question concerns Starlink, the firm's satellite internet service. Controversy arose last week when Ukraine temporarily lost access to a military version of Starlink. Service is still spotty there, according to The Hill, raising concerns about Ukraine's ability to protect itself from Russia. Last time out, SpaceX reported better-than-expected quarterly losses and topped analysts' revenue estimates, with revenue up 92% annually. Analysts see earnings per share of $0.13 this time on revenue of $12.7 billion. Soon after earnings, SpaceX faces a large lock-up release, giving early investors a chance to sell shares.
    
2. Guidance in pole position: As earnings roll out, it's clear again that investors have high expectations and companies that can't meet them might get punished.  "Muted-to-negative stock price reactions to solid earnings results show that the bar is getting higher this reporting cycle for companies to deliver," said Alexandra Semenova, financial insights strategist at the Schwab Center for Financial Research (SCFR). "Investors are looking beyond headline beats to guidance." For firms like Meta Platforms and Tesla, it's also about return on AI investment as they put hundreds of billions of dollars to work. Last quarter's results, especially from cloud giants like Microsoft (MSFT) and Amazon (AMZN), brought some initial positive signs on that front. And Meta's recent AI launches lifted shares from mid-year doldrums. Still, AI and cloud remain extremely competitive, and cost pressures mount. While Lam Research (LRCX) and Texas Instruments (TXN) have lower profiles, their earnings tomorrow might be insightful for investors trying to interpret underlying chip demand.
    
3. Inflation woes extend beyond energy: The reflexive thing is to blame last week's hot inflation reports on energy. That isn't completely accurate, however. Both core goods and core services prices accelerated in September, suggesting that the summer slowdown was temporary. Services inflation remained particularly concerning. The supercore Consumer Price Index (CPI)—or core services excluding housing—rose 0.42% monthly and 3.13% year over year, indicating that underlying services inflation may have a floor closer to 3% than the Federal Reserve's 2% target. Producer prices reinforced concerns that price pressure goes beyond energy markets. The breadth of the gains, including the largest historical increase in final-demand goods prices, could keep pressure on the Personal Consumption Expenditures (PCE) price index later this month and complicate the outlook for more accommodative Fed policy. Another data point that's more complex below the surface was last week's September retail sales report. While nominal sales rose 0.8% monthly, rising gas station costs drove most of that. The control group gained only 0.1%, creating a weak handoff into the fourth quarter. In data today, September housing starts fell 5.2% month over month and more than 7% annually, helping push down Treasury yields early.

• GE Aerospace (GE) slid 3% despite a solid earnings report that included beating analysts' estimates for both revenue and earnings per share. The company also raised guidance. Orders rose 58% annually in the quarter.
   
• 3M (MMM) climbed about 1% following earnings that topped Wall Street's expectations and in-line revenue. The company also raised its fiscal 2026 EPS estimate above consensus.
   
• Northrop Grumman (NOC) inched up less than 1% despite earnings that beat consensus views and better-than-expected fiscal 2026 EPS guidance. Revenues for the quarter were as expected.
   
• General Motors (GM) plunged 7% in early trading despite beating analysts' earnings expectations and raising free cash flow guidance. It also approved a multi-year $20 billion stock buyback plan. However, GM also lowered the top range of its earnings guidance for the full year.
   
• Halliburton (HAL) jumped 3.5% after reporting earnings this morning that topped analysts' revenue and profit estimates. The company also now expects improved 2027 revenue growth and operating margins.
   
• South Korea's benchmark stock index fell 3.7% Tuesday to its lowest close since April 7, hurt by a disappointing AI initial public offering. Reuters quoted an analyst saying investors are increasingly scrutinizing AI infrastructure and data center deals. U.S. chip stocks often take their cue from South Korean performance.
   
• CoreWeave (CRWV) fell another 4% early Tuesday. It ended slightly lower Monday after earlier gains despite an upgrade to buy from neutral at Goldman Sachs. The stock has become a poster child for AI-related debt worries.
   
• Other AI-related shares up Monday came under pressure this morning.  SK Hynix (SKHY), SanDisk (SNDK), Western Digital (WDC), and Marvell Technology (MRVL) fell 2.5% to 4%.
   
• Apple (AAPL) fell 1% in early trading after getting downgraded by Loop Capital to hold from buy on concerns about slow iPhone shipments. UBS said annual iPhone revenue growth could ease in the September quarter to 14% from 22% to 23% in recent quarters.
   
• Salesforce (CRM) dropped 3% early after saying it plans to acquire Braze (BRZE) for about $47.50 per share, or approximately $5.66 billion in enterprise value. Braze helps marketers build deeper customer relationships by responding to customer behavior in real time, Salesforce said.

October 21: Expected earnings from Meta Platforms (META), Tesla (TSLA), Lam Research (LRCX), Texas Instruments (TXN), Philip Morris (PM), Thermo Fisher Scientific (TMO), Abbott Laboratories (ABT), NextEra Energy (NEE), Danaher (DHR), AT&T (T), CME Group (CME), Vertiv (VRT), Elevance Health (ELV), Moody's (MCO), SAP SE (SAP), IBM (IBM), CSX (CSX), United Rentals (URI), and Teradyne (TER).
October 22: Expected earnings from Procter & Gamble (PG), Union Pacific (UNP), Valero Energy (VLO), Blackstone (BX), Lockheed Martin (LMT), Spotify (SPOT), Barclays (BCS), Comcast (CMCSA), Norfolk Southern (NSC), Honeywell (HON), Western Digital (WDC), Newmont (NEM), Bloom Energy (BE), VeriSign (VRSN), and Deckers Outdoor (DECK).
October 23: October S&P Global U.S. manufacturing and services PMIs, October final University of Michigan Consumer Sentiment, and expected earnings from American Express (AXP), Illinois Tool Works (ITW), SLB (SLB).
October 26: Expected earnings from Verizon (VZ), Welltower (WELL), Cadence Design Systems (CDNS), Nucor (NUE), and Public Storage (PSA).
October 27: September durable goods, October Consumer Confidence, September new home sales, and expected earnings from Coca-Cola (KO), Novartis (NVS), Boeing (BA), Corning (GLW), Freeport-McMoRan (FCX), HCA Healthcare (HCA), Johnson Controls (JCI), American Tower (AMT), United Parcel Service (UPS), Visa (V), Seagate (STX), Waste Management (WM), NXP Semiconductors (NXPI), Baker Hughes (BKR), and Teradyne (TER).