SpaceX Impresses while Meta, Tesla Wait in Wings

Published as of: October 21, 2026, 9:18 a.m. ET

1. Meta, Tesla earnings up next: Two Magnificent Seven reports after the close kick earnings season into high gear. Meta could be closely watched for future AI spending plans and return on investment from prior AI spending. Meta recently rolled out a new suite of AI offerings, including its Muse agent, which garnered a positive reaction on Wall Street. One question is how Meta plans to monetize these products and another centers around security-related questions that some users might have. While initial users find Muse helpful, firms including Amazon (AMZN) have banned it from their virtual premises. Consensus is for earnings per share of $5.89. Investors await an update from Tesla on Robotaxi progress, measured in metrics like fleet size, unsupervised miles, and safety. Capital spending is also a concern, and investors might want to hear if costly gas could raise EV demand after a sequential delivery increase last quarter. The Chinese market is another focus after recent upbeat numbers. Analysts expect earnings per share of $0.43. Overall, as Magnificent Seven and other tech results pour in, companies that provide evidence of AI spending sparking sustainable growth might increasingly separate themselves.
    
2. Giants head separate ways after results: SpaceX rose 9% early after earnings and revenue exceeded expectations, driven by a 22% sequential increase in the connectivity business. Revenue rose 161% from a year earlier to $14.6 billion, easily topping FactSet's consensus of $12.87 billion. Guidance and AI business revenue, which SpaceX calls SI, also impressed. Investors also seemed enthused about CEO Elon Musk noting that SpaceX and his other company, Tesla, have both formed special committees to discuss a possible merger. Several analysts raised their SpaceX price targets. In contrast, Netflix (NFLX) dropped nearly 7% after earnings and revenue topped analysts' expectations. However, its 12% annual revenue rise appeared relatively weak compared to historic growth, and advertising guidance appeared to disappoint. On the plus side, operating margin and free cash flow grew from a year earlier. The company said engagement—an important metric—remained "healthy," the same word it used in July when it last reported. However, the company has struggled amid growing competition and recently fired two executives. Several analysts lowered their price targets.
    
3. Yields reflect economic concerns: As oil initially rose yesterday, Treasury yields fell, raising questions about that relationship. Until recently, rising oil and rising yields went hand in hand, in part because of strong U.S. economic growth. The yield decline, which began last week, could reflect defensive trading where investors seek perceived "safety" in fixed income as they fret about the long-term impact of inflation on U.S. growth. Yesterday's icy housing data--including worse-than-expected September housing starts and pending home sales—also contributed to yield weakness. So did softness in technology stocks and rotation out of AI last week. There aren't any major Treasury auctions this week to hint at demand. However, last week's August Treasury International Capital data showed a net inflow of funds from foreign investors into U.S. assets, including Treasuries, a positive sign. "We believe inflation will eventually cool toward the Fed’s 2% target, but the longer it remains elevated, the more likely yields are to remain elevated as well," said Cooper Howard, director of fixed income research and strategy at the Schwab Center for Financial Research (SCFR).

• Super Micro Computer (SMCI) jumped 12% early after the company shared fiscal first quarter revenue guidance well above FactSet's consensus.
   
• CoreWeave (CRWV), in the spotlight recently due to its AI-related spending and debt, climbed nearly 3% in early trading. The stock might be benefiting from SpaceX, as executives on that earnings call suggested they're bullish on AI infrastructure demand, Barron's reported.
   
• Dell (DELL) rose 6% and may be another beneficiary of better AI sentiment indicated by SpaceX. Also, the company announced an expansion of its AI Factory with Nvidia (NVDA) designed to help companies move AI into production.
   
• Other AI-related shares generally moved up early, including some that have been hurt lately like Lumentum (LITE), SK Hynix (SKHY), Seagate (STX), and Applied Digital (APLD). All these were up 3% or more before the open.
   
• United Airlines (UAL) slipped as earnings per share and revenue both slightly missed analysts' estimates and the airline cut its full-year profit forecast, blaming high fuel prices.
   
• Abbott Labs (ABT) fell almost 4% despite quarterly results and guidance generally in line with analysts' estimates. Abbott plans to spin off its nutrition business, where product recalls have weighed on overall performance, Bloomberg reported. The business has about $8.5 billion in annual sales.
   
• AT&T (T) backtracked almost 6% despite earnings and revenue that topped consensus. Subscriber growth appeared to underwhelm, Investor's Business Daily reported.
   
• Philip Morris (PM) fell 2.4% despite strong quarterly results as the company said energy prices are driving up costs, Barron's reported.
   
• Intuitive Surgical (ISRG) fell more than 6%. Third quarter results were better than expected but investors appeared disappointed with news of the company paying $450 million in an antitrust settlement and narrowing its procedure growth guidance, Barron's reported.
   
• Crude (/CL) rose early on reports of attacks on Gulf shipping. Oil supplies come into view later when the U.S. Energy Information Administration (EIA) announces weekly crude inventories. They fell a dramatic 8.6 million barrels a week ago.
   
• The S&P 500 Index has entered a technically important near-term test area between 7,690 and 7,700. Holding that range might stabilize the market, but a decisive break could open the door to more downside. Investors might want to watch market breadth and trading volume around this zone for confirmation that buyers are regaining conviction.
   
• Volatility might stay elevated after the recent bump, reflecting growing concern about chances of a more dramatic correction. Investors are pricing in slower earnings growth in coming quarters, as well, and hedges continue getting added.

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).
October 28: FOMC rate decision and expected earnings from Microsoft (MSFT), Alphabet (GOOGL), T-Mobile (TMUS), ServiceNow (NOW), GE Vernova (GEV), Amphenol (APH), UBS (UBS), Phillips 66 (PSX), and Vertiv (VRT).