How Are Dow, S&P 500, Nasdaq Futures Trading After META, TSLA Earnings?

• Meta’s board approved a new class of non-voting Class C common stock that is to be distributed via a one-time stock dividend, functioning as a 2-for-1 stock split.

• Tesla cut its full-year capital expenditure guidance to about $20 billion from more than $25 billion and revised the timeline for scaling the Optimus robot.

• Meanwhile, tensions between the U.S. and Iran remained high, keeping oil prices elevated.

U.S. stock futures declined in the overnight session late on Wednesday following results from Meta Platforms Inc. (META) and Tesla Inc. (TSLA) as earnings season kicks into full throttle this week.

As of 10:39 p.m. EDT, Nasdaq-100 futures were down 1%, S&P 500 futures fell 0.49% and Dow futures slipped 0.21%.

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On Wednesday, the three benchmark indexes closed higher. The Nasdaq Composite led the climb, adding 278 points to end the session 1.05% higher. The Dow Jones Industrial Average and S&P 500 climbed 0.69% and 0.58%, respectively, at close.

Key US Market Drivers

Earnings from Meta Platforms and Tesla dominated Wednesday as markets grappled with the reality of the AI trade.

Meta’s revenue for the third quarter climbed 26% to $64.6 billion, surpassing Wall Street expectations of $63.4 billion. Meanwhile, earnings per share of $3.83 missed projections of $5.46 a share due to a $9.89 billion legal charge.

The Facebook parent also said its board had approved a new class of non-voting Class C shares to be distributed through a one-time dividend that effectively creates a 2-for-1 split.

The company said the fresh stock would help raise capital, structure employee compensation, and fund potential acquisitions amid AI competition.

Meanwhile, CEO Mark Zuckerberg highlighted the success of Meta’s Muse, noting that it has attracted over 10 million users in the U.S. and Canada since its Sept. 8 launch. Zuckerberg said that even as growth remains strong, the company is eyeing a billion users in the next few years.

Deepwater Asset Management managing partner Gene Munster noted in a post on X that Zuckerberg’s commentary suggests Muse models and agents will become the center of Meta’s universe. “My take: In three years, Muse will become the lens consumers engage with Instagram, FB, WhatsApp, Reels,” he said.

Meanwhile, Elon Musk’s Tesla also posted its Q3 print, reporting revenue of $28 billion, missing analyst estimates of $28.3 billion. Earnings per share came in at $0.48 per share, against an expected EPS of $0.45.