Wall Street futures flat as Tesla, IBM results disappoint investors
U.S. stock futures were largely muted on Thursday after disappointing earnings from Tesla and IBM dampened sentiment, while lingering U.S.-China trade tensions kept investors cautious.
At 5:43 a.m. ET, Dow futures slipped 0.25%, S&P 500 futures edged down 0.01%, and Nasdaq 100 futures rose 0.03%, News.Az reports, citing Reuters.
Tesla (TSLA.O) shares dropped 3.3% in premarket trading after the electric vehicle maker reported weaker-than-expected third-quarter profits, overshadowing a slight revenue beat. The results mark the start of earnings season for the so-called “Magnificent Seven” — tech giants that now make up nearly 35% of the S&P 500’s weight.
IBM (IBM.N) tumbled 6.6% after reporting slower growth in its key cloud software division, adding to pressure on large-cap tech stocks.
Despite most companies topping analyst forecasts, cautious outlooks have tempered optimism, with Wall Street pausing near record highs amid profit-taking.
Quantum computing firms rallied sharply after reports that the Trump administration may take equity stakes in exchange for federal funding. IonQ and Rigetti Computing both jumped over 12%, while D-Wave Quantum surged 16.7%.
In contrast, Molina Healthcare plunged 20.8% after cutting its annual profit forecast, dragging other health insurers lower. Centene fell 6.2%, UnitedHealth dropped 1.6%, and Humana slid 1.6%.
With the U.S. government shutdown now in its 23rd day, key data such as weekly jobless claims were delayed, leaving markets without fresh economic signals. Investors are now focused on Friday’s core CPI, expected to hold steady at 3.1%, which could guide the Federal Reserve’s next move ahead of its policy meeting next week.
Meanwhile, reports that Washington is considering new export curbs on high-tech goods to China — including laptops and jet engines — added another layer of uncertainty for global markets.
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