Stock futures are experiencing slight declines this morning as investors closely examine a wave of corporate earnings reports and new developments in the U.S.-China trade relationships. Following a record high for the Dow Jones Industrial Average, major U.S. indexes lost ground yesterday, predominantly influenced by declines in technology stocks. Currently, Dow futures and S&P 500 futures are both down 0.2%, while futures related to the tech-heavy Nasdaq are down 0.3%. Meanwhile, gold futures, which have been on a recent tear, gained 1.5% to nearly $4,125 an ounce after stumbling earlier this week. Bitcoin is trading at $109,000, rebounding from a low of $106,700. The yield on the 10-year Treasury note has increased slightly to 3.99%, marking a rise after recently hitting six-month lows.
In specific company news, Tesla shares have dropped in premarket trading after revealing that its third-quarter profit fell short of Wall Street expectations, despite reporting a return to revenue growth following two consecutive quarters of decline. The company reported earnings per share of 50 cents, which is lower than the anticipated 54 cents. However, revenue saw a 12% increase to $28.1 billion, exceeding estimates, driven by increased consumer demand prior to the expiration of an EV tax credit. CEO Elon Musk, during the earnings call, emphasized Tesla’s advancements in AI and self-driving technology as pivotal for future growth. Despite a year-to-date increase of 9% prior to this report, Tesla shares fell by 4% ahead of the market opening.
IBM is also facing pressure, as shares have plummeted following a slowdown in software sales, even though revenue and profit numbers for the third quarter exceeded analysts’ expectations. IBM reported a 9% rise in revenue to $16.33 billion, with earnings per share reported at $2.65, surpassing the expected $2.44. However, software sales growth was limited to 10%, reaching $7.2 billion, which has raised concerns about future growth at a time when demand for cloud services is growing. As a result, IBM shares, which had seen a substantial 30% increase up to this point in 2025, fell by 7% in premarket trading.
Intel is preparing to release its third-quarter results after the closing bell, with analysts predicting a notable reaction in its stock price following the report. Analysts expect the chipmaker’s quarterly revenue to have slightly declined to approximately $13.16 billion, with adjusted earnings anticipated at two cents per share, marking an improvement from a loss of 48 cents per share in the same quarter last year. Despite being down about 1% in recent trading, Intel shares have experienced a significant rise of roughly 85% this year, buoyed by major investments in the company.
In the commodities market, oil prices are surging after the U.S. administration imposed sanctions on two major Russian oil companies, aiming to diminish the Kremlin’s revenue generation for ongoing military activities in Ukraine. The Treasury Department announced these sanctions on Rosneft and Lukoil, emphasizing the urgency to halt hostilities and call for an immediate ceasefire. As a consequence, West Texas Intermediate oil futures rose over 5% to reach $61.50 per barrel, while Brent crude futures also increased by about 5%.
Investors remain vigilant, assessing these earnings reports and market developments to navigate the current economic climate.
