Market Snapshot
Ahead of Thursday's open, all three major futures contracts declined. As of press time, Dow Jones Industrial Average futures were down 0.57%, the Nasdaq Composite was down 1.64%, and the S&P 500 was down 0.98%.
Oil-related stocks declined, with WTI crude up 2.29% and Brent crude up 2.84%.
U.S. Treasury yields declined.
Cryptocurrencies, gold, and silver declined.
$Star Technology Stocks (LIST2518.US)$Pre-market, most stocks declined, with Intel and AMD down more than 4%, Tesla down nearly 4%, Micron Technology down over 3%, SpaceX down nearly 3%, Meta and NVIDIA down more than 2%, and Amazon and Google C down nearly 2%.
$Storage Concept (LIST23925.US)$Pre-market, stocks fell across the board, with SK Hynix and SanDisk down more than 4%, Seagate Technology down nearly 4%, and Western Digital and Micron Technology each down more than 3%.
$Optical Communications (LIST23979.US)$Pre-market, stocks fell across the board: AXT Inc. dropped more than 6%, Nokia declined nearly 6%, Applied Optoelectronics, Coherent, Credo Technology, and Lumentum all fell by over 5%, Marvell Technology and Corning slid by more than 4%, and Tower Semiconductor dipped by over 2%.
Individual Stock News
Tesla plans to invest 1 trillion won in Samsung Electro-Mechanics to secure its supply of high-end substrates over the next five years.
According to market sources,$Samsung Electro-Mechanics (009150.KR)$Already with$Tesla (TSLA.US)$It has signed a long-term supply contract for flip-chip ball grid array (FC-BGA) substrates and is expanding a dedicated production line at its Sejong plant. The contract spans five years, from 2029 to 2033. Under this agreement, Tesla can secure medium- to long-term substrate supply, while in return, Samsung Electro-Mechanics will receive approximately KRW 1.1 trillion (about USD 832 million) to expand its production facilities and cover capital expenditures.
The production line is currently under construction and is scheduled for completion by the end of next year. Equipment installation and commissioning are expected to be finished in the first half of 2028, with mass production commencing in the second half of the year, and formal deliveries to Tesla slated for 2029. In terms of applications, the FC‑BGA substrates produced on the new line will be used in Tesla's autonomous electric vehicles and in the AI chips for its humanoid robot, Optimus.
Tesla fell nearly 4% in pre-market trading, with Q3 net profit down 43% and capital expenditure guidance lowered to about $20 billion.
$Tesla (TSLA.US)$The key takeaways from the third-quarter 2026 earnings report are: revenue has stalled, profits have declined sharply, but automotive gross margins improved quarter over quarter, while the company simultaneously lowered its capital expenditure guidance.
Third-quarter revenue totaled $28.046 billion, essentially flat compared with $28.095 billion in the same period last year, slightly below market expectations. GAAP net income was $787 million, down 43% year over year; diluted earnings per share were $0.22, a 44% decline from the prior year. Operating profit stood at $718 million, plunging 56% year over year, while the operating margin contracted to 2.6% from 5.8% in the same period last year. Non-GAAP net income was $1.697 billion, down 4% year over year, with adjusted earnings per share of $0.48.
In the third quarter, deliveries totaled 486,500 vehicles, down roughly 2% year over year but above Wall Street's estimate of about 461,100. Production reached 464,400 vehicles, and for the second consecutive quarter, deliveries exceeded production, helping to reduce inventory levels. The downward revision of the company's guidance has raised concerns. Tesla has lowered its full-year capital expenditure target from over $25 billion to approximately $20 billion. According to the CFO, this adjustment is intended to optimize capital allocation, with operating cash flow serving as the primary funding source.
Meta has committed to purchasing cloud services worth up to $14.72 billion over the next five years, with total future spending commitments totaling $825 billion.
$Meta Platforms(META.US)$It was disclosed that as of September 30, the company has conditional commitments to purchase cloud computing capacity, with potential procurement totaling up to US$14.72 billion over the next five years. Meta Platforms' total future spending commitments have surged to US$825 billion.
It is reported that SpaceX and Tesla are aiming to complete a merger deal in the first half of next year.
According to sources familiar with the matter, the relevant authorities are pushing ahead…$Tesla (TSLA.US)$and$SpaceX(SPCX.US)$The merger deal was announced in the first half of 2027, with the aim of completing the merger during Trump's current term. The U.S. midterm elections will be held in less than two weeks.
If the Democrats gain control of either chamber of Congress, Musk and his companies could face investigations and may also diminish the influence of a president increasingly in his lame-duck phase. Meanwhile, if chip and artificial-intelligence stocks continue to sell off, investor support could wane, potentially jeopardizing the progress of this ambitious deal.
Lockheed Martin rose nearly 4% in pre-market trading, with third-quarter revenue up 11% to $20.7 billion, and the company raised its full-year guidance.
$Lockheed Martin (LMT.US)$The company announced its third-quarter 2026 results, reporting sales of $20.711 billion, up 11% year over year; net profit of $1.845 billion, up 14% year over year; and diluted earnings per share of $7.97, compared with $6.95 in the same period last year. Operating cash flow for the quarter was $3.438 billion, while free cash flow totaled $2.999 billion.
As of September 27, the company's backlog reached a record $291.984 billion, up 27% from the second quarter, including $52.5 billion in orders tied to a multiyear production contract for PAC-3 MSE interceptor missiles. Lockheed Martin also raised its full-year guidance for sales, earnings per share, and free cash flow, projecting annual sales of $80.0 billion to $82.0 billion, diluted EPS of $30.35 to $30.75, and free cash flow of $7.8 billion to $8.0 billion.
IBM fell more than 5% in pre-market trading, as its unchanged full-year revenue guidance disappointed the market.
$IBM Corp(IBM.US)$Third-quarter revenue reached $17.1 billion, up 6% on a constant-currency basis, while adjusted earnings per share came in at $2.95—both surpassing analysts' estimates of $16.82 billion and $2.86, respectively. During the quarter, software revenue totaled $7.8 billion, rising 8% year over year to 8.3%, outpacing expectations; consulting revenue stood at $5.34 billion, roughly flat compared with the same period last year and slightly below some market forecasts.
Looking ahead to the full year, IBM has raised its full-year free cash flow guidance from approximately $1 billion to over $1 billion, while keeping its revenue growth guidance unchanged at 4% to 5%. This revenue outlook has left the market questioning whether the current growth momentum can be sustained.
Google CEO: Computing power is in short supply every day—so where does the AI bubble come from?
$Google-A (GOOGL.US)$In a podcast interview, CEO Sundar Pichai stated that the AI sector is not currently experiencing an overbuilding bubble, as computing power remains in short supply and is being fully utilized every day. Looking ahead, he added, all planned computing capacity will ultimately be absorbed, which is why Google will continue to invest aggressively— even at the expense of some short-term profits—to ensure it stays at the cutting edge of AI technology.
Walmart launches AgentGateway to support AI-powered shopping assistance.
According to TechCrunch,$Walmart (WMT.US)$We have launched the Agent Gateway for AI agents, enabling authorized agents to search for products and complete purchases on behalf of users. We also plan to roll out a standalone authorization feature in November, allowing consumers to manage each AI agent's shopping permissions and spending limits separately.
This move contrasts with rival Amazon, which has already begun blocking AI agents from placing orders on behalf of consumers, while some travel and booking websites have also restricted agent access. Walmart, meanwhile, has announced a partnership with Meta's AI agent Muse and integrated AI applications such as ChatGPT and Gemini.
Lam Research fell more than 7% in pre-market trading, as its Q2 guidance failed to deliver any major positive surprises.
$Lam Research (LRCX.US)$The company reported first-quarter fiscal 2027 results, with revenue of $8.22 billion, surpassing analysts' expectations of $8.13 billion, driven by persistently strong demand for advanced chip-manufacturing equipment. Earnings per share came in at $2.20, also above the expected $2.18. However, investors focused on the second-quarter guidance, which fell short of delivering the major positive surprise some had anticipated.
Lam Research expects second-quarter revenue of approximately $8.6 billion, with a plus-or-minus $400 million range, slightly above analysts' estimates of about $8.54 billion; adjusted earnings per share are projected at $2.33, plus or minus $0.15, broadly in line with the market's expectation of $2.32.
Dow Inc. rose 3% in pre-market trading, with third-quarter revenue up 13% year over year to $11.3 billion and net profit increasing to $525 million.
$Dow Inc (DOW.US)$Announced its third-quarter 2026 results: net sales totaled $11.267 billion, up 13% year over year; net profit reached $525 million, compared with $124 million in the same period last year; diluted earnings per share were $0.62, while adjusted earnings per share stood at $0.71, versus a loss of $0.19 in the prior-year quarter.
Third-quarter operating EBIT totaled $887 million, up $707 million year over year, driven primarily by higher product prices and cost‑reduction initiatives. Operating cash flow reached $1.839 billion, while free cash flow stood at $1.1 billion. The company stated that it expects its cost‑saving and transformation programs to generate more than $1 billion in EBITDA improvements in 2026 and 2027, respectively.
Nokia fell more than 5% in pre-market trading, with third-quarter operating profit down 22% year over year and free cash flow at negative €99 million.
The world's second-largest telecommunications equipment manufacturer$Nokia (NOK.US)$In the third quarter, adjusted operating profit reached €605 million, up 35% year over year, significantly exceeding market expectations of approximately €454 million. Revenue totaled €5.154 billion, a 10% increase compared with the same period last year, also surpassing forecasts.
Due to a €357 million restructuring charge booked in the current quarter—compared with just €44 million in the same period last year—reported operating profit plunged 22% year over year, falling to €196 million; the reported operating margin contracted from 5.4% to 3.8%. Reported diluted earnings per share stood at only €0.03, well below the market's expectation of €0.10.
The company also lowered its 2026 free cash flow conversion guidance to a range of 35%–55%, citing the need to invest approximately €400 million in working capital to secure supply and support growth opportunities in 2027. In the third quarter, free cash flow was negative €99 million, and net cash declined from €3.378 billion at the end of 2025 to €2.584 billion.
Procter & Gamble rose more than 3% in pre-market trading, maintaining its full-year and 2027 organic revenue growth forecast of 1%–3%.
$Procter & Gamble (PG.US)$In the first quarter, core earnings per share were $2.00, above the estimate of $1.89, and net sales totaled $23.28 billion, up 4% year over year, compared with the estimate of $22.82 billion. Procter & Gamble kept its full-year and 2027 forecasts unchanged: organic revenue growth of 1% to 3%, versus the market estimate of 2.19%, and core earnings per share growth of 0% to 3%.
eBay China is reportedly launching a large-scale workforce restructuring, with the scale potentially reaching as high as 80%.
$eBay(EBAY.US)$China launched a new round of personnel adjustments this week, affecting key offices including Shanghai. According to multiple independent sources, the layoff rate in the China region may have reached as high as 80%, with "many eBay employees now actively browsing job opportunities on social recruiting platforms."
Global Macro
U.S. long-term Treasury yields fell to a one-month low, as renewed concerns over AI-driven trading boosted safe-haven demand.
U.S. long-term Treasury yields fell to a one-month low as markets once again questioned the sustainability of AI‑driven trading, prompting investors to shift into safe-haven assets. U.S. Treasury yields dropped by at least 3 basis points. Asian stock markets declined after major tech companies reported earnings that failed to allay concerns about overvalued AI‑related assets. The yield on the 30-year Treasury fell 6 basis points to 5.352%, the lowest level since September 23.
The situation in the Middle East remains grave, with Gulf stock markets opening lower across the board.
On Thursday morning, major stock markets in the Gulf region broadly declined. Yemen's Houthi rebels launched another attack on Saudi Arabia, heightening market concerns about a further escalation of regional conflict. Tensions in the northern Persian Gulf have also intensified, with the Iranian Revolutionary Guard Navy reporting that its forces struck four vessels. Earlier, a U.S. State Department spokesperson announced that the department had ordered "non-essential" government employees and their families stationed in Saudi Arabia to depart. Saudi Arabia's benchmark index fell 1.2%, marking what is expected to be its eighth consecutive weekly decline.
By asset size, Saudi Arabia's largest bank, National Commercial Bank, saw its share price fall 1.9%, while oil giant Saudi Aramco declined 0.5%. Dubai's main index dropped 0.8%, with the emirate's biggest lender, Emirates NBD, slipping 2.4% and the utility Dubai Electricity and Water Authority falling 1.5%. Abu Dhabi's index edged down 0.5%. Qatar's benchmark fell 0.8%, and the Gulf region's largest bank, Qatar National Bank, lost 1.1% of its value.
Iran says seven vessels in the Strait were attacked, warning that the United States could face a larger-scale response.
The Iranian Revolutionary Guard Corps Navy stated that four vessels engaged in illegal oil transfers in the northern Persian Gulf were simultaneously struck and set ablaze after being tracked by its forces. The IRGC further reported that three additional ships detonated mines west of the Strait of Hormuz. The Iranian Revolutionary Guard warned the U.S. military that continued provocations could trigger a much larger response targeting its regional bases.
Trump denied negotiating with Iran, saying the situation would be resolved "very soon."
Trump stated that, regarding Iran, the United States is in a "very favorable" position on both the "military and economic fronts"; he described the current situation as "a minor conflict with Iran."
When answering questions from reporters, Trump was asked whether he had given up on negotiations with Iran. Trump replied, "No, I don't think we're currently in negotiations. In any case, there will eventually be a result, and it will become clear very soon." He added, "Most people seem to think this will have to wait until after the election—let's just wait and see."
The beneficiaries of the "Trump account" are expected to expand, with the U.S. government considering including adults under 40.
According to market sources, the Trump administration is discussing a series of reform plans for Q&M Dental accounts, including allowing adults under 40 to participate in the program. This idea may be similar to the previously widely debated universal income system. According to Invest America, more than 70 million children currently hold such accounts. The funds in these accounts are invested in the State Street SPDR portfolio exchange-traded fund (ETF) that tracks the S&P 500 index.
Parents can also choose one of four other ETFs to invest in their children's accounts. On Monday, Musk said that next year he would gift one share of his SpaceX company to every child in the United States. Trump subsequently confirmed that Musk's donation would be deposited into the children's Trump accounts.
Hong Hao: We are currently in the darkness before dawn, and the market is likely to see a strong rebound in the fourth quarter.
Recently, renowned economist Hong Hao stated in a monthly dialogue hosted by Baosheng Media Group that, generally speaking, the final phase of a market downturn—the second half—exhibits the greatest downward pressure, causing the decline to accelerate. We should proceed with caution in trading, as the downside risks are extremely pronounced. However, I don't believe there's any need for excessive pessimism... At current market levels, such low valuations actually present an opportunity for bullish investors—a chance to enter the market.
Especially when everyone is deeply pessimistic and merely reiterating the same facts, that may not actually be the time to feel pessimistic. After this round of selling, once the Federal Reserve's interest-rate policy has settled, and following the impact of cyclical factors, the market is likely to stage a very strong rebound—potentially lasting all the way through Christmas. Right now, we're in the dark just before dawn. We'll reassess next year, but at least for the fourth quarter, we expect a fairly robust rally.
Japanese Media: The Bank of Japan is expected to pause its consecutive rate hikes at its October meeting.
According to Nikkei, the Bank of Japan plans to keep its policy rate unchanged at 1.25% at its monetary policy meeting scheduled for October 29–30. At its previous meeting in September, the central bank raised interest rates and will now assess the implications of that move. The Bank is likely to indicate that core inflation, excluding temporary fluctuations, has effectively reached its 2% target.
Going forward, the Bank of Japan will prioritize curbing inflation above 2% and ensuring its stability, while seeking an appropriate timing for further interest-rate hikes. It is expected that all nine members of the Policy Board will vote in favor of keeping the policy rate unchanged.
Top 20 Stocks by Pre-Market Trading Volume in the U.S. Market
U.S. Stock Market Macro Calendar Reminder
(The following is in Beijing Time)
22:00 U.S. September Conference Board Leading Index (MoM)
22:30 U.S. EIA Natural Gas Inventories for the Week Ending October 16 (in billion cubic feet)
After-hours earnings
$Western Digital (WDC.US)$、$Bloom Energy(BE.US)$、$Newmont (NEM.US)$U.S. stocks will release their earnings after the market closes today.
Want to pick stocks or analyze them? Curious about your portfolio's opportunities and risks? For all your investment questions,Just ask Futubull AI!
Edited by melody