Meta & Tesla Earnings Take Center Stage 21/10/2026
Market Wrap
U.S. stocks ended mixed Tuesday, with the Dow Jones Industrial Average leading gains as stronger-than-expected corporate earnings and a retreat in oil prices helped offset continued weakness in artificial-intelligence-related shares.
The Dow climbed 529.85 points, or 1.02%, to close at 52,495.88, while the S&P 500 advanced 0.28% to 7,712.57. The Nasdaq Composite edged down 0.02% to 26,424.82 as technology stocks lagged the broader market.
Industrial stocks provided much of the momentum. 3M (MMM) surged more than 5% after reporting better-than-expected quarterly results and raising its full-year guidance. Northrop Grumman (NOC) gained more than 4% following an earnings beat, reinforcing optimism over corporate profitability.
Energy markets also offered relief as crude prices retreated from recent highs amid ongoing Middle East tensions. West Texas Intermediate futures declined 1.8% to settle at $101.79 a barrel, while Brent crude fell 0.7% to $108.79. The pullback coincided with lower Treasury yields, helping support investor sentiment.
After the closing bell, SpaceX (SPCX) jumped 8% after reporting a 161% increase in third-quarter revenue. Elon Musk also disclosed that SpaceX and Tesla (TSLA) had established special committees to explore a potential merger, sending Tesla shares approximately 1% higher in extended trading.
Attention now turns to Wednesday's earnings, with Meta Platforms (META) expected to provide fresh insight into AI investment and demand following the recent launch of its Muse Wonder model.
Tesla (TSLA), IBM (IBM) and Southwest Airlines (LUV) are also scheduled to report, making Wednesday a key test of corporate earnings momentum and investor confidence in technology spending.
With earnings season accelerating and oil prices remaining elevated despite Tuesday's decline, investors will be watching whether strong corporate results can sustain the broader market recovery.
Tesla Shares Rise as Musk Confirms SpaceX Merger Discussions
Tesla (TSLA) shares climbed nearly 2% in extended trading Tuesday after Elon Musk confirmed that the electric-vehicle maker and SpaceX (SPCX) had established independent board committees to explore a potential merger.
Speaking during SpaceX's third-quarter earnings call, Musk said both companies had appointed special committees of independent directors to evaluate a possible combination. Musk, who leads both businesses and holds significant ownership stakes, is excluded from negotiations because of potential conflicts of interest.
The announcement follows months of speculation about a merger that could consolidate Musk's expanding technology empire. SpaceX acquired his artificial-intelligence company xAI earlier this year, while Tesla and SpaceX already collaborate on projects involving energy storage, vehicles and semiconductor development.
However, Musk emphasized that no agreement has been reached and that a transaction remains uncertain, despite his belief that combining the businesses could offer strategic benefits.
Shareholder approval represents a significant obstacle. While Musk controls more than 80% of SpaceX's voting power, a Tesla merger would require approval from shareholders representing at least 50% of its outstanding shares.
Analysts have begun evaluating potential deal structures. RBC Capital Markets suggested that a transaction valuing Tesla at $480 per share could be attractive to shareholders, potentially creating a combined company worth approximately $3.74 trillion.
For investors, the discussions introduce a new potential catalyst for Tesla shares, although valuation, shareholder approval and the complexity of combining two major businesses remain significant uncertainties.
Stocks on the Move
- Intuitive Surgical (ISRG): Shares dropped 7% as the medical robotics company's third-quarter results disappointed investors, despite reporting adjusted earnings of $3 per share on revenue of $3.05 billion.
- SpaceX (SPCX): Shares surged 8% after the rocket manufacturer reported a 161% increase in third-quarter revenue to $14.58 billion. CEO Elon Musk also confirmed that SpaceX and Tesla (TSLA) had established independent committees to explore a potential merger.
- Netflix (NFLX): Shares declined 5% after the streaming giant reported third-quarter revenue of $12.87 billion, matching Wall Street expectations. Sales increased 12% year over year, supported by subscriber growth and higher subscription prices.
- Capital One Financial (COF): Shares jumped 4% in after-hours trading after the lender reported third-quarter net income of $3.5 billion, or $5.61 per share, compared with $3.2 billion, or $4.83 per share, a year earlier.
- United Airlines (UAL): Shares slipped 1% in extended trading after the carrier reported third-quarter adjusted earnings of $2.54 per share on revenue of $17.88 billion, narrowly missing analysts' expectations of $2.57 per share and $17.90 billion.
- Super Micro Computer (SMCI): Shares rallied 14% after the server manufacturer raised its fiscal first-quarter revenue forecast to $18.5 billion–$19.5 billion, up from its previous guidance of $14.5 billion–$15.5 billion.
Watchlist: INTC, CRWV, MU, TSLA, SPCX, MSTR, NFLX, COF, UAL, SMCI, PM, TMO, ABT, NEE, T, DHR, CME
Key Economic Events Today
Economic Data (EST)
- 10:30 AM — USD Crude Oil Inventories
Earnings
Before Market Open: Philip Morris International (PM), Thermo Fisher (TMO), Abbott Laboratories (ABT), NextEra Energy (NEE), AT&T Inc. (T), Danaher Corp. (DHR), CME Group (CME)
After Market Close: Meta Platforms (META), Tesla Inc. (TSLA), Lam Research Corp. (LRCX), Kinder Morgan Inc. (KMI), United Rentals (URI), CSX Corp. (CSX), SAP SE (SAP), Texas Instruments (TXN), International Business Machines Corp. (IBM)
