SpaceX beat spurs Wall Street higher; Meta, Tesla earnings loom

SpaceX shares surged after the rocket launch and artificial intelligence company beat expectations, spurring gains on Wall Street as semiconductor firms rallied ahead of earnings from Meta Platforms and Tesla.

Oil prices eased as Russian President Vladimir Putin said his nation was ready to resume talks to end the war with Ukraine after US envoy Steve Witkoff’s efforts to lay the groundwork for ceasefire talks.

Abbott Laboratories declined after the healthcare company said it plans to spin out its nutrition business, including its Similac infant formula unit, and reported earnings in line with analysts’ expectations.

And Statistics New Zealand’s September quarter consumers price index is expected to show a temporary slowing in the pace of inflation, while Lodestone Energy prepares to debut on the NZX.

New confidence

SpaceX shares jumped 7.1% in late trading after the rocket launch and AI conglomerate beat expectations with strong growth from its artificial intelligence arm, and as chief executive Elon Musk said it was considering a merger with the other company he leads, Tesla.

The electric vehicle maker is due to report after the bell, and both firms have set up special committees to work through a potential merger.

Separately, the Wall Street Journal reported that Musk ordered the slowdown of the military-grade Starlink version used by Ukraine, which heightened tensions between the European nation and the US over the past week.

Meanwhile, a strong result from Super Micro Computer added to the upbeat tone for chipmakers and semiconductor stocks ahead of Meta’s quarterly update, which will be closely watched after the souring sentiment on data centres in recent weeks.

Meta rallied ahead of its result, shrugging off an order by a New Mexico judge for the social media giant to pay US$25 billion to the state after a jury found the company misled users about its data privacy practices.

The tech-heavy Nasdaq Composite was up 1.2% in late trading, while the S&P 500 gained 0.7%, and the Dow Jones Industrial Average advanced 0.6%, with chipmaker Nvidia leading the blue-chip index higher.

Among other companies reporting, AT&T sank 6.3% even as it raised its earnings outlook, with investors disappointed by its core wireless subscriber numbers that are increasingly under threat from the likes of SpaceX’s Starlink.

Netflix declined after reporting slower revenue growth and having flagged job cuts earlier in the week.

United Airlines jumped 7% despite missing analysts’ estimates, with chief executive Scott Kirby saying the only way for airlines to get through the elevated fuel prices was to pull back from unprofitable routes.

Baby steps

Abbott Laboratories dropped 3.6% after the healthcare company’s earnings met expectations, and the firm said it planned to spin out its nutrition arm, which had grappled with regulatory scrutiny in recent years over food safety concerns.

“The message is clear: strong results are welcome, but companies still need to justify their valuations with credible growth,” Moomoo market strategy consultant Greg Boland said in a note.

Brent crude oil futures slipped 0.1% to US$108.74 a barrel at 7am in Auckland as Russia’s Putin said his nation was ready to resume negotiations to seek peace with Ukraine, after talks with US envoy Steve Witkoff.

Separately, US Energy Information Administration figures showed US crude oil inventories fell for a third week, and were below the five-year average.

European stock markets were stronger, with the UK’s FTSE 100 up 0.2%, Germany’s DAX gaining 1.4% and France’s CAC 40 advancing 1.1%.

The yield on French 10-year government bonds rose above 5% for the first time in 24 years as traders remained uneasy over the ability of Europe’s second-biggest economy to rein in its budget deficit.

Australian futures are pointing to a quiet start to the day for the S&P/ASX 200 index, while the kiwi dollar climbed to 57.03 US cents at 7am from 56.76 cents yesterday.

Stats NZ figures due today are expected to show the pace of inflation slowed in the September quarter, before the renewed conflict in the Middle East pushed oil prices higher again.

Meanwhile, Lodestone will debut on the NZX today, having secured $75 million in its initial public offering from about 10,000 investors. About half of the funds raised came from new retail investors, with the balance coming from institutions and existing investors.

Confidence improved in the New Zealand Herald’s latest Mood of the Boardroom survey, with the outlook for spending intentions and revenue growth improved from last year, while remaining less upbeat on profit expectations.

And Auckland International Airport, Michael Hill International and Solution Dynamics are holding their annual meetings today.

Reporting by Paul McBeth. Image from SpaceX on Unsplash.