US Stock Futures Fall as Meta, Tesla and Chip Shares Slide

Nvidia CEO Jensen Huang told CNBC's Arjun Kharpal at GTC Berlin that the fundamentals of neoclouds like CoreWeave remain strong, saying, 'if you look at the fundamentals, the demand for the neoclouds is off the charts.' Huang acknowledged a 'scarcity of capital' right now but said 'that's going to get solved.' CoreWeave shares were off almost 4% in premarket trading despite the comments, the newsletter said.

Meta fell 3% in early trading, erasing the prior evening's post-earnings gain. The newsletter said revenue growth of 26% was stronger than expected and the fourth-quarter outlook was better. More than 10 million people in the U.S. and Canada are using Muse personal agents, with about 25% of those people using Muse on any given day. Meta raised the low end of its 2026 capital-expenditure guidance and said it expects more investment in 2027. It did not announce an equity raise to fund AI investments, but it is creating a new class of non-voting stock that could be a future source of funds.

Tesla fell 4% despite a better-than-expected third quarter. Total revenue was down slightly year over year, but adjusted earnings per share beat expectations. The EV maker continues to invest aggressively in AI initiatives, including Optimus humanoid robots and robotaxis, but cut its capital-expenditure outlook by $5 billion to $20 billion to operate within its cash flows. Tesla shares had risen 3.4% on Wednesday after strong earnings from Musk's SpaceX, which Tesla could merge with as soon as the end of this year, according to the newsletter.

Lam Research fell almost 9% after the wafer-fabrication equipment maker's guidance for the current quarter failed to meet elevated expectations. The decline dragged other semiconductor stocks, including Micron, Intel and Qnity Electronics. Lam CFO Doug Bettinger said the revenue guidance would have been higher if not for near-term supply constraints, according to the newsletter. The note cited a handful of price-target cuts, including at Morgan Stanley and Citi.

IBM fell almost 7% despite reporting a top- and bottom-line beat. Stifel called the print a 'return to stability' for Big Blue after a difficult second-quarter preannouncement in July that led to the stock's worst day ever, the newsletter said. About two-thirds of the large software deals that slipped from the second quarter have now been closed, and consulting revenue showed modest growth. Multiple analysts said the debate around IBM is what 2027 growth will look like.

Honeywell Technologies held up better than the broader market after reporting a third-quarter top-line miss but an earnings beat. Organic sales rose 7%, driven by strength in building automation and process automation and technology segments. The company raised the midpoint of its full-year adjusted earnings per share outlook to a range of $8.40 to $8.45, above the consensus of $8.31. It also revised full-year organic sales growth to 4% to 5% from 3% to 4%.

American Airlines fell 4% after guiding to a much larger full-year loss, with high fuel costs weighing on the carrier. Quarterly revenue beat expectations, and premium demand was strong. Southwest Airlines reported quarterly beats but lowered its full-year guidance; it raised fares on fuel costs, and the newsletter said cracks were starting to appear in expensive flights there. Southwest shares were down roughly 1%.

Procter & Gamble shares rose more than 2% after revenue and earnings per share topped consensus, and organic sales grew 4% when the Street was looking for 2.4%. The newsletter said it was P&G's best quarter of organic growth in almost three years and that defensive stocks were performing well as the AI trade wobbled.

Other earnings movers included CSX, which moved higher after better-than-expected earnings; Lockheed Martin, which rose after a beat-and-raise report; Spotify, which bounced as investors focused on improved gross margins; and Dow Inc, which was higher after an earnings beat, according to the newsletter.