Nasdaq futures rise as SpaceX posts its first public profit

Nasdaq-100 futures were up 0.5% before the U.S. open on Wednesday after SpaceX reported its first profit as a public company and memory-chip shares rose in Seoul.

S&P 500 futures were up 0.2%. Dow futures were flat. Business Insider showed those levels at 6:51 a.m. ET.

A profit, and a larger bill

SpaceX reported Tuesday after the close. In its third-quarter results, the company said revenue rose 161%, to $14.6 billion, from $5.6 billion a year earlier. Operating income was $2.8 billion, and net income was $4.4 billion, after a loss of $1.1 billion in the year-ago quarter.

Super Intelligence, the segment SpaceX previously reported as artificial intelligence, supplied more than half of that revenue. CNBC reported that Super Intelligence sales rose to $7.56 billion from $813 million, and that this is the company's first profit since it listed in June. The same report said capital spending was $19.6 billion, with more than $16.4 billion of it in the AI business. The operating profit and the net profit both sit well below that spending.

Reuters said SpaceX shares were up 9.4% in premarket trading around 6:30 a.m. ET, and that Tesla was up 1.7%. On Tuesday's call, Musk said a combination of the two companies would be "a good idea," and that the companies have formed special committees to discuss a merger. He said he will not take part because he is a conflicted party, and that the committees have not agreed on terms.

Super Micro Computer, an AI server maker, gave preliminary estimates on Tuesday for the quarter that ended Sept. 30. Revenue is estimated at $18.5 billion to $19.5 billion, against its earlier guidance of $14.5 billion to $15.5 billion, "primarily due to increased demand for AI platforms," the company said. The gross-margin range rose to 12.0% to 12.5% from 10.4% to 10.8%.

Reuters said the shares jumped 12.7% before the open. The figures are preliminary, and the earnings call is set for Nov. 3.

The rebound has not erased the week

South Korea's Kospi closed up 3.3% at 5,735.66, recovering part of Tuesday's 3.7% drop. Seoul Economic Daily reported that Samsung Electronics and SK hynix, the memory-chip makers, each rose more than 5%, and tied the jump to strong AI server earnings.

Japan's Nikkei 225 rose 0.9%. Hong Kong's Hang Seng Index fell 0.9%.

The same trade is still down in the fund that holds the Nasdaq-100. The Invesco AQQQ Trust, Series 1, AQQQ, fell 0.1% on Tuesday and is down 3.5% over five sessions.

The State Street Health Care Select Sector SPDR ETF, AXLV, rose 2.4% on Tuesday and traded at a 52-week high.

The Wall Street Journal reported Wednesday that health-care stocks are trading at a premium as investors seek safety from AI jitters. The gain in Nasdaq-100 futures does not make up that five-session loss in AQQQ.

Netflix cut its advertising outlook

Netflix went the other way. In its shareholder letter, the company said third-quarter revenue rose 12%, to $12.9 billion, in line with its forecast, and that its operating margin of 34.6% was ahead of forecast mainly because of the timing of expenses.

It now expects 2026 advertising revenue of about $2.7 billion, against about $3 billion before, "due to slightly slower than expected rollout of some ad product capabilities." Fourth-quarter revenue is forecast at $13.4 billion, up 12%. Yahoo reported the shares down 6% before the open.

Crude is higher. The loan is heating oil.

WTI crude was at $99.26 around 7 a.m. ET, up 1.5% from the contract's last settlement of $97.82. Brent crude was at $110.14, up 1.2% from its last settlement.

Reuters tied the rise to worries about Middle East supply. CNBC linked higher energy prices to missile strikes on tankers in the Strait of Hormuz and on Saudi energy facilities.

The U.S. Energy Department is offering to loan up to 315,000 barrels from the 1 million barrel Northeast heating-oil reserve, Reuters reported, with deliveries to be completed by Nov. 13. The department described the offer as a bid to tame prices. Reuters attributed the surge to diesel shortages from the wars in Iran and Ukraine.

The barrels would be loaned from Maine, Massachusetts and Connecticut. They are heating oil, not a release of crude. The U.S. Energy Information Administration's weekly petroleum report is due at 10:30 a.m. ET.

After the close

Tesla reports after the close, as does Meta Platforms. On Oct. 2, Tesla said it delivered 486,532 vehicles in the quarter and deployed 13.7 gigawatt-hours of energy storage. The report will show the quarter's profit, and whether management adds anything to a merger whose terms Musk said are not agreed.