US Futures Steady as Markets Brace for Tesla and Netflix Earnings Impact

US futures edged higher on Wednesday as investors balanced optimism from strong blue-chip results with caution ahead of key tech earnings. Dow Jones futures rose 0.1%, while the S&P 500 gained 0.2%. The Nasdaq 100 slipped 0.1%, showing the market’s split view. Tuesday’s session brought a milestone for the Dow, which hit a record above 47,000 thanks to upbeat reports from Coca-Cola and General Motors. Yet, the momentum cooled as Netflix’s earnings miss weighed on sentiment. Gold and silver prices also paused their rallies, and fresh uncertainty from President Trump on trade talks with China added to the mix. For now, traders are turning their focus to the next wave of earnings, especially Tesla’s much-anticipated quarterly report after the bell.

Netflix Earnings Miss Sends Stock Lower

Netflix shares tumbled more than 6% in premarket trading after missing both revenue and profit forecasts. The streaming leader reported $11.51 billion in revenue, just shy of expectations, and earnings per share of $5.87—well below the projected $6.94. Operating margins fell to 28% due to a one-time tax expense in Brazil, missing its 31.5% target. Despite the setback, Netflix offered upbeat guidance for the current quarter, projecting stronger revenue and earnings. The company expects full-year sales to hit $45.1 billion, near the upper end of its previous outlook. Netflix highlighted its robust content lineup as a key driver of engagement, with hits like KPop Demon Hunters breaking viewership records. Its ad-supported tier continues to grow, and executives remain confident that ad revenue will more than double in 2025. Analysts like JPMorgan’s Doug Anmuth see Netflix’s integration with Amazon’s DSP as a strategic win for expanding advertiser reach.

Earnings Focus Shifts to Tesla’s High-Stakes Report

With Netflix stumbling, attention now turns to Tesla, whose earnings could set the tone for the tech-heavy Nasdaq. Investors expect Tesla to report third-quarter revenue of $26.27 billion and earnings per share of $0.53, marking a modest year-over-year gain. The automaker’s record deliveries of nearly 500,000 vehicles underscore its operational strength. However, challenges loom. The recent expiration of the federal EV tax credit may dampen demand in the coming months. CEO Elon Musk already warned of “a few rough quarters” ahead. To offset potential weakness, Tesla introduced more affordable versions of its Model 3 and Model Y. Yet, the bigger story lies in its AI and Robotaxi ambitions. Analysts like Wedbush’s Dan Ives argue that Tesla’s autonomous future could add $1 trillion in value to the company, making this earnings call critical for long-term investors.

Robotaxi and AI: Tesla’s Next Growth Frontier

Tesla’s robotaxi rollout in Austin, Texas, has captured Wall Street’s imagination. While a safety driver remains required, expansion tests in Nevada and Arizona could mark the next step toward autonomy. The company’s focus on robotics and AI aligns with Musk’s broader vision of transforming Tesla from an automaker into a technology platform. Analysts see this as the start of Tesla’s “AI era,” with self-driving vehicles leading the charge. Barclays’ Dan Levy calls robotaxis the “central aspect” of Tesla’s bull case. Investors will also watch for updates on Musk’s controversial $1 trillion pay package, expected to be discussed at the November shareholder meeting. The outcome could influence investor confidence as much as the earnings themselves.

Earnings Season Keeps Traders on Edge

US futures reflect a market caught between optimism and caution. The Dow’s record highs highlight strong corporate resilience, but the split performance in Nasdaq futures signals tech-sector tension. Netflix’s earnings miss raised doubts about streaming profitability, while Tesla’s report could either reinforce confidence in growth stocks or trigger another wave of volatility. With official economic data still limited due to the federal shutdown, traders are waiting for Friday’s Consumer Price Index to guide inflation and interest rate expectations ahead of next week’s Federal Reserve meeting. Most investors anticipate a 25-basis-point rate cut, which could further fuel risk appetite. But for now, the story of the week remains clear: all eyes are on Tesla’s earnings—and whether they can drive the next leg higher for US stocks.