U.S. stock futures are sharply lower in premarket trading as investors digested third-quarter earnings from big tech names including Meta Platforms (META) and Tesla (TSLA).

The moves are a reversal from market gains on Wednesday, led by bullish tech stock moves. Oil prices are up 2% near $99 a barrel, which is also pressuring equities along with possible escalation in the Middle East conflict. The U.S. State Department issued warnings Wednesday for personnel and other Americans in Saudi Arabia following another deadly airport attack there. In addition, the U.S. and Israeli militaries have drawn up specific plans for renewed strikes on Iran after next month’s midterm elections, The New York Times reported.

Meta Platforms shares are modestly lower despite a revenue beat along with strong guidance for the current quarter. The stock initially rose in post-market trading on Wednesday but gave up gains. Tesla shares also initially rose post earnings but are down about 3% this morning after missing top-line revenue estimates.

Investor focus will remain on earnings fallout today with releases from American Airlines (AAL), Honeywell (HON), Proctor & Gamble (PG), and Spotify (SPOT) due ahead of the opening bell. 

Snapshot

• Oil (/CL) – Oil prices are up 2% near $99 a barrel
• Gold (/GC) – Gold futures are down 1.75% near $4,076.90
• Bitcoin (/BTC) – The cryptocurrency futures are down 3.3% near 81,775
• VIX (/VIX) – The CBOE Volatility Index is up nearly 9% to near 18.16
• U.S. Dollar ($DXY) – The dollar index is up 0.05% to 101.830

Big Premarket Movers

Advancers

• Allegion PLC 5.06%
• Lockheed Martin Corp. (LMT) 3.85%
• CSX Corp. (CSX) 3.46%
• Procter & Gamble Co. (PG) 3.08%
• Dow Inc. (DOW) 2.76%

Decliners

• Snap-on Inc. (SNA) -10.41%
• Lam Research Corp. (LRCX) -7.21%
• Coherent Corp. (COHR) -5.20%
• IBM Corp. (IBM) -5.11%
• Lumentum Holdings Inc. (LITE) -5.11%

Economic Data (ET)

• 8:30 AM: Jobless Claims
• 10:00 AM: Leading Economic Indicators
• 10:30 AM: EIA Natural Gas Inventories
• 11:00 AM: Kansas City Fed Mfg. Index
• 4:30 PM: Fed Balance Sheet

Notable Earnings

• Premarket: AAL, ALLE, BFH, BMI, BX, CBRE, CMCSA, DGX, DOV, DOW, FSV, HBAN, HON, LMT, MSM, NDAQ, NOK, NSC, NVR, PCG, PG, PHM, POOL, R, ROP, SNA, SPOT, TSCO, UNP, VC, VLO
• Postmarket: BE, BYD, DECK, NEM, RNG, RHI, SAM, VRSN, WDC
• Premarket Friday: ALV, AXP, BAH, GNTX, INFY, RCI, SLB
• Postmarket Friday: N/A

Upgrades/Downgrades

Upgrades:

• CLSA upgrades Tesla (TSLA) from Underperform to Hold
• Freedom Broker upgrades Halliburton (HAL) from Hold to Buy
• BMO Capital upgrades Block (XYZ) from Market Perform to Outperform
• JPMorgan upgrades CME Group (CME) from Underweight to Overweight
• Gordon Haskett upgrades Kohl's (KSS) from Hold to Buy

Downgrades:

• Wolfe Research downgrades Netflix (NFLX) from Outperform to Peer Perform
• Argus downgrades Alcoa (AA) from Buy to Hold
• William Blair downgrades Builders FirstSource (BLDR) from Outperform to Market Perform
• RBC Capital downgrades Dutch Bros (BROS) from Outperform to Sector Perform

For more articles on markets, see What 4 Big Industrials’ Earnings Reveal about U.S. Economic Health and What Could Influence Natural Gas This Winter?

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