Texas Instruments shares fell 4% after reporting weaker-than-expected Q4 earnings and disappointing guidance. The semiconductor sector broadly suffered: AMD, On Semiconductor, and Micron Technology dropped about 3% each, while the VanEck Semiconductor ETF (SMH) pulled back 2%.
Netflix plunged 9% following a Q3 earnings miss, citing a Brazilian tax dispute. “High-profile reports overnight, including Netflix and Texas Instruments, have been downbeat,” said Thierry Wizman, Macquarie Group strategist.
Intuitive Surgical was the rare winner, surging 15% on stronger-than-expected revenue and earnings of $2.40 per share on $2.51B revenue.
Markets came off a record-setting session Tuesday, with the Dow briefly topping 47,000 thanks to Coca-Cola and 3M earnings. However, S&P 500 and Nasdaq lagged as traders digested mixed tech results and uncertainty over President Trump’s upcoming meeting with Chinese President Xi Jinping.
Investors now focus on Tesla’s Q3 earnings, set to kick off reports from the “Magnificent Seven” megacap tech stocks. So far, over 75% of S&P 500 companies reporting this quarter have beaten expectations, according to FactSet.The September Consumer Price Index (CPI) report, due Friday, is another key market driver. The data comes amid a 22-day U.S. government shutdown and could influence the Federal Reserve’s upcoming rate decisions. Markets currently expect a 0.25% cut in the overnight borrowing rate later this month, with another possible cut in December.Gold prices fell for a second day, down $47.10 to $4,062 per ounce, as investors booked profits. Newmont and Barrick mining stocks declined 1% and 2%, respectively.
How are major stock indices performing today?
The U.S. stock market is showing mixed results as earnings continue to influence investor sentiment. Here’s a snapshot of key indices:
- Dow Jones Industrial Average (DIA): down 0.28% at 46,794 points
- S&P 500 (SPY): down 0.31% at 669.21 points
- Nasdaq Composite (QQQ): down 0.64% at 607.44 points
Trading activity has been moderate. Many investors are holding back before Tesla reports its earnings.
Market experts note that technology stocks are facing pressure after mixed earnings reports from major companies. Energy and industrial sectors are showing relative stability.
This cautious sentiment reflects broader concerns about market volatility and corporate performance.
Why did Netflix shares drop sharply today?
Netflix’s stock took a hit after its third-quarter earnings report. Investors reacted to unexpected charges and slower growth in some markets.
- The company recorded a $619 million expense related to a tax dispute in Brazil.
- Despite this, revenue met analyst expectations due to steady subscriber growth.
- Advertising revenue also contributed positively to overall earnings.
Investors focused on profit margins. Netflix’s earnings fell short of expectations, which triggered a nearly 7% decline in its stock price.
Some analysts suggest that Netflix’s growth phase may be slowing. The company still maintains strong subscriber numbers, but market sentiment is cautious.
Top Gainers
| Company | Change | Reason |
| Intuitive Surgical (ISRG) | +15% | Strong Q3 earnings and revenue beat |
| Warner Bros. Discovery (WBD) | +1–1.5% | Continued interest from takeover bids |
| Beyond Meat (BYND) | +90% premarket | Meme-fueled surge, Walmart distribution deal |
| Krispy Kreme (DNUT) | +37% premarket | Meme-stock rally |
Top Losers
| Company | Change | Reason |
| Netflix (NFLX) | -9% | Q3 earnings miss, Brazilian tax dispute |
| Texas Instruments (TXN) | -4% | Weak Q4 earnings & disappointing guidance |
| AMD (AMD) | -3% | Semiconductor sector weakness |
| On Semiconductor (ON) | -3% | Sector-wide sell-off |
| Micron Technology (MU) | -3% | Weak semiconductor earnings |
| Volkswagen (VOW3.DE) | -2% | Supply concerns over Chinese semiconductor restrictions |
| SMH ETF | -2% | Semiconductor sector decline |
What should investors expect from Tesla’s upcoming earnings?
Tesla is preparing to release its third-quarter earnings after the market closes today. Investors are anticipating updates on vehicle deliveries, energy business performance, and technology development.
- Analysts predict record vehicle deliveries for the quarter.
- Growth in Tesla’s energy storage and solar segments is also expected.
- Updates on autonomous driving projects, including robotaxis and AI systems, will be closely watched.
Tesla shares have already reacted slightly, down about 2% ahead of the report. Market watchers are observing the stock for indications of long-term trends in production and technology.
This earnings release is crucial for investors looking to gauge Tesla’s innovation pipeline and market strategy.
What are the main reasons for market volatility today?
Several factors are contributing to the market’s unsettled mood:
- Corporate earnings: Netflix’s disappointing report and anticipation of Tesla’s results are key drivers.
- Global economic concerns: Tax disputes and regulatory issues can affect multinational companies.
- Sector rotation: Investors are shifting money between tech, energy, and industrial sectors based on earnings performance.
- Short-term trading activity: Day traders and institutional investors are adjusting positions ahead of major earnings announcements.
The combination of these factors is creating a mixed market performance. Short-term swings are expected until clearer earnings trends emerge.
What should investors watch for in the coming days?
Investors should monitor several key indicators:
- Tesla earnings report: Will it meet or exceed analyst expectations?
- Earnings from other tech giants: These results will impact market direction.
- Economic data releases: Inflation reports and consumer spending figures will influence sentiment.
- Global market news: Events in international markets, like regulatory changes, could create ripple effects.
Investors are advised to stay informed and review earnings reports carefully. Long-term strategies may benefit from focusing on companies with consistent performance.