Ray: Good morning, this is Biscuits and Tickers for Wednesday, October twenty first. I'm Ray.

Nora: And I'm Nora. Today: SpaceX shares jump after a big earnings beat and talk of a Tesla merger, Netflix slides on a weaker outlook, and Super Micro soars on a huge guidance raise. Tesla and Meta report after the close.

Ray: Futures are modestly higher. As of about eight twenty Eastern, the S and P 500 tracking fund is up about two tenths of a percent before the bell, the Nasdaq 100 fund is up a bit more than half a percent, and the Dow and the Russell 2000 funds are up about two tenths.

Nora: That follows a split session Tuesday. The Dow rose about one percent to 52,496 and the S and P 500 gained about three tenths of a percent to 7,712.57. The Nasdaq Composite was essentially flat, while small caps in the Russell 2000 jumped one point six five percent. Health care, real estate and utilities led. Technology lagged.

Ray: In rates, the ten year Treasury yield sits around five point one two percent and the two year near four point seven nine, according to Benzinga. CME FedWatch shows about an eighty five percent chance the Fed holds rates at its October meeting. The dollar index is little changed near one hundred one point eight.

Nora: Oil keeps climbing. Brent is around one hundred ten to one hundred eleven dollars a barrel, and West Texas crude is near one hundred dollars, up about two dollars. Reuters reports Iran is drawing out talks with Washington ahead of the November third midterms, and has said it will not negotiate until the US port blockade and oil sanctions end. The VIX is around seventeen point three. Bitcoin is up about two percent near eighty three thousand dollars, and gold is slightly lower around forty one hundred dollars an ounce.

Ray: Overseas, South Korea's Kospi rallied more than three percent and Japan's Nikkei gained close to one percent, while mainland China and Hong Kong slipped. Europe's Stoxx 600 is up about half a percent in early trading, according to Fortune.

Nora: It's a light day for economic data. Mortgage applications came out at seven. The weekly government oil inventory report is at ten thirty, which matters more than usual with crude near one hundred dollars. At one o'clock the Treasury auctions thirteen billion dollars of twenty year bonds, a test of demand with long yields above five percent. No Fed speakers are on the major calendars.

Ray: Earnings are the main event. Before the bell we heard from AT and T, Abbott, Danaher, Thermo Fisher, Elevance Health, Philip Morris, Moody's, NextEra Energy and CME Group. After the close it's Tesla and Meta, which kick off Big Tech earnings, plus IBM, Texas Instruments, Lam Research, SAP, CSX, Southwest Airlines and Kinder Morgan.

Nora: Our top story: SpaceX, ticker S P C X, is up roughly eight percent in pre-market trading after its third quarter report. Revenue came in around fourteen point six billion dollars, well above the roughly twelve point seven billion analysts expected, and earnings per share were also more than double estimates, according to Benzinga and Investrade.

Nora: The mix is the headline. Yahoo Finance reports the AI segment, now called Super Intelligence, brought in about seven point six billion dollars, more than Starlink and rockets combined. Elon Musk also said SpaceX and Tesla have formed special committees to discuss a potential merger. Tesla shares are up more than one percent in overnight trading ahead of its own report tonight, and other space stocks such as Rocket Lab are rallying in sympathy.

Ray: Next, Netflix, ticker N F L X, is down about six and a half percent before the bell. Third quarter earnings of eighty seven cents a share beat estimates of eighty two cents, and revenue of twelve point eight seven billion dollars was roughly in line.

Ray: The problem is the outlook. Fourth quarter revenue and profit guidance came in below estimates, and the company lowered its free cash flow outlook. Reports say it cut its twenty twenty six advertising revenue target to about two point seven billion dollars and is trimming around one thousand jobs. CNBC says the stock is falling on the advertising and revenue guidance.

Nora: Super Micro Computer, ticker S M C I, is up about twelve percent after sharply raising its fiscal first quarter revenue forecast to between eighteen and a half and nineteen and a half billion dollars, up from fourteen and a half to fifteen and a half billion. The company guided gross margin to twelve to twelve and a half percent. Investrade notes Dell and Hewlett Packard Enterprise are rising in sympathy and chip stocks are getting a lift, a contrast to the AI spending worries that hit the group earlier this week.

Ray: Now the morning's other movers. AT and T, ticker T, is down more than five percent. It beat on profit and revenue and raised its full year earnings outlook to about two dollars and forty cents a share, but its postpaid phone additions of three hundred seventy nine thousand fell short of estimates, according to GuruFocus.

Nora: Health care tools and devices are under pressure. Abbott, ticker A B T, and Danaher, ticker D H R, are each down nearly four percent after their reports. Thermo Fisher, ticker T M O, is off about three percent despite beating on profit and revenue; Investing.com notes misses in its life sciences and specialty diagnostics segments. Elevance Health, ticker E L V, posted earnings of six dollars and ninety nine cents, far above estimates, and raised its full year outlook.

Ray: Moody's, ticker M C O, and Philip Morris, ticker P M, are each down about three percent after reporting. Capital One is up about three percent after a strong beat Tuesday evening. On sectors, Tuesday's leadership came from defensives and small caps, while today's pre-market strength is concentrated in AI hardware and space names.

Nora: Here's what to watch today. The oil inventory report at ten thirty, with Brent near one hundred ten dollars. The twenty year bond auction at one o'clock. Any new headlines on Iran talks and shipping routes.

Ray: And after the close, Tesla and Meta, the first of the megacap reports, along with IBM, Texas Instruments and Lam Research for a read on chip demand. Also watch whether SpaceX and Super Micro hold their early gains once regular trading begins.

Nora: That's Biscuits and Tickers for Wednesday, October twenty first. This is information, not investment advice. I'm Nora.

Ray: And I'm Ray. Have a good morning.