U.S. stocks are ticking higher as strong profit reports from SpaceX, Capital One Financial and other big companies help offset updates from Netflix and AT&T that investors found disappointing. The S&P 500 rose 0.2% early Wednesday and is on track for a third straight modest gain. The Dow Jones Industrial Average edged up 64 points, and the Nasdaq composite rose 0.6%. SpaceX jumped 10% after reporting a stronger profit for the summer than analysts
expected. Other stocks rallying on profit reports that topped expectations included Capital One Financial and Winnebago Industries. European indexes were higher and Asian markets closed mixed.
THIS IS A BREAKING NEWS UPDATE. Check back for updates. AP’s earlier story follows below.
U.S. futures are higher as Wall Street digests the latest round of earnings reports while oil prices tick higher.
Futures for the S&P 500 rose 0.2% on Wednesday, while those for the Nasdaq climbed 0.4%. Futures for the Dow Jones Industrial Average were nearly flat.
Big expectations for earnings growth have pushed the U.S. stock market to record highs despite high inflation, higher interest rates and other challenges weighing on Wall Street.
SpaceX's stock jumped more than 8% before the market open Wednesday as the Elon Musk-led company reported a bigger quarterly profit than expected as its satellite communications and artificial intelligence businesses boomed.
Musk said SpaceX and Tesla have formed “special committees” to discuss a merger of the two companies, though he played down the chances of an imminent deal.
Shares of Netflix dropped more than 6% in premarket trading as the streaming company lowered its ad sales guidance on Tuesday, prompting worries about slowing revenue growth. Netflix, which announced layoff plans last week, posted a third-quarter profit above Wall Street expectations.
Investors will be waiting for earnings from companies such as Meta and Tesla on Wednesday.
Oil prices have soared due to the Iran war and fuel costs have followed with the risks of transiting the Strait of Hormuz.
The price for a barrel of Brent crude, the international standard, jumped 1.3% to $110.21 per barrel Wednesday. A day earlier it rose to nearly $112, approaching its highest price since the war with Iran began in late February.
Brent’s price has been yo-yoing between $97 and $112 per barrel this month on uncertainty about when the energy industry will return to normal.
U.S. benchmark crude rose 1.6% to $99.40 per barrel.
In Europe, Germany’s DAX climbed 0.7% to 25,489.81 and the CAC 40 in Paris added 0.6% to 7,888.32. Britain’s FTSE 100 edged 0.1% higher, to 10,741.70. Asian markets were mixed.
The U.S. dollar slipped to 158.08 Japanese yen from 158.17 yen. The euro fell to $1.1233 from $1.1239.
