SpaceX Jumps 10%, Nasdaq 100 Rises as AI Trade Returns: Stock Market Today
Shares of Space Exploration Technologies Corp. jumped 10% on Wednesday after a third quarter that blew past forecasts, reviving the artificial intelligence trade and lifting the Nasdaq 100 1.3% by midday, while .SpaceX reported third-quarter revenue of $14.6 billion, up 161% from a year earlier, and adjusted EBITDA of $8.8 billion. Its Super Intelligence unit, formerly the AI division, brought in $7.56 billion, up 830%.• SpaceX stock is showing exceptional strength. The company guided first-quarter 2027 revenue to $33 billion to $37 billion, against Wall Street estimates near $23 billion.SpaceX’s gain was its biggest one-day move since Aug. 7, when the stock climbed 15.8%, and added roughly $200 billion in market value in a single session. JPMorgan more than doubled its price target to $500 from $240.The S&P 500 rose 0.5% to 7,753 points. The Dow Jones Industrial Average added 151 points, or 0.3%, to 52,647.The Nasdaq 100 climbed 1.3% to 29,863. Within Magnificent Seven stocks Tesla Inc. gained 3.5% ahead of its results after the close, Meta Platforms Inc. rose 2.4%, Nvidia Corp. advanced 1.9% and Apple Inc. added 1.3%. Alphabet Inc. fell 2.2%, while Microsoft Corp. and Amazon.com Inc. were flat.The small-cap Russell 2000 rose 0.2% to 2,783.Bonds Hold Steady, Crude Falls Despite Bigger-Than-Expected Inventory DrawTreasury yields barely moved. The 10-year yield was little changed at 5.11%, the 2-year yield rose 2 basis points to 4.80% and the 30-year yield eased 1 basis point to 5.42%.Oil slipped despite a bigger-than-expected drop in U.S. stockpiles. The Energy Information Administration reported a 3.06-million-barrel draw in crude inventories last week, against the 800,000-barrel decline expected, and a 2.95-million-barrel drop in gasoline stocks.West Texas Intermediate crude fell 1.1% to $96.79 a barrel, and Brent eased 0.4% to $108.34. Natural gas dropped 4.5% to $2.83 per million British thermal units.Gold edged up 0.2% to $4,150 an ounce, while silver slipped 0.6% to $57.67. Bitcoin rose 1.9% to about $84,475.Wednesday’s Performance in Major U.S. IndicesIndexLast% ChangeMTDYTDS&P 5007,753.07+0.53%+1.33%+13.26%Dow Jones52,647.01+0.3%+3.42%+9.54%Nasdaq 10029,863.14+1.26%-1.79%+18.27%Russell 20002,783.29+0.24%-0.49%+12.14%According to the platform:The Vanguard S&P 500 ETF ) gained 0.5%.The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) edged up 0.2%.The Invesco QQQ Trust climbed 1.1%.The iShares Russell 2000 ETF (NYSE:IWM) rose 0.3%.Tech Leads As SpaceX Rewires The AI TradeThe Technology Select Sector SPDR Fund (NYSE:XLK) led the S&P 500 sectors with a 1.5% gain, as SpaceX and Super Micro pulled AI hardware names higher. The VanEck Semiconductor ETF rose 1.8%, and the iShares Expanded Tech-Software Sector ETF added 1.9%.The Communication Services Select Sector SPDR Fund (NYSE:XLC) lagged, down 0.8%, weighed by Netflix, Alphabet and AT&T. The Health Care Select Sector SPDR Fund (NYSE:XLV) fell by the same margin after Abbott Laboratories dropped 3.5%: its third-quarter adjusted EPS of $1.42 matched estimates, but it cut its full-year comparable sales growth outlook to about 6% and announced plans to spin off its nutrition business.Industrials, financials and utilities rose between 0.5% and 0.8%, while consumer staples and real estate slipped about 0.6%. Among industry funds, the VanEck Oil Services ETF (NYSE:OIH) rose 1.8% and the U.S. Global Jets ETF (NYSE:JETS) gained 1.8% as crude eased.Super Micro Computer Inc. rallied 9.6% after lifting its fiscal first-quarter revenue outlook to $18.5 billion to $19.5 billion, from $14.5 billion to $15.5 billion, well above the $15.23 billion consensus. It also raised its gross margin forecast to 12.0% to 12.5%.Not every earnings print found buyers.Netflix Inc. fell 5% even though third-quarter adjusted EPS of 87 cents beat the 82-cent estimate, as fourth-quarter revenue guidance of $13.4 billion came in just below the $13.5 billion consensus. Needham downgraded the stock to Hold, and JPMorgan trimmed its target to $81 from $85.SpaceX’s ambitions also cut the other way.AT&T Inc. slid 6.3% despite third-quarter revenue of $32.32 billion, ahead of the $31.67 billion estimate, and a higher full-year adjusted EPS outlook of about $2.40, as investors focused on the competitive threat from Starlink.EchoStar Corp. , which holds a stake in SpaceX, rose 8.1% in tandem with the rocket maker.Galaxy Digital Inc. rallied 8% as Bitcoin climbed, a day after Citi upgraded the stock. Strategy Inc rose 7.4%.Charles River Laboratories International Inc. jumped 7.9% to a 52-week high as drug development and life science tools names rallied together. Medpace Holdings Inc. gained 6.4%, while Illumina Inc. and Bruker Corp. each added 6.1%.On the downside, Wingstop Inc. fell 6.6% a week before its third-quarter report, after StoneX cut its price target to $185 from $245 on Tuesday, citing a difficult quarter for fast-food chains. Restaurant peers Chipotle Mexican Grill Inc. and Dutch Bros Inc. lost 4.4% and 3.7%, respectively.DexCom Inc. dropped 5.9% after Abbott, its main rival in glucose monitors, lowered its diabetes care outlook to low-to-mid single-digit growth from high single digits.Dycom Industries Inc. fell 4.8% with no company-specific news.Looking AheadTesla reports after the close, with analysts expecting adjusted EPS of 45 cents on revenue of $28.06 billion.International Business Machines Corp. ($2.85, $16.82 billion), Lam Research Corp. ($2.18, $8.14 billion) and Texas Instruments Inc. ($2.44, $5.94 billion) also report.Wednesday’s Russell 1000 Top GainersName% changeSpace Exploration Technologies Corp.+10.04%Super Micro Computer, Inc.+9.6%EchoStar Corporation+8.1%Galaxy Digital Inc.+8%Charles River Laboratories International, Inc.+7.9%Wednesday’s Russell 1000 Top LosersName% changeWingstop Inc.-6.6%AT&T Inc.-6.3%DexCom, Inc.-5.9%Netflix, Inc.-5%Dycom Industries, Inc.-4.8%Preview Photo: Shutterstock