CBN News, October 22, 2026, 07:00:30 - Listen to the news
Author: Fan Zhijing Editor-in-Chief: Ge Weier
*The three major stock indices strengthened, with the S&P index recording three consecutive days of gains;*
10-year U.S. Treasury yield hits a one-week high;
*Lowered annual advertising revenue guidance, Netflix tumbles more than 5%.
U.S. stocks rose across the board on Wednesday, following the improved quarterly performance of space exploration company SpaceX and Supermicro Computer, which boosted market demand for AI-related stocks. By the close of trading, the Dow Jones Industrial Average rose 360.21 points, or 0.69%, to 52,856.09 points. The Nasdaq Composite Index rose 1.05% to 26,702.86 points, and the S&P 500 Index rose 0.58% to 7,757.17 points.
Meta Tesla's financial results are out
Meta's third-quarter financial report shows that revenue for the three months ending September 30 was $64.6 billion, higher than last year's same period of $51.24 billion, and analysts' forecast was $63.34 billion. Earnings per share were $3.83, up from $1.05 in the same period last year. Free cash flow was negative $2.12 billion, compared to $10.63 billion in the same period last year. The company has been investing funds in the development of advanced chips and data centers in order to compete more actively with OpenAI and Anthropic, which has weakened its cash flow performance.
Meta expects revenue in the fourth quarter to be between $73 billion and $76 billion. Analysts predict it to be $73.65 billion.
Meta expects capital expenditures this year to reach $135 billion to $145 billion, up from the previous estimate of $130 billion. Meta will issue a new class of non-voting Class C common stock in January 2027 to fund acquisitions and retain top talent, while also maintaining AI Mark Zuckerberg's control amidst intensifying competition in Silicon Valley. CEO
Zuckerberg said in the statement, "Our investments are paying off, our core business is strong, and we are seeing growth in all areas."
Tesla's revenue in the third quarter also exceeded Wall Street's expectations, with a rebound in vehicle deliveries. In particular, high gasoline prices in Europe, as well as the growth of its energy storage units, drove sales growth. The automaker, headquartered in Austin, Texas, reported revenue of $28.05 billion for the three months ending September 30, compared to analysts' average estimate of $27.88 billion and $28.1 billion in the same period last year.
Tesla delivered 486,532 vehicles in the third quarter, exceeding Wall Street's forecast of around 461,100 vehicles. Its core automotive business remains under scrutiny as global competitors continue to launch newer and often cheaper models, while Tesla relies heavily on its older Model and Model Y models. The company stated that the total number of deliveries has surpassed 10 million units, and the Model Y model is expected to become the world's best-selling vehicle this year.
Free cash flow unexpectedly turned positive at $1.53 billion, as the company's investment in artificial intelligence and robotics was far lower than analysts' expectations. Capital expenditure in the third quarter was $4.73 billion, which is below the anticipated $7.5 billion. In contrast, it was $5.79 billion in the second quarter and $2.25 billion during the same period last year.
The market is closely watching how Musk's efforts in the fields of autonomous driving and robotics are moving from promises to commercial reality. Earlier this month, Tesla stated that its Cybercab fleet in Austin grew from less than 40 vehicles to over 300 in just about a month, with Dallas following closely behind. In July, Tesla launched taxi services in Miami, Orlando, and Tampa, Florida, after having also initiated this project in Dallas and Houston in April. As of press time, the company's stock price has slightly declined after the market close.
Market Overview
Regarding the situation in the Middle East, according to CCTV News, on October 21st local time, the US State Department confirmed that it had ordered the evacuation of non-emergency government employees and their families stationed in Saudi Arabia.
Concerns about the profitability of artificial intelligence (AI) development triggered a sell-off of stocks related to AI last week. Investors are closely monitoring corporate profits, especially those companies that align with AI, in order to assess whether the AI consumption cycle is sustainable and to identify any clues regarding the impact of rising oil prices.
Edward Jones Senior Global Strategist Angelo Kukafas stated that the news from SpaceX "alleviated some investors' concerns regarding AI", coupled with the support from SMCI. Although these financial reports do not answer all of investors' questions about the investment returns of AI, it is a good start.
"At this stage, it is very important to focus on the factors that affect profits. Corporate profitability is crucial. Inflation is also important because it will influence the next steps of the Federal Reserve," said Adam Salhan, a director of MarketTerminal. "If the economy continues to grow without major headwinds, that will support higher profits. In such an environment, what might otherwise be bad news becomes good news, as it improves the prospects for corporate profits."
Long-term U.S. Treasury yields rose, with the benchmark 10-year Treasury yield increasing by 2.9 basis points to 5.145%, hitting a one-week high, and the 30-year Treasury yield rising by 1.2 basis points to 5.437%.
【Popular Stocks Performance】
The Philadelphia Semiconductor Index soared by nearly 2%, while AMD rose by 3.36%.
Storage chip stocks performed well, with Seagate Technology rising by 3.22%, SK Hynix rising by 2.48%, and Sandisk rising by nearly 1%.
The optical communication sector strengthened, with Lumentum rising by 3.43%, Coherent rising by 2.47%, and Corning rising by 2.01%.
Star tech stocks saw mostly gains with few losses; Tesla soared by 3.41%. After achieving profitability for the first time as a publicly traded company, the stock price of SpaceX rose by nearly 8%. Musk stated that the merger between SpaceX and Tesla "is a good idea," which also contributed to the increase in Tesla's stock price. NVIDIA and Apple both gained more than 1%.
After Supermicro, a manufacturer of artificial intelligence servers, forecasted quarterly revenue and profit margins that exceeded Wall Street's expectations, its stock price soared by 9.55%. Its peers HPE and Dell rose by 3% and 5% respectively.
Netflix tumbles more than 5%. The company's annual revenue forecast is lower than analysts' estimates, and this streaming giant has also lowered its annual advertising revenue guidance.
The NASDAQ China Golden Dragon Index fell by more than 2%. Alibaba and JD.com both fell by more than 3%.
【Large-Cap Performance】
International oil prices diverged, with the nearest-month contract of WTI crude oil falling by 0.68% to $97.15 per barrel, while the nearest-month contract of Brent crude oil rose by 0.03% to $108.82 per barrel.
The precious metals market saw narrow fluctuations. On the New York Mercantile Exchange, COMEX gold futures for October delivery rose by 0.20% to $4,130.50 per ounce, while COMEX silver futures fell by 0.49% to $57.42 per ounce.
Article Author
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