5 Things to Know Before the Stock Market Opens

Joe Lamberti / Bloomberg / Getty Images Tesla will be the first of the Magnificent Seven major tech companies to release its quarterly results.

Stock futures are holding steady this morning as quarterly earnings reports continue to roll in and the government shutdown begins its fourth week; gold futures are losing ground for the second straight day after hitting a series of record highs; Tesla (TSLA) is due to release its quarterly results later today as investors look for updates on low-cost models, robotaxis and the Optimus humanoid robot; Netflix (NFLX) shares are falling after the streaming giant's earnings came in short of Wall Street expectations; and DraftKings (DKNG) shares are surging as its acquisition of Railbird provides the sports betting app with an entry into the predictions market. Here's what you need to know today.

1. Stock Futures Flat After Dow Hits Record High

Stock futures are little changed after the Dow Jones Industrial Average hit a new record high Tuesday, boosted by big gains for a couple of blue chip companies that reported strong quarterly results. The earnings calendar is busy again this morning, but the big release is scheduled for after the closing bell, when Tesla (TSLA) is due to report. Futures tied to the Dow and the benchmark S&P 500 were hovering near unchanged in recent trading, while Nasdaq futures slipped 0.2%. Bitcoin (BTCUSD) was at $107,900, down from a high on Tuesday of around $114,000. The yield on the 10-year Treasury note, which can affect mortgage rates and other consumer loans, was at 3.94%, down from 3.96% at yesterday's close and trading at its lowest levels since early April.

2. Gold Continues Sliding as Investors Leave Safe Haven Assets

Gold continues to lose ground after the precious metal recorded its steepest one-day decline in a dozen years on Tuesday. Gold futures were down 1.4% at $4,055 an ounce in recent trading, after dropping nearly 6% on Tuesday. Investors are anticipating an end to the U.S. government shutdown and a potential U.S. trade deal with China, both of which could help calm the market uncertainty that pushed gold to a series of record highs recently as investors turned to safe-haven assets. Silver futures, which also have been trading at record highs, were down this morning after a steep decline yesterday.

3. Tesla Set to Kick Off Mag 7 Earnings Season

Tesla (TSLA) is scheduled to report third-quarter results after markets close today, the first of the Magnificent Seven major technology companies to release results this earnings cycle. Tesla vehicle deliveries in the quarter topped analysts' expectations, and Wall Street will be looking for further details on consumer demand and the rollout of low-cost models. Investors will also be eager to hear updates on full-self driving software, robotaxis and humanoid robot Optimus, as the company leans into its AI transformation. Analysts surveyed by Visible Alpha expect Tesla to report revenue of $26.6 billion and net income of $1.5 billion. Options pricing suggests traders expect Tesla shares to make a big move after the earnings report. The stock, which gained 33% over the past three months, was little changed in premarket trading.

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4. Netflix Shares Drop as Brazilian Taxes Undercut Earnings

Netflix (NFLX) shares are falling after the streaming giant’s quarterly income came in below analysts' expectations amid a tax dispute in Brazil. The company reported earnings per share of $5.87 and revenue of $11.51 billion, lower than the EPS of $6.92 on revenue of $11.52 billion that analysts tracked by Visible Alpha anticipated. Netflix officials said that a charge related to a 10% Brazilian tax on certain payments was not in its forecast and affected its bottom line. “Our operating income would have exceeded our forecast absent the Brazilian tax matter,” Co-CEO Gregory Peters said on a conference call. Shares of Netflix were down more than 7% ahead of the opening bell.

5. DraftKings Stock Rises as Railbird Acquisition Provides Entry Into Predictions Market

DraftKings (DKNG) shares are higher after the firm announced it would acquire Railbird Technologies, providing an opportunity for the sports betting app to enter the lucrative predictions market. The move comes as prediction markets, which aren't subject to the same types of regulation as sports betting, have boomed this year, with companies such as Kalshi and Polymarket attracting significant investor interest. “We are excited about the additional opportunity that prediction markets could represent for our business,” said DraftKings CEO Jason Robins in a release. Shares of DraftKings were up more than 3% in recent premarket trading.

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