U.S. stocks saw mixed moves in premarket trading on Friday, October 16, as investors assessed developments in artificial intelligence, corporate earnings and index eligibility rules. Tesla attracted attention after unveiling its long-awaited Roadster, while Alcoa advanced on stronger-than-expected earnings. CoreWeave, meanwhile, remained under pressure amid concerns over its debt and the cost of expanding AI infrastructure.
According to market data available before the opening bell, Tesla shares rose nearly 5% in premarket trading, while SpaceX gained more than 1%. Alcoa advanced around 2.5%, whereas CoreWeave fell nearly 4%.
Tesla shares climbed after the electric vehicle maker demonstrated its next-generation Roadster at an event on Thursday evening at SpaceX's McGregor test facility in Texas.
According to a report by Investing.com, the demonstration showed the vehicle using pressurised air to perform a controlled jump and correct its orientation before landing on all four wheels. Chief Executive Officer Elon Musk said production was expected to begin in 2028.
The unveiling renewed investor interest in the Roadster, which has been long anticipated as Tesla continues to pursue its broader vehicle and technology ambitions.
SpaceX shares also moved higher, gaining support from the Roadster event and a reported price-target increase from Evercore ISI. Developments involving rival Blue Origin's plans to increase New Glenn rocket launches also featured among the factors supporting sentiment around the space company.
Alcoa shares rose after the aluminium producer reported better-than-expected third-quarter earnings, supported by improved performance in its alumina business.
The company posted adjusted earnings of $1.82 per share, beating analyst expectations of around $1.54, according to Investing.com. Revenue came in at $3.7 billion, slightly below forecasts but 24% higher than a year earlier.
Free cash flow reached $472 million, while adjusted EBITDA stood at $789 million, reflecting improved production throughput and operational performance.
CoreWeave shares fell nearly 4% in premarket trading as investors continued to assess the AI cloud computing company's debt burden and capital requirements.
The company faces scrutiny over its roughly $50 billion debt load as it expands computing capacity to meet demand from AI customers. Investors are increasingly weighing whether future revenue from artificial intelligence will justify the substantial spending on data centres and infrastructure.
Netflix shares declined in premarket trading after announcing a leadership change in its content division. Peter Rice, a former Disney television executive, is set to replace Bela Bajaria as chief content officer from October 26. The announcement followed the streaming company's plan to cut roughly 6% of its workforce, or about 1,000 jobs.
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Travelers shares also fell despite the insurer reporting stronger-than-expected quarterly results. The company posted core earnings of $9.18 per share on revenue of $12.48 billion, beating LSEG analyst estimates of $7.42 per share and $11.38 billion, respectively.
Separately, Strategy came under pressure after MSCI announced proposed index eligibility changes that could lead to its exclusion from certain indexes, adding another source of uncertainty for investors.
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