TLDR
- Stock futures rose Wednesday after Tuesday’s selloff, which followed a hotter-than-expected inflation report.
- CoreWeave jumped 13% premarket after beating revenue estimates and raising its outlook.
- CoreWeave said it will stop using unsecured public debt.
- Nvidia rose 5.2% as other AI stocks also gained.
- Costco declared a $30 special dividend, while Rigetti fell on weak results.
Stock futures climbed on Wednesday as traders bought shares after Tuesday’s selloff. The drop followed an inflation report that came in hotter than expected.
S&P 500 and Nasdaq 100 futures both pointed higher before the open. Many of the early gains came from artificial intelligence stocks.
CoreWeave Changes Its Debt Plan After Earnings
CoreWeave shares jumped 13% in premarket trading on Wednesday. The AI cloud company reported third-quarter results on Tuesday after the market closed.
Revenue came in at $3.66 billion, up 168% from a year earlier. Analysts polled by LSEG had expected $3.55 billion.
The company also raised its full-year revenue outlook. Shares first rose in after-hours trading, then dipped into negative territory before climbing overnight.
The stock had been under pressure in recent weeks. Investors worried that the AI data center build-out could slow, and the company’s bond yields kept rising.
CEO Michael Intrator said CoreWeave will give up unsecured public debt. It will use delayed-draw facilities instead, which the company has used before.
Nvidia rose 5.2% in premarket trading as the AI rally continued. Investors are also following news about CEO Jensen Huang, who admitted to an affair with a woman accused of spying for China.
Sandisk, Lumentum, Coherent, Dell, Bloom Energy, Seagate, Marvell and Super Micro Computer were also among the S&P 500’s best performers before the open.
Earnings Reports Move Costco, Rigetti and Others
Mercury Systems fell almost 3% after hours, even though it beat estimates. It earned 52 cents a share on revenue of $253.2 million, after the stock rose 5% in regular trading Tuesday.
Grocery Outlet fell 8% after hours on mixed third-quarter results. Revenue was $1.18 billion and adjusted earnings were 16 cents a share, in line with estimates.
NextNav rose about 9% after hours as its quarterly loss narrowed to 4 cents a share from 12 cents. Cash and short-term investments rose to $264.1 million as of Sept. 30.
Firefly Aerospace slipped 2% after narrowing its full-year revenue forecast to $440 million to $450 million. The earlier range was $420 million to $450 million, and the FactSet consensus was $439.4 million.
Rigetti Computing fell 0.9% in premarket trading after dropping more than 6% after hours. The quantum computing company lost 8 cents a share, wider than the 5-cent loss analysts expected.
Rigetti’s revenue was $1.4 million, well below the $3.5 million estimate. It expects about $20 million for the year, short of the $22.6 million consensus.
Costco Wholesale slipped 0.1% in premarket trading. The warehouse chain declared a special dividend of $30 a share, double its previous such payout, and its board reauthorized a $4 billion stock buyback program.
