Morning Bid: Musk mulls megacap

By Mike Dolan

Oct 21 (Reuters) - It ‌was hard to ​keep ​track of global markets from hour to hour on Tuesday, with Brent crude hitting fresh five-month highs before plunging, which rippled through ‌tech-focussed stocks.

The crude reversal came after reports of renewed mediation efforts ⁠in the Iran war, though statements from Tehran later threw cold water on any hopes of ‌an immediate breakthrough.

As it stands, ‌crude is back above $110 per barrel this morning, with energy markets keeping one eye on US envoys' visit to Moscow and Ukraine war talks.

Stock markets ​were focussed on the unfolding earnings season for Big Tech, with SpaceX surging almost 10% overnight after its beat - and excitement over hints at a ⁠possible merger with Elon Musk's other megacap, Tesla.

Musk claimed a merger between the two, which would see a ​combined market value of $3.5 trillion, would be a "good idea" and said committees were examining the possibility.

Tesla will report earnings later today, ​though hyperscaler Meta tops the calendar.

There was less ‌good news on Tuesday for lagging streaming giant Netflix, whose stock skidded another 5% out of hours after income estimates missed ⁠forecasts and advertising guidance fell.

Elsewhere, Asian stock indexes rose on Wednesday and South Korean AI infrastructure company Elice surged almost 30%, rebounding from a post-IPO slump yesterday.

CHART OF THE ⁠DAY

Rockets and Starlink grab most of the headlines for SpaceX, but artificial intelligence contributed more than ​half of the $14.6 billion in third-quarter revenue it reported on Tuesday.

TODAY'S EVENTS TO WATCH

• US corporate earnings: Meta, Tesla, IBM, Texas Instruments

• US 20-year bond auction (1 p.m. EDT)

• ECB President ‌Christine Lagarde speaks (12 p.m. EDT)

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Opinions expressed ‌are those of the ​author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom ‌from bias.

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