Wall Street stocks diverge as AMD and SpaceX slide, Eli Lilly gains after earnings

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Wall Street stocks diverge

Highlights

AMD drops 8% premarket as Q3 guidance of $13 billion misses elevated expectations despite exceeding revenue and margin estimates.
SpaceX falls nearly 11% after strong first public quarterly results due to surging AI infrastructure spending and impending lock-up expiry.
Eli Lilly gains post-earnings, raising full-year outlook on robust Zepbound and Mounjaro demand, while Arista Networks surges 12% on record revenue.

Premarket earnings moves shape trading

As reported by CNBC, investors are weighing a broad set of corporate updates before the opening bell, with AMD, SpaceX, Eli Lilly, Disney, Arista Networks and Emerson Electric all moving sharply after quarterly results.

AMD is down about 8% in premarket trading even though it tops expectations on revenue, earnings per share, data center revenue and gross margin. The pressure centers on its third-quarter guidance of $13 billion, plus or minus $300 million, which falls short of higher market whispers after the stock had already rallied more than 20% into the release.

SpaceX, in its first quarterly report as a public company, also beats top- and bottom-line estimates, while Starlink subscribers rise 17% from the March period to 12 million. Even so, the shares fall nearly 11% as investors focus on a steep increase in capital spending on AI infrastructure, expectations for more compute capacity spending ahead, and the expiry of stock lock-up restrictions tomorrow.

Eli Lilly moves the other way after it beats second-quarter estimates and raises its full-year outlook on continued demand for obesity drug Zepbound and diabetes therapy Mounjaro. Disney also gains after reporting better-than-expected June-quarter profit, with strength in theme parks and cruises helping offset slightly light overall revenue.

Arista Networks jumps more than 12% premarket after posting record quarterly revenue and a strong earnings beat, reinforcing demand for data center networking equipment. Emerson Electric slips more than 3% despite exceeding expectations on earnings, revenue and operating cash flow, suggesting investors remain selective even after solid results.

AI spending, analyst calls and sector read-throughs

Nvidia is among the notable beneficiaries of the earnings cycle after Elon Musk says SpaceX is building exclusively on Nvidia architecture because it views Vera Rubin as the best AI computer platform. That comment points to potentially large orders next year and beyond if SpaceX follows through on its infrastructure plans, and Nvidia shares are up nearly 2% before the open.

Cybersecurity names are also extending recent momentum. Barclays lifts its price target on Palo Alto Networks to $370 from $315 while keeping a buy rating, as the sector benefits from rising attention to AI-related breaches; CrowdStrike is mentioned in the same favorable software theme.

In retail, Burlington Stores draws mixed analyst views after Citigroup downgrades the stock to hold from buy, arguing upside in the risk-reward profile has narrowed. Morgan Stanley, however, reinstates coverage of the off-price group with buy ratings on Burlington and TJX Companies, signaling continued confidence in discount retail operators.

The broader backdrop remains uneven as weak July ADP private payrolls data tempers enthusiasm after fresh records for major U.S. indexes. Taken together, the premarket updates suggest investors are rewarding clear earnings strength and durable demand trends, while punishing heavy spending plans, softer forward guidance and crowded valuations.

In our earlier coverage of U.S. stocks holding near record highs amid a strong earnings season, we noted how lower oil prices and upbeat results helped keep major benchmarks supported even as investors weighed rate and growth risks. We also highlighted that not all post-earnings reactions were positive, pointing to weakness in SpaceX and AMD on AI spending and guidance concerns, alongside sharper upside moves in select names as the reporting season drove dispersion.

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