Major indices are higher at midday, with the Nasdaq out in front after SpaceX (SPCX) swung to a profit, and Elon Musk confirmed it is exploring a potential merger with Tesla (TSLA). Investors are also gearing up for a busy afternoon of earnings (more below).

Technology (XLK) is the best performing sector, led by gains in semiconductors including Advanced Micro Devices (AMD), Nvidia (NVDA), and Texas Instruments (TXN) ahead of its report this afternoon, while Palantir (PLTR) and ServiceNow (NOW) are lifting software. Industrials (XLI) are also outperforming as GE Vernova (GEV) rallies after Bank of America forecast strong third-quarter order growth, with Eaton (ETN) also moving higher. On the other hand, Communication Services (XLC) is the weakest performer as AT&T (T) slides despite beating estimates and raising its earnings guidance, with mobile subscriber growth missing expectations, while Verizon (VZ), T-Mobile (TMUS), Netflix (NFLX), and Alphabet (GOOGL) are also lower. Health Care (XLV) is also lagging as Abbott Laboratories (ABT) declines after announcing plans to separate its nutrition business, offsetting gains in Danaher (DHR) and Thermo Fisher Scientific (TMO), following their quarterly results.

Nvidia in the News

Nvidia (NVDA) unveiled DSX POD at GTC Berlin, a modular design for Vera Rubin AI factories that can cut deployment time from about six months to as little as 14 days, with partners including Vertiv (VRT), Hewlett Packard Enterprise (HPE), and Dell Technologies (DELL) set to begin delivering them in early 2027.

Nvidia also announced capacity expansions with supply chain partners, including a more than 300% increase in advanced packaging capacity at Amkor Technology (AMKR) by the end of 2028, and expanded its Isaac robotics platform with a new reference humanoid.

Magnificent Seven Names on Deck

Tesla (TSLA) reports after the close, with the Street looking for earnings of $0.45 per share on revenue of $27.92 billion, compared with $0.50 and $28.1 billion a year ago. Investors will be watching automotive margins, progress on the robotaxi expansion and the Cybercab and Optimus ramps, and any further commentary on the potential merger with SpaceX (SPCX).

Meta Platforms (META) also reports after the close, with the Street looking for earnings of $6.58 per share on revenue of $63.34 billion, up from $51.24 billion a year ago and within the company's guided range of $61 billion to $64 billion. Investors will be focused on capital spending plans after Meta guided 2026 capital expenditures to $130 billion to $145 billion, along with ad revenue growth and traction for its Muse Spark AI model.