News about Capital One

Stock futures were higher, led by the Nasdaq after SpaceX rose 8% following quarterly results that beat expectations, with positive adjusted EBITDA in each segment; special committees have been formed to explore a merger with Tesla. Netflix fell 6% after fourth-quarter revenue guidance missed expectations due to a delayed rollout of advertising features, and Needham downgraded it to hold. Super Micro Computer jumped 12% on a preannounced September-quarter beat, and Dell rose 7%. Capital One gained nearly 4% on strong results, while Abbott Laboratories slipped 4% after cutting its full-year comparable sales growth outlook and Danaher fell 3.5% after missing sales estimates. Micron rose more than 3% after reaching an agreement with a union at its Taichung operations.

Capital One Financial posted better-than-expected third-quarter results, with revenue up 6.4% year over year to $16.34 billion against a $16.27 billion consensus, and adjusted EPS up 12% to $6.69 versus an estimated $5.50. Net interest income rose about 4% quarter over quarter, beating estimates by $134 million, while net discount and interchange fees climbed 3.5% to $2.34 billion, which the article links to the company's ownership of the Discover network. Non-interest expense of $8.86 billion was above the $8.75 billion consensus, though marketing spending of $1.59 billion came in below forecasts. Provisions for credit losses of $2.9 billion were well below the roughly $3.6 billion expected, and a $225 million allowance release boosted earnings. CEO Richard Fairbank said Discover integration has delivered about $1.8 billion of annualized synergies so far and expects lost interchange revenue if the proposed Visa and Mastercard settlement receives final court approval, roughly offsetting the remaining synergies; shares rose about 4% after hours to $210.

U.S. stocks were mixed on Friday as money kept rotating out of AI names into defensive sectors, and the club's banks Wells Fargo, Bank of New York and Goldman Sachs were all up for the week. Apple shares edged toward a record close as preorders for the iPhone Duo opened; the foldable model starts at $1,999, hits stores October 23, and delivery estimates stretching into early 2027 were seen as a strong demand signal. Capital One reports Tuesday evening, and the key question is how much it keeps investing, since that spending has weighed on profits; the stock is down over 16% year to date. Meta reports after Wednesday's close, and investors will watch capital expenditure plans for its Muse AI agent, after the club trimmed its Meta position last month to protect profits.