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Tesla Finally Disappoints

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Today's financial recap and tomorrow's financial outlook.

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The S&P 500 (INDEXSP:.INX) started out the day on a weak note but perked up a bit after a piece of positive economic data.

The index dropped a quick 13 points at the open, but the mood shifted at 10:00 EST when the October ISM Services index came in at 55.4, which was slightly ahead of the 54.0 consensus, and an improvement from September's 54.4.

We also saw some solid earnings reports this morning, with better-than-expected results from Cognizant Technology Solutions (NASDAQ:CTSH), CVS Caremark (NYSE:CVS), and Michael Kors (NASDAQ:KORS).

However, there were some disappointments today, notably Tesla Motors (NASDAQ:TSLA) this afternoon. The electric-car manufacturer beat revenue and earnings expectations, but its earnings guidance was below expectations and the stock sold off sharply after the close.

Overall, third-quarter earnings season remains a mixed bag at best, and fourth-quarter guidance has been mostly negative. According to Factset, as of Friday, 84% of companies issuing fourth-quarter guidance issued negative guidance. However, we saw the same trend last quarter, and stocks simply grinded higher.

By day's end, the S&P finished just 0.3% lower, though the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) managed to finish in the green as social media stocks like Facebook (NASDAQ:FB) and LinkedIn (NYSE:LNKD) continued to power higher ahead of Thursday's Twitter (NYSE:TWTR) IPO.

Commodities were mostly soft today, with gold, silver, and oil all trading lower. US Treasury yields rose modestly, sending bond prices lower.


Tomorrow's Financial Outlook

At 7:00 a.m. EST, the MBA Mortgage Index for last week will be reported. At 10:00 a.m., we will see the Leading Indicators for September. The consensus currently stands at 0.6%. We'll have to wait until later in the week for the ECB rate decision, GDP, and non-farm payroll reports to see major action in terms of market-moving data.

There are also a number of earnings reports coming tomorrow, including Time Warner (TWX) and Duke Energy (DUK) before the open, and Qualcomm (QCOM) and CBS (CBS) after the close.

Twitter: @Minyanville

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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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