Tesla Finally Disappoints
Today's financial recap and tomorrow's financial outlook.
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.
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