Market Wrap: Stocks End Flat, but Tesla Shares Sag After Hours
Stocks ended Tuesday basically flat, as investors started to focus on economic realities. But the market could see some volatility Wenesday after parts of Tesla Motor's (NASDAQ: TSLA) third-quarter results disappointed investors.
Shares were off sharply after hours. Keeping the market in check was concerns over what October's payroll growth and unemployment data will be in the Labor Department's big jobs report, due out on Friday. Many investors are worried the report will show only modest gains. At the same time, there remain concerns about slow growth in Europe. The European Central Bank may cut its benchmark interest rate on Thursday because of rising jobless rates on the continent.
And U.S. interest rates moved up slightly, as Wall Street digested reports that Federal Reserve economists are recommending the Fed refrains from any interesty-rate increases until the national unemployment rates falls to six percent. The 10-year Treasury yield moved up to 2.662 percent from Monday's 2.601 percent.
The Dow finished down 21 points or 0.13 percent to 15,618. The Standard Poor's 500 Index was down 5 points, or 0.28 percent, to 1,763. The Nasdaq Composite Index, however, bucked the trend, rising 3 points, or 0.08 percent, to 3,940.
The finish was a bit of a victory for the bulls. Stocks had fallen sharply at the open on worries about Europe, with the Dow off as many as 117 points.
After the close, Tesla shares were down sharply -- after the upscale maker of electric vehicles said it delivered 5,500 vehicles in the quarter, or 500 more than it said it would. But analysts had expected at least 5,700. The company also offered no guidance on 2014 deliveries. Earnings after one-time charges were 12 cents, compared with the Street estimate of 11 cents. Revenue of $603 million beat the estimate of $535 million. Revenue was $50 million a year ago.
Shares were 9.3 percent after hours to $160.44 after rising 0.92 percent in regular trading. The shares are up more than 400 percent over the last 12 months.
CVS Caremark (NYSE: CVS) reported a 25 percent rise in its third-quarter earnings and lifted its earnings forecast for the year. The company now expects full-year earnings of $3.94 to $3.97 per share, versus its earlier forecast of $3.90 to $3.96 per share.
CVS Caremark's quarterly profit surged to $1.25 billion, or $1.02 per share, versus a year-ago profit of $1.01 billion, or $0.79 per share. Excluding one-time items, its adjusted earnings came in at $1.05 per share. The company had earlier expected earnings of $1 to $1.03 per share. Its revenue rose 5.8 percent to $32 billion, versus analysts' estimates of $31.53 billion.
Equities Trading UP
Red Robin Gourmet Burgers (NASDAQ: RRGB) shares jumped nearly 10 percent to $84.37, after third-quarter earnings rose a third from a year ago and easily beat Street estimates.
Regeneron Phamaceuticals (NASDAQ: REGN) shares jumped 7.39 percent to $302.51 after third-quarter earnings and revenue beat estimates handily. The stock was the best performer in the S&P 500 and the Nasdaq-100 index.
Endo Health Solutions (NASDAQ: ENDP) shot up 27.93 percent to $55.83 -- after the company announced its plans to acquire Paladin Labs for $1.6 billion in stock and cash.
Shares of GT Advanced Technologies (NASDAQ: GTAT) got a boost, shooting up 21.37 percent to $10.17, following Monday's announcement of a deal with Apple for sapphire materials.
Equities Trading DOWN
Shares of BroadSoft (NASDAQ: BSFT) were down 23.02 percent to $25.51 after the company reported weaker-than-expected third-quarter results and issued a downbeat outlook for the fourth quarter.
In commodity news, crude oil in New York settled down 1.32 percent to $93.37 a barrel, the lowest settlement since June 4th’s $93.31. Unleaded gasoline nationally averaged $3.24 a gallon, down from $3.252 on Monday and 14.4 percent below the 2013 peak of $3.786 a gallon, set on Feb. 27.
Gold traded down 0.5 percent to $1,308.10 an ounce. Silver traded down 0.29 percent Tuesday to $21.636 and ounce. Copper rose 0.17 percent to $3.259 a pound.
European shares were lower Tuesday. The Spanish Ibex Index fell 0.8 percent, while Italy's FTSE MIB Index dropped 1.13 percent. Germany’s DAX index declined 0.31 percent and the French CAC-40 Index tumbled 0.82 percent. Britain’s FTSE-100 Index fell 0.25 percent.
The ISM non-manufacturing index rose to 55.40 in October, up from September’s reading of 54.40. Economists had expected a reading of 54.
The Johnson Redbook Retail Sales Index dropped 1.2 percent in the first four weeks of October from the first four weeks of September.
The ICSC-Goldman Sachs store sales index declined 0.6 percent in the week ended Saturday from the prior week.
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