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
However, there were some disappointments today, notably
) 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
(INDEXNASDAQ:.IXIC) managed to finish in the green as social media
(LNKD) continued to power higher ahead of Thursday's
Commodities were mostly soft today, with gold, silver, and oil all
trading lower. US Treasury yields rose modestly, sending bond
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
There are also a number of earnings reports coming tomorrow,
(DUK) before the open, and
(CBS) after the close.