Tesla Motors Inc. and Michael Kors Jump as Market Indexes Slip

^INX Chart

Stocks fell slightly today, as the S&P 500 lost 0.37% and the Dow Jones Industrial Average lost 0.32%.

^INX data by YCharts

Investors' attention was keyed in on Federal Reserve Chairwoman Janet Yellen's testimony to congress this morning, which included more hints that the central bank's first interest rate hike in nine years might be coming next month.

Yellen said that Fed officials haven't made that decision yet, but if the latest employment and inflation data support it, a December hike is a "live possibility ." The numbers from this Friday's monthly jobs report will likely play an important role in the Fed's ongoing monetary policy debate.

Meanwhile, individual stocks continue to make dramatic moves as investors processed fresh third-quarter earnings reports. Electronic car maker, Tesla , and luxury retailer, Michael Kors , both surprised Wall Street with better-than-expected results.

Tesla ramps up deliveries

Tesla's stock popped over 10% after the company posted its third-quarter earnings results last night. Net loss widened - expanding to $230 million from the prior year's $75 million. But Wall Street isn't expecting Tesla to generate positive earnings just yet. After all, CEO Elon Musk and his executive team are making huge investments in energy production capabilities, and in research and development for its growing lineup of vehicles, which now includes the Model X.

KORS Chart

KORS data by YCharts

The latest quarterly results showed why investors have been so pessimistic about the business. The retailer today posted a 3% drop in comparable-store sales as operating margin sunk to 24% of sales from 29% last year. Sure, total revenue rose. But that's mainly thanks to 116 new locations in the store base - not due to increasing traffic at existing shops .

Yet there were a few bright spots in the results. The 3% comps drop was an improvement over the prior quarter's 5% dive, for one. Kors also succeeded at posting accelerating growth its e-commerce business. And its wholesale sales rose by a solid 8%.

"We are pleased with our second quarter results, which were ahead of expectations and reflected the continued expansion of our luxury brand worldwide," CEO John Idol said in a press release. And while Idol and his team don't see a return to positive comps over the next two quarters, they do expect full-year revenue to rise in the low double-digit range.

The next billion-dollar iSecret

The world's biggest tech company forgot to show you something at its recent event, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here .

The article Tesla Motors Inc. and Michael Kors Jump as Market Indexes Slip originally appeared on

Demitrios Kalogeropoulos owns shares of Tesla Motors. The Motley Fool owns shares of and recommends Tesla Motors. The Motley Fool owns shares of Michael Kors Holdings. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2015 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More