Stocks Mixed as Tesla Motors Inc (TSLA) Reports Quarterly Profit

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U.S. equities danced around the unchanged line on Wednesday but mostly finished lower as crude oil dropped and the flow of Q3 results intensified.

In the end, the Dow Jones Industrial Average gained 0.2%, the S&P 500 Index lost 0.2%, the Nasdaq Composite lost 0.6% and the Russell 2000 lost 0.9%. Treasury bonds were weaker, the dollar was mixed, gold lost 0.6% and crude oil lost 1.6% on ongoing doubts about the likelihood of an OPEC supply freeze deal being implemented.

Financial stocks led the way with a 0.6% gain while healthcare was the laggard, down 0.7%, on fears an electoral win by Democratic presidential hopeful Hillary Clinton — who is ahead in the polls — could pinch profitability amid calls for increased regulation.

USOBoeing Co (NYSE:BA) gained 4.7% on a Q3 earnings and revenue beat with strong forward guidance. Chipotle Mexican Grill, Inc. (NYSE:CMG) fell 9.3% after third-quarter results missed across the board with comp-store sales down 21.9% and traffic down 15% as the company continues to suffer the fallout from last year’s E.coli outbreak. Apple Inc. (NASDAQ:AAPL) fell 2.3% as Wall Street reacted to in line results that still posted big year-over-year drops in revenues, earnings, and iPhone sales.

On the economic front, new home sales came in at a 593k seasonally adjusted annualized rate in September, below the 600k that was expected. The Markit services flash PMI rose to 54.8 from 52.3 in September beating estimates. And the trade deficit shrank to $56.1 billion down $3.1 billion from a month ago.

After the close, Tesla Motors Inc (NASDAQ:TSLA) surged 5.1% on a surprise reporting of earnings per share of 71 cents when just 14 cents were expected. Revenues came in at $2.3 billion vs. $2.1 billion expected.

The result was marred somewhat by a last-minute accounting change, so keep that in mind. Cash flow remains a worry, down nearly $40 million from a year ago. Production was up 93% from last year.

Keep an eye on crude oil going forward with earnings from oil majors including Exxon Mobil Corporation (NYSE:XOM) and Chevron Corporation (NYSE:CVX) on deck.

Edge subscribers are enjoying a near 3% gain in their new ProShares UltraShort Crude Oil (NYSEARCA:UCO) position while Edge Pro subscribers just initiated a position in the XOM Nov $86 puts.

Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. A two-week and four-week free trial offer has been extended to InvestorPlace readers.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/10/stock-market-today-nyse-dow-jones-industrial-average-investing-news-tsla-tesla-motors-inc/.

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