Nov. 05 - Stocks ended mostly lower. Tenet Healthcare dragged down the S&P. Tesla plummeted in after-hours trading. Fred Katayama reports.
Strong economic data raised concerns the Fed could scale back its big bond purchases earlier than expected. That sent stocks mostly south even though they had trimmed their losses by day's end. The Dow and S&P fell a fraction of a percent after two days of gains. The Nasdaq barely broke above the break-even line. The Institute for Supply Management's services index rose more than expected last month as firms added workers despite the government shutdown. But growth in new orders slowed for a second straight month. Dragging down the S&P: Tenet Healthcare. Its third quarter net income fell sharply due to costs stemming from its purchase of Vanguard Health Systems. Leapfrog tumbled. The educational toy manufacturer cut its full year sales forecast and expressed concern about the holiday sales season. Shares of Michael Kors soared after the luxury retailer reported a better-than-expected 40 percent jump in quarterly revenue and upped its earnings forecast again for the full year. Kors is aggressively expanding its retail network as the economic recovery spurs demand for luxury goods in the U.S. and Europe. Solid ad sales beefed up AOL's higher-than-expected third-quarter revenue, but earnings plummeted on problems stemming from its community news site network, Patch. After the close... Tesla's momentum-driven stock ran out of gas, plummeting in after-hours trading. Its fourth quarter forecast fell shy of Wall Street's estimates, as did the 5500 Model S cars the company delivered. Tesla's Northeast regional sales manager, Will Nicholas, says the company will deliver 21,000 vehicles this year. SOUNDBITE (English) WILL NICHOLAS, NORTHEAST REGIONAL SALES MANAGER, TESLA MOTORS SAYING: "We certainly are planning on expanding our production beyond the 21,000 to include more deliveries in Europe, Asia and the Australian market as well." In Europe, shares slipped from a five-year high on weak earnings expectations.