TheChek News Flow

Tesla Shares Skid After Third-Quarter Earnings

Has Tesla Motors (TSLA) hit a pothole?

Late Tuesday, the maker of electrical-powered vehicles posted better-than-expected per share earnings and revenue for the third quarter. But that wasn’t enough for investors, who sent Tesla plunging during after-hours trading.

At $157.35, Tesla fell $19.31, or 11%.

Tesla said it earned 12 cents a share on revenue of more than $603 million. Analysts polled by Thomson Reuters expected Tesla to earn 11 cents a share on revenue of $535 million.

Gross margins, excluding zero vehicle emission, or ZEV credits rose to 21% from 14% posted during the second quarter.

So what do inventors find so discouraging? Perhaps, it’s deliveries and fourth-quarter guidance.

Tesla says it delivered 5,500 Model S vehicles during the third quarter to beat its own guidance of 5,000 vehicle deliveries. Analysts, however, expected more than 5,500 vehicle deliveries. In fact, analysts at Deutsche Bank and Wedbush each factored 5,850 deliveries into their third-quarter financial models.

Tesla predicted 6,000 Model S deliveries and upped its full-year delivery forecasts to 21,500 from its previous forecast of 21,000.

The company expects “our non-GAAP profitability to be about consistent with Q3.” But the Street expects fourth-quarter per share earnings of 20 cents a share.

So is this the beginning of the end for Tesla’s momentous stock price climb?

In August, my Barron’s colleague Bill Alpert warned of a bubble around the shares (see “Bubble Trouble at Tesla,” Aug. 10).

A year ago, the stock traded at less than $32 a share. And now with a market capitalization of roughly $20 billion, the stock prices in big expectations regarding the company’s future success. But as Briefing.com remarks, “it is important to note that disruptive companies like Tesla have proven difficult to judge on traditional valuation metrics.”

Ericsson expects CAGR of 3-5% in telco equipment mkt between 2012-16, sees telco services CAGR of 5-7%, support solutions CAGR of 9-11%. • In 2014, Ericsson’s key priorities will include monetizing European investments, shortening order-to-cash cycle, evolving its infrastructure software model • At its investor day, Ericsson will focus on describing the co’s strategy to deal with current FX headwinds • Statement • NOTE: Investor day held today.

US MArket closed lower While Treasuries slump, US opened lower but traded higher all day even if still closing negative, Energy was underpressure because of crude oil which slid 1.3% to $93.40...volume were just above average @ 741mil. Shares traded...VIX Up 2.6% to 13.27...Tesla shares crash by over 10% in extended session as Q3 shipments of 5.5K and Q4 forecast for under 6K disappoint lofty valuation...Shares of Toyota bouncing back in afternoon session ahead of the official release of Q2 numbers; press speculates TM will raise its FY13/14 op profit guidance to ¥2.2T from ¥1.94T prior forecast...BOJ Oct 3rd meeting minutes see economic recovery on track; Expecting inflation to rise gradually; Board members concerned with risks related to uncertainty over US monetary policy...China money market rates ease to 2-week lows but data shows that China exports struggle...Nikkei + 0.80% Shnaghai -0.80%

Eur$ 1.3501 S&P Fut +0.41% European Fut +.50%

Keep an eye on : - ADEN VX : Adecco 3Q Net Income Up 61%; Sees Increasing Demand in Europe - AGS BB : Ageas 3Q Insurance Profit Rises 14% to EU168.3m on Life Margin - ALGETA NO : Algeta 3Q Oper. Revenue NOK55m Vs Est. NOK47m - ALO FP : Alstom 1H Operating Profit EU695m vs Analyst Estimate EU664m, seek to raise €1b to €2b in asset sales - ANDR AV : Andritz 3Q Net Income Drops, Confirms Full-Year Forecast - AKSO NO : Aker Solutions 3Q EPS NOK1.42 Misses Est.; Ebitda Margin Falls - SPR GY : Axel Springer 3Q Rev. Beats Est.; Sees Drop in 2013 EPS - BNR GY : Brenntag 3Q Rev. Misses Est, Trims 2013 Profit Forecast Range - BVI FP : Bureau Veritas Chairman Piedelievre Quits, Replaced by Lemoine - CRDA LN : Croda Willing to Consider Larger Acquisitions, CTO Layden Says - ANN GY : Deutsche Annington Confirms Forecast, Sees FFO 1 at Upper End - DUE GY : Duerr 3Q Net Income Beats Estimates, Confirms Full-Year Forecast - ELE SM : Endesa 3Q Profit Falls 15.3% to EU437m - FRA GY : Fraport 3Q Net Income Falls, Sales Miss Estimates - FNTN GY : Freenet 3Q Net Ebitda EU92.6m vs Est. EU90.8m - INGA NA : ING 3Q Underlying Profit EU891m, Est. EU899m - IPN FP : Ipsen Begins Buyback to Partially Cover Restricted Share Plans - JUN3 GY : Jungheinrich 3Q Sales, Ebit Miss; Confirms 2013 Targets - KCO GY : Kloeckner 3Q Ebitda Rises to EU36m vs EU18m y/y; Beats Estimates - KU2 GY : Kuka 3Q Sales, Net Income Fall; Confirms Full-Year Forecast - LG FP : Lafarge 3Q Sales Fall on FX; Confirms FY Cement Growth Target - LUPE SS : Lundin Petroleum 3Q Net $1.7m; Takes $39.3m Non-Cash Impairment - LUN DC : Lundbeck 3Q Net DKK267m; Raises Lower End of 2013 Ebit Forecast - MC FP : LVMH's TAG Heuer to Make 100,000 Movements by 2016, Temps Says - NOEJ GY : Norma 3Q Sales Miss Est., Confirms 2013 Outlook - ORP FP : Orpea Predicts Profitable Growth in 2014 as Quarterly Sales Rise - P IM : Pirelli Cuts 2013 Ebit Target for 2nd Time, 3Q Rev. In Line - RAA GY : Rational 3Q Ebit Beats Estimates, Sees 27% FY Margin - SKB GR : Koenig & Bauer Lowers 2013 Sales, Earnings Targets - RIN FP : Vilmorin 1Q Rev. EU198.6m vs EU187.3m Y/y - RWE GY : speculation that the firm could cut up to 3,500jobs at power plant - VIMP RU : VimpelCom 3Q Ebitda Falls 2% Y/y on Weaker Ruble, Regulation - VOE AV : Voestalpine 1H Profit Falls, Confirms Forecast - VPK NA : Vopak 3Q Operating Profit Ex-Items Falls 9% to EU132m

Up

*ALLIANCE OIL RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN *BANCO POPULAR RAISED TO BUY VS SELL AT SOCGEN *HANNOVER RE RAISED TO OUTPERFORM VS NEUTRAL AT MEDIOBANCA *INTERNATIONAL FERRO METALS RAISED TO BUY AT BOFAML *RYANAIR RAISED TO BUY VS NEUTRAL AT NOMURA

Down

*AERCAP CUT TO UNDERPERFORM VS BUY AT BOFAML *AURUBIS CUT TO HOLD VS BUY AT KEPLER CHEUVREUX *CAP GEMINI CUT TO HOLD VS BUY AT SOCGEN *JAZZTEL CUT TO MARKET PERFORM VS OUTPERFORM AT RAYMOND JAMES *LEGAL & GENERAL CUT TO NEUTRAL VS OUTPERFORM AT MEDIOBANCA *SKY DEUTSCHLAND CUT TO HOLD VS BUY AT BERENBERG *UNILEVER CUT TO NEUTRAL VS BUY AT NOMURA *VALEO CUT TO SELL VS NEUTRAL AT GOLDMAN

PT Change

*BANCA GENERALI PT RAISED TO EU21.5 VS EU20 AT CITI; KEPT AT BUY *VODAFONE PT RAISED TO 250P VS 230P AT BERNSTEIN

Initiation

*ASSURA GROUP RATED NEW BUY AT LIBERUM, PT 42.9P *BIG YELLOW RATED NEW HOLD AT LIBERUM, PT 496P *EUROCASH RATED NEW BUY AT BERENBERG; PT PLN54.90 *HANSTEEN RATED NEW HOLD AT LIBERUM, PT 110P *LONDONMETRIC RATED NEW HOLD AT LIBERUM, PT 128P *METRO AG RATED NEW HOLD AT BERENBERG; PT EU32.8 *MOTHERCARE RATED NEW OVERWEIGHT AT JPMORGAN; PT 450P *PRIMARY HEALTH PROPERTIES RATED NEW HOLD AT LIBERUM, PT 308P *SAFESTORE RATED NEW BUY AT LIBERUM, PT 203P *ST MODWEN RATED NEW BUY AT LIBERUM, PT 406P *UNITE GROUP RATED NEW BUY AT LIBERUM, PT 461P *WORKSPACE RATED NEW BUY AT LIBERUM, PT 546P

Country Sector Stock Call

*RBS REMOVED FROM UBS’S MOST PREFERRED LIST *Air France, De La Rue Removed from SMID Key Buys List at Citi *Pirelli Kept at Buy at BofAML; Investor to Focus on New Plan

Asian Market Update: Australia trade deficit lower than expected, but China exports struggle; Toyota expected to boost guidance

***Observations/Insights*** - Tesla shares crash by over 10% in extended session as Q3 shipments of 5.5K and Q4 forecast for under 6K disappoint lofty valuation. - Shares of Toyota bouncing back in afternoon session ahead of the official release of Q2 numbers; Japan press speculates TM will raise its FY13/14 op profit guidance to ¥2.2T from ¥1.94T prior forecast. - Australia posts 3rd consecutive month of trade deficit; exports to China coming in flat on the month while iron ore exports rise just 1.5% m/m. - BOJ Oct 3rd meeting minutes see economic recovery on track; Expecting inflation to rise gradually; Board members concerned with risks related to uncertainty over US monetary policy. - China money market rates ease to 2-week lows.

***Economic Data*** - (AU) AUSTRALIA SEPT TRADE BALANCE (A$): -284M V -500ME (3rd straight month of deficits) - (NZ) NEW ZEALAND Q3 AVERAGE HOURLY EARNINGS Q/Q: 1.6% V 1.4%E; PRIVATE WAGES EX-OVERTIME Q/Q: 0.4% V 0.5%E; PRIVATE WAGES INCL OVERTIME Q/Q: 0.4% V 0.5%E - (NZ) NEW ZEALAND Q3 UNEMPLOYMENT RATE: 6.2% V 6.2%E; EMPLOYMENT CHANGE Q/Q: 1.2% V 0.5%E; Y/Y: 2.4% V 1.6%E; PARTICIPATION RATE: 68.6% V 68.0%E - (ID) INDONESIA Q3 GDP Q/Q: 3.0% V 3.0%E; Y/Y: 5.6% V 5.6%E - (ID) Indonesia Oct Consumer Confidence Index: 109.5 v 107.1 prior - (UK) UK OCT BRC SHOP PRICES INDEX Y/Y: -0.5% V +0.1%E (6th consecutive decline)

***Fixed Income/Commodities/Currencies*** - JGB: (JP) Japan MoF sells ¥2.18T in 0.6% (0.8% prior) 10-yr notes; Avg yield: 0.605% v 0.682% prior; Bid to cover: 3.69x v 3.74x prior - (CN) China MOF sells 5-yr bonds, Avg yield 4.13% - (CN) Daily Shibor fixings: O/N: 3.6600% v 3.9147% prior (5th consecutive decline; 2-week low); 1-week: 3.8660% v 4.2320% prior (5th consecutive decline; 2-week low) - (US) API PETROLEUM INVENTORIES: CRUDE: +871K (lowest build in 6 weeks) v +2Me

- USD and JPY weakened in early China trade and SP500 futures tracked risk-on sentiment with an 8-handle jump to 1,765 on more signs of relief in China financial sector as well as press speculation of a strong Q2 print from Toyota. USD/JPY rose 30pips above 98.70, EUR/USD rose 50pips from the lows to 1.3520, NZD/USD traded up about 50pips from the lows toward 0.84, and AUD/USD was up 40 pips from the lows at 0.9525 after paring its initial jump following lower than expected trade deficit.

***Speakers/Political/In the Papers*** - (CN) China 2013 CPI may come in below the 3.5% official target - Chinese press - (CN) Explosion has been reported in front of the office building of Shanxi Provincial Committee in Taiyuan City - Chinese press - (AU) Goldman Sachs Asset Management (GSAM) expects RBA to cut rates one more time due to persistent strength of AUD - (AU) Australia Treasurer Hockey: Mid-year budget update to show inherited problems - financial press

- (US) Fed's Williams (dove, non-voter): Employment growth has been good but not extremely strong; Wants to see improvement in consumer confidence before the taper

***Equities*** Market Snapshot (as of 03:30 GMT): - Nikkei225 +0.9%, S&P/ASX -0.1%, Kospi +0.2%, Shanghai Composite flat, Hang Seng +0.3%, Dec S&P500 +0.5% at 1,765, Dec gold +0.5% at $1,314, Dec crude oil +0.6% at $93.92./brl

US markets: - TSLA: Reports Q3 $0.12 v $0.12e, R$603M v $553Me; -12.3% afterhours - ANF: Reports prelim Q3 at high-end of $0.40-0.45 v $0.40e, R$1.033B v $1.07Be; Cuts FY13 guidance; -7.3% afterhours - VCLK: Reports Q3 $0.38 v $0.40e, R$134.1M v $167Me; -6.7% afterhours - URS: Reports Q3 $1.20 v $1.20e, R$2.74B v $2.95Be; -6.5% afterhours - JAZZ: Reports Q3 $1.78 v $1.66e, R$232.2M v $228Me; -2.8% afterhours - AGU: Reports Q3 $0.50 v $0.59e, R$2.87B v $2.94Be; -0.1% afterhours

- SSS: Reports FFO Q3 $1.01(adj) v $0.97e, R$70.9M v $68.7Me; +0.2% afterhours - FOSL: Reports Q3 $1.58 v $1.38e, R$810M v $773Me; +0.7% afterhours - WYNN: Announces $3.00 special cash dividend; Raises quarterly dividend by 25%; +1.1% afterhours - OPEN: Reports Q3 $0.50 v $0.42e, R$46.7M v $46.0Me; +3.4% afterhours - MSPD: MACOM Enters into definitive agreement to acquire Mindspeed Technologies for $5.05/share cash in $272M deal; +67.0% afterhours

Notable movers by sector: - Consumer discretionary: Guangdong Chant Group Inc 002616.CN +4.1% (awarded contract); Samsonite 1910.HK +5.8% (Q3 results); Kakaku.com Inc 2371.JP -2.6% (Q3 results) - Industrials: Brother Industries 6448.JP -9.8% (H1 results); Mitsubishi Motors 7211.JP +1.8% (possible alliance with Nissan, Renault; provides business plan); Nissan Motor 7201.JP +3.5% (considers alliance) Toyota Motor Corp 7203.JP +1.1% (press speculates H1, FY expectations); CSR Corp 1766.HK +0.5% (may receive orders); Isuzu Motors 7202.JP +2.9% (press speculates H1 results); Inner Mongolia Hotision & Monsod Drought Resistance Greening Co Ltd 300355.CN +4.7% (may receive orders); CPI Yuanda 600292.CN +1.9%, Fujian Longking 600388.CN +3.0%, Beijing SPC Environmental 002573.CN +2.2% (China govt pollution plans) - Financials: Commonwealth Bank of Australia CBA.AU +1.3% (Q1 results) - Technology: Acer Inc 2353.TW -6.9% (Q3 results); Sharp Corp 6753.JP +2.5% (press speculates asset sale in China, Malaysia); Samsung Electronics 005930.KR -1.8% (CFO comments); Zhejiang East Crystal Electronic Co Ltd 002199.CN +10.0%, Sapphire Technology 123260.KR +2.7% (Apple, GTAT deal on sapphire materials)

Apple reveals more on secret data requests

Apple has thrown its weight behind Silicon Valley’s legal challenge to restrictions that the US government places on reporting its requests for customer information, publishing new data about thousands of such demands from authorities around the world. The disclosures by the world’s most valuable technology company follow fresh revelations about the extent of the US National Security Agency’s internet surveillance, which Google last week called "outrageous". At the same time as filing an amicus brief to a First Amendment case filed by Google, Facebook, Yahoo and others earlier this year, Apple sought to distance its business model from internet firms which use customer data to sell advertising. "Perhaps most important, our business does not depend on collecting personal data," Apple said in Tuesday’s report. "We have no interest in amassing personal information about our customers." Apple is the first large US hardware manufacturer to reveal requests about customers’ individual devices but it has been slower than Google and others to provide details of how many internet user accounts it has handed over to authorities. In Apple’s first full account of its interactions with law enforcement, it said it received 12,442 requests from 41 countries in the first half of 2013 for information about its devices, such as when, where or by whom an iPhone or iPad was first activated. It complied with almost three quarters of those demands, including 3,110 in the US, 429 in China, 1,856 in Germany and 689 in the UK, the "vast majority" of which related to lost or stolen devices and "never" included national security-related requests, Apple said. A further 1,719-2,719 requests were made globally for customer account information, such as credit cards, email addresses, photos and telephone numbers for services such as iTunes. 1,000-2,000 came from the US and 127 from the UK. In a June letter to Apple’s head of privacy, the Federal Bureau of Investigation said the company could only provide this aggregated data in broad ranges of 1,000. Apple said it had joined a legal challenge by several leading US technology companies demanding permission to disclose more information. The case in the Foreign Intelligence Surveillance Court came after leaks by whistleblower Edward Snowden revealed widespread secret data mining programmes by the NSA and associated agencies. "We feel strongly that the government should lift the gag order and permit companies to disclose complete and accurate numbers regarding FISA requests and National Security Letters," Apple said. "We will continue to aggressively pursue our ability to be more transparent." In June, Apple said it had received up to 5,000 requests from US law enforcement between December 1, 2012 and May 31, 2013, covering up to 10,000 accounts and devices. Personal conversations using its iMessage texting service and FaceTime video calling are encrypted, which goes some way towards preventing eavesdropping, and Apple anonymises data about users’ locations, Maps searches and interactions with Siri, the iPhone’s virtual assistant. "Customer privacy is a consideration from the earliest stages of design for all our products and services," Apple said. It said it refused to provide data when the scope of a government’s request was "excessively broad" or did not follow proper legal procedures. Last week, in the latest of a series of leaks by Mr Snowden, a former contractor for the US security services, it emerged that the NSA had sought to take intercept data wholesale from Google’s private fibre networks.

Germans defend art hoard operation

German authorities have defended their handling of the discovery in a Munich apartment of more than 1,400 works of art possibly looted by the Nazis as they provided the first glimpse of some of the works in the hoard. At a packed press conference in Augsburg, Bavaria, prosecutors and customs officials briefly dimmed the lights to give journalists a glimpse of photographs of some of the seized works, which include a previously unknown self-portrait of Otto Dix and another work by Henri Matisse. They rejected criticism that they should have revealed their discovery earlier, arguing that they were following proper investigation procedures and wished to properly examine the hoard first. In total police have seized 1,406 works by artists including Max Beckmann, Max Liebermann, Henri de Toulouse-Lautrec, Marc Chagall, Pierre-Auguste Renoir and Oskar Kokoschka. Three works by Pablo Picasso were discovered – a sketch and two printed graphics – as well as a sketch by Canaletto. Paintings, drawings, lithographs and prints are all represented and some 121 framed art works were retrieved from the small apartment. The works are in good condition and were kept in a cupboard and in drawers as one might in the storage room of a museum, officials said. They were not exposed to direct sunlight and the quality of the colours had been preserved. "When you stand before these works that were for a long time believed lost or destroyed and you see them in a relatively good condition, then that delivers an incredible feeling of joy," said Meike Hoffmann, an art historian at the Free University in Berlin whom prosecutors have asked to examine the artistic treasures. "The pictures are of an extraordinary quality and have a fantastically high academic value. Many of the works were until now completely unknown," Ms Hoffmann said. Prosecutors and customs officials declined to provide an estimate of how much the art collection might be worth, indicating the Focus magazine estimate of €1bn did not come from them. They said the works would not be made available for viewing on the internet, nor would they hold an exhibition as the investigation was ongoing. They described the investigation and legal situation as "highly complex" and declined to speculate about who the owners of any of the works might be. Prosecutor Reinhard Nemetz said the paintings were first discovered in March 2012 – not in early 2011 as was originally reported – when police raided the apartment of pensioner Cornelius Gurlitt. Customs officials had found Mr Gurlitt in possession of a large amount of cash when travelling by train to Switzerland, which prompted further investigation. Mr Gurlitt’s father Hildebrand was a well-known art dealer and was permitted by the Nazi authorities to sell artworks seized as "degenerate" from German museums. Due to the scale of the find, it took the authorities three days to transport the art works to a secure storage site. Prosecutors and customs officials are not in contact with Mr Gurlitt and his whereabouts is unknown. However, officials said there were indications at least some works were seized from museums by the Nazis or were taken under duress from their original owners. Many of the works are not modern pieces viewed as "degenerate" by the Nazis but date from as early as the 16th century, including a copper engraving of the crucifixion by Albrecht Dürer. Officials said they hoped that those who believed they were robbed of art works during the Nazi period would come forward but acknowledged that the process of identifying the legitimate owners of all the works would be very difficult. Mr Nemetz said the article in Focus magazine on Saturday had made their job a lot more difficult – not least because they expected to be swamped with enquiries about the paintings and the highly valuable works must be securely stored. Ms Hoffmann said there were no indications that any of the works were forgeries. Masters of art fail to lure top bids at Christie’sSales fell well short of expectations during the opening hours of New York’s autumn auction season on Monday night despite initially lofty predictions, writes Elizabeth Paton. One-third of the lots in Christie’s much-feted Jan Krugier sale of high-profile paintings, drawings and sculptures failed to attract buyers. The 62 works in the estate of the late art dealer included pieces by celebrated artists such as Klee, Miro and Kandinsky. The most expensive item, Picasso’s 1964 ‘Tete’ sculpture, had been expected to sell for $25m-$35m but failed to attract a buyer. Bids were sluggish throughout the evening, with the eventual $92.5m tally a fraction of the forecast $157.9m-$224.5m. The disappointing results were attributed to excessively high estimates and the overexposure of several major works on the auction house circuit. A day-long sale of lower priced items followed on Tuesday.The pressure is now on for Christie’s and its rival Sotheby’s as the sale kicked off a fortnight-long round of Impressionist, modern and contemporary art auctions in the city.

After Hours Summary: MSPD +67.7%, REGI +16.4%, UQM +15.1%, TNGO -20.9%, TSLA -12.7%, CTRP -8.6% following earnings/guidance

WRAPX After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: MSPD +67.7%, REGI +16.4%, UQM +15.1%, SYNC +12.4%, BEAT +10%, BCOR +9.3%, MYGN +9.2%, IMPV +6.5%, GPOR +5.7%, Z +5.7%, MKTG +5.6%, ININ +5.5%, ANV +5.5%, CHTP +5.2%, OPEN +5.1%, SCMP +4.9%, RNG +4.7%, QLTY +3.5%, PTLA +3.3%, SALE +3%, NYMT +2.3%, KW +2.1%, ACRX +1.7%, FRGI +1.7%, EOX +1.5%, STEM +1.5%, DEPO +1.5%, USMO +1.4%, SGEN +1.4%, IAG +1.2%

Companies trading higher in after hours in reaction to news: - MSPD +67.7% (to be acquired by M/A-COM Tech (MTSI) for $5.05 per share; co also reported earnings), - SYNC +12.4% (acquired Teknision, leveraging its Android Development Platform for expansion into mobile and Android devices, terms not disclosed; co also reported earnings), - ESV +1.6% (nicreased quarterly cash dividend 50% to $0.75 from $0.50 per share), - WYNN +1.1% (announces $3 cash dividend; increased quarterly dividend 25% to $1.25 from $1 per share; Matt Maddox to assume additional duties of President), - DVAX +0.9% (RA Capital disclosed 9.9% passive stake in 13G filing

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: TNGO -20.9%, TSLA -12.7%, TRNX -12.6%, ZAGG -8.9%, CTRP -8.6%, SZYM -8.3%, ANF -7.6%, MELI -7.2%, VCLK -6.7%, GEVO -6.6%, URS -6.5%, LLNW -5.6%, VRSK -5.4%, QEP -5.4%, MED -5.2%, MCEP -4.6%, DVA -4.5%, KND -4.4%, ENPH -3.6%, JAZZ -3.1%, SAND -2.8%, LYV -2.6%, VVUS -2.3%, PZZA -2.3%, ACAS -1.9%, NRP -1.8%, FOXA -1.7%, LBTYA -1.7%

Companies trading lower in after hours in reaction to news: - VCLK -6.7% (announced intent to pursue divestiture of Owned & Operated websites segment), - ZLTQ -4.2% (announced proposed public offering of 4.5 mln shares of common stock), - BCC -2.0% (announced launch of public offering of 8 mln shares of common stock by selling stockholder), - CKH -1.2% (announced offering of up to $200 mln of its convertible Senior Notes due 2028), - FANG -1.1% (files mixed securities shelf offering; launched secondary common stock offering; Gulfport Energy (GPOR) selling 2 mln shares), - ALGT -0.8% (reported preliminary passenger traffic results for October 2013: Scheduled service passengers declined 1.6% year/year to 468,227)

Notable after hours earnings movers: REGI +13.0%, BEAT +11.1%, BCOR+ 10.5%, TNGO -13.8%, TSLA -10.9%, LLNW -10.3%

Companies trading higher after hours following earnings/guidance:

REGI +13.0%, BEAT +11.1%, BCOR +10.5%, SYNC +10.4%, ININ +9.0%, GPOR +6.2%, MKTG +5.6%, MYGN +5.2%, UQM +4.8%, OPEN +3.4%, SALE +3.0%

Companies trading lower after hours following earnings/guidance:

TNGO -13.8%, TSLA -10.9%, LLNW -10.3%, ZAGG -8.9%, MELI -8.5%, MED -6.2%, ANF -6.1%, QEP -5.4%, VCLK -4.7%, ENPH -3.6%, VVUS -2.8%

Closing Market Summary: Stocks End Mixed While Treasuries Slump

The major averages ended on a mixed note as the S&P 500 shed 0.3% while the Nasdaq added 0.1%. Equities spent the entire session climbing off their early lows after weakness in Europe set the stage for a lower open. European indices hovered near their worst levels of the day at the outset of the U.S. session after the European Commission lowered its 2014 GDP forecast for the region to 1.1% from 1.2%. Similar to equities, core EU bonds also sold off as Germany's 10-yr yield added four basis points to 1.74% while the French 10-yr yield rose six basis points to 2.21%. Although stocks began the U.S. session in negative territory, the buy-the-dip trade was at work once again, fueling a day-long rebound. The tech-heavy Nasdaq was able to eke out a modest gain thanks to the outperformance of biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 207.11, +1.44) rose 0.7%, extending its year-to-date advance to 51.1%. Meanwhile, the traditional tech sector ended just below its flat line. While most groups were able to rebound from their early lows, energy (-0.8%), financials (-0.5%), utilities (-0.8%), and telecom services (-1.9%) were not as fortunate. The energy sector was pressured by crude oil, which slid 1.3% to $93.40 per barrel. Meanwhile, the financial space underperformed for the second consecutive day, trimming its quarter-to-date advance to 3.0%. Although the sector continues to hold a solid gain for the quarter, the remaining nine groups have all had a better showing since the start of October. Only one other cyclical sector, consumer discretionary, ended north of its flat line. The group posted a razor-thin advance of 0.01% as quick-service restaurants masked broad losses among homebuilders. Restaurant names rallied in reaction to better-than-expected earnings from Red Robin Gourmet Burgers (RRGB 84.20, +7.44) while the iShares Dow Jones US Home Construction (ITB 22.20, -0.37) lost 1.6% as the increase in rates weighed. Treasuries sold off during morning trade before regaining a small portion of their losses in the afternoon. The benchmark 10-yr yield rose six basis points to 2.67%, its highest since October 16. Trading volume was just above average as 741 million shares changed hands on the floor of the New York Stock Exchange. Today's data was limited to the October ISM Services Index, which climbed to 55.4 from 54.4 (54.0 consensus). The strength in the services sector is not a surprise. Recent employment reports have shown an uptick in services hiring; moreover, October marks the 46th consecutive month in which economic activity in the non-manufacturing sector has expanded.

Business activity strengthened in October, with the series index rising to 59.7 from 55.1. The new orders index showed continued expansion with a print of 56.8, yet that was the second straight month in which new orders activity decelerated. The aforementioned index was at 60.5 in August and 59.6 in September. Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET and September Leading Indicators will cross the wires at 10:00 ET. o Nasdaq +30.5% YTD o Russell 2000 +29.9% YTD o S&P 500 +23.6% YTD o DJIA +19.2% YTD