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U.S. stocks fall after hotter than expected GDP growth; Amazon up next

AuthorPeter Nurse
Published 10/25/2023, 06:50 PM
Updated 10/26/2023, 11:24 AM
© Reuters

Investing.com -- U.S. stocks are falling in choppy trading after a hotter than expected report on third quarter economic output as corporate earnings continue to roll in.

At 11:11 ET (15:11 GMT), the Dow Jones Industrial Average was down 37 points or 0.1%, while the S&P 500 dropped 0.4% and the NASDAQ Composite fell 0.9%.

The tech-heavy Nasdaq fell 2.4% on Wednesday, recording its worst day since February, while the broad-based S&P dropped 1.4% and the blue chip Dow fell 0.3%. 

Third quarter U.S. GDP in focus

Third quarter gross domestic product came in at a hotter than expected 4.9% for the third quarter from the previous quarter. At the expected 4.3%, it would have been the fastest growth since the fourth quarter of 2021, and far sharper than the 2.1% pace seen in the April-June quarter.

In addition, new jobless claims of 210,000 last week were slightly higher than the expected 208,000 and up from the prior week. And pending home sales rose 1.1% in September from the prior month, a turnaround from the decline of 7.1% the month before.

Amazon takes the earnings lead 

The earnings deluge continues Thursday, with results from Amazon (NASDAQ:AMZN) expected after the closing bell.

The e-commerce and cloud computing giant is expected to report earnings per share of 58 cents on revenue of $141.5 billion.

Investors will look for signs that Amazon's aggressive expansion of same-day delivery services helped increase its third-quarter profit margin by spurring shoppers to place more frequent and bigger orders.

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Southwest Airlines (NYSE:LUV) met expectations for profit and said it would slow capacity growth in 2024. Shares fell 0.5%. United Parcel Service (NYSE:UPS) fell slightly below expectations for revenue, and shares were down 4%.

Meta Platforms disappoints on revenue guidance

Meta Platforms (NASDAQ:META) beat expectations for third-quarter profit and revenue, helped by an austerity drive and a recovery in digital advertising ahead of the holiday season.

However, Meta’s stock fell more than 3% as investors fretted over the company’s guidance for the fourth quarter revenue, with the $38.3 billion estimate coming in 1.6% below expectations.

Oil slips on worries over European demand

Crude prices edged lower Thursday, giving up some of the previous session’s gains as U.S. oil stocks rose while traders continued to focus on developments in the Israel-Hamas war. 

U.S. crude inventories climbed by 1.4 million barrels last week, according to data from the Energy Information Administration, released Wednesday, pointing to weakening demand at the world’s largest consumer.

However, trading remains volatile, as traders struggle to gauge whether the war would escalate and disrupt crude supplies in the oil-rich Middle East region.

(Oliver Gray contributed to this item.)

 

Latest comments

Stocks were up 1,4% yesterday. Headline is greatly misleading. The only thing that was selling off were overvalued MegaCaps and consequently the Nasdaq indexes and the SP500 because they're extremely Megacap weighed. yesterday was a really good day.
Time to in War Material.
this content board should be for ideas not political venting Don't we think?
90% of this market is based on government spending. so, no
  Richard's operative word is "venting", not "political".
The GDP is adjusted for inflation by reducing the nominal number. For example, if inflation is 5% then the nominal numbers gets divided by 1.05. The official inflation is 4%, so government statistician divided by 1.04. However, the actual inflation is much higher than 4%, and dividing by 1.08 or 1.10 would show zero or even negative GDP growth.
Count housing and food.
  BLS does count housing and food, and not buggy whips.  smh, my points just go right over your head.
LOL. What a loser. Warm Camp can't handle the facts, so he reach up his large intestine and extracts a made up "real" inflation.
Just stop the nonsense. Hotter-than-expected GDP should not cause the market downward spiral. Unless big market players know that the number is fudged.
Just stop talking. the market is going down because the government is going to be insolvent in a few years. gdp is up because run away spending and debt
 Of course, debt will destroy the country. However, this is something that was created long time ago and will continue for long time. Also, the government will make everyone insolvent before going to insolvency itself.
  Don't only worry about the budget deficit when Republicans are not in full control.
A death cross is looming on all indexes, the worst is in front of us. Stay safe and good luck all.
We clearly need a depression to pump the markets. They can't just write a headline that says markets still trending down, trend is your friend.
"U.S. stocks fall" is in the headline; it means "trending down".
Biden has spent more time than any other president in history on vacation. He basically wakes up at noon, mumbles about sending $100 billion to Ukraine (10% for the big guy), then goes and takes a nap on the beach while we all suffer.
The problem was made up by the wall st and the media to create volatile market situation for them to make profit
It's a conspiracy!!!
You don‘t wanto have a recession and you don‘t want to have a good economy. Where‘s the problem?
Wanting a good, growing economy with low inflation.  But parties like Russia, China & retrumplicans want deglobalization which raises inflation.
US stocks fall not because of the data, they fall because some jerks are selling!
Ah yes, time for another rate hike.  All the while, the miraculous intraday gyrations continue in the laughingstock of the financial world, as losses are flagrantly kept in check.  How many intraday "recoveries" will magically appear before the savvy "late trade" investors arrive on scene and whisk the losses away in the final hours?
Where those economists and analysts said recession multiple times in past two years? They should quit their job by now!
It was mostly retrumplicans who were lying about recession.
How come that shooter in ME, not go down to wall st to shoot those keep making news to manipulate the market, shoot the ones deserve to be shoot!
You should see a doctor. Seriously.
Calling for violence against journalists is so retrumplican.
higher for longer becomes higher forever
That's the US stock market.
Hotter than expected, rate hike fears -> market goes down, cooler than expected, recession fears -> market goes down, neutral -> market still goes down. You can't make this up
fake news
GDP is only up because we have a historic debt to debt ratio and inflation is also hotter than expected. We have an incompetent potato in the White House who sends $100 billion to Ukraine just as often as he goes to vacation on the beach, which is once a week.
*debt to GDP ratio
dylan…I applaud your extrodinary restraint, re: “incompetent potato”; the debt you refer to can easily be shown as the result of the man’s hatred for the US taxpayer in favor of illegal immigrants, corrupt Ukrainians, Chinese politicians, internal graft etc. You are indeed kind…
mixed? I see all red...
Well said.. there's nothing mixing here
Time for Higher Rates
Where's Messiah AI and his bullish wand?
You hear that noise? It's the sound that lemmings make as they follow each other off a cliff. Thanks BTW, I always cash in when the lemmings are running.
So beat and down market is wanting to go down sometimes it goes up for no reason now its down for no reason
Meta warning read news
We're screwed.
Biden Propaganda
get help
Nice daydream, Rachael.
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