U.S. Stocks Fall After Strong GDP Growth; Amazon Earnings Awaited
Stocks in the Red Amid Robust Economic Data
U.S. stocks are experiencing a downward trend in volatile trading sessions following the release of stronger-than-expected third-quarter economic growth figures. Corporate earnings reports are also contributing to the market’s performance.
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 fell 0.9%.
On Wednesday, the Nasdaq slumped 2.4%, marking its worst day since February, while the S&P 500 declined 1.4% and the Dow Jones fell 0.3%.
Third Quarter GDP Exceeds Expectations
The highly anticipated third-quarter gross domestic product (GDP) growth came in at a stronger-than-expected 4.9%. This growth rate, if it had been at the expected 4.3%, would have been the fastest since the fourth quarter of 2021. It also outpaced the 2.1% growth seen in the April-June quarter.
Additionally, new jobless claims reached 210,000 last week, slightly higher than the estimated 208,000. Housing starts also rose 1.1% in September from the previous month, reversing the 7.1% decline seen in the previous month.
Amazon Earnings in the Spotlight
Investors eagerly await the earnings report from Amazon, scheduled to be released after the closing bell. Analysts expect the e-commerce and cloud computing giant to report earnings per share of 58 cents on revenue of $141.5 billion.
Market participants will be closely monitoring signs that Amazon’s aggressive expansion of same-day delivery services has boosted its third-quarter profit margin by encouraging customers to place more frequent and larger orders.
Mixed Results for Other Companies
Southwest Airlines met profit expectations and announced plans to slow capacity growth in 2024, resulting in a 0.5% decline in its shares. Meanwhile, United Parcel Service fell slightly below revenue expectations, leading to a 4% drop in its shares.
Meta Platforms Misses Revenue Guidance
Meta Platforms, formerly known as Facebook, exceeded expectations for third-quarter profit and revenue due to cost-cutting measures and increased digital advertising ahead of the holiday season. However, investors expressed concerns over the company’s fourth-quarter revenue guidance, which fell 1.6% below expectations, causing Meta’s stock to drop more than 3%.
Oil Prices Slip Amid Worries Over European Demand
Crude oil prices declined slightly as U.S. oil stocks rose and traders continued to monitor developments in the Israel-Hamas conflict. U.S. crude inventories increased by 1.4 million barrels last week, indicating weakening demand from the world’s largest consumer.
The volatile trading conditions reflect the ongoing uncertainty surrounding the potential escalation of the conflict and its impact on crude supplies in the oil-rich Middle East region.
(Oliver Gray contributed to this article.)
