NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

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

Published 26/10/2023, 16:26
© Reuters
AMZN
-
LUV
-
UPS
-
META
-

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.

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

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.