Weekday edition
Nasdaq-100 slide, Caterpillar tariff costs, and Alphabet shares
The economy grew faster and jobless claims edged down, yet stocks still fell on Thursday.
At Thursday’s close: S&P 500 −0.30%, Nasdaq-100 −1.38%, Dow −0.25%
U.S. growth quickens in third quarter while Nasdaq-100 slides
The U.S. economy grew faster in the third quarter, according to the official advance estimate, an early reading of growth. Weekly jobless claims also edged down. Stocks still fell on Thursday. The S&P 500 fell 0.3% and the Dow lost 0.3%. The tech-heavy Nasdaq-100 slid 1.4%.
The data arrived a day after the Federal Reserve held interest rates steady. Treasury yields declined. The 10-year yield, a benchmark for mortgage rates, fell 7 basis points to 4.98%. Technology shares led the losses, with the technology sector fund down 1.2%. The health care sector fund jumped 2.4%.
For readers
What it means for you: Workers and job seekers get the most direct signal from this report. Faster growth and fewer new jobless claims describe a job market that is still firm, which shapes household income and room to ask for a raise. The Employment Cost Index, today at 8:30 a.m. ET, may show whether pay is keeping up.
Read the full story, SPY price history and analyst ratings, QQQ price history and analyst ratings
Markets
Thursday’s close
| Market | Level | Change |
|---|---|---|
| S&P 500 | 7,720.39 | −0.30% |
| Nasdaq-100 | 29,402.51 | −1.38% |
| Dow | 52,342.56 | −0.25% |
| 10-Yr | 4.98% | −7 bp |
| Bitcoin (24 hr)As of this edition | $78,018 | −2.16% |
The day ahead
Friday’s setup
The Employment Cost Index leads the day. It may show whether labor costs are adding to inflation pressure after the Fed held rates and growth picked up.
8:30 a.m. Employment Cost Index, third quarter. It tracks what employers pay in wages and benefits; a hotter reading could add to inflation worries and borrowing costs, while a cooler one may ease that pressure.
Today Chevron earnings. The oil producer's quarterly results may show how its profits and cash flow held up, which matters for the dividends its shareholders receive.
Before open ExxonMobil earnings. The oil major's results may show how its earnings and cash returns to shareholders held up, after the energy sector fund rose 0.4% on Thursday.
Before open AbbVie earnings. The drugmaker's results may show how sales of its medicines held up, after the health care sector fund jumped 2.4% on Thursday.
After hours Strategy. Shares tumbled 5.8% in late trading after the bitcoin-holding company reported quarterly revenue below estimates and a finance chief change; bitcoin also slid 2.2% after a reported Binance hack.
If you own
Alphabet shares tumbled 12.3%, and the company lost $220 billion in market value, leaving it worth $1.6 trillion. Most index funds hold Alphabet, so index-fund holders could feel the move too.
Real estate stocks and funds jumped 2.2%, an unusually large move for the group. Savers who own property-focused funds may have seen a lift in those holdings, though a single day's gain could reverse.
Sector funds split widely. Health care jumped 2.4% and communication services slid 1.9%. Holders of a single sector fund may have had a very different day from the broad market.
Bond funds may have gained ground as the 10-year Treasury yield fell 7 basis points to 4.98%. Bond prices move opposite to yields, so lower yields tend to lift fund values. Mortgage quotes, which often track this yield, could ease as well.
Need to know
Top stories
- 1
Retail · −4.25% Amazon tumbles after hours as quarterly results miss estimates. Amazon shares tumbled 7.3% in after-hours trading to $225.99. Its third-quarter revenue and earnings per share both came in below analyst estimates. Growth at Amazon Web Services, its cloud computing arm, sped up, the company said. The stock had already fallen 4.2% in the regular session. After-hours prices may shift once full trading resumes. Read more
- 2
Chips · −3.62% Intel tumbles after hours on a weak profit outlook. Intel shares tumbled 23.0% in after-hours trading after the chipmaker forecast fourth-quarter adjusted earnings well below analyst estimates. Third-quarter profit and revenue both beat expectations, the company said. Guidance, a company's own forecast, mattered more than the past quarter. The stock had fallen 3.6% during the regular session before the report. Read more
- 3
CAT · −9.25% Caterpillar tumbles as tariff costs squeeze its profit margin. Caterpillar shares tumbled 9.3% to $647.39, and the heavy equipment maker lost $30 billion in market value. Third-quarter profit and revenue beat estimates. The company warned of higher tariff costs and expects its adjusted operating margin near the bottom of its target range. It kept its full-year sales growth forecast. Read more
AI corner
Three changes that matter
Topics: Regulation, Deals
Nvidia faces Justice Department scrutiny over its Hugging Face deal
The Justice Department is examining whether the planned purchase could give Nvidia control of a key AI distribution point, according to reports, which could delay or reshape the deal.
Topics: Big Tech, Markets
ServiceNow raises its AI sales target as its bookings outlook disappoints
ServiceNow shares tumbled 26.9% after slower bookings guidance outweighed a higher AI sales target, a sign AI wins alone may not lift software stocks.
Topics: Markets, Deals
TPG sees possible repricing in AI data center financing
Chief executive Jon Winkelried said some AI infrastructure borrowers could face a tougher path to funding, which may raise borrowing costs for the data center buildout.
How it works
Index funds
The biggest companies move the index. The S&P 500 tracks large U.S. companies, weighted by what all their shares are worth. The biggest firms move it most, and many 401(k) funds follow it. Today's story covers stocks falling after the Federal Reserve held rates, with Microsoft and Alphabet in focus. A fund tracking the tech-heavy Nasdaq-100 slid 1.4%, and such giants also carry heavy weight in S&P 500 funds. This pull tends to show up again whenever the largest companies report results.
Coming up
Apple earnings. Results are due after the closing bell.
Job Openings and Labor Turnover Survey, September. Job openings, hires and quits, a read on how tight the labor market is.
AMD earnings. Results are due after the closing bell.
The close
The big picture. A faster-growing economy and cheaper long-term borrowing arrived together on Thursday. The 10-year Treasury yield fell 7 basis points to 4.98%, and that rate helps set mortgage costs. Big technology names pulled the Nasdaq-100 lower, yet 72 percent of stocks rose. Real estate and utilities, which often gain when yields fall, were among the leaders.
On the calendar. The October jobs report arrives Friday, Nov. 6, 8:30 a.m. ET, and the October inflation report follows Tuesday, Nov. 10, 8:30 a.m. ET. Together they could show whether faster growth is lifting prices, which may matter for variable-rate borrowers and cash savers.
Not investment advice.