In October, the U.S. economy faced mixed outcomes, with modest job additions, rising core inflation, and steady growth fueled by consumer spending. Investor sentiment was further shaped by endorsements in the political landscape and a boost in consumer confidence, indicating optimism amid evolving market conditions.
USA economy updates
- The U.S. economy added 12,000 jobs in October, falling short of expectations, while the unemployment rate remained at 4.1%. The Bureau of Labor Statistics noted that job gains were impacted by the Boeing strike, which cut 44,000 manufacturing jobs, and recent hurricanes.
- U.S. inflation in September reached 2.1%, moving closer to the Fed’s target of 2%. However, core inflation, excluding food and energy, rose to 2.7% due to a 0.3% monthly increase, keeping it slightly above expectations.
- The U.S. economy grew at an annualized rate of 2.8% in the third quarter, slightly below the 3.1% estimate and slower than the 3.0% pace in Q2. Consumer spending and federal government outlays were two of the biggest contributors to this growth.
- Twenty-three Nobel Prize-winning economists endorsed Vice President Kamala Harris over Donald Trump in a joint letter. They criticized Trump’s economic agenda, stating it would lead to “higher prices, larger deficits, and greater inequality.
- Consumer confidence surged over 11% in October, reaching a reading of 138, marking the largest increase since March 2021. Meanwhile, job openings fell to 7.44 million in September, a decrease of more than 400,000 and the lowest level since January 2021.
USA stock market updates
October had mixed results for U.S. markets! The S&P 500 decreased 0.06% to $5,705.45, while the Dow Jones fell 0.93% to $41,763.46. In contrast, the Nasdaq Composite increased 1.03% to $18,095.15, and the Russell 2000 saw a slight decrease of 0.02% to $2,196.65. Overall, it was a month of varying performance across the indices!
- Apple reported record September-quarter revenue of $94.93 billion, a 6% increase year-over-year and exceeding analysts’ expectations. However, net income fell short at $14.74 billion, or 97 cents per share, compared to estimates of $22.49 billion, or $1.48 per share.
- New Starbucks CEO Brian Niccol has outlined his plan to revive the coffee chain by ensuring customers receive their coffee within four minutes of ordering. This initiative is part of the “Back to Starbucks” campaign aimed at attracting customers as comparable store sales have declined for three consecutive quarters.
- Peloton Interactive’s shares jumped 22% in premarket trading after reporting strong first-quarter results and announcing Ford executive Peter Stern as its future CEO, starting January 1, 2025. The company posted a net loss of only $1 million, a significant improvement from a $158 million loss a year earlier.
- On October 30, Super Micro’s shares plummeted 33% after Ernst & Young resigned as the company’s auditor, citing serious concerns over internal controls, board independence, and accounting practices. The company has delayed filing its 2024 financial statements and is reportedly under federal investigation.
USA top gainer and top loser stocks for October
Summary
The month closed with varied performance across U.S. indices as market participants look toward inflation trends and policy shifts. Notable corporate moves and mixed earnings results continue to drive market dynamics, reflecting the resilience and adaptability of the U.S. economy and its investors.
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