Tech weakness pulls indexes lower as growth and inflation share the spotlight
Thursday, October 29: a lower close for the major indexes, firm economic data and another test for corporate cash flow.
U.S. stocks closed lower Thursday, with the Nasdaq falling more sharply than the other major indexes. CNBC and Yahoo Finance reported the lower finish as investors weighed technology earnings against fresh growth and inflation data. This is the completed regular session, not an after-hours market scorecard.
The close
| Index | Close | Day |
|---|---|---|
| S&P 500 | 7,720.39 | -0.30% |
| Nasdaq Composite | 26,184.72 | -1.38% |
| Dow Jones Industrial Average | 52,342.56 | -0.25% |
Closing levels and percentage changes are from CNBC, checked against Yahoo Finance. The S&P 500 ended a three-session advance. The Associated Press and CNBC reported that the weakness at the index level coexisted with gains in much of the broader market. A weighted index and the number of stocks rising are different readings.
What mattered
Growth improved, but inflation stayed firm. The advance estimate put third-quarter real GDP growth at a 3.4% annualized rate. September PCE prices rose 0.5% for the month and 3.6% over the year; core prices rose 0.3% and 3.1%, respectively. BEA and CNBC reported the numbers. Our GDP and PCE report explains why quarterly annualized figures cannot be swapped for monthly or yearly readings.
Company results were not one story. Lilly raised its sales outlook while acquired-R&D charges lowered its final adjusted profit range. Mastercard reported higher revenue alongside growth in cross-border payments and services. Those completed results answer different questions from forecasts for the next quarter. See our Lilly report and Mastercard report for the measures and sources.
Financing joined the AI discussion. Reuters reported plans for a Microsoft bond offering of about $25 billion, while Bloomberg reported an expected size of at least $25 billion. The preliminary filing reviewed did not fix the final amount or pricing. Our Microsoft financing report distinguishes proposed borrowing from money already raised and operating cash flow.
What to watch next
Separate the completed cash-market session from the evening earnings cycle. Extended trading can move after the indexes have closed, and an initial reaction is not the next day's closing price. For every new report, compare the completed quarter, the forward outlook and the cash-flow period before drawing a conclusion.
The same discipline applies to deal news. Today's DoorDash-Instacart agreement and ADT take-private agreement are proposed transactions with conditions, not completed ownership changes.
Our Chain, Crude & Chips sidebar has the crude settlements, crypto snapshot and AI-financing context.
