U.S. economy grew at a 2.8% pace in the third quarter, less than expected

CNBC Television
30 Oct 202402:21

Summary

TLDRIn this financial report, market indicators show a modest uptick with NASDAQ rising by 20 points and the S&P by 3. The latest GDP growth for the third quarter is 2.8%, slightly below expectations. Consumer consumption outperformed at 3.7%, marking the highest since early 2023. Meanwhile, the price index came in lower than projected, indicating easing inflation trends. Yields are shifting upward, particularly in shorter-term bonds, amid cautious expectations regarding Federal Reserve policies. The report emphasizes the importance of global inflation data, particularly from Germany, as it could impact market dynamics.

Takeaways

  • 😀 The NASDAQ is up by about 20 points and the S&P is up by 3 points.
  • 😀 Treasury yields show an uptick, with the two-year at 4.13% and the ten-year at 4.26%.
  • 😀 The third-quarter GDP growth came in at 2.8%, slightly lower than the expected 3%.
  • 😀 Consumption growth for the quarter was impressive, with a 3.7% increase, the best since Q1 2023.
  • 😀 The Price Index showed a 1.8% increase, the lowest since Q4 2023, which is seen as positive news for inflation.
  • 😀 Core Price Index growth came in at 2.2%, which was well below expectations of 2.8% and compares favorably to 2.0% in the last quarter of 2023.
  • 😀 Treasury yields are rising, with the short-end moving up due to market expectations regarding the Federal Reserve’s stance on inflation.
  • 😀 Regional inflation reports, including those from Germany, are showing signs of higher inflation, which might impact broader expectations.
  • 😀 The German inflation data, released at the top of the hour, is key to understanding global inflationary trends.
  • 😀 Despite these economic indicators, there are still many important data points yet to be released that could influence market expectations.

Q & A

  • What was the reported GDP growth for the third quarter?

    -The GDP growth for the third quarter was reported at 2.8%.

  • How does the third quarter GDP compare to previous expectations?

    -Many analysts were expecting a GDP growth around 3%, making the 2.8% slightly lower than anticipated.

  • What consumption growth was anticipated, and what was the actual figure?

    -Consumption growth was expected to be around 2.2%, but the actual figure came in at 3.7%, which is the highest since the first quarter of 2023.

  • What was the expectation for the price index, and what was the actual result?

    -The expectation for the price index was 1.9%, but the actual result was 1.8%, marking the lowest since the last quarter of 2023.

  • How did the core price index perform in comparison to expectations?

    -The core price index came in at 2.2%, which was below the expected 2.8%, and it was consistent with the last quarter's figure of 2.0%.

  • What trends were observed in Treasury yields following the data release?

    -Treasury yields were hovering around 4.26%, with the two-year yield slightly below 4.18%, indicating an upward trend led by expectations for the Federal Reserve.

  • What external factors were mentioned that could affect inflation readings?

    -The script noted that regional inflation numbers from places like Germany have been hotter, which could impact inflation expectations.

  • Why is the discussion of German inflation data significant?

    -The German inflation data is significant because it provides context for inflation trends that might influence the U.S. economic outlook and monetary policy.

  • What does Rick Santoli suggest about the recent inflation trends?

    -Rick Santoli indicates that while there has been nice progress in inflation reduction, the market has experienced similar situations before.

  • What are the broader implications of these economic indicators for the Federal Reserve?

    -These economic indicators suggest the Federal Reserve may need to adjust its policies in response to ongoing inflation trends and economic growth.

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Связанные теги
Market InsightsEconomic GrowthInflation TrendsInvestor SentimentGDP ReportsFinancial AnalysisTreasury YieldsData AnalysisGlobal MarketsFinancial News
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