Dow Jumps After GDP Data: Tech Underperforms On META Earnings
3:50 pm Thursday, October 27th, 2022
The Dow Jones Industrial Average rose Thursday after new data showed third-quarter GDP grew faster than expected and hinted at waning inflation, encouraging investors to buy stocks linked to the health of the economy.
The economy increased at a 2.6% annualized pace for the period, against the Dow Jones estimate for 2.3% growth, the Bureau of Economic Analysis report showed. The chain-weighted price index, a cost-of-living measure that is adjusted to reflect changing consumer behavior, rose 4.1% for the quarter, well below the 5.3% estimate. Headline inflation rose 4.2%, down sharply from 7.3%, according to a gauge the Federal Reserve uses.
A look inside the DJIA shows that Caterpillar (CAT), McDonald’s (MCD), and Home Depot (HD) are among today’s best performers.
Notably, small and mid cap stocks continue to show strength compared to their larger peers. The Russell 2000 (+1.0%) and S&P Mid Cap 400 (+0.4%) have enjoyed decent gains for the entirety of today’s session thus far.
Energy complex futures settled the session in mixed fashion. WTI crude oil futures rose 1.4% to $89.08/bbl while natural gas futures fell 3.9% to $5.44/mmbtu.
