- The United States announced that the initial value of the actual annualized GDP in the third quarter was 33.1%, the highest record since statistics began in 1947.
- US technology giants announced their earnings.
- Twitter is the company whose share price has fallen the most after the market.
Boosted by the third quarter economic data and technology stocks earnings expectations, US stocks rebounded slightly on Thursday. The Dow, Nasdaq, and S&P 500 all rose. On the previous trading day, the three major stock indexes erased the gains since October in the sell-off.
The Dow closed up 139.16 points, or 0.52%, to 26,659.11 points; the S&P 500 index rose 1.19% to 3,110.11 points; the Nasdaq rose 1.64% , reported 11185.59 points.
U.S. Economic Data Sets Record
On the evening of October 29, the United States announced that the initial value of the actual annualized GDP in the third quarter was 33.1%, the highest record since statistics began in 1947, and 31% higher than the expected value.
The initial value of the actual personal consumption expenditure quarterly rate in the third quarter was 40.7%, which was higher than expected 38.9%. The initial value of the core PCE price index annual rate in the third quarter of the United States recorded 1.4%.
In addition, the number of initial claims for unemployment benefits in the United States through the week of October 24 recorded an increase of 751,000, which was the lowest since the week of March 14. The data has been below 1 million for 6 consecutive weeks.
The latest economic data reflects a rebound in economic activity across the United States, but economists also warn that the US economy still faces many serious challenges.
At the end of July, the United States announced its second-quarter GDP, which was -32.9%, the largest decline in American history. Josh Bivens, head of the Economic Policy Institute’s research department, pointed out that the economic growth in the third quarter was based on a substantial reduction in GDP.
Federal Reserve Vice Chairman, Richard Clarida in mid-October, says US economy may need a year to recover to pre-crisis levels, and the labor force market will require more time to regain lost ground.
Clarida said at this time, prospects need more monetary and fiscal policy to support economic recovery. He promised the Federal Reserve is committed to use all tools to help the economy recover quickly from a difficult period as possible.
Tech Giants’ Financial Performance Exceeds Expectations
US technology giants announced their earnings. On Thursday, Apple earnings rose more than 5% in intraday trading, and closed up 3.71%. Amazon also announced the company’s third quarter financial report after the market.
The financial report shows that revenue of $96.1 billion, compared with $69.981 billion in the same period last year. The market is expected to be $92.667 billion.
Net profit is $6.2 billion a year, an increase of 94%, and is expected to be $4.77 billion. Cloud computing department AWS sales this quarter was $11.6 billion, an increase of 29% this year.
Amazon expects revenue in the fourth quarter to be between $112 billion and $121 billion, and operating profit from $1 billion to $4.5 billion.
Amazon CEO Jeff Bezos said that at this moment more customers are buying holiday gifts in advance. This will be an unprecedented holiday season.
Google’s parent company Alphabet resumed positive growth in the third quarter, and reversed the downward trend in the second quarter. Revenue was $46.173 billion, an increase of 14% this year. Net profit was $11.247 billion, an increase of 59% over the same period last year.
Affected by the epidemic, Google’s advertising business stalled in the second quarter. However, as people gradually adapt to their home life, e-commerce is booming, and people spend more time watching videos on YouTube, helping Google get on track again. Advertising revenue in the third quarter was $5.04 billion, an increase of 32.4%.
Facebook’s third-quarter revenue was $21.221 billion, an increase of 22% this year, and its net profit was $7.846 billion, an increase of 29%. The company expects that the advertising revenue growth rate in the fourth quarter will be higher than that in the third quarter, driven by the continued strong demand from advertisers during the holidays.
Twitter is the company whose share price has fallen the most after the market. Because active users fell short of market expectations, it fell by 17% after the market. Twitter’s third-quarter revenue was $936.2 million, and the market was estimated to be $780.5 million.
The adjusted EPS for the third quarter was $0.19, and the market was estimated to be $0.05. However, the average daily realizable active users in the third quarter was only 187 million, which was higher than the 145 million in the same period last year, but fell short of market expectations of 195 million.