1. US Economy Expands at 2.8% Rate, Powered by Resilient Consumer — Gross domestic product, a measure of all the goods and services produced during the three-month period from July through September, increased at a 2.8% annualized rate, according to a Commerce Department report Wednesday that is adjusted for inflation and seasonality.
Economists surveyed by Dow Jones had been looking for an increase of 3.1%. The economy accelerated at a 3% pace in the second quarter. However, resilient consumer spending, which accounts for about two-thirds of all activity, has helped keep the economy moving, as has a relentless wave of government spending that pushed the budget deficit to more than $1.8 trillion in fiscal 2024.
2. Key US Inflation Gauge and Spending Pick Up in Solid Economy — The so-called core personal consumption expenditures price index, which strips out volatile food and energy items, increased 0.3% in September, and 2.7% from a year earlier, according to Bureau of Economic Analysis data out Thursday. Overall inflation was 2.1%, the lowest since early 2021 and just above the central bank’s 2% goal. Thursday’s figures cap a month of upside surprises in key economic reports that will likely augur a cautious approach to rate cuts in the months ahead. The Fed is widely expected to authorize a second reduction at the conclusion of its Nov. 6-7 policy meeting following an initial cut in September.
3. US Payrolls Increase by Just 12,000, Hit by Storms and Strikes — Nonfarm payrolls increased 12,000 last month, and hiring over the previous two months was weaker than previously thought, suggesting the underlying labor market continues to cool. The unemployment rate held at 4.1% and hourly earnings ticked up, according to Bureau of Labor Statistics figures released Friday.
BLS said two hurricanes that hit the Southeast US likely affected hiring in some industries, but it wasn’t possible to quantify the net effect on the change in employment, hours or earnings last month. There was no discernible effect on the unemployment rate, however. The report also showed manufacturing jobs plunged, largely reflecting strike activity in October.
4. Post U.S. Election Market Stat — The major benchmarks on average have seen gains between Election Day and year-end in the presidential election year going back to 1980, according to CNBC data. However, the three indexes have all averaged declines in the session and week following those voting days. Stocks have tended to erase most or all of those losses within a month

The week ahead — Economic data from Econoday.com: