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Dow Drops Over 100 Points as US GDP Growth Exceeds Expectations

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Dow Drops Over 100 Points as US GDP Growth Exceeds Expectations

U.S. stocks traded mixed midway through trading, with the Dow Jones index falling more than 100 points on Thursday.

The Dow traded down 0.36% to 32,918.38 while the NASDAQ fell 1.12% to 12,677.56. The S&P 500 also fell, dropping 0.65% to 4,159.52.

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Leading and Lagging Sectors

Real estate shares rose by 2.2% on Thursday.

In trading on Thursday, communication services shares dipped by 2%.

Top Headline

The U.S. economy grew at an annualized rate of 4.9% in the third quarter, surpassing market expectations of 4.3% and outpacing the 2.1% growth in the second quarter.

Equities Trading UP

ABVC BioPharma, Inc. ABVC shares surged 159% to $2.2057 after the company announced a licensing agreement for CNS drugs with AiBtl BioPharma.

Shares of Endeavor Group Holdings, Inc. EDR rose 23% to $21.75 following the announcement of a strategic review.

Impinj, Inc. PI shares also gained, rising 26% to $62.53 after reporting better-than-expected third-quarter revenue.

Equities Trading DOWN

Bit Brother Limited BETS shares dropped 79% to $0.0983 due to a registered direct offering.

Shares of Sonoma Pharmaceuticals, Inc. SNOA were down 50% to $0.1861 after a public offering of common stock.

Silicom Ltd. SILC fell 35% to $14.38 following a weak sales forecast for the fourth quarter.

Commodities

In commodity news, oil traded down 1.7% to $83.97 while gold traded down 0.3% at $1,989.80.

Silver traded down 0.8% to $22.82 on Thursday while copper rose 0.2% to $3.5970.

Euro Zone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.28%, London’s FTSE 100 fell 0.64%, while Spain’s IBEX 35 Index fell 0.13%. The German DAX dipped 0.82%, French CAC 40 slipped 0.14%, and Italy’s FTSE MIB Index rose 0.52%.

The European Central Bank held interest rates during its October meeting. Spain’s unemployment rate rose to 11.84% in the third quarter from 11.60% in the prior three-month period. UK car production surged 39.8% year-over-year to 88,230 units in September.

Asia Pacific Markets

Asian markets closed mostly lower on Thursday, with Japan’s Nikkei 225 falling 2.14%, Hong Kong’s Hang Seng Index declining 0.24%, China’s Shanghai Composite Index gaining 0.48%, and India’s S&P BSE Sensex dropping around 1.4%.

Hong Kong’s trade deficit increased to $64.6 billion in September from $44.9 billion in the year-ago month.

Economics

The U.S. economy grew at an annualized rate of 4.9% in the third quarter, exceeding market expectations of 4.3% and outpacing the 2.1% growth in the second quarter.

U.S. initial jobless claims increased by 10,000 to 210,000 in the week ending Oct. 21, slightly above market estimates of 208,000.

U.S. durable goods orders rose by 4.7% month-over-month in September, compared to a 0.1% decline in August and surpassing market estimates of a 1.7% rise.

The U.S. trade deficit in goods rose to $85.8 billion in September, compared to a revised $84.6 billion gap in the previous month.

Wholesale inventories in the U.S. remained unchanged month-over-month in September, compared to a 0.1% decline in the previous month.

The Kansas City Fed’s Manufacturing Production index rose to a reading of -8 in October, an improvement from the prior month’s level of -13.

U.S. natural gas supplies climbed by 74 billion cubic feet last week, according to the EIA.

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I’m optimistic about the strong US GDP growth in the third quarter, despite the drop in stock market indexes. It’s a positive sign for the economy as it shows resilience and the potential for a robust recovery.