By Liz Moyer
Investing.com -- U.S. stocks wobbled after data that showed the economy expanded in the third quarter after two quarters of shrinking output.
The Commerce Department’s first reading of gross domestic product for the most recent quarter showed a gain of 2.6%. Meanwhile the core PCE price index was aligned with expectations and slowed from the second quarter.
GDP compares to a drop of 0.6% in the second quarter and a drop of 1.6% in the first quarter, and it beat expectations for a gain of 2.4% in the third quarter. Traditionally two quarters in a row of contraction signals a recession, but the Biden administration had consistently argued that the economy wasn’t in a recession, especially given the strong labor market.
Exports of industrial supplies and materials, travel and financial services rose and consumer spending increased. Investing in housing fell.
New jobless claims of 217,000 last week also came in lighter than expected. On Friday, investors will see data on a key inflation gauge watched by the Federal Reserve.
Meta Platforms Inc (NASDAQ: META ) stock fell 23% after reporting a drop in revenue and profit as expenses soared. The parent of Facebook is paring back its workforce amid a drop in digital advertising.
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