Markets flat after Commerce Dep't report
NEW YORK, Oct. 29 (UPI) -- U.S. markets opened flat Friday after the Commerce Department said the economy grew 2 percent in the third quarter.
Economists had predicted a strong showing with a consensus forecast calling for a 2.2 percent gain. Still, the figure, which could change with upcoming second and third estimates, is higher than the 1.7 percent gross domestic product growth of the second quarter.
In late morning trading, the Dow Jones industrial average was off 35.42 points or 0.32 percent at 11,078.50. The Standard & Poor's 500 index lost 3.91 or 0.33 percent to 1,179.87. The Nasdaq composite index of tech-dominated stock rose 0.94 or 0.04 percent to 2,506.43.
The benchmark 10-year Treasury note rose 11/32 to yield 2.62 percent.
The euro fell to $1.3885 from Thursday's $1.3929. Against the yen, the dollar fell to 80.485 yen from Thursday's 81.04 yen.
In Japan, the Nikkei 225 index lost 1.75 percent, 163.58, to 9,202.45.
Gross domestic product up 2 percent
WASHINGTON, Oct. 29 (UPI) -- The U.S. Commerce Department said the third-quarter gross domestic product rose 2 percent, following a 1.7 percent climb three months ago.
The new figure is the first of three estimates that are issued monthly.
Economists had estimated a slightly higher gain of 2.2 percent.
Commerce said gross domestic purchases rose by 3.9 percent after a rise of 5.1 percent in the second quarter on an annualized basis.
Government spending rose 3.4 percent while consumer consumption rose 2.6 percent, with the rise nearly equal among spending on goods -- up 2.8 percent -- and services, where spending rose 2.5 percent.
Residential investments dropped sharply due to falling home prices and sluggish sales attributed to the cessation of an $8,000 federal first-time buyer tax credit.
Incomes July through September rose 2.1 percent in the third quarter, climbing by $65.7 billion -- not as strong again as the second quarter when incomes grew 4.1 percent or by $123.5 billion.
Japan jobless rate dips to 5.0 percent
TOKYO, Oct. 29 (UPI) -- The unemployment rate edged down to 5.0 percent in Japan in September, the government said Friday.
The latest figure was an improvement from 5.1 percent in August. It is the third straight month Japan's employment picture has improved, Kyodo News reported.
Employment picked up in the manufacturing, medical and welfare sectors, the government said.
A government official said despite the downward trend in unemployment, the economy has been slowing and its underpinnings remain somewhat uncertain, with signs of weakening industrial output and exports, Kyodo said.
GDP dampens oil prices
NEW YORK, Oct. 29 (UPI) -- Crude oil prices slid to less than $82 per barrel on the New York Mercantile Exchange as the U.S. gross domestic product figure came in lower than expected.
The Bureau of Economic Analysis in its first of three GDP estimates said economic growth reached 2 percent in the third quarter, less than the 2.2 percent consensus forecast but higher than the 1.7 percent gain in the second quarter.
The price of December delivery crude oil in New York shed 48 cents to $81.70 per barrel, holding close to the new plateau of $82.
December delivery heating oil prices shed 1.08 cents to $2.2486 per gallon. Reformulated gasoline blendstock dropped 0.62 cents to $2.066 per gallon. Henry Hub natural gas prices added 1.4 cents to $3.904 per million British thermal units.
At the pump, the national average price of unleaded gasoline was $2.809 per gallon, up slightly from Thursday's $2.808, AAA said.
