In this morning’s data, the first reading on GDP for the third quarter came in at an annualized rate of 33.1%, higher than estimates. Personal Consumption was strong while Business Spending was a bit weaker than expected. In addition, Initial Jobless Claims were 751,000 for the week ending 10/24, less than expected and lower than the previous week. Continuing claims were 7,756,000 for the week ending 10/17 also a bit lower than expected. Overall, the increase in GDP in the third quarter was strong but remains negative for the year given the large decreases seen earlier in 2020. In addition, jobless claims continue their positive trend lower, but are still elevated and will take additional time to normalize. Given the colder weather and increasing COVID-19 case levels, uncertainty remains top of mind as we head into the final days ahead of the election. In all, bond yields are little changed and equity futures just turned higher as we head into the market open.
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