4:20pm: GM, NetApp stand out
The Dow closed Wednesday up 13 points, less than 0.1%, at 35, 430, the Nasdaq Composite lost 23 points, 0.2%, to 14,258 and the S&P 500 slid 4 points, 0.1%, to 4,551. The small-cap Russell 2000 index added 11 points, 0.6%, to 1,804.
The market trailed off in the afternoon as robust economic growth numbers seemingly made interest rate cuts less likely in the near term.
Meanwhile, shares of GM surged about 10% on a share buyback, and NetApp stock popped nearly 15% on strong earnings results.
12:00pm: US stocks positive but off highs
US stocks remained in positive territory, but off earlier highs, as strong economic growth figures pushed back hopes for interest rate cuts.
At midday, the Dow Jones Industrial Average was up 41.82 points, 0.1%, at 35,458.80, the S&P 500 was up 5.29 points, 0.1%, at 4,560.18 and the Nasdaq Composite was up 11.42 points, 0.1%, at 14,293.18.
Economists expect GDP to fall back in the fourth quarter following the stellar performance in quarter three.
Michael Pearce at Oxford Economics said: "The early data we have for Q4 so far point to a sharp slowdown in growth to somewhere between 1-2% annualized this quarter."
"We already know from the October data and the early surveys for November that growth is slowing again in Q4, and we expect that slowdown to continue into the first half of next year as the impact of tight monetary and fiscal policies builds, and the boost from consumers running down excess savings fades," Pearce added.
The revisions to Q3 GDP suggest that growth was even stronger and a little better balanced than initially thought. However, the early data we have for Q4 so far point to a sharp slowdown in growth to somewhere between 1-2% annualized this quarter.
9:40am: Dow boosted by strong GDP, GM buyback
The Dow opened higher on Wednesday after figures showed the world’s biggest economy grew faster than first thought, while a bumper buyback saw shares in General Motors jump more than 10%.
Shortly after the opening bell the Dow Jones Industrial Average was up 83.58 points, 0.2%, at 35,500.56, the S&P 500 was up 29.61 points, 0.7%, at 4,584.50 and the Nasdaq Composite was up 124.22 points, 0.9%, at 14,405.97.
General Motors was the star performer with shares leaping 10.9% after the company announced a $10 billion buyback and raised its dividend.
The Detroit, Michigan-based car maker also reinstated guidance and now expects net income between $9.1 billion and $9.7 billion, down from its previous range of $9.3 billion and $10.7 billion.
In the third quarter, the firm withdrew its guidance due to labour disruptions.
Elsewhere, figures from the Bureau of Economic Analysis showed quarter-on-quarter gross domestic product in the US grew 5.2% on an annualised basis in the three months to September 30, ahead of expectations for a revision to 5.0%. In the second-quarter, GDP had risen 2.1%.
An earlier advance estimate, reported a month ago, said the US economy grew by 4.9% on-quarter during the period.
The BEA said: "The update primarily reflected upward revisions to nonresidential fixed investment and state and local government spending that were partly offset by a downward revision to consumer spending. Imports, which are a subtraction in the calculation of GDP, were revised down.
"The increase in real GDP reflected increases in consumer spending, private inventory investment, exports, state and local government spending, federal government spending, residential fixed investment, and non-residential fixed investment."
US GDP has grown for five quarters in succession.
7:00am: US markets set to follow Europe higher
US markets are expected to open higher, tracking most European markets, on hopes that interest rate cut will come sooner than thought.
In pre-market trading, futures for the Dow Jones Industrial Average were up 0.3%, while those for the S&P 500 were 0.3% higher, and contracts for the Nasdaq 100 futures rose 0.4%.
Investors are hoping for favourable European and US inflation readings after positive data in Europe today, boosting the narrative that rates could soon be coming down.
Jim Reid at Deutsche Bank noted comments from the generally hawkish Fed Governor Waller on Tuesday, who said that he was “increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2%”.
“His off the cuff Q&A responses even suggested cuts were potentially possible in H1 if inflation behaves as he thinks it could. So surprisingly explicit,” Reid pointed out.
Reid said the remarks were taken as another sign that the Fed were done hiking rates, and investors moved to price in a noticeably more dovish path for rates over the year ahead.
In the US today, there will be a estimate for gross domestic product in the third quarter, which economists expect will show growth accelerated by 5%, a slight revision from the preliminary estimate of 4.9%.
Elsewhere, earnings are due from discount retailer Dollar Tree, spam maker Hormel and shoe retailer Foot Locker.
After the closing bell, tech groups Salesforce and Snowflake will report.