The Nasdaq and S&P 500 take the plunge, with earnings in the driver’s seat

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  Ford and UAW reach tentative agreement

  Ford (F) and the United Auto Workers (UAW) union reached a tentative labor agreement late Wednesday — a sign that the auto strike, now the longest in 25 years, may be coming to an end.

  Ford shares were flat in early trading Thursday following the news.

  like Yahoo Finance Pras Subramanian Reports:

  UAW He said the initial agreement includes Increase base pay by 25% through April 2028 This will cumulatively raise the top wage by more than 30% to more than $40 per hour, and raise the starting wage by 68% to more than $28 per hour. Ford’s lowest-paid workers will see a raise of more than 150% over the life of the agreement, with some workers receiving an 85% raise immediately after ratification.

  The UAW also unveiled the reinstatement of the COLA (Cost of Living Allowance) provisions, along with a new three-year pay progression measure (previously 8 years), as well as the end of pay levels. The union said it received gains for workers with pensions and 401K plans, but did not disclose precise details.

  The deal is still subject to approval by the UAW’s National Ford Council, and ratification by a simple majority of the UAW’s 57,000 Ford workers.

  Read more here.

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  Stocks fall when the market opens

  Stocks opened lower, with the Nasdaq Composite (^IXIC) the biggest loser in the early morning session, down about 0.5% in the wake of disappointing technology earnings. The Dow Jones Industrial Average (^DJI) fell 0.1% while the S&P 500 (^GSPC) fell about 0.4%.

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  GDP: The US economy grows by 4.9% amid strong consumer spending

  The US economy grew at its fastest pace in nearly two years over the past three months as consumers increased their spending despite the high interest rate environment.

  As Yahoo Finance Josh Shafer Reports:

  Bureau of Economic Analysis Advance estimate of US GDP for the third quarter The economy showed that it grew at an annual rate of 4.9% during the period, faster than consensus forecasts. Economists surveyed by Bloomberg estimated that the US economy grew at an annual rate of 4.5% during this period.

  The reading was higher than the second quarter’s GDP, which was revised down to 2.1%.

  The GDP release highlights the resilience of the US consumer despite persistent fears of a slowdown. But many economists see this as the limit of economic growth before credit tightening caused by interest rate hikes by the Federal Reserve and the recent rise in bond yields take a hold on business development and consumer spending.

  Read more here.

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  Stock futures point to a return to selling

  Wall Street stocks were on pace Thursday to add to the steep losses suffered the previous day, as investors looked forward to new earnings releases.

  Dow Jones Industrial Average (^DJI) futures fell 0.41%, or 136 points, while S&P 500 futures (^GSPC) fell 0.67%. Futures on the tech-heavy Nasdaq 100 (^NDX) fell 0.95%.

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