What 3.4% GDP Growth and a 4.2% Jobless Rate Say About a Hard Day on Wall Street

WASHINGTON, Nov. 5, 2026 /CNW/ -- American News Group News Commentary - U.S. stocks were sharply lower on Thursday morning. As of 11:02 a.m. ET, the S&P 500 was down 3.39% at 7,427.97, the Nasdaq Composite was down 5.08% at 24,430.26 and the Dow Jones Industrial Average was down 2.37% at 52,093.82, each measured against Wednesday's close. It is one session. The most recent official readings on output and jobs, along with the latest quarterly reports from large companies in payments, restaurants, medical technology, aerospace and rail, describe an economy that was still growing in the third quarter and companies that reported growth in sales, transactions, orders or volume. Active Companies from around the markets with current developments this week include: Visa Inc. (NYSE: V), McDonald's Corporation (NYSE: MCD), Stryker Corporation (NYSE: SYK), General Electric Company (NYSE: GE), Union Pacific Corporation (NYSE: UNP).

Key Takeaways

• One morning, measured against the year: As of 11:02 a.m. ET, the S&P 500, Nasdaq Composite and Dow were down 3.39%, 5.08% and 2.37%, yet all three still stood above their 2025 year-end closes.

• The economy grew last quarter: The Bureau of Economic Analysis put third-quarter real GDP growth at an annual rate of 3.4%, up from 2.2% in the second quarter, with consumer spending among the contributors.

• Unemployment held in a narrow band: The Bureau of Labor Statistics reported a 4.2% unemployment rate for September and said the rate has stayed between 4.1% and 4.3% since March.

• Payments volume and restaurant sales grew: Visa reported 9% constant-dollar growth in payments volume for the September quarter, and McDonald's reported 4% growth in global systemwide sales.

• Health care and industry reported growth: Stryker said its 7.7% organic sales growth was primarily driven by increased unit volume, GE Aerospace reported orders up 49%, and Union Pacific reported 6% growth in revenue carloads.

One session against a longer record

Measured from the end of last year, the picture looks different from the intraday screen. At 11:02 a.m. ET, the S&P 500 was 8.51% above its Dec. 31, 2025 close of 6,845.50, the Dow was 8.39% above its 2025 close of 48,063.29, and the Nasdaq Composite was 5.11% above its 2025 close of 23,241.99, based on daily closing prices. In other words, this morning's decline gave back part of the year's gain rather than all of it.

That is the forest-for-the-trees point: a single session shows where prices stood on one day, while the data below show what households, employers and companies did over several months.

What the official data shows

The Bureau of Economic Analysis said on Oct. 29 that real gross domestic product increased at an annual rate of 3.4% in the third quarter of 2026, according to its advance estimate, after a 2.2% increase in the second quarter. The agency said the contributors were increases in investment, consumer spending and government spending, partly offset by a decrease in exports.

Payroll growth has been small, while the unemployment rate has held in a narrow range. The Bureau of Labor Statistics reported on Oct. 2 that both nonfarm payroll employment, up 29,000, and the unemployment rate, at 4.2%, changed little in September, and that the unemployment rate has remained in a narrow range of 4.1% to 4.3% since March. On prices, the bureau reported that the all items CPI rose 3.7% for the 12 months ending September, with the index excluding food and energy up 2.6%, and said gasoline accounted for over half of September's monthly increase.

Payments and restaurant sales kept growing

Visa Inc.  (NYSE: V), reported on Oct. 27 that payments volume for the three months ended September 30, 2026 increased 9% over the prior year on a constant-dollar basis, and that it processed 74.2 billion transactions in the period, a 10% increase. Fiscal fourth-quarter net revenue was $12.1 billion, an increase of 13%, and the board raised the quarterly cash dividend 16% to $0.780 per share.

"Visa delivered a milestone year. We achieved record net revenue of $46 billion, up 15%, the strongest growth in over 15 years excluding the post-pandemic recovery and acquisitions," said Ryan McInerney, Chief Executive Officer, Visa.

McDonald's Corporation  (NYSE: MCD), reported on Nov. 4 that global systemwide sales increased 4% to over $38 billion for the third quarter, and global comparable sales increased 1.5%. Comparable sales in International Developmental Licensed Markets increased 4.2%, while U.S. comparable sales decreased 0.2%. Diluted earnings per share was $3.51, an increase of 10%, and the company declared a 4% increase in its quarterly cash dividend to $1.93 per share.

"McDonald's delivered another quarter of global growth, with solid performance across much of our international business. In the U.S., we're encouraged by improvement as the quarter progressed following our intervention on value," said Chris Kempczinski, Chairman and CEO.

For readers who want to weigh the headlines against the chart, American News Group's sister site, Stock Preachers, offers Knowledge is Power, a free 27-page guide in plain English. Across 10 chapters, it teaches what the page calls the two skills every trade comes down to: reading the news and reading the chart. Signing up also brings The Roadmap every Monday, Wednesday and Friday.

Medical technology, aerospace and rail report growth

Stryker Corporation (NYSE: SYK), reported on Oct. 29 that third-quarter net sales increased 7.7% to $6.5 billion, with organic net sales up 7.7%, primarily driven by increased unit volume. Adjusted EPS increased 10.3% to $3.52, while reported EPS decreased 11.7% to $1.96. The company now expects full-year organic net sales growth of 6.5% to 7.0%. Chair and CEO Kevin A. Lobo said the quarter's results fell short of the company's expectations, while adding that the underlying fundamentals of the business remain strong.

"We delivered 7.7% organic sales growth and double-digit adjusted earnings growth in the quarter," said Kevin A. Lobo, Chair and CEO.

General Electric Company (NYSE: GE), which operates as GE Aerospace, reported on Oct. 20 that third-quarter total orders were $19.0 billion, up 49%, adjusted revenue was $13.3 billion, up 18%, and adjusted EPS was $2.25, up 36%. The company said it is raising total company guidance across the board for 2026, and Chairman and CEO H. Lawrence Culp, Jr. pointed to a commercial services backlog of over $170 billion.

"We delivered strong results this quarter as solid demand drove orders up 49%, with strength in commercial services up 23%, total revenue up 18% and EPS up 36%," said H. Lawrence Culp, Jr., GE Aerospace Chairman and CEO.

Union Pacific Corporation (NYSE: UNP), reported on Oct. 22 that revenue carloads grew 6% in the third quarter and operating revenue of $7.2 billion grew 15%. Diluted EPS was $3.49, up 16%. In the 2026 outlook section of its release, the railroad listed meeting increased customer demand with strong service alongside a mixed economic forecast.

"Union Pacific's third quarter results demonstrate our ability to safely deliver the service we sold to our customers while efficiently handling six percent volume growth," said Jim Vena, Union Pacific Chief Executive Officer.

Keeping the day in proportion

None of this says where stocks go next, and the data have soft spots, from modest payroll gains to 3.7% headline inflation. But on a red morning, the record on the table shows 3.4% annualized growth last quarter, an unemployment rate holding in a narrow range since March, and large companies in payments, restaurants, medical technology, aerospace and rail reporting growth in sales, transactions, orders or volume.

Readers who want to learn how to read both the news and the chart, one session at a time, can get the free Stock Preachers guide, Knowledge is Power, at americannewsgroup.com.

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This article is independent news commentary. American News Group is wholly owned and operated by Market Equities Limited ("MEL"), a company incorporated under the laws of Ireland. MEL has not been paid by any company mentioned in this article. MEL and its owners, operators, directors, and affiliates do not currently own any shares of the companies mentioned in this article, but reserve the right to, and will, buy and sell shares of those companies at any time without further notice. Index levels and percentage changes are as of 11:02 a.m. ET on Nov. 5, 2026, measured against Nov. 4, 2026 closes, and year-end comparisons use Dec. 31, 2025 daily closing prices, from publicly available market data. Economic figures are from the U.S. Bureau of Economic Analysis and the U.S. Bureau of Labor Statistics, and company figures and quotes are from each company's news release furnished to the SEC. Information is drawn from company news releases and filings, government and industry data, published reporting and third-party data believed to be reliable, but its accuracy is not guaranteed. Investing in securities carries risk, including the loss of some or all of your investment. This document is governed by the laws of Ireland.

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