US GDP growth beat expectations in today’s “advance” estimate of third-quarter data. Output increased by an annual 3.5% (seasonally adjusted real rate), the Bureau of Economic Analysis reported earlier today. The gain is slightly above The Capital Spectator’s 3.3% nowcast (based on several sources) from earlier this week. Although the Q3 advance marks a solid rise, today’s results reaffirm expectations that growth has decelerated following Q2’s sizzling 4.2% surge.
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Bloomberg last week published an intriguing story about a new exchange traded fund (ETF) that uses artificial intelligence (AI) to outperform market indexes and active managers alike. The implication: a new era of AI-driven investing has dawned, putting the standard applications of indexing at a disadvantage. Yet a closer look at the so-called Robot ETF’s results via a factor-analysis lens tells a different story and one that can be explained with a mix of large-cap, small-cap and micro-cap equity betas. In turn, replicating the Robot ETF’s performance, which Bloomberg claims “leaves pros in the dust,” is a simple matter of holding a trio of plain-vanilla index funds.
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Mail bomb threat widens, including package sent to former VP Joe Biden: BBC
Florida mail facility in focus for bombmaker investigation: CNN
Trump may close southern border as migrant caravan nears: USA Today
China and Japan pledge to forge closer ties: Reuters
ECB chief says recession risk is low for Eurozone economy: NY Times
Global stocks on track for worst week in five years: Reuters
US pending home sales in September posted first gain since June: NAR
Wholesale inventories in August up more than initially estimated: Reuters
US jobless claims rose slightly last week but remain near 45yr low: MW
Trade deficit in US widened for fourth straight month in Sep: CNBC
US durable goods orders rebounded in September: CNBC