The daily business briefing: October 30, 2020

1. U.S. economy surges but remains below pre-pandemic level

U.S. gross domestic product jumped by 7.4 percent in the third quarter, which translates into a 33.1 percent annualized rate, the Commerce Department reported Thursday. The GDP rise from the second to the third quarter set a record, but it came after a record contraction from the first to the second quarter after the coronavirus crisis erupted. The economy still has shrunk by 10.3 percent so far in 2020. In fact, the 3.5 percent total GDP shrinkage during 2020 "means we are still down almost as much as we were during the height of the Great Recession," says Diane Swonk, chief economist at Grant Thornton. Looking at annualized growth reveals how much bigger the economy would be in the unlikely case it "grew at this rate for the next three quarters," economist Justin Wolfers tweeted.

Commerce Department Diane Swonk

2. Stock futures fall after Apple, Amazon report earnings

U.S. stock index futures fell early Friday after tech giants Apple and Amazon reported quarterly earnings. Apple shares dropped by more than 4 percent in extended trading after the company reported a 16 percent decline in iPhone sales and failed to release any guidance for the quarter ahead. Amazon shares fell by 1.9 percent despite a better-than-expected quarter. Shares of Google-parent Alphabet jumped by 7 percent after the company reported quarterly earnings that exceeded expectations. Futures for the Dow Jones Industrial Average were down by 1 percent several hours before the opening bell Friday. Futures for the S&P 500 and the tech-heavy Nasdaq fell by 0.9 percent and 1.2 percent, respectively. All three of the main U.S. indexes made solid gains Thursday after the federal government reported better-than-expected economic growth.

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CNBC

3. Pelosi, Mnuchin clash publicly after failing to seal stimulus deal

House Speaker Nancy Pelosi (D-Calif.) and Treasury Secretary Steven Mnuchin clashed publicly on Thursday after failing to negotiate a new coronavirus relief package. Pelosi sent an early morning letter to Mnuchin spelling out multiple sticking points in their talks on a proposed $2 trillion stimulus bill. Mnuchin responded angrily after learning about the letter through the media. He wrote back: "Dear Speaker Pelosi: I woke up this morning and read your letter to me in the press ... Because you sent it to my office at midnight and simultaneously released it to the press, I can unfortunately only conclude it is a political stunt." The two had continued negotiating for days after Senate Majority Leader Mitch McConnell (R-Ky.) had ruled out a vote before the Nov. 3 election.

The Washington Post

4. Walmart removes guns from sales floors due to 'civil unrest'

Walmart has taken guns and ammunition off its sales floors due to isolated cases of "civil unrest" around the country. The decision came after several days of violent demonstrations in Philadelphia following the fatal shooting by police of Walter Wallace Jr., a 27-year-old Black man officers said had refused orders to drop a knife. Walmart took similar action in June following demonstrations against the killing of another Black man, George Floyd, by police in Minneapolis. "We have seen some isolated civil unrest and as we have done on several occasions over the last few years, we have moved our firearms and ammunition off the sales floor as a precaution for the safety of our associates and customers," Walmart said. "These items do remain available for purchase by customers."

CNBC

5. Netflix shares rise after subscription price hike

Netflix shares rose by 5 percent on Thursday after the streaming media giant raised prices for its U.S. subscribers. Netflix's standard plan, which allows HD viewing on two devices at a time, is going up to $14 a month, an increase of $1. Its premium subscription, which offers Ultra HD viewing on up to four screens, is rising by $2 to $18 a month. The basic plan with standard-definition streaming is unchanged at $9 a month. The prices take effect immediately for new subscribers; existing customers will be notified of the hike as the company rolls it out over the next few months. "We're updating our prices so that we can continue to offer more variety of TV shows and films," a Netflix spokesperson said in a statement.

CNN