Consumers and AI Investment Lift Growth as Inflation Rises

Weight-Loss Drug Demand Lifts Lilly’s Sales Outlook

Alaska Ballot Dispute Triggers Federal and State Investigations

Earnings Send Alphabet, Amazon and Intel Lower

Israel Vote Leaves Netanyahu Eight Seats Short of a Majority

Consumers and AI Investment Lift Growth as Inflation Rises

The U.S. economy grew at a 3.4% annual rate in the third quarter, up from 2.2% in the spring, the Commerce Department reported Thursday. Consumer spending rose at a 3.8% rate, while business investment outside housing jumped 12.7%, driven heavily by artificial intelligence spending. Housing investment and exports weakened, while inflation picked up in September. The Federal Reserve held interest rates steady Wednesday as price increases remained above its target. The reports give voters a mixed picture ahead of Tuesday's midterm elections: an expanding economy alongside rising costs that continue to strain household budgets.

BEA / AP / Reuters / Federal Reserve

Weight-Loss Drug Demand Lifts Lilly’s Sales Outlook

Eli Lilly raised its 2026 sales forecast to $91 billion to $92 billion Thursday after third-quarter revenue climbed 39% to $24.4 billion. Sales of diabetes drug Mounjaro and weight-loss drug Zepbound climbed sharply. Obesity raises the risk of costly conditions such as heart disease and diabetes. By helping patients lose weight and manage blood sugar, GLP-1 drugs could reduce spending on related complications over time.

Lilly / CNBC / KFF / CDC / CBO

Alaska Ballot Dispute Triggers Federal and State Investigations

Federal prosecutors issued new subpoenas Thursday in an investigation into alleged efforts to recruit an Alaska Senate candidate who shares Republican Sen. Dan Sullivan's name, ABC News reported. The action followed a New York Times report that Democratic operatives and members of Mary Peltola's campaign helped recruit Dan J. Sullivan, a former teacher. Republican Gov. Mike Dunleavy also ordered state investigators to examine whether the effort violated Alaska law. Peltola denied knowing about any recruitment effort, while the other Sullivan and the Democratic Senatorial Campaign Committee denied involvement in such an arrangement. Dunleavy said the inquiry could affect certification of the winner, NBC News reported. With voting set for Tuesday, the dispute adds uncertainty to a toss-up race that could help determine which party controls the Senate.

ABC News / NBC News / AP

Earnings Send Alphabet, Amazon and Intel Lower

Google parent Alphabet's shares fell 12.6% Thursday after quarterly sales missed expectations, erasing roughly $500 billion in market value in the second-largest one-day loss for a U.S. company, behind Nvidia's nearly $600 billion decline in January 2025. Microsoft's shares rose about 4% before Thursday's market opening after it beat sales and profit forecasts, helped by 48% growth in Azure, its business that rents computing power to other companies. Amazon reported $201.9 billion in sales Thursday and profit below analysts' forecasts, sending its shares lower after regular trading despite 39% growth in its computing business. Intel shares fell about 20% after hours after it forecast holiday-quarter sales below Wall Street expectations. Caterpillar fell about 9% during regular trading despite record sales fueled by demand for data-center generators and turbines. The selloffs suggest these stocks were priced for perfection: even strong growth or record sales could not satisfy investors when results or forecasts fell short of lofty expectations.

AP / Reuters / Microsoft / Amazon / GeekWire / Investing.com / Manufacturing Dive / Yahoo Finance

Israel Vote Leaves Netanyahu Eight Seats Short of a Majority

Final results from Israel's Oct. 27 election left Prime Minister Benjamin Netanyahu's bloc with 53 seats, eight short of a majority in the 120-seat parliament. Opposition parties won 48 seats and Arab-led parties a record 19, but most opposition leaders had ruled out a governing partnership with the Arab-led parties during the campaign. Likud alleged voter fraud involving Arab parties and demanded investigations, while the elections committee said any investigation would not affect the final results. The results are scheduled to go to President Isaac Herzog on Nov. 4, after which he will consult the parties and ask a leader to try to form a government. The new parliament is scheduled to be sworn in Nov. 10, with Netanyahu remaining caretaker prime minister in the meantime. A prolonged stalemate could shape Israel's decisions on the war with Iran, Gaza and its relationship with Washington.

Times of Israel / Jerusalem Post / ABC News

October 30, 1938: ‘War of the Worlds’ Radio Play Is Broadcast

Orson Welles’ Mercury Theatre on the Air aired a gripping adaptation of H.G. Wells’ The War of the Worlds on this date, famously presenting a fictional Martian invasion as a series of realistic news bulletins. The innovative format, combined with convincing performances and sound effects, led some listeners to briefly believe an actual extraterrestrial attack was underway.

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Sources

1. BEA / AP / Reuters / Federal Reserve
2. Lilly / CNBC / KFF / CDC / CBO
3. ABC News / NBC News / AP
4. AP / Reuters / Microsoft / Amazon / GeekWire / Investing.com / Manufacturing Dive / Investing.com / Yahoo Finance / Yahoo Finance — Microsoft / Investing.com — Caterpillar outlook
5. Times of Israel / Jerusalem Post / ABC News