Alphabet sinks 12.6%; GDP grows at a 3.4% pace

Story 1 of 4

Alphabet's cloud doubles; free cash flow turns negative

AI & Technology

Alphabet’s third-quarter revenue rose 25% to $127.6 billion and Google Cloud’s rose 103% to $30.7 billion, its release showed. Capital spending of $51.4 billion left free cash flow at negative $9.1 billion. Its Class A shares fell 12.64% on Thursday.[1][2]

Why it matters: Spending outran operating cash flow; Alphabet also raised $28.7 billion from new notes.

Story 2 of 4

Amazon's AWS grows 39% with a record margin

Business & Corporate

After Thursday’s close, Amazon reported sales up 12% to $201.9 billion, AWS up 39% to $46.0 billion and a record 13.9% operating margin. Trailing 12-month free cash flow was an outflow of $42.4 billion. Its shares slid more than 6% after hours, and Intel’s fell about 21% after it forecast fourth-quarter revenue of $15.0 billion to $16.0 billion, CNBC reported.[4][5][6]

Why it matters: Amazon kept its 2026 capital spending plan at about $220 billion and guided fourth-quarter sales to $240 billion to $247 billion.

Story 3 of 4

GDP grew at a 3.4% pace as prices rose faster

Macroeconomics & Policy

Real GDP rose at a 3.4% annual rate in the third quarter, from 2.2% in the second, the BEA’s advance estimate showed. The PCE price index rose 0.5% in September and 3.6% from a year earlier; excluding food and energy, it rose 3.1%.[7][8][3]

Why it matters: Inflation is above the Fed’s 2% goal; the Employment Cost Index is due at 8:30 a.m. ET, after this edition’s cutoff.

Story 4 of 4

The Nasdaq drops 1.38%; Treasury yields fall

Markets & Finance

The Nasdaq fell 1.38% to 26,184.72, the S&P 500 0.3% to 7,720.39 and the Dow 0.25% to 52,342.56, CNBC reported. The 10-year Treasury par yield fell to 4.98% from 5.05%, Treasury data show.[3][9]

Why it matters: Lower yields ease borrowing costs; price moves alone do not show a cause.

Exhibit 1. Treasury par yields fell at most maturities Percent; daily par yield curve rates at close, Oct. 28 and Oct. 29, 2026

Source: U.S. Treasury, daily par yield curve rates. Table: New Street.

Today’s watchlist (ET)

• 06:30: Exxon Mobil reported Q3 earnings of $15.4 billion[11]
• 08:30: Employment Cost Index, third quarter (pending at cutoff)[10]
• 09:30: Exxon Mobil third-quarter earnings call[11]
• 11:00: Chevron third-quarter earnings call[12]

New Street View

AI demand is showing up in revenue, with Google Cloud up 103% and AWS up 39%, but both companies are now spending more than their businesses generate in cash. Returns on that spending, not growth alone, look like the next test.

Limitation: The cash figures come from company releases; free cash flow is a non-GAAP measure, and one period may not reflect the full build-out.