Daily Rundown
October 29, 2026
Chart of the Day
Number of the Day
-$9.1 billion
Alphabet’s free cash flow in the third quarter, a second straight negative print and the most negative in its history as a public company
Quote of the Day
“The accumulation of more information will help the committee determine the policy stance appropriate to ensure a timely return of inflation to the committee’s 2 percent goal.”
From the FOMC statement
Wednesday’s Highlights
The FOMC left the federal funds target unchanged at 3.75-4.00 percent.
The goods trade deficit (September) came in at $134.9 billion versus a prior $132.1 billion.
Mortgage purchase applications (week of 10/17) rose 3.8 percent, the first increase in eight weeks.
Alphabet revenue (Q3) grew by 24.7 percent year-over-year.
Microsoft revenue (Q3) grew by 18.8 percent year-over-year.
Quick Commentary
The Fed is taking a go-slow approach in this rate hike cycle, which makes sense given the bifurcated nature of the economy and the elevated level of uncertainty in general. Note, however, that yesterday’s official statement stressed both the strong pace of expansion and the above-target inflation rate, hinting that there is still more tightening to come. In addition, there were two dissenting votes cast in favor of raising rates at this meeting, an echo of the dissents in the summer ahead of the September rate hike. And while Chair Warsh was unsurprisingly noncommittal in his post-meeting press conference, he made it clear at the outset that inflation is still a problem and that the Fed takes responsibility for bringing it back to the 2.0 percent target. Taken together, then, yesterday’s signposts point to a resumption of the tightening cycle in December and, as a result, another step toward more restrictive financial conditions.
Today’s Highlights
Personal income
Personal spending
PCE price indices
GDP
Unemployment claims
Daily Trivia
What Disneyland attraction languished in development for more than a decade before opening in 1969, the delays owing in part to internal debate over whether to make it humorous or not?
(Wednesday’s Question: What “creepy” corporate mascot ranked as one of the top selling Halloween costumes of 2007, thanks in part to his appearance in a handful of popular video games in the prior year? Answer: The Burger King)