News Wrap: U.S. GDP grows in third quarter, European Central Bank raises interest rates

Judy Woodruff:

The U.S. economy is showing pockets of strength today, although there are a number of signs that still point to a broader slowdown.

The Commerce Department reported the economy grew at a 2.6 percent annual rate from July through September, after having shrunk in the first half of the year. Exports accounted for much of the growth. President Biden hailed the progress at an event in Upstate New York.

Joe Biden, President of the United States: Economic growth is up. The price of inflation is down. Real incomes are up and the price of gas is down.

The American people are seeing the benefits of this economy that works for them. Families have more net worth today than they did before the pandemic.

Judy Woodruff:

But the outlook isn't all rosy. The economy is still grappling with a housing market slump and a decline in retail sales.

On Wall Street today, the better-than-expected GDP report gave the Dow Jones industrial average a boost. It gained 194 points to close it 32033, but technology stocks pulled the Nasdaq lower to fall 178 points. The S&P 500 also slipped 23.

In other economic news, U.S. jobless claims inched a little higher last week. The Labor Department today reported applications for unemployment benefits rose to 217,000. That is 3,000 more than the previous week. Despite the increase, overall jobless claims remain historically low.

Meanwhile, overseas, the European Central Bank raised interest rates by three-quarters-of-a-percent today to help curb rampant inflation. It matches a record increase last month, and it marks the fastest pace of rate hikes in the euro currency's history. The move mirrors similar efforts by the Federal Reserve in the U.S. to tackle soar in prices here.

Ukraine's national energy agency says that the main network of its central region's power grid has been damaged after intense Russian strikes. That has led to a 30 percent reduction in power generation capacity in and around Kyiv. Rolling power cuts have left the capital in the dark, and residents say they understand the need to conserve energy.

Daryna, Kyiv Resident (through translator):

When there is war going on in the country, it is not a big deal if one has to go home early or walk in darkness and save power at home.

Speaker (through translator):

If it can in any way help Ukrainian defense forces, I am all for it.

Judy Woodruff:

Meanwhile, in Moscow today, Russia's President Vladimir Putin gave his annual speech at a conference of international policy experts. He blamed the West for Russian escalations of the war in Ukraine, but he claimed that Russia is open to dialogue.

Vladimir Putin, Russian President (through translator):

World domination is what the so-called West bet on in its game, but that game is, without doubt, a dangerous, bloody and, I would say, filthy one.

I have always believed in the power of common sense. So I'm convinced that the West will eventually have to start a conversation on equal terms about our common future.

Judy Woodruff:

Putin also said that Moscow has no intention of using nuclear weapons in Ukraine. We will have more on all this later in the program.

Back in this country, a Tennessee man was sentenced to more than seven years in prison for his role in the January 6 riot. Albuquerque Cosper Head dragged a Capitol Police officer into the mob and restrained him while others beat and Tased him. The officer suffered a heart attack and brain injuries. It is the second longest sentence given to a rioter so far.

And the U.S. Department of Agriculture announced $759 million in grants and loans to help rural communities access high-speed Internet. The money will be divided up among 24 states. It's part of a larger push for high-speed connectivity from last year's infrastructure law.

Still to come on the "NewsHour": Russia's nuclear threats and false claims about Ukrainian bombs hang over the ongoing war; new scientific imaging allows experts to determine authenticity of art, including priceless Vermeers; two stroke survivors give their Brief But Spectacular take on living with aphasia; plus much more.