Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon. Today is Friday, October 27th, and I'm your host, Kim Kahn. Our top story so far.

Hey Big Spender. Personal income and outlays data for September showed no signs of a more thrifty consumer, while the Fed's favorite

measure of inflation showed the rate of price increases still slowing. On the downside, though,

consumers incomes didn't keep up with their increase in expenditures.

Personal spending rose 0.7% last month, higher than the 0.5% rise expected.

Income rose 0.3% compared with the consensus of 0.4%.

Schwab fixed income strategist Kathy Jones says,

consumers may say they are pessimistic,

but they keep spending,

noting the personal savings rate is down to 3.4%.

Wells Fargo Economists weighed in with a historical reference.

Amelia Earhart said never to interrupt someone doing something you said couldn't be done.

We'll try to bite our tongues, but real income has fallen for four straight months.

Increasing your spending when your income is shrinking is not sustainable. But when does the turn come? While real

disposable income is wobbled, households continue to enjoy considerable wage

gains stemming from the tight labor market, Wells Fargo says. Wages and salaries rose 0.4% in September, and nominal

personal income growth continues to run near its long-run average monthly pace.

Until households fuel an income pinch or perhaps grow increasingly worried about their

job prospects, we expect households will continue to spend today at the expense of having more

save for tomorrow. On the inflation front, the core PCE price

index, closely watched by the Fed, was 0.3% on the month right in line with the

...