Stock futures are showing a slight increase this morning, as investors prepare for the upcoming release of a significant inflation report, following a mixed performance of major indexes on Thursday. The futures tied to the Dow Jones Industrial Average are up 0.1%, while those linked to the benchmark S&P 500 and tech-heavy Nasdaq have added 0.2% and 0.3%, respectively. Despite the Dow finishing lower on Thursday, both the S&P 500 and Nasdaq recorded gains for the eighth time in the past nine sessions, moving closer to new record highs.
In other market movements, Bitcoin recently traded at $91,200 after hitting an overnight peak of $92,700. Gold futures rose by 0.3% to $4,255 an ounce, and WTI crude oil futures saw a slight dip of 0.2% to $59.55 per barrel. The yield on the 10-year Treasury note marginally increased to 4.12%, approaching its highest level in two weeks, indicating higher borrowing costs across various loans.
The anticipated Personal Consumption Expenditures (PCE) index report, the Federal Reserve’s preferred measure of inflation, is set to release Friday morning. Analysts expect that prices have risen 2.8% over the year ending in September, marking the highest increase since August 2024. Core inflation, which excludes volatile components like gas and groceries, is projected to be up by 2.9%. This data will play a critical role as the Fed prepares for its upcoming policy meeting, with traders currently estimating an 87% probability of a quarter-point rate cut for the third consecutive meeting.
In major corporate news, Netflix has finalized an $83 billion agreement to acquire Warner Bros. Discovery. The deal, announced Friday morning, includes plans for Warner Bros. Discovery to spin off its cable channels such as CNN and TBS into a separate entity, allowing Netflix to take over its TV and movie studios and streaming services for $27.75 per share. The transaction is expected to close in the third quarter of the following year. Following the announcement, Warner Bros. Discovery shares increased by 0.3% in premarket trading, while Netflix stock fell over 2%, reflecting investor anxiety regarding the implications of the acquisition.
In contrast, shares of Hewlett Packard Enterprise are on a downward trajectory after the company reported disappointing earnings and sales figures. The server manufacturer posted fiscal fourth-quarter revenue of $9.68 billion, with earnings per share at 11 cents—far below analyst projections. Revenue and EPS forecasts for the first quarter of fiscal 2026 were also lower than anticipated, leading to a 9% drop in premarket trading. Despite a 7% gain since the year began, HP’s performance still lags behind the broader S&P 500 index.
Conversely, Ulta Beauty saw its shares soar following a strong earnings report that surpassed Wall Street expectations. The cosmetics retailer announced $2.86 billion in sales and earnings per share of $5.14 for the third quarter. JPMorgan responded by raising its price target for Ulta stock from $606 to $647, noting positive feedback from the past Black Friday and Cyber Monday sales events. However, executives warned of potential sales declines as the holiday season progresses, amidst uncertainties in consumer spending. Ulta shares are up over 7% in premarket trading, reflecting a robust 23% increase for the year.
