US stock futures showed a mostly positive trend on Friday as Wall Street prepared for an upcoming inflation report, which, despite a delay, could influence expectations regarding the Federal Reserve’s next policy actions. S&P 500 futures increased by 0.2%, while Nasdaq 100 futures rose by 0.4%. However, futures for the Dow Jones Industrial Average remained relatively unchanged after a mixed performance on Thursday.
Market participants are heavily anticipating a quarter-point interest rate cut from the Fed at the upcoming meeting next Wednesday, with current trader sentiment reflecting an 87% probability of easing, up from 62% a month earlier, according to CME FedWatch. This optimism has turned attention to labor and inflation data that might either validate or undermine these expectations ahead of the Fed’s decision on December 10.
Key economic reports due on Friday include delayed figures for personal spending and income from September and the University of Michigan’s December consumer sentiment index. The standout report is the September reading of the Fed’s preferred inflation measurement, the PCE price index, which had also been delayed due to the recent government shutdown.
In a concerning report for the job market, the Challenger report revealed that US companies cut 71,000 jobs last month amid restructuring, shifts related to AI, and tariff pressures—marking the highest November job cuts since 2022. Conversely, new weekly jobless claims decreased to their lowest levels since September 2022, indicating a gradual cooling of the labor market rather than a sudden downturn.
In corporate news, Hewlett Packard Enterprise (HPE) saw its stock plummet nearly 9% in premarket trading after the company’s quarterly sales forecast fell short of higher expectations, largely driven by AI demand. This follows a week filled with retail earnings reports, culminating in the results from Victoria’s Secret (VSCO), which experienced a 3% increase in premarket trading ahead of its earnings release. Analysts expect the company to report a 4.3% year-on-year revenue growth to $1.41 billion, a slowdown compared to the previous year’s 6.5% increase.
Elsewhere, The Cooper Companies Inc. (COO) stock surged 13% after meeting Wall Street revenue expectations in its earnings report. Ulta Beauty (ULTA) shares also rose by 5% after the company raised its sales outlook and exceeded quarterly earnings expectations.
On the cryptocurrency front, BlackRock Inc.’s iShares Bitcoin Trust (IBIT) faced historical outflows, recording $2.7 billion in withdrawals over five weeks, signaling waning institutional interest in bitcoin. The fund, which manages over $71 billion in assets, is showing signs of continued net outflows as it confronts a broader bear market in cryptocurrency.
In the media sector, Netflix has reportedly entered exclusive deal negotiations with Warner Bros. Discovery, positioning itself as the frontrunner in a competitive bidding war for major assets, including film and TV studios and the HBO Max streaming service. Shares of Warner Bros. fell by over 2% in premarket trading, while Netflix shares were down about 1%. This potential deal could be finalized soon if negotiations proceed smoothly.
Lastly, Nvidia, the leading AI chip manufacturer, is facing emerging competition from Google, which is expected to begin selling AI chips to Meta. However, industry experts suggest that Google’s offering may not match Nvidia’s technology across the board, highlighting that while Google’s chips may serve its needs efficiently, they may not outshine Nvidia’s capabilities universally.
Overall, Friday’s market activity reflects a blend of cautious optimism amid economic analysis, corporate earnings, and evolving competitive dynamics in technology and media.
