US stocks moved higher on Friday as Wall Street looked ahead to a delayed reading on inflation that could still help shape expectations for the Federal Reserve’s next policy move.

The S&P 500 (^GSPC) edged up 0.3%, while the Nasdaq Composite (^IXIC) rose 0.4%. The Dow Jones Industrial Average (^DJI) gained nearly 0.2% following a mixed Thursday session.

The S&P 500 (^GSPC) is edging toward a fresh record high, after eking out three days of modest gains. Meanwhile, the Nasdaq (^IXIC) is eyeing its ninth positive close in 10 sessions, after Wall Street regained appetite for risk and faith in Fed easing.

Investors continue to bet heavily on a quarter-point interest rate cut from the central bank next Wednesday. Traders are pricing in 87% odds of a move lower, compared with 62% a month ago, according to CME FedWatch.

Given the higher confidence in an easing, focus has sharpened on labor and inflation data ahead of the Fed's Dec. 10 rate decision, especially given this Friday marks another month without the crucial jobs report.

Friday brings the September reading on the Fed's preferred inflation gauge, the PCE price index, also held up by the recent government shutdown. That is due at 10 a.m. ET. Other economic reports are on deck, including delayed September figures on personal spending and income, and the University of Michigan's snapshot of consumer sentiment in December.

A Challenger report on Thursday showed US companies cut 71,000 jobs last month, the worst November print since 2022. Yet new weekly jobless claims fell to their lowest since September 2022, reinforcing the picture of a labor market cooling gradually rather than rapidly.

Meanwhile, news landed that Netflix (NFLX) will buy Warner Bros. Discovery's (WBD) studios and its streaming unit for $72 billion, following a weeks-long bidding war. Netflix stock lost almost 3% in premarket trading, while WBD shares ticked higher.

In earnings, Hewlett Packard Enterprise (HPE) stock sank almost 9% after the server maker's quarterly sales outlook missed high AI-fueled expectations.

Treasurys were on track for their worst week in six months, per Bloomberg, as investors waited for PCE inflation data and the University of Michigan's latest read on consumer sentiment.

The US 10-year yield (^TNX) edged up to 4.12% on Friday, its highest level since June. The 30-year yield (^TYX) ticked higher to 4.78%, the highest since September.

Bloomberg reports:

That put Friday’s US Personal Consumer Expenditure data into focus. While the headline number for September is expected to pick up to 2.8% from the previous year, the core PCE reading — the Fed’s preferred measure of inflation — is forecast to have slowed to 2.8%, according to a Bloomberg poll of economists.

A softer reading would signal that underlying inflation is continuing to drift toward the Fed’s 2% target, bolstering bets for further interest-rate cuts.

Wednesday’s Fed outcome is looming large, with traders overall still betting on a third consecutive quarter-point rate reduction. In addition, the Treasury will sell almost $120 billion of three-, 10- and 30-year debt next week.

“Markets are probably looking ahead to the bond auctions and waiting for the December FOMC to hint at future direction,” said Evelyne Gomez-Liechti, a strategist at Mizuho International Plc.

Read more here.

Victoria's Secret (VSCO) stock climbed over 13% in premarket trading after the lingerie company raised its 2025 net sales, operating income, and earnings guidance, signaling progress in its revitalization efforts.

The company forecast full-year net sales in the range of $6.45 billion to $6.48 billion, compared to previous guidance of $6.33 billion to $6.41 billion. Its adjusted earnings per share for the year are expected to be in the range of $2.40 to $2.65, compared to prior guidance of $1.80 to $2.20.

Victoria's Secret also said its estimated tariff impact will be about $90 million for the year, less than the $100 million initially expected.

Victoria's Secret's third quarter results were also better than expected, with revenue beating estimates and the company's net loss coming in shallower than estimates.

Net sales increased 9% year over year to $1.472 billion, above estimates for $1.40 billion, according to S&P Global Market Intelligence. The retailer recorded a net loss of $0.46 per share, which was smaller than the $0.60 per share loss the Street was expecting.

Read more live coverage of corporate earnings here.

Netflix (NFLX) announced Friday morning that it has agreed to buy Warner Bros. Discovery (WBD) streaming and studios unit for $72 billion, ending a weeks-long bidding war that saw the streaming giant outmaneuver Paramount Skydance (PSKY) and Comcast (CMCSA).

The cash-and-stock deal values Warner Bros. Discovery at $27.75 per share. Warner Bros. Discovery stock closed at $24.54 on Thursday, giving it a market cap of $60.8 billion, according to Yahoo Finance data.

Netflix shares fell 1.7% while Warner Bros. Discovery shares rose 3.5% before being halted for trading.

Reuters reports:

Buying the owner of marquee franchises including \\"Game of ⁠Thrones\\", \\"DC Comics\\" and \\"Harry Potter\\" will ‌further tilt the power balance in Hollywood in favor of the streaming giant that built its dominance without major acquisitions or a large content ‍library, helping its efforts to ward off competition from Walt Disney and the Ellison family-backed Paramount.

Analysts have said Netflix is driven by a desire to lock up long-term rights to hit shows and films ​and rely less on outside studios as it expands into gaming and looks for ‌new avenues of growth after the success of its password-sharing crackdown.

But the deal will likely face strong antitrust scrutiny in Europe and the U.S. as it would give the world's biggest streaming service ownership of a rival that is home to HBO Max and boasts nearly 130 million streaming subscribers.

David Ellison-led Paramount, which kicked off the bidding war with a ⁠series of unsolicited offers and has close ties with ​the Trump administration, questioned the sale process earlier this ​week in a letter alleging favorable treatment to Netflix.

Read more here.

Bloomberg reports:

The year-end rally in equities is at risk from a Federal Reserve outlook that’s too cautious on the economy, according to Bank of America Corp. strategists.

With the S&P 500 Index (^GSPC) within striking distance of a record high, investors are confident about a best-case scenario where the Fed cuts interest rates alongside falling inflation and economic growth remains resilient.

But that optimism stands to be tested if the central bank sends dovish signals at the meeting next week, according to BofA strategist Michael Hartnett, as they could suggest a bigger-than-expected economic slowdown.

“Only thing that can stop Santa Claus rally is dovish Fed cut causing a selloff in long-end,” Hartnett wrote in a note, referring to Treasuries with a longer maturity date.

Read more here.

Economic data: Personal income (September); Personal spending (September); Real personal spending (September); PCE price index (September); University of Michigan sentiment (December preliminary reading)

Earnings: Victoria's Secret (VSCO)

Here are some of the biggest stories you may have missed overnight and early this morning:

Netflix to buy Warner Bros Discovery studios for $72 billion

Is the labor market healthy? Don't count on finding out soon.

Why Nvidia's not about to lose its edge to Google

Century-old Dow Theory is flashing a bullish sign for stocks

Cloudflare says it fixed outage that slowed bankings sites, Zoom

BlackRock bitcoin ETF sheds $2.7 billion in record outflows run

AI investors are looking beyond the 'Magnificent Seven'

Arm to set up chip design facility in S. Korea

Luxury stocks look set for a stronger year after 'detox'

Victoria's Secret's (VSCO) stock rose 3% during premarket trading on Friday. The US beauty retailer is due to release its earnings before the bell today and over the past year its stock has fallen 5%. This quarter, analysts are expecting revenue to grow 4.3% year on year to $1.41 billion, slowing from the 6.5% increase it recorded in the same quarter last year.

The Cooper Companies Inc. (COO) stock jumped 13% before the bell on Friday. The rise followed the company's earnings report on Thursday, where they met Wall Street revenue expectations.

Ultra Beauty (ULTA) stock rose 5% during premarket trading after raising its sales outlook for the year and quarterly earnings beating of Wall Street expectations.

Bloomberg reports:

BlackRock Inc.’s (BLK) iShares Bitcoin Trust (IBIT) recorded its longest streak of weekly withdrawals since debuting in January 2024, in a sign that institutional appetite for the world’s largest cryptocurrency remains subdued even as prices stabilize.

Investors yanked more than $2.7 billion from the exchange-traded fund over the five weeks to Nov. 28, according to data compiled by Bloomberg. With an additional $113 million of redemptions on Thursday, the ETF is now on pace for a sixth straight week of net outflows.

The IBIT fund oversees more than $71 billion in assets and has served as the flagship vehicle for traditional investors seeking exposure to bitcoin (BTC-USD).

The sustained period of outflows aligns with Bitcoin’s slide into a bear market following a severe liquidation event in early October, which kicked off a more than $1 trillion wipeout in crypto market value.

Read more here.

Netflix has begun exclusive deal negotiations with Warner Bros. Discovery, Bloomberg reported, in the latest twist to a secretive bidding war for the entertainment giant's assets.

The negotiations cover WBD's film and TV studios, and its HBO Max streaming service, sources said.

On Thursday, Netflix submitted the highest offer so far for those assets — around $28 per share, according to CNN. It has now emerged as the frontrunner in a race to nail down a deal.

Shares of WBD slipped over 2% in premarket trading to $24 each, while Netflix stock edged down about 1%.

Bloomberg reports:

Netflix is offering a $5 billion breakup fee if regulators don’t approve the deal, said the people, who asked to not be identified because the discussions are private.

The two companies could announce a deal as soon as in the coming days, assuming talks don’t fall apart, the people said. The move suggests Netflix has pulled ahead of Paramount Skydance Corp. (PSKY) and Comcast Corp. (CMCSA), who were also competing for the asset.

Prior to the closing of the sale, Warner Bros. — valued at more than $60 billion overall — will complete the planned spinoff of cable channels including CNN, TBS and TNT.

Read more here.

Yahoo Finance's Daniel Howley reports:

Nvidia (NVDA) is the global AI chip leader, but word that Google (GOOG, GOOGL) could sell some of its own AI chips to Meta (META) has raised concerns that one of its biggest clients is becoming a major competitive threat.

According to a Nov. 24 report by the Information, Google’s deal with Meta could be worth billions of dollars.

On Tuesday, Amazon (AMZN) announced the public availability of its Tranium3 chip, saying that it can save up to 50% on training costs for AI software compared to alternatives.

... One of the main things to understand about the Nvidia versus Google and Amazon debate is that they don’t exactly offer the same products. Google’s TPUs and Amazon’s Tranium3 are types of chips called ASICs, or application-specific integrated circuits, meaning they’re built to accomplish specific tasks very well.

That means Google and Amazon have developed them to handle certain applications efficiently because the chips were made specifically for those purposes.

“[Google knows] the requirements and they know what trade-offs are most efficient for them,” explained Forrester senior analyst Alvin Nguyen.

“They can make something that works better today for them. Now, it doesn't mean that it's superior to Nvidia in every aspect. But … at least for Google, it will be superior for their needs,” he added.

Read more here.

Ulta Beauty (ULTA) stock rose almost 6% in premarket trading after the beauty retailer reported solid third quarter results and delivered the guidance raise Wall Street was looking for.

Ulta beat estimates on the top and bottom lines in the third quarter. Here's a breakdown of the Q3 results, compared to Wall Street consensus estimates compiled by S&P Global Market Intelligence:

Revenue (beat): $2.9 billion, compared to $2.7 billion estimated and $2.5 billion in the same quarter a year ago

Same-store growth (beat): 6.3%, compared to 3.2% estimated

Gross margins (beat): 40.4%, compared to 39% estimated

Earnings per share (beat): $5.14, compared to $4.60 estimated and $5.14 a year ago

\\"As we look ahead to the all-important holiday season, we know many consumers’ wallets are pressured and they are seeking value,\\" Kecia Steelman, president and CEO, said in a statement. \\"We are confident in our plans, and our teams are ready to make Holiday Happen Here at Ulta Beauty, driving excitement and delivering for our guests and their loved ones, now and into the new year.\\"

Ulta also modestly raised its full-year outlook. The company expects net sales to reach \\"approximately $12.3 billion\\" for 2025, up from its previous guidance of $12 billion to $12.1 billion.

Ulta also lifted its earnings per share outlook to a range of $25.20 to $25.50 from $23.85 to $24.30 previously. Analysts had been estimating full-year earnings at a midpoint of $24.54.

The Street was expecting Ulta to issue cautiously upbeat guidance, as the retailer's new, CFO Christopher DelOrefice, starts on Dec. 5.

Hewlett Packard Enterprise Co. (HPE) stock fell more than 8% in premarket trading on Friday after the company's forecast for current-quarter sales fell short of Wall Street expectations.

Bloomberg news reports:

Revenue will be $9 billion to $9.4 billion and profit, excluding some items, will be 57 cents to 61 cents in the period ending in January, HPE said Thursday in a statement. Analysts, on average, projected sales of $9.88 billion and profit of 53 cents, according to data compiled by Bloomberg.

Sales in the fiscal fourth quarter, which ended Oct. 31, also missed analysts’ estimates as some deals for servers to power artificial intelligence workloads were pushed into 2026, Chief Executive Officer Antonio Neri said in an interview. One transaction in Europe is running late because of issues with a data center not being ready, he said, and agreements with the US government were delayed by the federal government shutdown.

Read more here.

Bloomberg reports:

Silver (SI=F) steadied, after retreating from an all-time high earlier in the week as traders took profits from a rally that’s seen as overheated. Gold was little changed.

The white metal was trading at around $57.05 an ounce, having fallen more than 2% in the previous session to snap an eight-day winning streak. The pullback on Thursday moved silver out of overbought territory after its rapid advance to nearly $59 on Wednesday.

The metal’s rally has been supported by rising expectations the Federal Reserve will lower interest rates at its meeting next week. Swap contracts indicate a near-certainty the Fed will reduce the cost of borrowing – a benefit for non-yielding precious metals. These bets withstood the latest US employment data, which showed jobless claims fell to a three-year low.

Silver edged down 0.2% to $57.0225 an ounce as of 7:45 a.m. Singapore time. Gold was steady at $4,205.13, while platinum and palladium were also little changed. The Bloomberg Dollar Spot Index rose 0.1% in the previous session.

Read more here.