U.S. equity futures pointed higher early Friday as traders positioned themselves ahead of a delayed but closely followed inflation reading. Alongside the data, markets are also watching a new gauge of consumer sentiment. Meanwhile, Netflix (NASDAQ:NFLX) has reportedly entered exclusive talks to acquire major assets from Warner Bros Discovery (NASDAQ:WBD), a move that could reshape the entertainment landscape.

Futures edge up

U.S. stock futures posted small gains as investors waited for a critical inflation update that may influence the Federal Reserve’s decision when policymakers meet next week.

At 03:03 ET, Dow futures were up 27 points (0.1%), S&P 500 futures added 17 points (0.2%), and Nasdaq 100 futures advanced 116 points (0.5%).

Thursday’s performance had been mixed: the S&P 500 and Nasdaq Composite closed higher, while the Dow Jones Industrial Average lagged.

Traders assessed weekly unemployment filings, which dropped to their lowest since 2022, and noted a Chicago Fed estimate suggesting the U.S. unemployment rate held near 4.4% in November.

With official U.S. data releases disrupted by the recent government shutdown, investors and policymakers have been relying more heavily on secondary indicators to understand the labor market. Employment trends remain central to the Fed’s rate path as it seeks to balance monetary policy in support of maximum employment.

PCE inflation report on deck

While discussion in recent weeks has focused on job-market softening, attention now shifts to inflation, with the Personal Consumption Expenditures price index due Friday. This release often guides the Fed’s assessment of price pressures.

Excluding food and energy, the “core” PCE index is projected to remain at 2.9% year-over-year and 0.2% month-over-month for September. Analysts caution that the outdated timing—delayed because of the shutdown—limits its immediacy.

Still, with the November nonfarm payrolls report postponed until later this month, the PCE data, together with updates on personal income and spending, will be among the last major inputs before the Fed’s December 9–10 meeting. Markets widely anticipate another 25-basis-point rate cut, mirroring the moves in September and October, as the central bank aims to counter labor-market weakness.

Consumer sentiment reading due

The University of Michigan will also release its latest consumer sentiment survey. ING analysts noted that the measure will be “more timely” than the PCE reading and is expected to show modest improvement. Any uptick would suggest consumers are regaining confidence during the holiday shopping season.

The gauge had previously fallen to its lowest level in three-and-a-half years amid worries over the economic fallout from the shutdown. Recent data has underscored a widening divide in the U.S. economy, with higher-income households continuing to spend while lower-income consumers face increasing strain. The University of Michigan has also noted that those with large stock holdings were especially upbeat thanks to “strength in stock markets.”

Netflix enters exclusive negotiations with Warner Bros Discovery

According to media reports, Netflix has moved into exclusive talks to buy Warner Bros Discovery’s film and TV studios along with its premier streaming assets. The streaming giant is said to have offered $28 per share for the targeted business units, which include the HBO and DC Comics brands.

A successful deal would position Netflix as one of the most powerful content owners globally, adding franchises such as “Game of Thrones” and “Harry Potter” to its portfolio.

Reports indicate Warner Bros received follow-up bids from Netflix, Paramount Skydance, and Comcast earlier this week following initial proposals. The Wall Street Journal reported that an agreement between Netflix and Warner Bros could be announced soon.

Warner Bros shares traded higher in after-hours dealings on Friday, while Netflix slipped slightly.

Oil pauses after rally

Oil prices were steady on Friday after Thursday’s gains, supported by stalled diplomatic efforts toward ending the Ukraine conflict and continued expectations of a Fed rate cut.

Brent crude hovered around $63.25 per barrel, while West Texas Intermediate futures slipped 0.1% to $59.59 per barrel.

Both benchmarks advanced nearly 1% in the prior session. Brent was flat for the week, while WTI remained on pace for a 1.5% weekly gain—its second consecutive weekly rise.

The absence of progress in U.S.–Russia peace efforts has reduced expectations that sanctions on Russian oil might ease soon, keeping a geopolitical risk premium embedded in prices.

Netflix stock price

Warner Brothers Discovery stock price

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