5 Things to Know Before the Stock Market Opens

Stock futures are inching higher after the major indexes turned in a mixed performance on Thursday; investors are awaiting the release of the Federal Reserve’s preferred measure of inflation; Netflix has reached a deal to acquire Warner Bros. Discovery; shares of Hewlett Packard Enterprise are tumbling after a disappointing earnings report; and Ulta Beauty shares are surging after the retailer released strong results. Here’s what you need to know today.

Stock Futures Tick Higher Ahead of Key Inflation Data

Stock futures are slightly higher this morning as investors await the release of an important inflation report and digest news of the Netflix-Warner Bros. Discovery deal. Futures tied to the Dow Jones Industrial Average were up 0.1% recently, while those linked to the benchmark S&P 500 and the tech-heavy Nasdaq added 0.2% and 0.3%, respectively. The S&P 500 and Nasdaq inched higher on Thursday, gaining ground for the eighth time in the past nine sessions, while the Dow finished slightly lower. The Dow and the S&P 500 enter the session less than 1% away from new record closing highs. Bitcoin was at $91,200 recently, down from an overnight high of $92,700. Gold futures were up 0.3% to $4,255 an ounce, while WTI crude oil futures slipped 0.2% to $59.55 per barrel. The yield on the 10-year Treasury note, which affects borrowing costs on all sorts of loans, inched higher to 4.12%, near its highest level in two weeks.

Inflation Report Comes as Fed Set to Make Rate Decision Next Week

Another piece of economic data delayed by the government shutdown is set to be released Friday morning. The Personal Consumption Expenditures index report, the Fed’s preferred measure of inflation, is expected to show that prices rose 2.8% over the 12 months ending in September, which would be the highest since August 2024. “Core” inflation, which excludes more volatile items such as gas and some foods, is expected to have risen by 2.9%. The results of the report will factor into the Fed’s decision on interest rates when its policy committee meets next week. The Fed is balancing concerns about a weakening labor market with lingering worries about inflationary pressure. Traders are pricing in an 87% chance that the Fed will trim its benchmark rate by a quarter point for the third consecutive meeting, according to the CME Group’s FedWatch tool.

Netflix Reaches $83 Billion Deal to Acquire Warner. Bros. Discovery

The bidding war for Warner Bros. Discovery (WBD) is officially over, as the entertainment giant and Netflix (NFLX) announced an $83 billion deal Friday morning. Warner Bros. Discovery plans to continue with its previous break-up, which will involve spinning off its cable TV channels including CNN and TBS into a standalone business, leaving the remaining TV and movie studios and streaming services to be acquired by Netflix for $27.75 per share. The companies expect the deal to close in the third quarter of next year. Late Thursday night, The Wall Street Journal and Bloomberg had reported that Netflix and Warner Bros. Discovery had entered exclusive deal talks, with other bidders Paramount Skydance (PSKY) and Comcast (CMCSA) out of the running. Warner Bros. Discovery shares were up 0.3% at $24.60 in recent premarket trading, while Netflix stock fell more than 2%. Netflix shares hit their lowest level since April this week amid investor concerns about the potential deal.

HP Enterprise Stock Drops as Results, Outlook Disappoint

Shares of Hewlett Packard Enterprise (HPE) are tumbling Friday morning after the server maker reported lower sales and profits than analysts had expected. After the bell Thursday, HP Enterprise said fiscal fourth-quarter revenue was $9.68 billion, and while earnings per share came in at 11 cenrts, less than a third of what analysts had forecast, per estimates compiled by Visible Alpha. The company’s revenue and EPS forecasts for the first quarter of fiscal 2026 were also below the analyst consensus. HP Enterprise shares were down 9% in recent premarket trading. Coming into today’s session, the stock had gained 7% since the start of the year, significantly lagging the performance of the S&P 500.

Ulta Stock Surges on Strong Results, Holiday Season Optimism

Ulta Beauty (ULTA) shares are jumping after the cosmetics retailer reported earnings that beat Wall Street estimates. Ulta reported $2.86 billion in sales and $5.14 in earnings per share for the third quarter, each well above the analyst consensus. JPMorgan analysts lifted their price target for Ulta stock to $647 from $606 previously, noting that executives said Ulta was happy with its performance over Black Friday and Cyber Monday to start the current quarter, but acknowledged that there may be a decline in sales heading towards Christmas because of uncertainty around consumer spending. Ulta shares, which enter the day up 23% so far in 2025, were up more than 7% at $572 ahead of the opening bell.