[BRIEFING.COM] The stock market had another somewhat subdued session today, with the S&P 500 (+0.2%), Nasdaq Composite (+0.3%), and DJIA (+0.2%) keeping with the recent trend of modest growth and adding to their week-to-date gains.

Stocks were little changed following the delayed release of the Personal Income/Outlays report for September, which showed in-line Personal Income growth (0.4%) while Personal Spending growth (0.3%; Briefing.com consensus 0.4%) was below expectations. September PCE Price growth (0.3%; Briefing.com consensus 0.3%) was in-line, and core PCE Price growth (0.2%; Briefing.com consensus 0.3%) was slightly cooler than expected, reducing the year-over-year growth rate to 2.8% from 2.9% in August, though this remains well above the Fed's 2.0% target.

While this was the last inflation reading before next week's FOMC decision, it had little effect on the major averages, largely because it had no effect on the market's rate-cut expectations. The CME FedWatch tool currently assigns an 87.2% probability to a December rate cut, down from 88.2% yesterday, and a 25.1% probability to an additional cut in January, down from 25.4% yesterday. 

In corporate news, the headline that Netflix (NFLX 100.24, -2.98, -2.89%) has entered into a definitive agreement to acquire Warner Bros. Discovery (WBD 26.06, +1.52, +6.19%) in a cash and stock transaction worth $72 billion was perhaps the most widely discussed happening today. Paramount Skydance (PSKY 13.36, -1.46, -9.82%) , which also submitted a bid for WBD traded sharply lower, with CNBC reporting that the company is considering taking a direct bid to WBD's shareholders. 

Alongside all of the acquisition buzz, Alphabet (GOOG 322.09, +3.70, +1.16%) and Meta Platforms (META 673.42, +11.89, +1.80%) quietly mounted some of the best performances across mega-cap names, which helped the communication services sector (+1.0%) finish as the top-performing S&P 500 sector. 

Despite some weakness in its own largest components, NVIDIA (NVDA 182.41, -0.97, -0.53%) and Apple (AAPL 278.78, -1.92, -0.68%), the information technology sector (+0.5%) also finished with a solid gain as a majority of its components traded higher. 

The consumer discretionary sector (+0.4%) rounded out the three S&P 500 sectors that finished higher, with Ulta Beauty (ULTA 601.50, +67.55, +12.65%) capturing the widest gain across S&P 500 names after a beat-and-raise Q3 earnings report. 

The financials and real estate sectors finished flat, while six sectors finished lower. Losses were relatively modest, with the exception of the utilities sector (-1.0%), which extended its week-to-date losses to 4.5%, the widest across S&P 500 sectors. 

The health care (-0.4%) and consumer staples (-0.3%) sectors were also among the laggards as defensive sectors faced some pressure this week. 

Overall, the major averages continued to drift modestly higher, with buyers showing little urgency ahead of next week's FOMC decision. With expectations for policy largely unchanged and catalysts scarce, stocks appear content to meander within recent ranges as the market waits for clearer signals from the Fed.

U.S. Treasuries retreated on Friday, sending the 30-year note yield to its highest level since early September, while yields on 5s and 10s settled just below their November highs. The 2-year note yield settled up three basis points to 3.56% (+7 basis points this week), and the 10-year note yield settled up three basis points to 4.14% (+12 basis points this week).

• Nasdaq Composite: +22.1% YTD
• S&P 500: +16.8% YTD
• Russell 2000: +13.1% YTD
• DJIA: +12.7% YTD
• S&P Mid Cap 400: +6.4% YTD

Reviewing today's data:

• September Personal Income 0.4% (Briefing.com consensus 0.4%); Prior 0.4%, September Personal Spending 0.3% (Briefing.com consensus 0.4%); Prior was revised to 0.5% from 0.6%, September PCE Prices 0.3% (Briefing.com consensus 0.3%); Prior 0.3%, September PCE Prices - Core 0.2% (Briefing.com consensus 0.3%); Prior 0.2%
  • The key takeaway from the report is that it revealed a very sticky inflation component that remains well above the Fed's 2.0% inflation target. That likely won't prevent the Fed from cutting rates next week, but it will likely factor into a "hawkish cut," as the Fed implies it will be inclined to wait longer for the next rate cut.
• October Factory Orders DELAYED (Briefing.com consensus -0.3%)
• December Univ. of Michigan Consumer Sentiment - Prelim 53.3 (Briefing.com consensus 52.0); Prior 51.0
  • The key takeaway from the report is its note that consumers' overall view can still be thought of as broadly somber, notwithstanding the month-over-month increase, due to the burden of high prices.
• Consumer credit increased by $9.2 billion in October (Briefing.com consensus: $9.8 billion) following a downwardly revised $11.0 billion increase (from $13.0 billion) in September.
  
  • The key takeaway from the report is that the expansion in consumer credit in October was paced by revolving credit, which could be construed as a sign of consumers leaning more on credit cards to fund spending needs due to disposable income being pinched by higher prices (and missing paychecks for some during the government shutdown).

[BRIEFING.COM] The major averages are little changed from previous levels just before the close. 

Consumer credit increased by $9.2 billion in October (Briefing.com consensus: $9.8 billion) following a downwardly revised $11.0 billion increase (from $13.0 billion) in September.

The key takeaway from the report is that the expansion in consumer credit in October was paced by revolving credit, which could be construed as a sign of consumers leaning more on credit cards to fund spending needs due to disposable income being pinched by higher prices (and missing paychecks for some during the government shutdown).

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.3%), and DJIA (+0.3%) maintain their modest gains with an hour left in this week's action. 

CNBC has provided some color on the widely discussed acquisition of Warner Bros. Discovery (WBD 25.89, +1.35, +5.50%), reporting that Paramount Skydance (PSKY 13.64, -1.18, -8.00%) is mulling taking an offer to the company directly to shareholders. 

Meanwhile, Netflix (NFLX 100.68, -2.54, -2.47%) is confident they will get the regulatory approval needed to make the deal go through. 

[BRIEFING.COM] The S&P 500 (+0.23%) is in last place on Friday afternoon, up about 15 points.

Briefly, S&P 500 constituents Dollar Tree (DLTR 125.49, +9.62, +8.30%), Moderna (MRNA 27.50, +2.01, +7.89%), and Omnicom (OMC 74.21, 4.04, +5.76%) pepper the top of the standings.  DLTR and MRNA move higher despite a dearth of corporate news, DLTR hitting a year-and-a-halt high for good measure, while OMC rallies in part based on a UBS target raise to $108 from $99.

Meanwhile, W.R. Berkley (WRB 67.63, -3.24, -4.57%) is one of today's worst performers, continuing its recent losses amid news that Mitsui Sumitomo Insurance Co., Ltd. acquired beneficial ownership of at least 12.5% of the Company's outstanding common stock; losses pile on today as investors may see the MSI purchase as already expected and offering limited new strategic upside, while recent analyst downgrades highlight weakening fundamentals and an overextended valuation.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (+0.28%) is in second place on Friday afternoon, up about 67 points.

Gold futures settled flat at $4,243.00/oz, on Friday but logged a modest weekly gain (+0.66%) as a softer U.S. dollar and growing expectations for Fed rate cuts continued to underpin the yellow metal. Traders stayed cautious ahead of upcoming U.S. inflation data, which could recalibrate those rate-cut bets and set the next direction for bullion.

Meanwhile, the U.S. Dollar Index is down less than -0.1% to $98.99.

[BRIEFING.COM] The Dow Jones Industrial Average (+0.38%) is in first place on Friday afternoon, up about 180 points.

A look inside the DJIA shows that Salesforce (CRM 260.91, +13.45, +5.44%), Goldman Sachs (GS 855.02, +17.19, +2.05%), and Visa (V 333.20, +6.10, +1.86%) are some of today's top gain getters.

Meanwhile, Amgen (AMGN 331.78, -8.38, -2.46%) is underperforming.

The DJIA is now +0.66% higher week-to-date.

Also, at the top of the hour, Baker Hughes (BKR 49.94, -0.67, -1.32%) announced a weekly U.S. rotary rig count of 549, +5 w/w and -40 yr/yr.

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.3%), and DJIA (+0.3%) trade in a stable range with modest gains in a similar fashion to yesterday's action. 

Investors eagerly anticipated this morning's delayed release of the September PCE Price Index (0.3%; Briefing.com consensus: 0.3%) and Personal Income (0.4%; Briefing.com consensus: 0.4%) and Spending (0.3%; Briefing.com consensus: 0.4%) data. Ultimately, the data was relatively in line with expectations and did little to move the major averages or the market's high expectations for a rate cut in December and low expectations for an additional cut in January. 

The communications services sector (+0.8%) is ta standout among the eight S&P 500 sectors that trade higher, receiving the bulk of today's mega-cap strength amid a day of mixed performances that has the Vanguard Mega Cap Growth ETF up just 0.2%. 

Meta Platforms (META 673.15, +11.62, +1.76%) continues to rally after Bloomberg reported yesterday that the company is considering up to 30% budget cuts for its metaverse group, which will allow the company to redeploy billions of dollars into higher ROI AI projects. 

Meanwhile, Alphabet (GOOG 321.62, +3.23, +1.01%) rebounded nicely from yesterday's retreat. 

The sector is also home to today's hottest corporate news item, as Netflix (NFLX 99.53, -3.69, -3.58%) entered into an agreement to acquire Warner Bros. Discovery (WBD 25.01, +0.47, +1.90%) in a cash and stock transaction worth $72 billion. Paramount Skydance (PSKY 13.60, -1.22, -8.20%), which also submitted a bid for WBD, is a laggard in response to the news.

Elsewhere, the information technology sector (+0.4%) adds to strength despite weakness in its largest components. 

The defensive utilities (-0.6%) and health care (-0.4%) sectors lag, while the industrials sector (-0.3%) also trades lower. 

Outside of the S&P 500, the Russell 2000 (-0.5%) faces some profit-taking after outperforming in recent sessions. 

Ultimately, the market is in the midst of yet another slow, meandering trade. With few fresh catalysts on the docket, the market appears content to mark time as participants wait for clarity from next week's FOMC decision.

Reviewing today's data:

• September Personal Income 0.4% (Briefing.com consensus 0.4%); Prior 0.4%, September Personal Spending 0.3% (Briefing.com consensus 0.4%); Prior was revised to 0.5% from 0.6%, September PCE Prices 0.3% (Briefing.com consensus 0.3%); Prior 0.3%, September PCE Prices - Core 0.2% (Briefing.com consensus 0.3%); Prior 0.2%
  • The key takeaway from the report is that it revealed a very sticky inflation component that remains well above the Fed's 2.0% inflation target. That likely won't prevent the Fed from cutting rates next week, but it will likely factor into a "hawkish cut," as the Fed implies it will be inclined to wait longer for the next rate cut.
• October Factory Orders DELAYED (Briefing.com consensus -0.3%)
• December Univ. of Michigan Consumer Sentiment - Prelim 53.3 (Briefing.com consensus 52.0); Prior 51.0
  • The key takeaway from the report is its note that consumers' overall view can still be thought of as broadly somber, notwithstanding the month-over-month increase, due to the burden of high prices.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.1%) approach their flatlines as gains narrow in today's advancing sectors. 

The information technology sector (+0.1%) is nearing its unchanged level as mega-cap weakness weighs against strength in the sector's chipmaker components. 

Despite NVIDIA's (NVDA 181.83, -1.55, -0.85%) loss, the PHLX Semiconductor Index is still up a solid 1.4%, widening its week-to-date gains past 4.0%.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.3%), and DJIA (+0.2%) hold modest gains at midday amid what is becoming another relatively uneventful session. 

Similar to yesterday's action, breadth figures are nearly even, with advancers outpacing decliners by a slim 7-to-6 margin on the NYSE while decliners outpace advancers by just a few dozen names on the Nasdaq. 

Eight S&P 500 sectors hold gains, though only the communication services sector (+1.0%) advances more than 0.5%. 

Alphabet (GOOG 322.93, +4.54, +1.43%) bounces off of yesterday's lows, while Meta Platforms (META 672.90, +11.37, +1.72%) continues to rally after Bloomberg reported yesterday that the company is considering slashing the budget of its contentious metaverse group by up to 30%.

[BRIEFING.COM] The S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.3%) hold modest gains just before midday, though stocks are off of their best levels of the morning. The Russell 2000 is flat after several days of outperformance, while the S&P Mid Cap 400 (+0.4%) holds a solid gain. 

Gains in the major averages come on broad strength, with eight S&P 500 sectors trading higher. 

The communication services sector (+0.7%) is near the top of the leaderboard, as Alphabet (GOOG 320.12, +1.73, +0.54%) is one of the best-performing of the mega-cap stocks, which trade in subdued fashion so far.

The sector is home to today's most widely discussed corporate news headline, as Netflix (NFLX 101.87, -1.35, -1.31%) entered into an agreement to acquire Warner Bros. Discovery (WBD 25.50, +0.96, +3.91%) in a cash and stock transaction worth $72 billion. Paramount Skydance (PSKY 13.82, -1.00, -6.71%), which also submitted a bid for WBD, is a laggard in response to the news.

Meanwhile, the defensive utilities (-0.7%) and health care (-0.3%) sectors trade lower, while the industrials sector (-0.2%) faces some profit-taking after recent outperformance. 

Stocks were little changed following the delayed release of the September PCE report that saw inflation remain higher than the Fed's target, though it has not yet had an effect on the market's expectations for a December rate cut. 

Still, gains are narrowing after a higher opening, suggesting that the market may be in store for another sideways drift ahead of next week's FOMC decision. 

[BRIEFING.COM] The major averages maintain their early gains following a sizable batch of economic data this morning. 

On the earnings front, Ulta Beauty (ULTA 610.18, +76.23, +14.28%) is the best-performing S&P 500 stock after reporting its Q3 (Oct) results last night, reaching a new all-time high. The beauty retail giant comfortably beat expectations on the top and bottom line, continuing its streak of large double-digit EPS upside, while revenue increased 12.9% to $2.86 billion, its strongest growth in nearly three years. It also raised its full-year guide for EPS and revenue above expectations to $25.20-25.50 and about $12.3 billion, respectively, as well as comp sales to +4.4-4.7%.

Meanwhile, Paramount Skydance (PSKY 13.78, -1.04, -7.02%) is at the bottom of today's standings after losing out in the bidding war for Warner Bros. Discovery (WBD 25.40, +0.86, +3.52%) to Netflix (NFLX 102.41, -0.81, -0.78%).

[BRIEFING.COM] The S&P 500 (+0.5%), DJIA (+0.5%), and Nasdaq Composite (+0.7%) maintain solid gains as mega-cap and growth stocks provide solid leadership against a backdrop of broad participation.

Personal income increased 0.4% month-over-month in September (Briefing.com consensus: 0.4%) following a 0.4% increase in August. Personal spending jumped 0.3% month-over-month (Briefing.com consensus: 0.4%) following a downwardly revised 0.5% increase (from 0.6%) in August. Real PCE, though, was flat.

The PCE Price Index was up 0.3% month-over-month, as expected, and the core PCE Price Index, which excludes food and energy, was up 0.2% (Briefing.com consensus: 0.3%). On a year-over-year basis, the PCE Price Index was up 2.8%, versus 2.7% in August and 2.3% in April, and the core PCE Price Index was up 2.8%, versus 2.9% in August and 2.6% in April.

The key takeaway from the report is that it revealed a very sticky inflation component that remains well above the Fed's 2.0% inflation target. That likely won't prevent the Fed from cutting rates next week, but it will likely factor into a "hawkish cut," as the Fed implies it will be inclined to wait longer for the next rate cut.

The preliminary University of Michigan Consumer Sentiment reading for December increased to 53.3 (Briefing.com consensus: 52.0) from the final reading of 51.0 for November. In the same period a year ago, the index stood at 74.0.

The key takeaway from the report is its note that consumers' overall view can still be thought of as broadly somber, notwithstanding the month-over-month increase, due to the burden of high prices.

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.5%), and DJIA (+0.6%) hold gains shortly after the open as ten S&P 500 sectors trade higher.

The communication services sector (+0.9%) is an early standout as Alphabet (GOOG 322.66, +4.27, +1.34%) rebounds from yesterday's weakness. 

Netflix (NFLX 102.45, -0.77, -0.75%) has pared the majority of its premarket loss that surpassed 4.0%. The company entered into an agreement to acquire Warner Bros. Discovery (WBD 25.30, +0.76, +3.12%) in a cash and stock transaction worth $72 billion. 

Just released, personal income increased 0.4% month-over-month in September (Briefing.com consensus: 0.4%) following a 0.4% increase in August.

Personal spending jumped 0.3% month-over-month (Briefing.com consensus: 0.4%) following a downwardly revised 0.5% increase in August (from 0.6%).

The PCE Price Index was up 0.3% month-over-month (Briefing.com consensus: 0.3%) from a 0.3% increase in August.

The Core PCE Price Index was up 0.2% (Briefing.com consensus: 0.3%) from a 0.2% increase in August.

The preliminary December University of Michigan Consumer Sentiment Index registered at 53.3 (Briefing.com consensus 52.0) from a final November reading of 51.0.

The stock market is now on track for a mixed opening as investors await key data releases after the open. In addition to the delayed release of the September Personal Income/Outlays report, the market is set to receive the preliminary reading of the University of Michigan Consumer Sentiment Index at 10:00 a.m. ET (Briefing.com consensus 52.0).

The major averages enter today's session with modest week-to-date gains, with much of the week spent ticking steadily higher after a retreat on Monday.

The S&P 500 futures currently trade one point below fair value.

Equity indices in the Asia-Pacific region had a mostly higher finish to the week. JGBs faced more pressure with yields on the 20-yr and shorter tenors hitting fresh highs for the year even though the Household Spending report for October (-3.5% m/m; expected 0.7%) showed a sharp unexpected drop in spending. The report had little impact on the market's rate hike expectations. In addition, there was press speculation that a December hike from the Bank of Japan could be followed by more rate hikes next year. State-owned banks in China are reportedly purchasing dollars at their fastest pace in 14 months to counter recent yuan strength. The Reserve Bank of India left its policy rate at 5.25%, as expected.

• In economic data:
  • Japan's October Household Spending -3.5% m/m (expected 0.7%; last -0.7%); -3.0% yr/yr (expected 1.1%; last 1.8%). October Leading Index 110.0 (expected 109.3; last 108.6) and Coincident Indicator 0.5% m/m (expected 1.8%; last 1.7%)
  • South Korea's October Current Account surplus $6.81 bln (last surplus of $13.47 bln)
  • Singapore's October Retail Sales 2.3% m/m (last -1.7%); 4.5% yr/yr (last 2.7%)

---Equity Markets---

• Japan's Nikkei: -1.1% 
• Hong Kong's Hang Seng: +0.6%
• China's Shanghai Composite: +0.7%
• India's Sensex: +0.5%
• South Korea's Kospi: +1.8%
• Australia's ASX All Ordinaries: +0.2%

Major European indices trade in the green after the release of slightly better-than-expected growth and employment figures for Q3. French President Macron said that he is looking to eliminate trade restrictions between France and China. German Chancellor Merz is struggling to convince his coalition members to support a pension bill that has faced heavy opposition.

• In economic data:
  • Eurozone's Q3 GDP 0.3% qtr/qtr (expected 0.2%; last 0.1%); 1.4% yr/yr, as expected (last 1.5%). Q3 Employment Change 0.2% qtr/qtr (expected 0.1%; last 0.1%); 0.6% yr/yr (expected 0.5%; last 0.7%)
  • Germany's October Factory Orders 1.5% m/m (expected 0.3%; last 2.0%)
  • U.K.'s November Halifax House Price Index 0.0% m/m (expected 0.2%; last 0.5%); 0.7% yr/yr (last 1.9%)
  • France's October Industrial Production 0.2% m/m (expected -0.1%; last 0.7%). October trade deficit EUR3.9 bln (expected deficit of EUR6.8 bln; last deficit of EUR6.4 bln). October Current Account surplus EUR1.10 bln (last deficit of EUR1.60 bln)
  • Italy's October Retail Sales 0.5% m/m (expected 0.4%; last -0.4%); 1.3% yr/yr (last 0.7%)
  • Spain's October Industrial Production 1.2% yr/yr (last 1.5%)

---Equity Markets---

• STOXX Europe 600: +0.2%
• Germany's DAX: +0.7%
• U.K.'s FTSE 100:  flat
• France's CAC 40: flat
• Italy's FTSE MIB: +0.2% 
• Spain's IBEX 35: +0.1% 

The S&P 500 futures currently trade points above fair value. 

Paramount Skydance (PSKY 14.50, -0.32, -2.2%) is lower in the premarket after Netflix (NFLX 98.85, -4.37, -4.2%) emerged as the winner in the bidding war for Warner Bros. Discovery (WBD 24.53, -0.01, -0.0%). 

Netflix will acquire WBD for $27.75 per share, or $72 billion, in a cash and stock transaction. Under the agreement, Netflix will acquire Warner Bros., including its film and television studios, HBO Max and HBO.

Equity futures point to a modestly higher opening after an underwhelming low-volume session yesterday. 

The major averages finished mixed, but "flat" would be a better descriptor of the action that saw the indices stay in a tight range near their unchanged levels. 

Today's action promises to have at least a handful of catalysts, the most notable coming in the form of the 10:00 a.m. ET release of the September PCE Index (Briefing.com consensus 0.3%). Though the data is older due to the government shutdown, it will be the last inflation report the market receives before next week's FOMC decision.

Contrary to former comments from Fed Chair Jerome Powell, the market is now viewing a December rate cut as a foregone conclusion, with the CME FedWatch tool assigning an 87.2% probability to 25 basis point cut next week.

Particular attention will be paid to the movement of January's rate cut odds, which stand at just 25.1% currently.

On the corporate front, the bidding war for Warner Bros. Discovery (WBD 25.02, +0.48, +2.0%) has come to a close, with Netflix (NFLX 100.85, -2.37, -2.3%) emerging as the victor after recent reports recently suggested the company was a frontrunner. 

In corporate news:

• Hewlett Packard Enterprise (HPE 20.95, -1.95, -8.5%) beat EPS expectations by $0.04, missed revenue expectations, guided Q1 EPS above consensus, guided revenues below consensus, raised its FY26 EPS guidance, and reaffirmed its FY26 revenue guidance.
• Humana (HUM 258.83, +5.81, +2.3%) was upgraded to Buy from Hold at Jefferies, with a target of $313.
• Netflix (NFLX 100.85, -2.37, -2.3%) has entered into a definitive agreement to acquire Warner Bros. Discovery (WBD 25.02, +0.48, +2.0%) for $27.75 per share.
• Tesla (TSLA 454.44, -0.04, -0.0%) to introduce a lower-cost vehicle in Europe, according to Reuters. 

Reviewing overnight developments: 

Equity indices in the Asia-Pacific region had a mostly higher finish to the week. Japan's Nikkei: -1.1%, Hong Kong's Hang Seng: +0.6%, China's Shanghai Composite: +0.7%, India's Sensex: +0.5%, South Korea's Kospi: +1.8%, Australia's ASX All Ordinaries: +0.2%.

In news:

• JGBs faced more pressure with yields on the 20-yr and shorter tenors hitting fresh highs for the year even though the Household Spending report for October (-3.5% m/m; expected 0.7%) showed a sharp unexpected drop in spending. The report had little impact on the market's rate hike expectations.
• In addition, there was press speculation that a December hike from the Bank of Japan could be followed by more rate hikes next year.
• State-owned banks in China are reportedly purchasing dollars at their fastest pace in 14 months to counter recent yuan strength.
• The Reserve Bank of India left its policy rate at 5.25%, as expected.

In economic data:

• Japan's October Household Spending -3.5% m/m (expected 0.7%; last -0.7%); -3.0% yr/yr (expected 1.1%; last 1.8%). October Leading Index 110.0 (expected 109.3; last 108.6) and Coincident Indicator 0.5% m/m (expected 1.8%; last 1.7%)
• South Korea's October Current Account surplus $6.81 bln (last surplus of $13.47 bln)
• Singapore's October Retail Sales 2.3% m/m (last -1.7%); 4.5% yr/yr (last 2.7%)

Major European indices trade in the green after the release of slightly better-than-expected growth and employment figures for Q3. STOXX Europe 600: +0.4%, Germany's DAX: +0.6%, U.K.'s FTSE 100: flat, France's CAC 40: +0.2%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.1%.

In news:

• French President Macron said that he is looking to eliminate trade restrictions between France and China.
• German Chancellor Merz is struggling to convince his coalition members to support a pension bill that has faced heavy opposition.

In economic data:

• Eurozone's Q3 GDP 0.3% qtr/qtr (expected 0.2%; last 0.1%); 1.4% yr/yr, as expected (last 1.5%). Q3 Employment Change 0.2% qtr/qtr (expected 0.1%; last 0.1%); 0.6% yr/yr (expected 0.5%; last 0.7%)
• Germany's October Factory Orders 1.5% m/m (expected 0.3%; last 2.0%)
• U.K.'s November Halifax House Price Index 0.0% m/m (expected 0.2%; last 0.5%); 0.7% yr/yr (last 1.9%)
• France's October Industrial Production 0.2% m/m (expected -0.1%; last 0.7%). October trade deficit EUR3.9 bln (expected deficit of EUR6.8 bln; last deficit of EUR6.4 bln). October Current Account surplus EUR1.10 bln (last deficit of EUR1.60 bln)
• Italy's October Retail Sales 0.5% m/m (expected 0.4%; last -0.4%); 1.3% yr/yr (last 0.7%)
• Spain's October Industrial Production 1.2% yr/yr (last 1.5%)

[BRIEFING.COM] The S&P 500 (+0.1%), Nasdaq Composite (+0.2%), and DJIA (-0.1%) spent the session in a tight range near their unchanged levels amid a lack of notable developments today. 

Tight breadth figures (decliners outpaced advancers by a roughly 7-to-6 margin on the NYSE while advancers held a roughly 3-to-2 advantage on the Nasdaq) and nearly even sector strength culminated in a sideways drift for the major averages today. 

The health care sector (-0.7%) finished tied for the widest loss today, highlighting the modesty of today's moves at both the sector and the index level. 

The consumer staples sector (-0.7%) also lagged despite Dollar General (DG 125.21, +15.32, +13.94%) finishing as the best-performing S&P 500 name after a strong beat-and-raise Q3 earnings report, while a 0.2% loss in the utilities sector rounds out a weak day for defensive sectors.

Meanwhile, the consumer discretionary sector (-0.5%) faced pressure in its homebuilder names, which saw the iShares U.S. Home Construction ETF (-2.1%) give back yesterday's gain, while Amazon (AMZN 229.11, -3.27, -1.41%) was a laggard across mega-cap stocks.

The mega-cap cohort saw some notable stock-specific moves, both higher and lower, which ultimately canceled each other out to a flattish finish for the Vanguard Mega Cap Growth ETF (+0.1%).

Meta Platforms (META 661.53, +21.93, +3.43%) was a standout, trading higher after Bloomberg reported that the company is considering slashing its budget for its metaverse group by up to 30% next year. The potential budget cuts signal a strategic pivot, freeing up billions to reinvest in higher-ROI AI projects that are proving more effective at driving revenue and profits.

Despite Meta's advance, a loss in Alphabet (GOOG 318.39, -2.23, -0.70%) kept gains modest in the communication services sector (+0.4%), though it still finished near the top of today's underwhelming leaderboard.

The information technology sector (+0.4%) also managed a modest gain despite mixed performances across its mega-cap components. Apple (AAPL 280.70, -3.45, -1.21%) finished lower, while NVIDIA (NVDA 183.46, +3.87, +2.15%) notched a solid gain despite relative weakness across chipmakers.

The PHLX Semiconductor Index (-0.9%) hit session lows late in the afternoon after Reuters reported that bipartisan senators have introduced a bill that will block the Trump administration from removing chip export restrictions to China. Intel (INTC 40.50, -3.26, -7.45%) was the worst-performing S&P 500 name today. 

Elsewhere in the sector, Salesforce (CRM 247.65, +8.93, +3.74%) traded higher after topping earnings expectations and issuing upbeat guidance, while Sandisk (SNDK 213.31, +18.93, +9.74%) recaptured some of its losses from recent sessions. 

Outside of the S&P 500, the Russell 2000 (+0.7%) continued its run of outperformance this week as the market remains expectant that the Fed will deliver a rate cut at next week's FOMC meeting. 

With that backdrop, the major averages are maintaining their modest week-to-date gains heading into Friday's session. Attention now turns to tomorrow's release of the September PCE Price Index (Briefing.com consensus 0.3%), though it's unlikely to sway sentiment in a meaningful way given that expectations for a rate cut at next week's FOMC meeting are already almost fully priced in. However, the data could influence the expected policy path for early 2026, as the market largely anticipates a "hawkish cut" next week that would dampen expectations for an additional move in January.

U.S. Treasuries retreated on Thursday, lifting yields back to their highest levels of the week. The 2-year note yield settled up four basis points to 3.53%, and the 10-year note yield settled up five basis points to 4.11%.

• Nasdaq Composite: +21.7% YTD
• S&P 500: +16.6% YTD
• Russell 2000: +13.5% YTD
• DJIA: +12.5% YTD
• S&P Mid Cap 400: +6.3% YTD

Reviewing today's data:

• Weekly Continuing Claims 1.939 mln; Prior was revised to 1.943 mln from 1.960 mln, Weekly Initial Claims 191K (Briefing.com consensus 220K); Prior was revised to 218K from 216K
  • The key takeaway from the report is initial claims dropped to their lowest level in nearly two years, which is an encouraging sign about the health of a labor market at a time when visibility remains reduced due to some missing Employment Situation reports from the BLS.
• October Trade Balance DELAYED (Briefing.com consensus -$61.3 bln); Prior -$59.6 bln
• September Factory Orders 0.2%; Prior was revised to 1.3% from 1.4%
  • The key takeaway from the report is that orders increased again in September despite a big jump in August with new orders for nondefense capital goods excluding aircraft, which is a proxy for business spending, jumping 0.9% for the second month in a row.