On December 6, US stocks closed higher, with all three major indices recording weekly gains. The S&P 500 marked its ninth advance in the past 10 trading sessions. US consumer spending in September showed minimal growth, while core PCE inflation met expectations, and the University of Michigan's December consumer sentiment index exceeded forecasts. Netflix and Warner Bros. Discovery reached a $72 billion acquisition deal.
The Dow Jones Industrial Average rose 104.05 points, or 0.22%, to close at 47,954.99. The Nasdaq Composite gained 72.99 points, or 0.31%, ending at 23,578.13. The S&P 500 added 13.28 points, or 0.19%, settling at 6,870.40.
For the week, all three major indices posted gains: the S&P 500 rose 0.31%, while the Nasdaq and Dow climbed 0.9% and 0.5%, respectively. The S&P 500 has now advanced in nine of the past 10 trading days.
Streaming giant Netflix announced a $72 billion deal to acquire Warner Bros. Discovery's film and streaming assets, expected to close within 12 to 18 months. Shares of Warner Bros. Discovery rose over 2%.
A senior White House official stated on Friday that the Trump administration viewed the deal with "high skepticism," causing Netflix's stock to recover from intraday lows.
Traders are closely monitoring economic data ahead of the November nonfarm payrolls report, scheduled for release after the Federal Reserve's December 10 meeting.
In the previous session, the S&P 500 and Nasdaq edged higher, while the Dow closed slightly lower. The tech-heavy Nasdaq logged its eighth gain in nine sessions, buoyed by Meta's 3.4% rise and Nvidia's 2.1% increase.
Earlier on Thursday, investors digested a report from Challenger, Gray & Christmas, which showed November layoffs pushed annual job cuts above 1 million, citing corporate restructuring, AI, and tariffs as key factors.
The latest weekly jobless claims data revealed new unemployment filings at their lowest since September 2022, though this did not alter market expectations for the Fed's stance.
Investors hope signs of a softening labor market will prompt the Fed to cut its benchmark rate by 25 basis points at its next meeting. According to the CME FedWatch Tool, traders now price in an 87% chance of a rate cut next Wednesday, significantly higher than weeks prior. The key federal funds rate target stands at 3.75%-4%, trading near the upper end due to ongoing short-term funding pressures.
Sonali Basak, Chief Investment Strategist at iCapital, noted, "The data is mixed, sending conflicting signals. Inflation remains sticky, and 2026 inflation is uncertain. Meanwhile, the labor market maintains a 'low-hiring, low-firing' balance. If this equilibrium breaks, next year could become quite challenging."
**US Consumer Spending Stalls in September; December Sentiment Beats Expectations** US consumer spending stalled in September, suggesting Americans tightened budgets ahead of a government shutdown amid persistent inflation.
Price-adjusted spending showed almost no change in September, with August's growth revised down to 0.2%, according to the Bureau of Economic Analysis. The report, originally due October 31, was delayed by the shutdown.
The core PCE price index, excluding food and energy, rose 0.2% month-over-month and 2.8% year-over-year. The BEA has not yet rescheduled the next data release.
Slower spending indicates the economy's main growth engine was decelerating before the October 1 shutdown—the longest in history. More recent data points to solid Black Friday sales, though concerns over the job market persist, with spending driven largely by wealthier households.
Separately, the University of Michigan's consumer sentiment index rose in early December for the first time in five months, reflecting improved inflation expectations and brighter personal finance outlooks. The preliminary December reading climbed to 53.3 from November's 51, beating expectations. Economists had forecast a median of 52, with estimates ranging from 50 to 55.
Both inflation expectation measures hit January lows. The current economic conditions index fell to a record low of 50.7, while the expectations index rose to 55. The one-year inflation outlook dropped to 4.1%, and the five-to-ten-year expectation declined to 3.2%.
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