Traders work on the floor of the New York Stock Exchange (NYSE) on Nov. 21, 2025 in New York City.
Spencer Platt | Getty Images
The S&P 500 edged higher on Friday, on pace for its fourth straight winning day, as traders digested inflation data that could provide further incentive for the Federal Reserve to lower interest rates next week
The broad market index closed 0.19% higher at 6,870.40, putting the index about 0.7% off its intraday record. The Nasdaq Composite increased 0.31% to settle at 23,578.13, while the Dow Jones Industrial Average climbed 104 points, or 0.22%, to end the day at 47,954.99.
The market sorted through a fresh slate of economic releases Friday. The Commerce Department said that the core personal consumption expenditures price index for September – which was delayed due to the record-setting U.S. government shutdown – showed an annual rate of 2.8%, lower than the 2.9% Dow Jones estimate. Core PCE’s 0.2% rise on the month was in line with expectations, as were the monthly and annual inflation readings for headline PCE.
Also on Friday, the University of Michigan’s consumer survey, a report that provides a glimpse at sentiment as well as the view on inflation over the near and longer term, came in higher than expected for December.
The PCE report, which serves as the Fed’s primary inflation gauge, gives the central bank its final inflation view before Wednesday’s interest rate vote. With inflation being mild, jobs remains more in focus after recent reports showed signs of weakening in the labor market. Investors are hoping that this will influence the central bank to lower its benchmark rate by a quarter percentage point when it announces the decision Wednesday.
Traders are pricing in an 87% chance of a cut next Wednesday, far higher than just a couple weeks ago, according to the CME FedWatch tool. The key fed funds futures rate is currently targeted between 3.75%-4%, trading near the high end of that range amid ongoing pressures in short-term funding markets.
“I think it really just solidifies what the market’s already been pricing in, which is almost certainty of a cut for next week,” David Krakauer, vice president of portfolio management at Mercer Advisors, told CNBC. “If inflation does continue to stay somewhat relatively tamed and [is] potentially decreasing, then what’s the outlook for more rate cuts into early next year?”
With expectations running high for a rate cut, Krakauer doesn’t necessarily believe that it will serve as a catalyst for stocks to move higher as the new year approaches. That said, he still thinks the market is in a healthy position for some upside, at least enough to reach new highs on the S&P 500.
“It may be a steady move, it may be a choppy move, but I certainly see the path for equities forward as being very positive,” he said.
Stocks are tracking to post gains for the week. The S&P 500 is up 0.4% week to date, while the Nasdaq and 30-stock Dow have added almost 1% and 0.6%, respectively. Notably, small-cap stocks have been outperforming the broader market in the weekly period, with the Russell 2000 index advancing 1.1%.
During Friday’s trading session, Netflix shares seesawed after initially seeing sizable losses earlier in the day following the company’s announcement that it struck a deal with Warner Bros. Discovery to buy its film and streaming assets for $72 billion — a transaction that’s expected to close in 12 to 18 months. Netflix shares were last 2% lower, while shares of WBD jumped 5%.
The streaming giant’s stock came off its lows of the session after a senior administration official told CNBC that the Trump administration views the deal with “heavy skepticism.”
Salesforce shares head for best week in 2 years
Salesforce shares popped 5% on Friday after the company posted better-than-expected third-quarter earnings on Wednesday despite falling short of Wall Street’s revenue estimates.
The stock, which is up 13% over the past five days, is aiming for its best week since 2023. Read more.
CRM, 5-day
— Jaures Yip
$94 billion technology ETF gains for 10th day, on pace for longest rally since 2020
The SPDR S&P Information Technology Fund (XLK) is rising for a 10th day Friday, on pace for its its longest daily advance since September 2020. The $94 billion fund is higher by more than 2% this week, outperforming the broad market and second only to the energy sector of the 11 major groups in the S&P 500.
The largest tech stocks are not leading the way Friday, (bearing in mind that both Alphabet and Meta Platforms are in S&P’s Communications Services group rather than tech).
Instead, SanDisk (SNDK), Salesforce (CRM), Adobe (ADBE), Micron Technology (MU) and Intel (INTC), are all up 4% or more on the day. Week to date, Microchip Technology (MCHP), NXP Semiconductors (NXPI), AppLovin (APP), Salesforce and Synopsys (SNPS) are leading.
— Nicholas Wells, Scott Schnipper
Unity Software shares pop following Wells Fargo upgrade
Unity Software shares added more than 3% on Friday after Wells Fargo moved off the sidelines.
Analyst Alec Brondolo upgraded his rating to overweight from equal weight and lifted his price target by $9 to $51. With that, Brondolo now expects the video game stock to rise 15.5% from Thursday’s closing level.
Brondolo said the company should be helped by 2026 being “another torrid year” for user acquisition growth in the industry. He also said Unity is “positioned to benefit directly from mobile app payment migration.”
Unity Software, 1-day
— Alex Harring
UBS upgrades Albemarle to buy, sees more than 50% upside
The Albemarle lithium processing facility in Kings Mountain, North Carolina, US, on Wednesday, Aug. 10, 2022.
Logan Cyrus | Bloomberg | Getty Images
UBS has upgraded Albemarle to buy on the expectation that lithium prices will increase next year.
“We see a combination of higher energy storage demand and years of slower western capacity additions now pushing lithium markets into deficit in 2026,” analysts led by Joshua Spector told clients in a Thursday note.
“We expect lithium prices to move up through the year which should be a positive driver for ALB stock,” Spector said.
UBS raised its price target for Albemarle to $185 per share, suggesting 55% upside from Thursday’s close.
— Spencer Kimball
BP downgraded to underperform by Bank of America
Bank of America has downgraded BP to underpeform and slashed its price target for the oil major.
“We believe BP’s share price recovery from the lows reached in early 2025 has largely benefited from the triumph of sentiment over fundamentals,” analysts led by Christopher Kuplent told clients in a Friday note.
“However, we believe significant execution risks from delivering BP’s positive narrative into value creation on the ground remain – and are no longer adequately reflected in BP’s share price,” Kuplent said.
BofA cut its price target for BP to $30 per share, suggesting 19% downside from Thursday’s close.
— Spencer Kimball
32 stocks in the S&P 500 trade at new 52-week highs
On Friday, 32 stocks in the S&P 500 traded at new 52-week highs.
Names that hit this milestone included:
- Electronic Arts trading at all-time high levels back to its IPO in 1989
- Warner Bros. Discovery trading at levels not seen since April 2022
- General Motors trading at all-time highs back to the “new” GM IPO in November 2010
- Estee Lauder trading at levels not seen since July 2024
- Bank of America trading at levels not seen since December 2006
- Goldman Sachs trading at all-time high levels back to its IPO in May 1999
- Caterpillar trading at all-time high levels back to when it first began trading on the NYSE in 1929
- Southwest trading at levels not seen since July 2023
- Applied Materials trading at all-time high levels back to its IPO in October 1972
- Walmart Stores trading at all-time high levels back to when it first began trading on the NYSE in August 1972
- Dollar Tree trading at levels not seen since April 2024
The five stocks in the benchmark trading at 52-week lows were:
- McCormick trading at lows not seen since October 2023
- Linde trading at lows not seen since February 2024
- Alexandria Real Estate Equities trading at lows not seen since August 2009
- Invitation Homes trading at lows not seen since November 2020
- VICI Properties (VICI) trading at lows not seen since July 2024
— Christopher Hayes, Lisa Kailai Han
Individual investors are the least bearish since January, AAII weekly survey shows
Mom-and-pop investors are the least bearish on the six-month outlook for stocks than at any time since last January, according to the latest weekly poll by the American Association of Individual Investors.
Only 30.8% of those surveyed said they were bearish in the latest week, down 11.9 points from 42.7% last week, and also the first time that pessimism fell below its historical average of 31.0% since last January.
Optimism about the immediate outlook for stocks jumped 12.3 points to 44.3%, up from just 32.0% last week and the first time the measure was above the historical average of 37.5% for optimists in four weeks.
The percentage of investors describing themselves as neutral — believing stocks won’t do much either way over the next six months — fell to 24.9% from 25.3%, meaning that such sentiment is below its historical average of 31.5% for the 72nd week out of 74, AAII said.
— Scott Schnipper
Jefferies sees more than 20% upside ahead for Humana
Jefferies has turned bullish on Humana, upgrading the stock to buy from hold on Friday. The firm also raised its price target to $313, implying nearly 24% upside from Thursday’s close.
Analyst Steven Couche expects the insurer’s efforts to diversify its Medicare Advantage star ratings to push earnings higher.
“The biggest mover is the significant growth for HUM in >4* plans, which is outpacing both the market’s and our original expectations,” he wrote in a note to clients. “The company confirmed that the vast majority of that business is being written in a 4* contract, and in fact a 4.5* contract (which edges up the economic benefit a tad more…~1%).”
Shares were up more than 2% in morning trading.
— Michelle Fox
Core inflation rate comes in lower than expected, delayed September data shows
A customer with a loaded shopping cart of groceries at a Walmart Supercenter retail store in North Bergen, New Jersey, U.S., Nov. 21, 2025.
Mike Segar | Reuters
A key inflation measure was lower than expected in September, the Commerce Department said Friday in a report delayed by the government shutdown that gives a further green light for the Federal Reserve to lower interest rates.
The core personal consumption expenditures price index, which excludes volatile food and energy prices, indicated a 0.2% monthly rise while the annual rate was 2.8%. The monthly rate was in line with the Dow Jones consensus, but the annual level was 0.1 percentage point lower. The core annual rate edged down from 2.9% in August.
In addition, headline PCE increased 0.3% for the month, putting the annual inflation rate also at 2.8%, according to the department’s Bureau of Economic Analysis. Both of those readings were in line with expectations though the annual rate was up 0.1 percentage point from August. Read more.
— Jeff Cox
Trump administration views Netflix-Warner Bros. deal with ‘heavy skepticism,’ according to senior White House official
US President Donald Trump during an announcement in the Oval Office of the White House in Washington, DC, US, on Wednesday, Dec. 3, 2025.
Will Oliver | Bloomberg | Getty Images
Stocks open higher
The three major averages traded in the green on Friday morning.
The S&P 500 rose 0.3% shortly after the opening bell, while the Nasdaq Composite gained 0.5%. Meanwhile, the Dow Jones Industrial Average climbed 82 points, or 0.2%.
— Sean Conlon
‘The math is going to hurt Netflix for a while,’ LightShed’s Rich Greenfield says
The Netflix logo is seen on a TV remote controller in this photo taken on Jan. 20, 2022.
Dado Ruvic | Reuters
Shares of Netflix fell 3% in premarket trading Friday as investors digested the streaming giant’s blockbuster agreement to acquire pieces of Warner Bros. Discovery.
Rich Greenfield, LightShed Partners co-founder, believes the economics of the transaction are likely to weigh on Netflix before they help in the long term.
“Look, the math is going to hurt Netflix for a while. There’s no doubt,” Greenfield said Friday on CNBC’s “Squawk Box.” “This is expensive. They think this is accretive in year two. Obviously, we have to understand how they get there, but maybe it’s just that there’s so much stuff that they can turbocharge.”
“This is a huge price, and I don’t see how Paramount can top this bid. This seems like a number that is just too big,” he added.
— Yun Li
Southwest Airlines shares fall after carrier slashes outlook
A Southwest Airlines plane takes off from Minneapolis–Saint Paul International Airport in Minneapolis, Minnesota, U.S., November 7, 2025.
Tim Evans | Reuters
Southwest Airlines cut its 2025 earnings forecast on Friday, citing a demand dip during the federal government shutdown, the longest ever.
The carrier said it expects 2025 earnings before interest and taxes of about $500 million, down from a previous forecast of $600 million to $800 million, because of lower revenue in the shutdown and higher fuel prices.
“Following the temporary decline in demand related to the shutdown, bookings have returned to previous expectations,” Southwest said in a securities filing. Read more.
LUV, 1-day
— Leslie Josephs
These stocks are making moves before the bell
Check out the companies making headlines in premarket trading:
- Netflix, Warner Bros. Discovery — Shares of Netflix and Warner Bros. Discovery pulled back almost 3% and roughly 1%, respectively, after the streaming giant said Friday it’s reached a deal to buy WBD for $27.75 per share.
- Rubrik — Shares jumped nearly 19% after the cloud data management company reported a beat on top and bottom lines. For its fiscal third quarter, Rubrik earned 10 cents per share on an adjusted basis on revenue of $350 million. Analysts polled by LSEG expected a loss of 17 cents per share on $320 million in revenue.
- Cooper Companies — Shares of the medical device company surged more than 13% following a strong quarterly earnings report. The company also provided rosy earnings guidance for the full year, while updating long-term free cash flow objective of more than $2.2 billion.
- Ulta Beauty — The stock rose 6% after the personal care retailer raised its full-year sales outlook. Ulta predicts net sales will come in at $12.3 billion for the year, topping its previous forecast of $12 billion to $12.1 billion. Earnings per share are also expected to hit $25.20 to $25.50, marking an increase from the previously expected range of $23.85 to $24.30.
- SoFi Technologies — SoFi’s stock fell 7% after the fintech firm announced an underwritten public offering of $1.5 billion of shares of its common stock.
Read the full list here.
— Liz Napolitano
Most analysts see 20%-plus gain for Meta following its reported metaverse cuts
Across Wall Street, analysts adopted a jovial response after Bloomberg News reported that Meta plans to make cuts to its metaverse unit.
Meta’s stock climbed 5% on Thursday following Bloomberg’s report, which said that executives are considering budget cuts as high as 30% for the unit, citing people familiar with the talks. The cuts would likely hit Meta’s virtual reality group and would likely include layoffs, Bloomberg wrote.
Analysts celebrated the news, saying that it suggested the company’s financial discipline remains in play and that Meta has ensured its continued focus on efficiency and growth.
CNBC Pro subscribers can read more here.
— Lisa Kailai Han
Netflix shares fall after company reaches deal to buy Warner Bros. Discovery
A Netflix logo is pictured in Los Angeles, California, U.S., September 15, 2022.
Mario Anzuoni | Reuters
Netflix announced Friday it’s reached a deal to buy pieces of Warner Bros. Discovery, bringing a swift end to a dramatic bidding process that saw Paramount Skydance and Comcast also vying for the legacy assets.
The transaction is comprised of cash and stock and is valued at $27.75 per WBD share, the companies said. That puts the equity value of the deal at $72 billion, with a total enterprise value of approximately $82.7 billion.
Netflix will acquire WBD’s film studio and streaming service, HBO Max. Warner Bros. Discovery will move forward with its previously planned spin out of Discovery Global, which includes its massive portfolio of pay TV networks, such as TNT and CNN. Read more.
NFLX, 1-day
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become the new parent company of CNBC upon Comcast’s planned spinoff of Versant.
— Sara Salinas
Citigroup advises investors to focus on ‘GARP’ within AI
Investors should turn to less explored pockets of the market to find stocks that are a play on the artificial intelligence boom but also offer growth at a reasonable price (GARP), Citigroup analysts say.
Discernment is growing in the tech sector amid concern of an AI investment bubble, recently driving a wedge between winners and losers. The tech-heavy Nasdaq Composite has lagged behind the S&P 500 over the past month, with November proving a particularly choppy month for tech stocks.
“It’s not really about hedging as much as it is actually stock selecting within AI,” Citigroup U.S. equity strategy director Drew Pettit said Thursday on CNBC’s “The Exchange.” The firm earlier this fall published a basket of stocks for clients that includes companies across an array of industries that still presents a path into AI, which it touted as the “AI at a Reasonable Price” group.
Read more about Citi’s stock ideas here in CNBC Pro.
— Pia Singh
Ulta Beauty, HPE, SoFi among stocks moving in extended trading Thursday
Ulta beauty and cosmetics store.
John Greim | Lightrocket | Getty Images
Check out the companies making headlines in after-hours trading.
- Ulta Beauty — Shares of the beauty retailer rose nearly 6% after outpacing Wall Street’s expectations for the fiscal third quarter and raising its forecasts for the full fiscal year. Ulta expects revenue for the year to be $12.3 billion, up from a prior range of $12 billion to $12.1 billion and higher than the consensus estimate of $12.13 billion. Same-store sales growth for the year will be between 4.4% to 4.7%, up from an earlier estimate of 2.5% to 3.5%.
- Hewlett Packard Enterprise — The cloud services company missed Wall Street’s fourth-quarter revenue expectations, leading shares to drop about 8% in the after-hours session. Hewlett Packard Enterprise reported revenue of $9.68 billion for the period, falling short of the $9.94 billion expected by analysts polled by LSEG. Earnings for the quarter beat expectations.
- SoFi Technologies — The fintech company’s stock moved more than 5% lower after SoFi announced an underwritten public offering of $1.5 billion of shares of its common stock.
For the full list, read here.
— Pia Singh