Morning Dose #172: Eyes on 1000 a.m. for PCE Inflation Impact – Friday 12/5/2025
Key takeaways
- Advice: Maintain small position sizes until after 10:00 a.m. to navigate the market reaction to the inflation print and trade wisely on market direction.
- Stay disciplined, manage risk, and aim to end the week on a strong note. Happy trading!
Morning Dose: Eyes on 1000 a.m. for PCE Inflation Impact
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Good morning, traders! Welcome to The Morning Dose – Everything You Need to Know Before the Market Opens. It is Friday, December 5th, 2025. Futures are edging higher, but there’s a sense of quiet anticipation in the market.
Overnight Headlines
Personal Consumption Expenditures (PCE): Today’s focus is on the PCE data, a crucial inflation indicator favored by the Fed. Expectations are high as this report precedes the upcoming FOMC meeting next week.
Streaming Wars: Netflix’s acquisition of Warner Bros. Discovery for $27.75 a share in cash and stock has stirred the market, with potential effects on both companies’ stocks.
Economic Announcements
Keep an eye on the PCE data release at 10:00 a.m. Eastern, as it could sway market sentiment and impact expectations for future rate cuts.
Earnings Highlights
- Ulta Beauty (ULTA): Impressive earnings beat, comp sales growth, and raised guidance leading to nearly a 6% stock surge.
- Hewlett Packard Enterprise (HPE): Mixed results causing an over 8% stock decline amid revenue concerns.
- Southwest Airlines (LUV): Reduced EBIT guidance for the year bringing turbulence to the stock.
Top Movers
Winners: Ulta Beauty (ULTA)
Losers: Hewlett Packard Enterprise (HPE), Southwest Airlines (LUV)
Quick Trade Ideas
SPY: Watch for potential break below 685 for selling pressure or hold for a rally post-PCE data. Monitor semiconductor and software sectors for trading cues.