Opening Comment — Friday, December 05, 2025
DJIA: 47,850.94, down 31.96
S&P 500: 6,857.12, up 7.40
NASDAQ: 23,505.14, up 51.05
Stocks higher to end out week
Stock futures are higher Friday morning ahead of today’s preliminary December reading of consumer sentiment from the University of Michigan. September’s personal income, personal spending, and Personal Consumption Expenditures (PCE) deflator (the Federal Reserve’s [Fed’s] preferred gauge of inflation), and October’s consumer credit data, all delayed by the government shutdown, are also set for release. As of 7:19 AM ET, the Dow is rising 0.1%, while the S&P 500 is up 0.2%. The Nasdaq 100 is increasing 0.3% relative to fair value on the GLOBEX.
U.S. equities were mixed on Thursday as both initial and continuing jobless claims declined. Meanwhile, September’s factory orders edged up 0.2% month-over-month (MOM) and the Challenger report showed job cuts rose 23.5% year-over-year (YOY) in November. The Dow was down 0.1%, while the tech-heavy Nasdaq Composite rose 0.2%. The S&P 500 increased 0.1% with five of 11 sectors finishing in positive territory. The Industrials sector was the top performer, rising 0.5%, while the Health Care sector was the bottom performer, falling 0.7%.
Technical Analysis
As of midday Thursday, the S&P 500 Index is still in an uptrend. Support should be found at the 50-day and 200-day moving averages (6739 and 6192, respectively). Resistance might be found at the recent high (6891).
On the data front, personal income is expected to have increased 0.3% MOM in September, versus the prior month’s increase of 0.4%, while personal spending is expected to have increased 0.3% MOM in September compared to the prior month’s increase of 0.6%. The PCE deflator for September is expected to have increased 0.3% MOM, similar to the prior month, and to have risen to 2.8% YOY, accelerating from 2.7% in the prior month. Meanwhile, the core PCE deflator for September is expected to have increased 0.2% MOM, similar to the prior month, and decelerated to 2.8% YOY from the prior month’s 2.9%. The University of Michigan’s preliminary December reading of consumer sentiment is forecasted to come in at 52.0, higher than the prior month’s 51.0. The one-year and five- to ten-year inflation expectations for December from the University of Michigan are expected to come in at 4.5% and 3.4%, respectively, similar to the prior month’s readings. Consumer credit is expected to have expanded by $10.48 billion in October, lower than the prior month’s increase of $13.09 billion.
Across the pond, European stocks are higher in mid-day trading as German factory orders showed a greater-than-expected increase of 1.5% MOM and a smaller-than-expected decrease of 0.7% YOY in October. France’s industrial production unexpectedly rose in October, up 0.2% MOM and 1.7% YOY, while the country’s trade deficit narrowed. The eurozone’s third estimate of third-quarter gross domestic product was revised slightly higher to show growth of 0.3% quarter-over-quarter.
Overnight in Asia, stocks were mixed as Japan’s preliminary composite leading index ticked up and the country’s household spending unexpectedly fell in October, decreasing by 3.0% YOY.
In FOREX trading, the U.S. dollar is slightly higher ahead of data on U.S. inflation and consumer sentiment.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 0.2% lower at $59.57/barrel.
In the metals complex, gold is 0.4% higher at $4,222.28/ounce despite a strengthening U.S. dollar.