Weekly Roundup Dec. 1-5

ECONOMY OUTLOOK | NETFLIX’S HUGE DEAL | FORTHCOMING RATES 

By: Lorenzo Alfonso

Dec. 7, 2025

Market Snapshot:  

S&P500: 0.54% | Russell 2000: 1.39% | Dow Jones: 1.32% | Oil (WTI): 8.82% | Gold: 2.93% | VIX: 7.50% | 10 yr Treasury Yield: 4.13% 

The Economy at a Glance 

Happy December! University of Michigan released its monthly report on consumer sentiment, which rose from 51 to 53.3. With U.S. jobs data delayed, payroll processor ADP said private employers shed 32,000 jobs in October, in contrast to the 47,000 added in November. The government’s job data release is set for December 16th, which is after the Fed meeting. 

What Moved Markets? 

Markets closed higher with gains from last week as investors became hopeful for a rate cut. The Nasdaq led the charge, closing at the week’s high. Below I cover notable deals and what we see forthcoming. 

Forthcoming Rates 

As I’ve mentioned in past articles, we’re waiting patiently to see how the Fed has determined the data that has come out. This is the week we will find out if rates are going to be cut. 

Photo from CME Group 

According to probability odds, there is an 86% chance of a rate cut from 3.75–4.00% to 3.50–3.75%, with a 25-basis-point rate cut. 

There are mixed signals from Fed officials about the rate cut, with some in favor if the economy evolves broadly. Others say that keeping it unchanged would be more appropriate. 

Netflix Massive Deal 

One of the favorite streaming platforms reportedly agreed to acquire Warner Bros. Discovery. This would give Netflix not only the ability to stream shows like “Stranger Things,” but would also create a massive entertainment giant after the deal. To put this into perspective, Warner Bros.’ parent company produces HBO, DC Studios, CNN, Discovery Channel, Food Network, and TNT, to name a few, along with many iconic franchises like Harry Potter. 

Investors reacted to this deal, with Warner Bros. stock climbing by nearly 10% for the week. Netflix closed down for the week. Investors are likely reacting to the deal and assessing the terms to see how much Netflix may have paid for the company. 

Because Warner Bros. shareholders will receive $27.75 per share under the deal, but their current trading price is below $27.75, this can raise concerns about regulatory issues. There is pressure in the White House regarding this deal, and some officials say Netflix would be too powerful. This would leave less competition for in the sector, and it would control very favorable entertainment assets for consumers with this deal. That leaves competitors struggling for profit and may even potentially reduce movie-theater attendance. 

Note: just because this deal is agreed upon doesn’t mean it cannot be rejected. 

Looking ahead 

Of course, this week we will keep an eye on the committee’s vote and Chair Jerome Powell announcing the decision. He will make the final decision on rate cuts, though, as noted, the odds are high for one. The committee will be lacking some data from the government shutdown still affecting releases, such as the job report, which is key. 

We will watch how markets, specifically the entertainment sector, digest the Netflix deal and any risks or potential stoppage of the deal. 

Terms in this article

Consumer price index: Monthly report showing how fast prices are rising for everyday goods and services. 

University of Michigan consumer sentiment: Survey of how optimistic people feel about their finances and the economy. 

ADP jobs report: Private payroll estimate from ADP; an early read that can differ from the government’s report. 

Initial vs. continuing claims: New applications for unemployment benefits vs. the number of people still receiving them. 

CME FedWatch: A public tool that turns market prices into probabilities for the next interest-rate decision. 

FOMC (central bank policy committee): The voting group that sets interest rates; the Chair leads but does not decide alone. 

Basis point: One one-hundredth of a percent (0.01%); 25 basis points = 0.25 percentage point. 

Rate cut odds: Market-implied chance of a rate reduction at the next meeting (often cited from CME FedWatch).