5 Things to Know Before the Stock Market Opens

Stock futures are lower this morning as the market gets set to wrap up a volatile month of trading; shares of Paramount Skydance are surging after the company won the bidding war for Warner Bros. Discovery, while Netflix is also rising after giving up its bid; producer price index data is expected to slow that inflation slowed in January; Nvidia shares remain under pressure after falling sharply yesterday despite a better-than-expected earnings report; and Block shares are soaring after the payment company announced mass layoffs. Here’s what you need to know today.

Stock Futures Fall on the Last Day of a Volatile Month

Stock futures are losing ground Friday as investors await a key inflation report. (more on that below) Futures tied to the Dow Jones Industrial Average were down 0.8% recently, while those linked to the S&P 500 and the tech-heavy Nasdaq dropped 0.6%. The S&P 500 and Nasdaq closed lower on Thursday, led by a steep decline for tech stocks as Nvidia shares tumbled despite a strong earnings report, while the Dow ended the session fractionally higher. The Dow comes into the final session of February on track to post its 10th consecutive month of gains. The S&P 500 and Nasdaq are on pace to record losses for the month, which has been characterized by big price swings fueled in large part by AI-related concerns.

Bitcoin, which has fallen sharply over the past month, was at $66,000, down from an overnight high of $68,200. Gold futures ticked higher to around $5,200 an ounce this morning, while WTI crude oil futures, the U.S. benchmark, rose 2.5% to $66.85 per barrel. The yield on the 10-year Treasury, which can influence interest rates on a variety of consumer loans, was at 3.98% recently, down from 4.02% at yesterday’s close and near its lowest level since November.

Paramount, Netflix Shares Surge on Latest News in Warner Bros. Discovery Saga

Shares of both Paramount Skydance (PSKY) and Netflix (NFLX) are surging this morning after Paramount emerged victorious in the bidding war to acquire Warner Bros. Discovery (WBD). The Warner Bros. Discovery board on Thursday deemed that Paramount’s bid of $31 per share for the company was superior to Netflix’s offer. Warner Bros. Discovery had accepted Netflix’s offer before reopening talks with Paramount last week. Netflix’s bid was for Warner Bros. Discovery’s TV and film assets, while Paramount bid for the entire company, including TV assets like CNN. Netflix on Thursday opted not to raise its offer. Shares of Netflix and Paramount Skydance were each up about 8% in recent premarket trading, while Warner Bros. Discovery stock fell 1%.

Wholesale Inflation Likely Cooled in January

The Producer Price Index report, due at 8:30 a.m. ET, is expected to show that wholesale inflation cooled in January. Economists surveyed by _The Wall Street Journal _and Dow Jones Newswires estimate that the PPI will show that prices increased by 0.3% in January, a slow down from the 0.5% increase the prior month. The PPI core inflation rate, which strips out price movements in volatile products like food and gas, is expected to remain at 0.4%. The report comes after the Consumer Price Index showed that consumers paid 2.4% more for goods and services in January than they did a year ago.

Nvidia Shares Remain Under Pressure

Shares of Nvidia (NVDA) are down again this morning after the AI chipmaker shed more than 5% of its value in the prior session despite delivering a blockbuster earnings report. Nvidia on Wednesday revealed that its fourth-quarter sales jumped 73% from the year-earlier period, well above what analysts were expecting. The company at the center of the AI boom said its data center revenue, which accounted for a major portion of its sales, hit a fresh record high as its Big Tech clients raced to buy up its chips. But investors weren’t satisfied as some analysts pointed to the company’s concentration in sales to a few Big Tech companies. Other analysts said the muted reaction reflected a growing skepticism over the AI trade. Nvidia shares were down 1% recently.

Block Shares Surge After Massive Layoffs

Shares of Block (XYZ) are soaring after the payments company announced it would lay off 4,000 workers, comprising around 40% of the company’s staff. CEO Jack Dorsey that the move was a reaction to AI tools creating more efficiency for the company. “I’d rather take a hard, clear action now and build from a position we believe in than manage a slow reduction of people toward the same outcome,” Dorsey wrote on X. Block shares jumped 20% ahead of the opening bell.

Do you have a news tip for Investopedia reporters? Please email us at

[email protected]