U.S. equity futures are trading in a narrow range as investors continue to evaluate the implications of recently released employment data. Attention is increasingly focused on Federal Reserve Governor Christopher Waller, who is set to deliver his first public comments since the central bank cut interest rates last week. In company news, shares of homebuilder Lennar (NYSE:LEN) fell in after-hours trading following disappointing quarterly earnings, while anticipation builds ahead of results from semiconductor manufacturer Micron Technology (NASDAQ:MU), which may provide one of the final indications this year of conditions in the artificial intelligence sector. Separately, media reports suggest that Warner Bros Discovery (NASDAQ:WBD) is preparing to advise shareholders to turn down a takeover proposal from Paramount Skydance, favoring an alternative offer from Netflix (NASDAQ:NFLX).

Futures show little movement

U.S. stock index futures were largely unchanged early Wednesday as market participants digested mixed labor market data from the previous session and looked ahead to key inflation readings later in the week.

As of 02:52 ET, futures on the Dow Jones Industrial Average were broadly flat, S&P 500 futures were up 6 points, or 0.1%, and Nasdaq 100 futures had edged higher by 27 points, also gaining 0.1%.

In Tuesday’s regular trading, the Dow Jones Industrial Average fell 0.6%, the S&P 500 declined 0.2%, while the technology-heavy Nasdaq Composite added 0.2%.

Investors continued to analyze delayed employment figures indicating that the U.S. economy created more jobs than expected in November, even as the unemployment rate rose faster than forecast. The mixed data reignited concerns about the potential economic impact of President Donald Trump’s sweeping tariff policies.

Following the release, markets began pricing in at least 58 basis points of interest rate cuts by the Federal Reserve next year, well above the 25 basis points previously projected by the central bank.

Focus on Waller’s speech

One of the key events on Wednesday’s agenda is a scheduled address by Federal Reserve Governor Christopher Waller at 08:15 ET.

The remarks will be his first since signaling a shift from a dovish to a more neutral stance following the December rate reduction. Last week, the Fed implemented a 25-basis-point cut, citing a desire to support a weakening labor market despite continued signs of sticky inflation.

“It will be interesting to hear an update on [Waller’s] view,” analysts at Vital Knowledge said in a note to clients.

Waller’s comments come amid a Wall Street Journal report suggesting that President Trump is planning to interview him as a potential successor to Federal Reserve Chair Jerome Powell, whose term expires in May. Trump has previously indicated that former Fed Governor Kevin Warsh and White House economic adviser Kevin Hassett are among his preferred candidates.

Although Waller has emerged this year as a prominent advocate of rate cuts and is reportedly viewed favorably by Wall Street, the Journal noted that he may be considered less likely to secure the role due to weaker personal ties with Trump compared with Warsh or Hassett.

Lennar misses expectations; Micron earnings ahead

Shares of Lennar declined in extended trading after the U.S. homebuilder reported fourth-quarter profit that fell short of analyst expectations, as higher costs continued to weigh on housing demand.

Lennar Co-CEO Stuart Miller said consumer confidence remains subdued due to affordability concerns, which have more than offset the benefit of lower interest rates. He also warned that margins could face pressure from sales incentives such as mortgage rate buydowns.

Still, Miller added that the company is adapting to “a new normal as the market finds it footing.” Lennar posted fourth-quarter earnings of $1.93 per share, missing estimates of $2.22 per share, while revenue of $9.37 billion exceeded forecasts, according to LSEG data cited by Reuters.

Later on Wednesday, Micron Technology is scheduled to report earnings after the market close. Sentiment around the artificial intelligence sector weakened last week following underwhelming results from Oracle and Broadcom, raising fresh questions about the sustainability of heavy investment in the technology.

Despite this, expectations around Micron remain strong. The outlook is described as “extremely bullish,” with many anticipating a multi-year growth cycle driven by demand for the company’s high-bandwidth memory products, which are used in advanced AI processors, according to analysts at Vital Knowledge.

Micron shares have surged more than 176% so far this year, largely due to its role as a key supplier of high-bandwidth memory for several of Nvidia’s AI-focused chips.

Warner Bros board decision pending

According to media reports, Warner Bros Discovery’s board may announce a decision as soon as Wednesday regarding Paramount Skydance’s $108.4 billion hostile takeover bid.

People familiar with the matter say the board is preparing to recommend that shareholders reject Paramount’s proposal and instead back an existing deal with Netflix.

Earlier this month, Netflix appeared to win a bidding contest against Paramount and Comcast by agreeing to acquire Warner Bros’ studios and the HBO Max streaming service for $27.75 per share in a mix of cash and stock. Days later, Paramount returned with an all-cash offer of $30 per share for the entire company.

If Warner Bros’ board advises investors to vote against the bid, Paramount and its CEO, David Ellison, may be forced to reconsider or enhance their proposal for the owner of major entertainment franchises such as “Game of Thrones” and “Friends.”

Oil prices jump after Venezuela action

Crude oil prices surged after President Trump ordered a total blockade of all sanctioned oil tankers entering and leaving Venezuela, raising concerns about potential disruptions to global supply.

Brent crude futures climbed 1.4% to $59.73 per barrel, while U.S. West Texas Intermediate futures rose 1.5% to $55.94 per barrel.

Both benchmarks had fallen to five-year lows in the previous session after U.S. officials pointed to some progress in Russia-Ukraine peace talks, adding to worries about a supply glut in the year ahead.

“Venezuela exported around 600k b/d of oil in November. It’s likely that these volumes will fall given the latest developments. The bulk of this oil is shipped to China,” ING analysts said in a note.

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