The November PCE prices report fell 0.1% month over month, better than the forecasted rise of 0.1%. The year over year rate was 2.6%, which was also better than the estimate. The core rate, which excludes food and energy prices, was expected to rise 0.2% but only rose 0.1%, which adds to a string of positive inflation news. Additionally, the core year-over-year rate was 3.2%, an improvement to the forecasted 3.3%. The PCE is the Federal Reserve’s favored inflation gauge, and while it has fallen most of the year, it remains above the central bank’s 2% long-term target.

Personal Income was up 0.4% in November as expected, while Personal Spending rose 0.2%. Consumers appear to still be doing well, which could be a good sign for the economy.
Chinese video game and software stocks fell on Friday after Chinese regulators announced new gaming restrictions in the government’s campaign to curb gaming addiction. The plan is to limit the amount of money and time spent online. NetEase (NTES) and Bilibili (BILI) were among the losers tumbling 21% and 11% respectively overnight.