Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.7%), Nasdaq Composite (-0.8%), and DJIA (-1.4%) are off of their worst levels but remain firmly lower across the board. 

Netflix (NFLX 92.06, +7.47, +8.83%) is one of the top-performing S&P 500 names this morning after announcing it will not raise its bid to acquire Warner Bros. Discovery (WBD 28.30, -0.50, -1.72%), pleasing investors who view the decision as a disciplined dodge of regulatory pitfalls, massive debt, and unwanted legacy assets. Paramount Skydance (PSKY 12.22, +1.04, +9.35%) is also trading sharply higher as investors applaud its successful bid and the strategic scale the transaction brings. 

NFLX's rally reflects relief that management avoided what many feared could become an expensive and distracting mega-merger. While acquiring HBO and the Warner Bros. studio assets could have strengthened NFLX's premium IP portfolio, the full WBD package, including structurally challenged cable networks, risked becoming an "albatross" amid ongoing cord-cutting.

On the data front, the Department of Commerce released construction spending data for November and December as it continues to play catch-up from the government shutdown. For November, construction spending declined 0.2% month-over-month following a 0.1% decline in October. For December, construction spending jumped 0.3% month-over-month.

The key takeaway from the report is that residential construction spending accounted for the entirety of the monthly increase in total construction spending.