Morning Business Report: Builder struggles, Netflix momentum, potential rail merger

Builder confidence has remained in negative territory for 15 straight months, prompting more aggressive sales strategies.

(LILAMAX)- It’s a challenging season for the U.S. housing market, as homebuilders continue to face headwinds.

Builder confidence has remained in negative territory for 15 straight months, prompting more aggressive sales strategies. According to the National Association of Home Builders, 38% of builders reported cutting home prices in July — the highest level since the group began tracking the metric in 2022. In addition to slashing prices, many builders are offering mortgage rate buy-downs to entice hesitant buyers.

Meanwhile, streaming giant Netflix is riding high after notching another record-breaking quarter. The company raised its revenue forecast for the remainder of the year and announced a string of high-profile programming — including the return of a Christmas Day NFL game, a September boxing match featuring Canelo Alvarez and Terence Crawford, and a reboot of the late-80s talent show hit “Star Search.”

Wall Street also delivered a strong performance, with the S&P 500 closing at a new record high, continuing a months-long rally fueled by tech strength and cooling inflation.

In transportation news, a major railroad merger may be on the horizon. The Wall Street Journal reports that Union Pacific is in discussions to acquire Norfolk Southern, a deal that would create one of the largest freight rail networks in the country. If finalized, the merger could reshape the U.S. logistics landscape.

Retail trends are also shifting, as retailers scale back plus-size offerings, a move some analysts attribute to the growing popularity of GLP-1 weight loss drugs such as Ozempic and Wegovy. According to a 2024 report from retail intelligence firm Edited, brands like Aritzia and ASOS have significantly reduced their plus-size inventories. Aritzia cut the proportion of 2XL dresses by five percentage points compared to last year, while ASOS scaled back its plus-size assortment by 15%. In areas with high usage of weight loss medications, sales of smaller clothing sizes are reportedly on the rise.