The Bureau of Economic Analysis (BEA) will provide its final update of 3Q GDP this morning. We expect to see that the U.S. economy is delivering solid growth that likely will continue into 1Q26. Last month, the BEA indicated that 3Q GDP grew at an annualized 4.3% pace. We expect that to generally hold. In the previous report, consumer expenditures, which represent 68% of GDP, grew at an annualized rate of 3.5% and contributed about 2.4 percentage points to overall GDP growth. The huge services category was up 3.7%. The healthcare component was strong. Services added 1.74 points of growth. Private investment declined 0.3%, hurt by a 6.3% decline in nonresidential structures. Residential investment (housing) was down 5.1%. Equipment and intellectual property were each up a strong 5.4%, helped by spending on artificial intelligence. Private domestic final purchases -- which exclude net exports, inventory investment, and government spending, and focus on the core categories of consumer spending and private investment -- grew 3.0%. Our forecast for 4Q GDP is for growth of 2.5%. The Atlanta Fed's GDPNow report is even stronger, calling for growth of 5.3% based on the January 14 update. PCE is projected to rise 3.1%. Within investment, intellectual property is projected to grow by about 5.5%, adding about 0.3 points to GDP. Net exports are projected to add about 2 points to GDP as tariffs have reduced U.S. imports and inventory rebuilding could add 0.8 points. The New York Fed Staff 4Q Nowcast, which tracks the evolution of GDP growth and gauges the impact of new data releases, was 2.7% as of January 16. The Nowcast for 1Q26 was 2.75%. The Weekly Economic Index tracked by the Dallas Fed is based on 10 daily and weekly indicators of consumer behavior, the labor market, and production. For the week ended January 10, the index projected four-quarter GDP growth of 2.23% based on the indicator's 13-week moving average.

Netflix is a worldwide video-on-demand distributor of movies and television shows over the internet (except in China and a few other countries). Subscribers have access to the Netflix content library for a fixed monthly subscription fee. The company offers several service tiers, including a discount, advertising-supported service. Netflix derives 59% of its revenue from outside the U.S.

Netflix’s relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 300 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.

Netflix’s relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with more than 300 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided a regular slate of live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm introduced ad-supported subscription plans in 2022, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.