Good afternoon and welcome to Markets Desk, your midday read on what's moving and why.
The SEC has taken direct aim at Institutional Shareholder Services, filing suit to enforce a subpoena as the Trump administration sharpens its scrutiny of proxy advisory firms. ISS wields enormous influence over how institutional investors vote their shares, and Washington's patience with that power appears to be running thin.
Turning to equities, Netflix has shed roughly forty percent of its value as growth has decelerated, but the underlying business tells a more complicated story. Margins are expanding, free cash flow is strengthening, the advertising tier is gaining traction, and the company is buying back stock — all of which suggests earnings could continue compounding even if the premium valuation doesn't fully return.
And ahead of the Labor Day holiday, markets and businesses are navigating the familiar patchwork of closures and reduced hours that comes with a federal holiday Monday. Traders should note that exchange schedules will reflect the long weekend, with settlement timelines shifting accordingly into next week's open.
That's the tape. Markets Desk, signing off the floor.
