S&P 500 Today: Ulta Beauty Surges, Netflix-Warner Bros. Deal Rocks Streaming Stocks

The S&P 500's daily dance saw clear winners and losers—with one beauty giant stealing the spotlight and a blockbuster media deal sending shockwaves through the streaming sector.

Ulta Beauty's Glow-Up

Ulta Beauty popped, delivering a standout performance that left the broader market playing catch-up. The cosmetics retailer's surge highlights where consumer dollars are flowing—straight into discretionary spending, defying the usual Wall Street gloom about inflation and tightening belts. It's a classic case of lipstick effect economics, just with a modern, high-margin twist.

Streaming's Shake-Up

Meanwhile, the announced Netflix-Warner Bros. Discovery deal didn't just move two stocks—it rattled the entire streaming landscape. The partnership signals a frantic pivot from the 'growth at all costs' subscriber wars to a new era of pragmatic, profit-focused alliances. It's a consolidation play that asks a cynical question: is the future of entertainment just a handful of mega-corporations trading content like baseball cards?

The market's reaction was immediate and fragmented, slicing through the sector. Some players got marked down on fears of being sidelined, while others faced renewed scrutiny over their own path to profitability. It's a stark reminder that in today's market, even perceived stability is just one headline away from a reckoning—a truth that should make any investor's portfolio feel a little less secure, no matter how diversified it seems.

Key Takeaways

• Strong quarterly results boosted a beauty retailer on Friday, Dec. 5, 2025, while a massive buyout sent ripples across the streaming industry.
• Netflix said it agreed to buy Warner Bros. Discovery's studio and streaming business, sending Warner Bros. Discovery stock higher, while Netflix slid and rival suitor Paramount Skydance tumbled.
  
• Ulta Beauty shares surged as a recent acquisition, new store openings, and resilient cosmetics demand helped drive better-than-expected earnings.

A strong quarterly report helped drive big gains for a retailer of make-up and other beauty products, while the end of a high-profile bidding war made waves in media and entertainment.

Major U.S. equities indexes moved higher Friday after a key inflation report came in lower than anticipated, reinforcing expectations of an interest rate cut when the Federal Reserve meets next week. The S&P 500 and the Dow edged 0.2% higher to NEAR their all-time highs, while the Nasdaq rose 0.3%. See here for more from Investopedia on the day's market moves.

Ulta Beauty (ULTA) shares surged nearly 13%, gaining the most of any S&P 500 stock, after the cosmetics retailer reported better-than-expected earnings and hiked its full-year forecasts. The beauty category has seen resilient demand even as economic uncertainty weighs on other retail segments. An increase in transactions and average ticket values from a year ago, along with the acquisition of British luxury cosmetics firm Space NK, and new store openings helped drive Ulta's strong performance.

Moderna (MRNA), which derives the bulk of its revenue from its COVID-19 vaccine, saw its stock jumped close to 9% following the release of a long-term study in France indicating that the vaccine is SAFE and effective. The nationwide study reviewed data from around 28 million people and determined that those who received the Moderna or Pfizer (PFE) vaccine had an approximately 75% lower risk of dying from COVID-19 compared with those who were unvaccinated. Pfizer shares climbed about 1%.

Medical device Maker Cooper Companies (COO) surpassed quarterly earnings forecasts and provided an upbeat outlook. The contact lens and surgical products specialist also announced a comprehensive strategic review aimed at simplifying its business. Cooper Companies shares climbed around 6%.

Shares of dollar-store operators extended their recent gains following strong earnings reports that revealed traction among customers from various income levels seeking deals. Shares of Dollar Tree (DLTR) and Dollar General (DG) each added about 6% in Friday's trading session.

Entertainment giant Netflix (NFLX) said it agreed to buy Warner Bros. Discovery's (WBD) in an $83 billion deal. Warner Bros. Discovery plans to proceed with its plans of spinning off its cable and TV channels into a separate business, with Netflix set to take over the remaining studio and streaming operations. The news weighed on shares of Paramount Skydance (PSKY), which also made a bid for Warner Bros. Discovery. Paramount shares lost nearly 10%, marking the steepest loss in the S&P 500. Netflix shares slipped about 3%, while Warner Bros. Discovery stock climbed more than 6%.

Shares of commercial property and casualty insurer W.R. Berkley (WRB) fell close to 6% after the company announced Japanese firm Mitsui Sumitomo Insurance has acquired at least a 12.5% stake as part of previously announced agreements.