Midday Report: Netflix Lags S&P 500; Stocks See Massive Selloff

Wall Street extended deep losses on its first trading session of the year. Global markets tanked after China registered its tenth straight month of manufacturing activity in contraction and on inflamed tensions between Saudi Arabia and Iran. Unexpectedly, weak U.S. economic data also weighted on stocks. Construction spending posted a surprise drop in November, its first decline in 17 months. Two separate reads on the manufacturing showed the sector in strife. The latest PMI Manufacturing Index showed activity hit its lowest level since October 2012. The ISM Manufacturing Index for December showed a contraction for the second month in a row. Netflix (NFLX) was the biggest loser on the S&P 500 after Baird downgraded shares to NEUTRAL. TheStreet's Keris Lahiff reports from Wall Street.