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Midday Market Update

Stocks Rise After Strong Jobs Data

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U.S. Market    
Stocks rose today after a strong jobs report.

The U.S. economy added 175,000 jobs in May, slightly ahead of expectations. The unemployment rate ticked up slightly to 7.6% from 7.5% as more people entered the workforce.  Hourly wages were up slightly in the month. 

At midday the Dow was up 1.1% while the S&P 500 and Nasdaq were each up 1.0%.

Stocks on the Move
Shares of  Iron Mountain (IRM) fell over 16% after the company’s plan to  convert to a Real Estate Investment Trust hit a speed bump. The firm received notice from the Internal Revenue Service that a special working group had been convened to further study the validity of characterizing the company's storage racks as real estate. While the IRS appears to be tentatively averse to a favorable classification at present, this doesn't necessarily imply that Iron Mountain will be unsuccessful at obtaining a favorable private letter ruling. The IRS also informed  Lamar Advertising (LAMR) and  CBS (CBS) that it is  studying their bid to convert their domestic outdoor assets to a REIT as well

 Wal-Mart (WMT) announced a new $15 billon share buyback authorization this morning. The new program will replace a 2011 authorization of the same size. Wal-Mart shares were 1% higher at midday. 

TiVo (TIVO) said today it will receive $490 million from  Google (GOOG) and  Cisco (CSCO) to settle patent litigation. The amount was below market expectations sending TiVo shares down over 17%. TiVo also said it is going to double the size of its stock buyback program.

Foreign Markets
European shares rallied late in the day after U.S. jobs data. In late trading, the FTSE 100, Paris CAC and Germany’s DAX were up 1.2%, 1.5% and 1.9% respectively.

Asian markets were lower today. The Nikkei 225 was off 0.2%, the Hang Seng was down 1.2% while the Shanghai Composite lost 1.4%. 

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.