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Midday Market Update

Stocks Mostly Lower on Central-Bank Fears

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U.S. Market    
Stocks began the day in the red but were paring losses at midday. 

Concerns spread globally following the Bank of Japan's announcement that it is maintaining its current stimulus policies while noting slight improvements in its economy. Despite the relatively positive news, many investors were looking for the BOJ to extend its asset-purchases further than previously stated, and this created renewed questions as to when other central banks, particularly the Fed, will pull back on their current bond-buying policies. 

U.S. economic news flow was otherwise slow Tuesday.  

The Dow was flat at midday, but the S&P 500 and the Nasdaq had each lost 0.3%. 

Stocks on the Move
 Lululemon Athletica (LULU) shares had dived by nearly 17% at midday after the firm announced that CEO Christine Day is stepping down from her post at the firm.  Morningstar analysts expect whoever fills Day's role will have a similar vision to the company's past leaders. Lululemon also reported, late Monday, a slight increase in first-quarter profit on top of a 21% gain in year-over-year sales, despite a large product recall in March. The firm said it is delisting from the Toronto Stock Exchange, as well, on account of low volume. 

Also after Monday's closing bell,  Texas Instruments (TXN) announced a narrowed second-quarter forecast of earnings per share between $0.39 and $0.43 and revenue between $2.99 billion and $3.11 billion.  Morningstar analysts say the revision was mildly disappointing. Shares were 2.7% lower at midday. 

 Navistar International (NAV) posted a steeper-than-expected second-quarter loss late Monday of $374 million compared with a loss of $172 million the same time last year. Revenue also fell by 23%. Despite the Navistar's weak results,  Morningstar analysts still think the firm is on the right road to recovery. Shares were down by 6.8% at midday. 

Dole Food (DOLE) shares had jumped by more than 21% by midday following a $1.5 billion buyout bid by Dole chairman and CEO David Murdock. The company's board will meet this week to discuss the proposal. 

Foreign Markets
Overseas stocks fell on central-bank concerns. The Nikkei 225 lost 1.5%, and the Hang Seng fell by 1.2%. Markets on China's mainland remained closed for a holiday. 

In Europe, the DAX fell by 1.0%, and the Paris CAC lost 1.4%. The FTSE 100 was 0.9% lower.

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