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Midday Market Update

Stocks Mixed After Earnings, Data

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U.S. Market    
Stocks were choppy at midday as earnings reports continued to flow in, while an economic data report was less than inspiring. 

The Fed Bank of Richmond reported that its current business conditions index for manufacturing fell to negative 11 this month from June's positive reading of 7, which was revised downward. The trend for the index had been negative in recent months, and though the June reading was positive, the overall July index indicates that activity in the region continues to be sluggish. 

The Dow was up by 0.1% at midday, while the S&P 500 and the Nasdaq had lost 0.1% and 0.3%. 

Stocks on the Move
 United Parcel Service (UPS) reported a drop in year-over-year earnings, though matching Wall Street expectations, while a gain in revenue fell short of Street forecasts. The shipping firm had warned of potential weakness as companies worldwide seek lower-cost delivery options. Shares were down 0.3% at midday. 

Fast-food restaurant chain  Wendy's (WEN) posted adjusted earnings per share of $0.08, ahead of Street forecasts of $0.06 per share, aided by improved same-store sales. Revenue fell short of the expected final tally of $656 million, coming in at $650.5 million. However, the firm said it plans to sell hundreds of its restaurants to franchise operators to reduce overall ownership in the network. Shares had jumped by 12.6% at midday. 

 Lockheed Martin's (LMT) second-quarter profit improved by 10% to $869 million, though revenue fell by 4.3%. That said, both readings beat Street expectations, and the firm also increased its full-year EPS outlook by $0.40 to a range of $9.20-$9.50. Shares were up by 2.3% at midday. 

 United Technologies (UTX) shares were 2.1% higher after the firm posted a 17% year-over-year gain in second-quarter earnings and also increased the lower portion of its full-year EPS forecast. Revenue increased by 16% to $16 billion, though short of Street forecasts. 

After Monday's closing bell,  Netflix (NFLX) reported its year-over-year profit more than quadrupled to $29 million while revenue improved by 20%. EPS exceeded the company's forecast range as subscriber growth jumped during the quarter. That said,  Morningstar analysts say Netflix shares are still vastly overvalued. Shares were down by 5.2% at midday. 

Foreign Markets
Stocks in Asia were up Tuesday, as the Shanghai Composite rose by 2.0% and the Hang Seng gained 2.3%. The Nikkei 225 was 0.8% higher. 

European stocks were down, as the FTSE 100 and the Paris CAC each lost 0.4%, while the DAX fell by 0.2%. 

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