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Midday Market Update

Stocks Rise After Upbeat Data

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U.S. Market    
Stocks rose this morning after upbeat data.

The closely-watched ISM manufacturing purchasing managers index rose to 55.4 in July from 50.9 in June. The reading is the highest since June 2011 and well above expectations.  The report is a sign of continued strength in the manufacturing sector.

Initial unemployment claims fell a larger-than-expected 19,000 to 326,000 last week. Claims are now at the lowest level since 2008. Separately, Challenger, Gray and Christmas said that planned layoffs fell 4.2% in July from June levels. The data comes ahead of tomorrow’s much-anticipated payroll report. 

At midday the Dow was 0.8% higher while the S&P 500  and Nasdaq were each up 1.0%.

Stocks on the Move
Shares of  Procter & Gamble (PG) rose 1.4% after the firm reported a 48% fall in fiscal fourth-quarter earnings. Revenue was up 2.2% or 4% excluding the impact of currency and M&A activity. Gross margins fell to 47.5% from 48.1%. The firm also said that it expects earnings-per-share to rise 5% to 7% in fiscal 2014.

 Exxon Mobil’s (XOM) second-quarter earnings fell 57% to $1.55 a share, below the $1.90 per-share expected by analysts. The fall in earnings was driven by a 1.9% decline in production and weaker refining margins. Shares fell 2.2% on the report. 

 Time Warner Cable's (TWC) second-quarter results were  largely in line with our expectations, reflecting a continuation of the poor subscriber trends experienced recently. Internet access customer growth was especially weak, with only 8,000 residential subscribers added during the quarter. Even with business services providing a nice tailwind, total revenue grew only 2.7% year over year. Shares were up over 3% at midday.

Foreign Markets
European markets moved higher today. In late trading, the FTSE 100, Paris CAC and Germany’s DAX were up 0.9%, 1.3% and 1.6% respectively.

Asian shares were also in the green after upbeat Chinese factory data. The Hang Seng was up 0.9%, the Shanghai Composite advanced 1.8% while the Nikkei 225  soared 2.5%. 

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