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Midday Market Update

Stocks Rebound Tuesday after 'Brexit'-Related Losses


U.S. Market
U.S. stocks staged a comeback Tuesday, as investors digested some positive economic data. First-quarter GDP was revised upward to 1.1%, the Commerce Department reported Tuesday. In addition, the S&P/Case-Shiller 20-City Index showed that U.S. house prices rose 1.1% in April. Finally, the Conference Board said its consumer confidence index rose to 98 from 92.4 in May, but the cutoff date was June 16, a week before the Brexit vote saw stocks plunging around the globe.

At midday the Dow was up 0.8%, while the S&P 500 gained 1.0%, and the Nasdaq added 1.5%.

Stocks on the Move
Shares of  LendingClub (LC) gained 3.9% after peer-to-peer lending company made several announcements, including appointing interim CEO Scott Sanborn as permanent CEO, and saying it will reduce its workforce by 12% while ramping up expenses. Lending Club also said it expects second-quarter loan origination volume to fall by a third from the previous quarter. Morningstar equity analyst Colin Plunkett  writes: "Lending Club's numerous announcements June 28 largely confirm our thesis that the company will experience slower growth and needs to make a long-term continued investment in legal and compliance. We do not expect any material changes to our $2.75 fair value estimate or no-moat rating." 

Foreign Markets
European stocks made strong gains. The FTSE 100 and Germany's DAX gained 2.6%, and the Paris CAC was up 1.9%.

Asian markets were mixed. The Shanghai Composite gained 0.6%, the Nikkei 225 was up 0.1%, while the Hang Seng shaved 0.3%. 

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