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Midday Market Update

Stocks Keep Up Positive Momentum Thursday

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U.S. Market
U.S. stocks gained for the third day in a row Thursday, as stocks climbed their way back from steep losses that followed the U.K.'s "Brexit" vote to leave the European Union. 

Initial U.S. jobless claims rose by 10,000 to 268,000 in late June, the Labor Department said Thursday. Despite the increase, the figure is still low by historical standards

U.S. consumer spending rose 0.4% last month after following a revised 1.1% increase in April. 

The Chicago PMI rose to 56.8 in June on a big advance in the number of purchasing managers, indicating improving production and new orders.

At midday the Dow was up 1.2%, while the S&P 500 gained 1.1%, and the Nasdaq added 1.0%.

Stocks on the Move
Shares of  Hershey Co (HSY) soared 15% after The Wall Street Journal reported that  Mondelez International Inc (MDLZ) had made a takeover bid for the candy company. Shares of Mondelez rose 4.7%. "We don't intend to change to our $48 and $103 fair value estimates for Mondelez and Hershey, respectively, because a deal is far from a certain at this point," said senior equity analyst Erin Lash. "We still believe the leading brands and entrenched retail relationships the firms maintain independently support our wide moat ratings."

Foreign Markets
European stocks made strong gains. The FTSE 100 was up 2.3%, the Paris CAC was up 1.0%, and Germany's DAX gained 0.7%.

Asian markets were mixed. The Shanghai Composite and the Nikkei 225 were about flat, while the Hang Seng rose 1.8%. 

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