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Midday Market Update

Stocks on Track to End the Week in Positive Territory

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U.S. Market
U.S. stocks gained for the fourth day in a row Friday, on track to end the week higher despite Monday's Brexit-related sell-off. 

The Institute for Supply Management said its manufacturing index jumped to 53.2% in June from 51.3% in May. Readings over 50% indicate more companies are growing instead of shrinking.

Construction spending fell in May, with weakness mostly concentrated in the public sector, the Commerce Department said Friday.

At midday the Dow was up 0.1%, while the S&P 500 gained 0.2%, and the Nasdaq added 0.3%.

Stocks on the Move
Share of  Micron Technology (MU) fell 10% Friday after the semiconducter maker announced plans for layoffs late Thursday. In addition, Micron reported a net loss of $97 million, or $0.09 a share, on sales of $2.9 billion for its third fiscal quarter; after adjustments, the company claimed a loss of $0.08--these results were below analysts' expectations. Though he notes that we will likely  lower our fair value estimate modestly from $23 to $22 per share as we take into account slightly lower near-term projections, Morningstar's Abhinav Davuluri says that we "continue to view Micron as a Best Idea, as near-term headwinds do not thwart our positive view on Micron’s upcoming products that should materially benefit the firm’s financials in fiscal 2017."

Foreign Markets
European stocks made gains. The FTSE 100 was up 1.1%, the Paris CAC was up 0.9%, and Germany's DAX gained 1.0%.

Asian markets were also higher. The Shanghai Composite rose 0.1, the Nikkei 225 was up 0.7%, 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.