Skip to Content
Midday Market Update

Stocks Modestly Higher After Earnings

Mentioned: ,

U.S. Market    
Stocks were modestly higher this morning after earnings and as an investors pondered Friday’s failed coup in Turkey.

Home builder optimism slipped slightly in July according to the National Association of Home Builders. The reading of 59 was below the 60 level expected by economists. 

At midday the DowS&P 500 and Nasdaq were up 0.1%, 0.3% and 0.6% respectively. 

Stocks on the Move
Shares of  Bank of America (BAC) rose 2.2% this morning after the firm posted better-than-expected second-quarter results. A tough rate environment pulled earnings in the quarter down to 36 cents per share from 45 cents a share in the year-ago quarter, but that was still above the 33 cents per share that analysts had been looking for. The ban’s bond, currency and commodity trading drove the outperformance in the quarter.

Softbank announced it is purchasing chip designer  ARM Holdings (ARMH) for $32 billion. On the surface,  we view this deal favorably for ARM shareholders, as the offer price implies a 43% premium relative to ARM’s most recent closing share price. ARM will continue to operate independently, and management is expected to remain in place. Consequently, this deal allows ARM to significantly increase its scale via a greater influx of investment backed by Softbank. 

Foreign Markets
European markets were mostly higher today. The FTSE 100 rose 0.6%, Germany’s DAX was up 0.2% while the Paris CAC was down 0.1%. 

Asian shares were mixed. The Shanghai Composite was off 0.3% while the Nikkei 225 and Hang Seng were each 0.7% higher. 

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