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Midday Market Update

Stocks Lower as Earnings Roll In

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U.S. Market    
Stocks headed lower this morning as earnings rolled in and ahead of the Fed’s statement tomorrow.

Home prices were up 5.2% in May from the previous year according to the Case-Shiller 20-city index. That’s a slight deceleration from the 5.4% rise seen in April. 

New home sales rose 3.5% in June to a seasonally adjusted annual rate of 592,000. Economists had expected a more modest 559,000 sales pace. 

Consumer confidence was down slightly in July according to the Conference Board. The reading of 97.3 was off from June’s 97.4 but above expectations of 96.3.

At midday the Dow was down 0.3%, the S&P 500 was off 0.1% while the Nasdaq was 0.1% higher.

Stocks on the Move
Shares of  McDonald's (MCD) slumped 4.6% this morning after the fast-food giant reported disappointing sales results. Overall same-store sales of 3.1% were below expectations of 3.6% growth, driven mostly by soft U.S. numbers. 

 3M (MMM) reported earnings per share that were above expectations, but revenue came in short as electronics and energy weighed. The company also narrowed it’s full-year earnings guidance and said organic sales would be flat to up 1% versus the 1% to 3% growth they had previous expected. Shares were off 1.5% at midday.

 Caterpillar (CAT) reduced its full-year earnings guidance and said it would cut more staff in the face of a continuing slump in energy investment. Overall, earnings of 93 cents a shares were down from $1.31 in the year-ago quarter while revenue fell 16% year-over-year. Despite the miss, shares rose 2.7% at midday.

Foreign Markets
European markets were modestly higher today. The FTSE 100 and Paris CAC each rose 0.2% while Germany’s DAX was up 0.5%.

Asian markets were mixed. The Shanghai Composite gained 1.4%, the Hang Seng was up 0.6% while the Nikkei 225 dropped 1.4%.

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