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Midday Market Update

Stocks Lower After Earnings, Data

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U.S. Market    
Stocks were lower this morning after earnings, data.

Initial unemployment claims were up by a larger-than-expected 14,000 to 266,000 last week. The less volatile four-week moving average was down 1,000 to 256,500. 

At midday the Dow was down 0.4%, the S&P 500 was off 0.1% while the Nasdaq was up 0.1%.

Stocks on the Move
Shares of  Ford (F) were down 9.7% this morning after the firm reported disappointing second-quarter results. Management comments about potential weakness in U.S. sales and other global concerns weighed on investors.

 Facebook (FB) second-quarter results handily beat all expectations with strong ad revenue growth and user growth. Total advertising revenue grew 63% year over year to $6.2 billion, driven by 15% and 17% growth in monthly average users, or MAUs, and daily active users, or DAUs, respectively. Shares were up 1.7% at midday.

 Oracle (ORCL) entered into an agreement to acquire cloud-based ERP vendor NetSuite (N) for $9.3 billion (or $109 per NetSuite share) this morning. On its face, this deal should help accelerate Oracle’s push into the ERP software-as-a-service, or SaaS, space, a market in which the company has been working feverishly to convert legacy on-premises customers to cloud-based deployments. Oracle shares were down slightly on the news.

Foreign Markets
European markets were lower today. The FTSE 100 and Germany’s DAX were down 0.4% while the Paris CAC was off 0.6%.

Asian shares were mixed. The Shanghai Composite was up 0.1%, the Hang Seng was down 0.2% while then Nikkei 225 was 1.1% lower.

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