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Midday Market Update

Stocks Sink; European Banks, Data, Earnings Eyed

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U.S. Market    
Stocks headed lower this morning after earnings and data.

Consumer spending was up 0.4% in June while incomes rose 0.2% in the month. Spending was slightly ahead of expectations while income was slightly behind. The PCE price index, a measure of inflation, rose 0.1% from the previous month and is up 0.9% year-over-year. Core inflation, which excludes food and energy, was up 1.6% year-over-year.

CoreLogic said this morning that home prices rose 5.7% year-over-year in June.

At midday the DowS&P 500 and Nasdaq were down 0.6%, 0.8% and 1.1% respectively.

Stocks on the Move
 Procter & Gamble’s (PG) fourth-quarter results showcased the steady progress the firm is making to right its ship. Organic sales ticked up 2%, due entirely to higher volumes, and adjusted gross margins expanded 160 basis points to 49.4%. However, adjusted operating margins slipped 150 basis points to 17.0%, but this decline reflected stepped-up brand investment. Shares were up 0.6% at midday.

Shares of  Pfizer (PFE) were down over 2% this morning despite better-than-expected results. Management also announced it had settled a lawsuit for nearly half a billion dollars about covering up the side effects of some pain medicine. 

Foreign Markets
European markets were down today as banks slid. The FTSE 100 was down 0.7% while the Paris CAC and Germany’s DAX were each off 1.8%.

Asian shares were mixed. The Shanghai Composite was up 0.6%, the Hang Seng gained 1.1% while the Nikkei 225 was off 1.5%.

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