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Midday Market Update

Stocks Little Changed After Bank of England Move

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U.S. Market    
Stocks were little changed this morning after the Bank of England rate move.

The Bank of England cut its key interest rate for the first time in 7 years in an effort to combat the impact of Brexit. The central bank also launched a new quantitative easing program. The pound moved lower against the dollar on the news while U.K. government bonds hit record lows.

Factory orders were down 1.5% in July, a slightly smaller drop than expected. The overall number was dragged down by a 10.5% drop in the transportation sector. 

initial unemployment claims were up by 3,000 to 269,000 last week. The less volatile four-week moving average was up by 3,750 to 260,250. The data comes ahead of tomorrow’s official payroll and unemployment rate report.

At midday the Dow and S&P 500 were unchanged while the Nasdaq rose 0.1%.

Stocks on the Move
 Fox (FOX) reported a  mixed end to fiscal 2016, as revenue was in line with our expectations but EBITDA was below our projections. Fourth-quarter revenue of $6.6 billion was up 7% versus a year ago, as three segments improved (cable up 9%, television up 4%, and filmed entertainment up 7%). EBITDA fell to $1.5 billion, however, down 6%, as improvement in the broadcast television division could not offset weakness within cable, which struggled with increased sports programming costs in the U.S. and internationally. Foreign exchange movements had a 3% negative impact on EBITDA, an ongoing headwind for Fox which generates roughly 30% of revenue outside of the U.S.

Shares of  Kellogg (K) were up 1.7% this morning after the firm reported quarterly results and boosted its full-year earnings guidance

Foreign Markets
European shares were higher after the BoE moves. The FTSE 100 was up 1.6%, while the Paris CAC and Germany’s DAX were each up 0.4%.

Asian markets also gained on the day. The Shanghai Composite, Hang Seng and Nikkei 225 were 0.1%, 0.4% and 1.1% respectively. 

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