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Midday Market Update

Stocks Higher in Broad-Based Rally

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U.S. Market    
Stocks were higher this morning as all sectors except for energy were trading higher.

Productivity fell by 0.5% in the second-quarter, the third consecutive quarterly decline. The measure was down 0.4% on a year-over-year basis. The drop comes as unit labor costs rose by a 2% annual rate, faster than overall output.

At midday the Dow and S&P 500 were each up around 0.2% while the Nasdaq gained 0.4%.

Stocks on the Move
Shares of  Valeant Pharmaceuticals (VRX) jumped over 18% this morning after the firm reported second-quarter results and said the firm would pursue a major reorganization effort. Overall, the company lost 88 cents per share versus a loss of 15 cents a share in the year-ago quarter. Management also affirmed its full-year guidance. 

The 22% lift in no-moat-rated  News Corp's (NWS) June quarter fiscal 2016 EBITDA to $243 million  was a welcome reprieve, after the previous three consecutive quarters of decline. This was a quality result, driven by the key growth engine (digital real estate EBITDA up 18% to $53 million) and a recovery in book earnings (EBITDA up 52% to $50 million). Shares rose 4.3% at midday.

Foreign Markets
European markets rose today. The FTSE 100, Paris CAC and Germany’s DAX were up 0.6%, 1.2% and 2.6% respectively.

Asian shares were mixed. The Hang Seng was down 0.1% while the Shanghai Composite and Nikkei 225  each rose 0.7%.

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