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For U.S. stock market report double-click 1446 ET 02June2009 AgFeed call volume pops up as shares jump ------------------------------------------------------------------------------
Shares of animal feed and pork company AgFeed Industries Inc surged 9 percent to $7.51 in late afternoon trade. The rise in stock was accompanied by a surge in option volume of about 11,000 contracts, four times the normal combined daily turnover and dominated by more than 9,200 calls, according to Trade Alert. The stock's June and November $7.50 call strikes are the most popular contracts with opening buyers earlier in the session leading the flow, said WhatsTrading.com option strategist Frederic Ruffy. There appears to be no news on the stock. The equity's option implied volatility remained elevated at 109 percent, up from about 106 percent the previous day as traders braced for more share price movement.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1427 ET 02June2009 Option traders focus on Aetna call options -----------------------------------------------------------------------------
A number of option traders in Aetna Inc appear to be banking on extended gains in the shares of the No. 3 U.S. health insurer within the next few months. 'We observed some bullish call buying activity in the health care benefits company today after the stock appeared on our 'hot by options volume' market scanner,' said Interactive Brokers Group market analyst Andrew Wilkinson in a note. Aetna shares rose 26 cents to $27.63 in afternoon trade ahead of a presentation on Wednesday at the Citi Healthcare Services Day conference. The July $30 strike had more than 6,100 calls pocketed for an average premium of $1 per contract, Wilkinson said. The shares would need to rally by about 12 percent from a reference price of $27.78 to breach the break even point at $31. Any price exceeding the break even point by expiration will result in profits to investors who are long the calls.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1415 ET 02June2009-OPEC sees oil prices at $80-$90 early next year -----------------------------------------------------------------------------
Oil prices could reach $80-$90 a barrel by early next year, but OPEC will not increase its output until a huge amount of over-supply has been absorbed, the group's Secretary General Abdullah al-Badri told the Reuters Global Energy Summit.
'I don't think the price will go down... By the end of the year we'll see $75. $80-$85 is possible -- not with the demand we see at this time, but if demand picks up month after month, then maybe we'll see this price,' he added.
In the event demand recovers more quickly than anticipated and any price rally runs out of control, Badri said the Organization of the Petroleum Exporting Countries had around seven-to-eight million bpd of unused production, which could be used to calm the market.
U.S. front-month crude prices rose 0.09 percent to $68.64 per barrel.
For more details, double click:
Reuters Messaging: tenzin.pema.reuters.com@reuters.net
1345 ET 02June2009-Ford sales sink 24.2 pct in May -----------------------------------------------------------------------------
Ford Motor Co on Tuesday reported a drop of 24.2 percent in its May sales, in what was the automaker's strongest domestic sales month since July 2008.
Sales fell to 161,531 vehicles in May, including all of its brands, from 213,238 vehicles a year earlier.
For details, see
Shares of Ford rose 1.6 percent to $6.23.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1336 ET 02June2009-Merrill: tech is the strongest sector in the S&P -----------------------------------------------------------------------------
Bank of America-Merrill Lynch issued a bullish note on the technology sector, saying it was 'the only sector in the S&P 500 that appears to be attractive on all three factors in our industry rotation model: momentum, valuation and estimate revisions.'
The firm added that other cyclical sectors with positive momentum hadn't seen fundamentals keep pace, 'and thus look less attractive on valuation.'
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1325 ET 02June2009-S&P Equity Research upgrades American Express -----------------------------------------------------------------------------
S&P Equity Research on Tuesday upgraded American Express to hold from sell, a day after the credit card company announced a $500 million equity offering in order to repay TARP funds.
'We believe the capital raise is a precondition for companies looking to pay back TARP funds. We view the news positively, as payback of TARP points to financial stability,' the firm wrote.
Despite that, S&P Equity trimmed its 2009 earnings estimate on the Dow component by 2 cents a share to $1.45 a share, citing dilution related to the offering.
'Although we remain concerned regarding unemployment levels, we believe American Express's cost-cutting initiatives will improve its bottom line,' it wrote.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1322 ET 02June2009 NetApp option vols imply deal uncertainty -----------------------------------------------------------------------------
Investors hoping to see NetApp Inc successfully take control of Data Domain must be feeling a bit anxious after EMC Corp initiated an unsolicited bid of $1.8 billion for Data Domain, said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in a note. Investor uncertainty climbed higher as reflected by the rise in NetApp's implied volatility to 50 percent from 45 percent on Monday. NetApp shares fell 5.22 percent to $19.60 after data storage giant EMC's extension of a more attractive bid. EMC late on Monday offered to pay another 20 percent for Data Domain, upping NetApp's original bid for $1.5 billion in cash and stock. Wilkinson said some traders braced for a recovery in NetApp's shares through July expiration. The July $21 strike had 3,500 calls bought for 85 cents apiece while the July $22 strike witnessed 2,400 calls for about 55 cents each. 'Perhaps these call-buying optimists expect NTAP to challenge EMC for potential control of buyout target, Data Domain,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Real-time Equity news
For U.S. stock market report double-click 1446 ET 02June2009 AgFeed call volume pops up as shares jump ------------------------------------------------------------------------------
Shares of animal feed and pork company AgFeed Industries Inc surged 9 percent to $7.51 in late afternoon trade. The rise in stock was accompanied by a surge in option volume of about 11,000 contracts, four times the normal combined daily turnover and dominated by more than 9,200 calls, according to Trade Alert. The stock's June and November $7.50 call strikes are the most popular contracts with opening buyers earlier in the session leading the flow, said WhatsTrading.com option strategist Frederic Ruffy. There appears to be no news on the stock. The equity's option implied volatility remained elevated at 109 percent, up from about 106 percent the previous day as traders braced for more share price movement.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1427 ET 02June2009 Option traders focus on Aetna call options -----------------------------------------------------------------------------
A number of option traders in Aetna Inc appear to be banking on extended gains in the shares of the No. 3 U.S. health insurer within the next few months. 'We observed some bullish call buying activity in the health care benefits company today after the stock appeared on our 'hot by options volume' market scanner,' said Interactive Brokers Group market analyst Andrew Wilkinson in a note. Aetna shares rose 26 cents to $27.63 in afternoon trade ahead of a presentation on Wednesday at the Citi Healthcare Services Day conference. The July $30 strike had more than 6,100 calls pocketed for an average premium of $1 per contract, Wilkinson said. The shares would need to rally by about 12 percent from a reference price of $27.78 to breach the break even point at $31. Any price exceeding the break even point by expiration will result in profits to investors who are long the calls.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1415 ET 02June2009-OPEC sees oil prices at $80-$90 early next year -----------------------------------------------------------------------------
Oil prices could reach $80-$90 a barrel by early next year, but OPEC will not increase its output until a huge amount of over-supply has been absorbed, the group's Secretary General Abdullah al-Badri told the Reuters Global Energy Summit.
'I don't think the price will go down... By the end of the year we'll see $75. $80-$85 is possible -- not with the demand we see at this time, but if demand picks up month after month, then maybe we'll see this price,' he added.
In the event demand recovers more quickly than anticipated and any price rally runs out of control, Badri said the Organization of the Petroleum Exporting Countries had around seven-to-eight million bpd of unused production, which could be used to calm the market.
U.S. front-month crude prices rose 0.09 percent to $68.64 per barrel.
For more details, double click:
Reuters Messaging: tenzin.pema.reuters.com@reuters.net
1345 ET 02June2009-Ford sales sink 24.2 pct in May -----------------------------------------------------------------------------
Ford Motor Co on Tuesday reported a drop of 24.2 percent in its May sales, in what was the automaker's strongest domestic sales month since July 2008.
Sales fell to 161,531 vehicles in May, including all of its brands, from 213,238 vehicles a year earlier.
For details, see
Shares of Ford rose 1.6 percent to $6.23.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1336 ET 02June2009-Merrill: tech is the strongest sector in the S&P -----------------------------------------------------------------------------
Bank of America-Merrill Lynch issued a bullish note on the technology sector, saying it was 'the only sector in the S&P 500 that appears to be attractive on all three factors in our industry rotation model: momentum, valuation and estimate revisions.'
The firm added that other cyclical sectors with positive momentum hadn't seen fundamentals keep pace, 'and thus look less attractive on valuation.'
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1325 ET 02June2009-S&P Equity Research upgrades American Express -----------------------------------------------------------------------------
S&P Equity Research on Tuesday upgraded American Express to hold from sell, a day after the credit card company announced a $500 million equity offering in order to repay TARP funds.
'We believe the capital raise is a precondition for companies looking to pay back TARP funds. We view the news positively, as payback of TARP points to financial stability,' the firm wrote.
Despite that, S&P Equity trimmed its 2009 earnings estimate on the Dow component by 2 cents a share to $1.45 a share, citing dilution related to the offering.
'Although we remain concerned regarding unemployment levels, we believe American Express's cost-cutting initiatives will improve its bottom line,' it wrote.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1322 ET 02June2009 NetApp option vols imply deal uncertainty -----------------------------------------------------------------------------
Investors hoping to see NetApp Inc successfully take control of Data Domain must be feeling a bit anxious after EMC Corp initiated an unsolicited bid of $1.8 billion for Data Domain, said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in a note. Investor uncertainty climbed higher as reflected by the rise in NetApp's implied volatility to 50 percent from 45 percent on Monday. NetApp shares fell 5.22 percent to $19.60 after data storage giant EMC's extension of a more attractive bid. EMC late on Monday offered to pay another 20 percent for Data Domain, upping NetApp's original bid for $1.5 billion in cash and stock. Wilkinson said some traders braced for a recovery in NetApp's shares through July expiration. The July $21 strike had 3,500 calls bought for 85 cents apiece while the July $22 strike witnessed 2,400 calls for about 55 cents each. 'Perhaps these call-buying optimists expect NTAP to challenge EMC for potential control of buyout target, Data Domain,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.