Stocks on the move
Real-time Equity news
U.S. stock market report
1705 ET 14Oct2009
SNAP ANALYSIS: Dow 10K good for psyche, but is that all?
The Dow Jones industrial average topped 10,000 for the first time in a year on Wednesday, piercing a level major investors see as merely psychological but which may serve as a buying signal to retail stock pickers.
The milestone points to the resiliency of the market's run-up since the lows of early March and growing comfort with the economy's path. But investors warned that it could serve as a trap, something that galvanizes interest from regular investors while institutions pare back positions.
For more please double click
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1520 ET 14Oct2009 Investors pick up NYSE Euronext calls
Overall option volume increased in exchange operator NYSE Euronext after investors picked up bullish call options, one analyst said. NYX shares rose 5.08 percent to $28.76 in afternoon trade. 'Investors expecting continued upward movement in the stock scooped up call options in the November contract,' said Andrew Wilkinson, market analyst at Interactive Brokers Group. The November $30 strike had 2,100 calls purchased for an average premium of $1.13 each, while the November $31 strike had 1,200 calls coveted for 82 cents premium apiece. He also noticed 'super-bullish traders looked to the higher November $33 strike to take ownership of 1,400 calls at 34 cents a-pop.' Optimistic players holding the higher strike calls would accumulate profits if NYX shares surpass the break-even point of $33.34 by expiration next month.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1410 ET 14Oct2009
Markets rally on earnings optimism
U.S. stocks rallied on Wednesday, with the Dow breaking above 10,000 in intraday trading on better-than-expected company results and retail sales data for September.
The breakthrough was the first time the Dow traded above 10,000 in a year.
Quarterly results from JPMorgan Chase and Intel Corp contributed to the optimism in the markets.
For details, see
The Dow Jones industrial average rose 1.2 percent to 9,990.85 while the S&P 500 gained 1.4 percent to 1,087.99 and the Nasdaq was up 1.2 percent to 2,165.748.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1325 14Oct2009
Goldman sees Microsoft put spreads as hedge
Microsoft Corp November put spreads are attractive to hedge ahead of the company's earnings on Oct. 23, Goldman Sachs derivative strategists said in a note. 'We are below consensus for the upcoming quarter, providing a short-term risk to a long-term bullish story,' they said. The strategists recommend buying MSFT November $25/$23 put spreads for 45 cents in premium to hedge at reduced cost with attractive expiration payouts.
With shares at $25.88, this strategy provides protection in a minus 5 to 13 percent range, positions moderately long implied volatility and has a best case payout at expiration of better than 4:1. Goldman estimates Microsoft options imply a plus/minus 5 percent move on earnings versus a median realized move on earnings of 7 percent for the past eight quarters. Put spread buyers risk loss of entire premium paid.
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
U.S. stock market report
1705 ET 14Oct2009
SNAP ANALYSIS: Dow 10K good for psyche, but is that all?
The Dow Jones industrial average topped 10,000 for the first time in a year on Wednesday, piercing a level major investors see as merely psychological but which may serve as a buying signal to retail stock pickers.
The milestone points to the resiliency of the market's run-up since the lows of early March and growing comfort with the economy's path. But investors warned that it could serve as a trap, something that galvanizes interest from regular investors while institutions pare back positions.
For more please double click
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1520 ET 14Oct2009 Investors pick up NYSE Euronext calls
Overall option volume increased in exchange operator NYSE Euronext after investors picked up bullish call options, one analyst said. NYX shares rose 5.08 percent to $28.76 in afternoon trade. 'Investors expecting continued upward movement in the stock scooped up call options in the November contract,' said Andrew Wilkinson, market analyst at Interactive Brokers Group. The November $30 strike had 2,100 calls purchased for an average premium of $1.13 each, while the November $31 strike had 1,200 calls coveted for 82 cents premium apiece. He also noticed 'super-bullish traders looked to the higher November $33 strike to take ownership of 1,400 calls at 34 cents a-pop.' Optimistic players holding the higher strike calls would accumulate profits if NYX shares surpass the break-even point of $33.34 by expiration next month.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1410 ET 14Oct2009
Markets rally on earnings optimism
U.S. stocks rallied on Wednesday, with the Dow breaking above 10,000 in intraday trading on better-than-expected company results and retail sales data for September.
The breakthrough was the first time the Dow traded above 10,000 in a year.
Quarterly results from JPMorgan Chase and Intel Corp contributed to the optimism in the markets.
For details, see
The Dow Jones industrial average rose 1.2 percent to 9,990.85 while the S&P 500 gained 1.4 percent to 1,087.99 and the Nasdaq was up 1.2 percent to 2,165.748.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1325 14Oct2009
Goldman sees Microsoft put spreads as hedge
Microsoft Corp November put spreads are attractive to hedge ahead of the company's earnings on Oct. 23, Goldman Sachs derivative strategists said in a note. 'We are below consensus for the upcoming quarter, providing a short-term risk to a long-term bullish story,' they said. The strategists recommend buying MSFT November $25/$23 put spreads for 45 cents in premium to hedge at reduced cost with attractive expiration payouts.
With shares at $25.88, this strategy provides protection in a minus 5 to 13 percent range, positions moderately long implied volatility and has a best case payout at expiration of better than 4:1. Goldman estimates Microsoft options imply a plus/minus 5 percent move on earnings versus a median realized move on earnings of 7 percent for the past eight quarters. Put spread buyers risk loss of entire premium paid.
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.