STOCKS NEWS US-2009 targets: S&P 500 1,280; DJIA 11,150 -Birinyi

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1220 ET 21Oct2009-Birinyi end
2009 targets: S&P 500 1,280; DJIA 11,150

The benchmark S&P 500 could hit 1,280 by year-end since the index has gained an average 0.32 percent per day since the start of the rally's latest leg in mid-July, says market research firm Birinyi Associates.

The Dow Jones industrial average has gained an average of 18 points per day which implies a year-end target of 11,150, according to Birinyi.

'These are not meant to be forecasts but parameters and just as the market has traded through every parameter and metric, we see no reason why these numbers are not feasible,' the firm said in a note.

In Wednesday trade, the Dow Jones industrial average was up 37.79 points, or 0.38 percent, at 10,079.27. The Standard & Poor's 500 Index was up 5.32 points, or 0.49 percent, at 1,096.38.

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1209 ET 21Oct2009
Baird downgrades three REITs to 'underperform'

Robert W. Baird on Wednesday downgraded a trio of real estate investment trusts, citing valuation and a cautious view on a recovery in lodging.

FelCor Lodging Trust Inc, LaSalle Hotel Properties and Strategic Hotels & Resorts Inc were all cut to 'underperform' from 'neutral.'

'We believe talk of green shoots for hotels may be premature,' the firm wrote, adding that it didn't see earnings growth returning for the group until 2011.

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FelCor shares dropped 3.4 percent to $4.25 while LaSalle was down 2 percent to $19.88 and Strategic Hotels sank 8 percent to $2.29.

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1125 ET 21Oct2009
USG shares down after results, downbeat comments

Shares in Building products maker USG Corp fell sharply, losing 6.6 percent to $15.72, after the company reported a larger quarterly loss and said the near-term outlook remains challenging. For details, see

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1101 ET 21Oct2009-RTRS
Apple shares surge to record intraday high

Shares of Apple Inc rose sharply on Wednesday, hitting a record intraday high of $206.20 as technology stocks advanced on increased optimism about the sector's profitability.

Apple, maker of the iPhone, MacBook computers and the iPod, posted quarterly results on Monday that blew past Wall Street's expectations.

The stock was last up 3.3 percent at $205.38 on Nasdaq.

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1100 ET 21Oct2009
Goldman Sachs upgrades Caterpillar to 'neutral'

Goldman Sachs on Wednesday upgraded Caterpillar Inc to 'neutral' from 'sell,' a day after the company reported quarterly results that surged past expectations.

The firm also raised its price target on the maker of construction equipment by $16 to $64.

At the same time, Stifel Nicolaus downgraded Caterpillar to 'sell,' seeing little operating leverage at the Dow component.

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Caterpillar shares edged 0.2 percent lower to $59.52.

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1045 ET 21Oct2009-VIX drops almost 4 pct; takes aim at sub
20

The CBOE Volatility Index fell nearly 4 percent on Wednesday to an intraday low of 20.10, its lowest level since late August, 2008.

The VIX, Wall Street's favorite barometer of investor sentiment, has not closed below 20 since Aug. 28, 2008, right before the collapse of Wall Street bank Lehman Brothers.

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