Stocks on the move
Real-time Equity news
U.S. stock market report
1347 ET 28Oct2009
AMR to cut 700 maintenance and engineering jobs
AMR Corp, the parent company of American Airlines, on Wednesday said it would eliminate up to 700 jobs as it downsizes its maintenance and engineering (M&E) operations.
The cuts represent about 5 percent of the company's 12,700 M&E employees systemwide.
For details, see
Shares of AMR fell 5.1 percent to $5.60.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1343 ET 28Oct2009
CIT secures $4.5 bln credit facility
Shares of CIT Group rallied on Wednesday, after the troubled lender obtained $4.5 billion more of financing from its creditors.
The financing adds to a $3 billion loan arranged in July, and is being provided by a group of lenders that includes some of CIT's bondholders.
For details, see
The stock gained 13 percent to $1.09.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1315 ET 28Oct2009 Goldman Sachs recommends Starbucks call spreads
Investors should consider buying Starbucks Corp call spreads ahead of Nov. 5 earnings, wrote Goldman Sachs derivative strategists in a note. 'Shares are at the lower end of their three-month range and we expect above consensus earnings,' they said. With shares at $19.09, they recommend investors buy SBUX Nov $20/$22 call spreads for 37 cents to position for upside in a range at reduced cost and moderately long implied volatility. The trade profits at expiration if shares top $20.37 with a best case payout of 5:1. They also estimate shares need to move about 5 percent on earnings, assuming a 10 percent decline in volatility and that options imply a plus/minus 5 percent move on earnings. Starbucks one-month implied volatility has dropped vs. consumer discretionary peers and the overall market in the past weeks but remains above average in relative terms, the note said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1255 ET 28Oct2009
Goldman Sachs suggests selling Cisco strangles
Sell Cisco Systems strangles ahead of Nov. 4 earnings, Goldman Sachs derivative strategists wrote in a note. To enhance return, they recommend shareholders sell Nov $23/$25 strangles for 80 cents. With shares at $23.55, the strategy positions short implied volatility with breakevens of $22.80 and $25.80 through Nov. 20 expiration in exchange for the commitment to buy/sell shares at $23/$25 at expiration. Investors can also consider selling Dec $25 covered calls for 50 cents, while retaining 9 percent upside through year-end.
Goldman estimates Cisco options imply a plus/minus 4.5 percent move on earnings vs an 8-quarter median realized stock swing of 3 percent. The strategists expect earnings to be solid but not stock moving and prefer selling options with implied volatility at a large premium to recent realized and Nasdaq 100 option prices.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1242 ET 28Oct2009
Brazilian ADRs slide with Bovespa as risk appetite wanes
New York-traded shares of Brazilian companies tumbled on Wednesday, on par with Sao Paulo's Bovespa index, as concerns about the strength of the global economic recovery drove investors away from risky emerging-market equities.
The Bovespa index fell 4 percent and the Bank of New York Mellon index of Brazilian ADRs tumbled 5.3 percent, its largest percentage slide in more than four months. A stronger U.S. dollar put extra selling pressure on greenback-denominated foreign equities.
Among top decliners were ADRs of Itau Unibanco, down 6.5 percent at $19.16.
Reuters Messaging: rodrigo.campos.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
1347 ET 28Oct2009
AMR to cut 700 maintenance and engineering jobs
AMR Corp, the parent company of American Airlines, on Wednesday said it would eliminate up to 700 jobs as it downsizes its maintenance and engineering (M&E) operations.
The cuts represent about 5 percent of the company's 12,700 M&E employees systemwide.
For details, see
Shares of AMR fell 5.1 percent to $5.60.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1343 ET 28Oct2009
CIT secures $4.5 bln credit facility
Shares of CIT Group rallied on Wednesday, after the troubled lender obtained $4.5 billion more of financing from its creditors.
The financing adds to a $3 billion loan arranged in July, and is being provided by a group of lenders that includes some of CIT's bondholders.
For details, see
The stock gained 13 percent to $1.09.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1315 ET 28Oct2009 Goldman Sachs recommends Starbucks call spreads
Investors should consider buying Starbucks Corp call spreads ahead of Nov. 5 earnings, wrote Goldman Sachs derivative strategists in a note. 'Shares are at the lower end of their three-month range and we expect above consensus earnings,' they said. With shares at $19.09, they recommend investors buy SBUX Nov $20/$22 call spreads for 37 cents to position for upside in a range at reduced cost and moderately long implied volatility. The trade profits at expiration if shares top $20.37 with a best case payout of 5:1. They also estimate shares need to move about 5 percent on earnings, assuming a 10 percent decline in volatility and that options imply a plus/minus 5 percent move on earnings. Starbucks one-month implied volatility has dropped vs. consumer discretionary peers and the overall market in the past weeks but remains above average in relative terms, the note said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1255 ET 28Oct2009
Goldman Sachs suggests selling Cisco strangles
Sell Cisco Systems strangles ahead of Nov. 4 earnings, Goldman Sachs derivative strategists wrote in a note. To enhance return, they recommend shareholders sell Nov $23/$25 strangles for 80 cents. With shares at $23.55, the strategy positions short implied volatility with breakevens of $22.80 and $25.80 through Nov. 20 expiration in exchange for the commitment to buy/sell shares at $23/$25 at expiration. Investors can also consider selling Dec $25 covered calls for 50 cents, while retaining 9 percent upside through year-end.
Goldman estimates Cisco options imply a plus/minus 4.5 percent move on earnings vs an 8-quarter median realized stock swing of 3 percent. The strategists expect earnings to be solid but not stock moving and prefer selling options with implied volatility at a large premium to recent realized and Nasdaq 100 option prices.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1242 ET 28Oct2009
Brazilian ADRs slide with Bovespa as risk appetite wanes
New York-traded shares of Brazilian companies tumbled on Wednesday, on par with Sao Paulo's Bovespa index, as concerns about the strength of the global economic recovery drove investors away from risky emerging-market equities.
The Bovespa index fell 4 percent and the Bank of New York Mellon index of Brazilian ADRs tumbled 5.3 percent, its largest percentage slide in more than four months. A stronger U.S. dollar put extra selling pressure on greenback-denominated foreign equities.
Among top decliners were ADRs of Itau Unibanco, down 6.5 percent at $19.16.
Reuters Messaging: rodrigo.campos.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.
