STOCKS NEWS US-Dow industrials at 13-mo high as Wall St rallies

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16:50 ET 09Nov2009 Dow industrials at 13
month high on increased risk appetite

A broad U.S. stocks rally sent the Dow industrials to a 13-month high on Monday after the Group of 20 pledged to keep aid flowing to the world economy, strengthening investors' desire for risk. For details see and .

The Dow Jones industrial average jumped 203.52 points, or 2.03 percent, to 10,226.94. The Standard & Poor's 500 Index rose 23.78 points, or 2.22 percent, to 1,093.08. The Nasdaq Composite Index gained 41.62 points, or 1.97 percent, to 2,154.06.

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1603 09Nov2009 Some McDonald's traders close out short put positions

McDonald's Corp said sales at established U.S. restaurants fell 0.1 percent in October, as expected, but its stock rose 1.49 percent to $62.64 after sales from the rest of the world buoyed overall results. The share run-up allowed some players to 'line their pockets with profits by closing out short put positions in the December contract,' said Andrew Wilkinson, market analyst at Interactive Brokers Group. It appears one investor originally sold 10,000 puts short at the Dec $50 strike, receiving $2 apiece back on June 8, when shares traded at $58.52. Today, the trader exited that position by buying back all 10,000 puts for 6 cents each for a net profit of $1.94 million. A similar strategy was employed at the Dec $52.50 strike. It looked like an investor sold 18,000 puts short at the higher strike, taking in about $2 in premium, back on July 23. The trader bought back the puts for 9 cents apiece today since the short sale was established. Net profits amounted to about $3.438 million, he said..

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1444 EST 09Nov2009
Abercrombie shares advance after upgrades

Shares of Abercrombie & Fitch rallied on Monday, after a pair of analysts upgraded the stock, citing the strong earnings potential of the company's international business.

Goldman Sachs upgraded the stock to 'buy' from 'neutral' while Credit Suisse lifted it to 'outperform' from 'neutral.'

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The stock climbed 7.8 percent to $37.73.

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1439 ET 09Nov2009 JDS Uniphase draws bullish option action

Telecoms equipment maker JDS Uniphase Corp shares rose 6.97 percent to $6.91 in late trading. Its shares are up 25 percent since last Monday and a number of option players are hoping to catch extended gains. One investor is looking for a late-year rally from JDS Uniphase, wrote optionMonster analyst David Russell in comments on the Web site. The firm's computer model detected heavy buying of the December $8 calls, which were bought 15,000 times for 10 cents per contract. Volume was more than five times open interest. The company last week posted an adjusted quarterly profit that beat Wall Street expectations. The stock needs to climb about 18 percent by December expiration for the calls to turn a profit, he said.

Russell noted the same investor also apparently purchased about 3,500 December $7 calls for 35 cents against existing open interest. In all, volume was six times greater than average with about 23,000 calls and 3,144 puts traded, according to Trade Alert.

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1429 EST 09Nov2009
Crude stockpiles seen rising on imports: POLL

U.S. crude oil inventories rose slightly last week on higher imports, a Reuters poll of analysts showed on Monday.

Crude stocks were forecast to have risen by 400,000 barrels in the week to Nov. 6, the survey of seven analysts taken ahead of weekly inventory data forecast.

'Crude supplies will likely show a modest build due to an anticipated rebound in imports' toward the 8.5 million to 8.6 million barrel per day level,' said Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois.

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December crude futures gained 2.6 percent to $79.44 per barrel on Monday.

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