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17:21 ET 09Nov2009 Economic indicators for Nov. 10
Economic indicators on tap for Tuesday include same-store sales as measured by the ICSC/Goldman Sachs at 7:45 a.m. EST (1245 GMT) and the Johnson Redbook index at 8:55 a.m. EST (1355 GMT).
The IBD/Technometrica gauge of economic optimism for November is expected at 10 a.m. EST (1500 GMT).
For details see
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
1656 ET Volatility Index response to rally normal, given volatility data
The CBOE Volatility Index fell 4.30 percent to 23.15 as the underlying S&P 500 index rose 2.22 percent to 1,093.08. Chris McKhann, analyst at optionMonster, said the decline was normal given the volatility data, including the relationship between the VIX, VIX futures and realized volatility for the S&P benchmark. First, a VIX level of about 23 predicts a daily move of about 1.4 percent for the S&P benchmark. Another reason the indicator did not fall sharply is that on a Monday, the VIX takes into account the repricing of S&P options after a weekend. In volatility metrics, historical volatility for the SPX has been on the rise. Over the past 10 days it stood at 25 percent, above spot VIX. In VIX futures, the two front months of November and December were each down about 6 percent, roughly in line with a 2 percent rise in the S&P benchmark. The VIX futures contracts are pricing in slightly higher volatility going forward, 'also a normal term structure for a bullish S&P 500,' McKhann said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
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.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
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..
Reuters Messaging: doris.frankel.reuters.com@reuters.net
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.'
For details, see
The stock climbed 7.8 percent to $37.73.
Reuters Messaging: ryan.vlastelica.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
17:21 ET 09Nov2009 Economic indicators for Nov. 10
Economic indicators on tap for Tuesday include same-store sales as measured by the ICSC/Goldman Sachs at 7:45 a.m. EST (1245 GMT) and the Johnson Redbook index at 8:55 a.m. EST (1355 GMT).
The IBD/Technometrica gauge of economic optimism for November is expected at 10 a.m. EST (1500 GMT).
For details see
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
1656 ET Volatility Index response to rally normal, given volatility data
The CBOE Volatility Index fell 4.30 percent to 23.15 as the underlying S&P 500 index rose 2.22 percent to 1,093.08. Chris McKhann, analyst at optionMonster, said the decline was normal given the volatility data, including the relationship between the VIX, VIX futures and realized volatility for the S&P benchmark. First, a VIX level of about 23 predicts a daily move of about 1.4 percent for the S&P benchmark. Another reason the indicator did not fall sharply is that on a Monday, the VIX takes into account the repricing of S&P options after a weekend. In volatility metrics, historical volatility for the SPX has been on the rise. Over the past 10 days it stood at 25 percent, above spot VIX. In VIX futures, the two front months of November and December were each down about 6 percent, roughly in line with a 2 percent rise in the S&P benchmark. The VIX futures contracts are pricing in slightly higher volatility going forward, 'also a normal term structure for a bullish S&P 500,' McKhann said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
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.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
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..
Reuters Messaging: doris.frankel.reuters.com@reuters.net
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.'
For details, see
The stock climbed 7.8 percent to $37.73.
Reuters Messaging: ryan.vlastelica.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.