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Real-time Equity news
U.S. stock market report
1046 ET 27Nov2009
Bove sees Dubai's debt woes benefiting the U.S.
Veteran analyst Richard Bove of Rochdale Securities said on Friday the effects of Dubai debt woes might benefit the United States. The following is an outline of some of his key points on the unfolding situation:-
- (U.S. Treasury Secretary) Timothy Geithner benefits because it makes his Cassandra calls more believable.
- The U.S. dollar benefits because it remains a safe haven.
- The U.S. budget benefits because the demand for Treasuries will grow.
- The U.S. banking system may actually benefit also as money seeks a safe haven in highly regulated institutions.
'The Dubai default will cause near term issues in the financial system. There will be indirect losses to the American banking system,' Bove said in a research note. 'Regulation will be notched higher and the U.S. may look more attractive to holders of funds than it has for some time.'
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1024 ET 27Nov2009 Players seek puts as safety net in ETFs
Option investors are scrambling for protection in several exchange-traded funds that track stock benchmarks as risk aversion picked up after a possible debt default at a Dubai state-own conglomerate. Dubai, part of the oil-exporting United Arab Emirates, said on Wednesday it would ask creditors of state-owned Dubai World and Nakheel to agree to a standstill on billions of dollars of debt as a first step towards restructuring. Traders favored the December $100 put option in the SPDR S&P 500 fund in an otherwise light volume morning of trading, said WhatsTrading.com option strategist Frederic Ruffy. The ETF, commonly called the Spiders, is designed to equal roughly one-tenth the actual S&P 500 index. Its shares fell 1.5 percent to $109.67. In all, 31,446 contracts traded in the $100 strike against open interest of 264,470, according to Reuters data. In the iShares Small Cap Fund, the January $55 put strike turned busy as its shares fell 2.23 percent to $54.27.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1001 ET 27Nov2009
Retail/consumer indexes off on Black Friday starts
The S&P retail index was down 1.7 percent and the S&P consumer discretionaries index off 2 percent as U.S. shoppers headed to stores to kick off the holiday shopping season on Friday.
Investors are closely watching Friday's selling activity to gauge if the U.S. consumer has regained confidence to foster a much needed economic recovery.
Some industry experts expect a strong turnout on the Black Friday weekend, but have cautioned that may not mean a strong holiday season as shopping could drop off again until just before Christmas.
Among major retail stocks, Wal-Mart was off 0.7 percent to $54.57, while Costco shed 1.4 percent to $60.02, Macy's lost 3.1 percent to $17 and Nordstrom Inc dropped 1.4 percent to $34.31.
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Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
0940 ET 27Nov2009
Wall St tumbles on Dubai default fears
U.S. stocks slid more than 2 percent at the open on Friday as a possible debt default at a Dubai state-owned conglomerate prompted fears of renewed global financial turmoil.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
0915 ET 27Nov2009
Energy ETF drops as crude oil prices slide
The Select Sector SPDR Energy ETF, which tracks S&P 500 energy companies, dropped 3 percent to $56.40 before the bell on Friday as crude oil prices tumbled.
U.S. front-month crude dropped 5 percent, or $3.91, to $74.05 a barrel as the U.S. dollar rebounded amid worries about Dubai's debt woes.
Reuters Messaging rm://ellis.mnyandu.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
1046 ET 27Nov2009
Bove sees Dubai's debt woes benefiting the U.S.
Veteran analyst Richard Bove of Rochdale Securities said on Friday the effects of Dubai debt woes might benefit the United States. The following is an outline of some of his key points on the unfolding situation:-
- (U.S. Treasury Secretary) Timothy Geithner benefits because it makes his Cassandra calls more believable.
- The U.S. dollar benefits because it remains a safe haven.
- The U.S. budget benefits because the demand for Treasuries will grow.
- The U.S. banking system may actually benefit also as money seeks a safe haven in highly regulated institutions.
'The Dubai default will cause near term issues in the financial system. There will be indirect losses to the American banking system,' Bove said in a research note. 'Regulation will be notched higher and the U.S. may look more attractive to holders of funds than it has for some time.'
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1024 ET 27Nov2009 Players seek puts as safety net in ETFs
Option investors are scrambling for protection in several exchange-traded funds that track stock benchmarks as risk aversion picked up after a possible debt default at a Dubai state-own conglomerate. Dubai, part of the oil-exporting United Arab Emirates, said on Wednesday it would ask creditors of state-owned Dubai World and Nakheel to agree to a standstill on billions of dollars of debt as a first step towards restructuring. Traders favored the December $100 put option in the SPDR S&P 500 fund in an otherwise light volume morning of trading, said WhatsTrading.com option strategist Frederic Ruffy. The ETF, commonly called the Spiders, is designed to equal roughly one-tenth the actual S&P 500 index. Its shares fell 1.5 percent to $109.67. In all, 31,446 contracts traded in the $100 strike against open interest of 264,470, according to Reuters data. In the iShares Small Cap Fund, the January $55 put strike turned busy as its shares fell 2.23 percent to $54.27.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1001 ET 27Nov2009
Retail/consumer indexes off on Black Friday starts
The S&P retail index was down 1.7 percent and the S&P consumer discretionaries index off 2 percent as U.S. shoppers headed to stores to kick off the holiday shopping season on Friday.
Investors are closely watching Friday's selling activity to gauge if the U.S. consumer has regained confidence to foster a much needed economic recovery.
Some industry experts expect a strong turnout on the Black Friday weekend, but have cautioned that may not mean a strong holiday season as shopping could drop off again until just before Christmas.
Among major retail stocks, Wal-Mart was off 0.7 percent to $54.57, while Costco shed 1.4 percent to $60.02, Macy's lost 3.1 percent to $17 and Nordstrom Inc dropped 1.4 percent to $34.31.
For more please double click
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
0940 ET 27Nov2009
Wall St tumbles on Dubai default fears
U.S. stocks slid more than 2 percent at the open on Friday as a possible debt default at a Dubai state-owned conglomerate prompted fears of renewed global financial turmoil.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
0915 ET 27Nov2009
Energy ETF drops as crude oil prices slide
The Select Sector SPDR Energy ETF, which tracks S&P 500 energy companies, dropped 3 percent to $56.40 before the bell on Friday as crude oil prices tumbled.
U.S. front-month crude dropped 5 percent, or $3.91, to $74.05 a barrel as the U.S. dollar rebounded amid worries about Dubai's debt woes.
Reuters Messaging rm://ellis.mnyandu.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.