Stocks on the move
Real-time Equity news
U.S. stock market report
1343 EST 15Dec2009
Bullish risk reversals traded in Wells Fargo April contract
Wells Fargo & Co shares gained 1.1 percent to $25.76 after the bank raised funds to repay a bailout received from the U.S. government last year. In the options market, a pair of bullish risk reversals traded in the April contract, wrote Interactive Brokers Group equity option analyst Caitlin Duffy in a note. Optimistic investors utilized the bullish risk reversal strategy to position for a rebound in the stock by expiration in April 2010. One trader sold 6,000 puts at the April $26 strike for $2.36 apiece in order to buy 6,000 calls at the same strike for $2.50 each. The investor paid a net 14 cents per contract for the transaction and profits accrue if shares rally to surpass $26.14 by expiration, Duffy wrote. The other reversal involved the sale of 3,000 puts at the April $24 strike for $1.60 apiece, marked against the purchase of the same number of calls at the higher April $27 strike for $2.04 each. The bullish investor paid a net 44 cents per contract for the transaction and profits if the stock trades above $27.44 by April's expiration day, Duffy wrote. Option implied volatility on underlying stock fell roughly 9 percent to 40.06 percent.
Reuters Messaging: angela.moon.reuters.com@reuters.net
1303 EST 15Dec2009
Celgene psoriasis drug shows promise in trial
Celgene Corp said on Tuesday its experimental drug to treat the skin condition psoriasis reduced symptoms by a significant amount in a mid-stage trial.
Results of the 352-patient trial showed that 41 percent of patients treated with 30 milligrams of the drug, apremilast, twice a day, saw a 75 percent reduction in symptoms as measured by a score known as the Psoriasis Area and Severity Index after 16 weeks.
For details, see
Shares of Celgene fell 1.9 percent to $52.87.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1257 EST 15Dec2009
Reforms may add to M Stanley, Goldman EPS: firm
The U.S. Federal Reserve's latest executive compensation reforms could cut compensation expense for Morgan Stanley and Goldman Sachs temporarily, boosting profits for the firms, Sanford C Bernstein said on Tuesday.
The new changes are generally not likely to be burdensome, the research team led by analyst Brad Hintz said, as the two Wall Street giants largely met the new standards even prior to the credit crisis.
But the changes could result in a 10 percent to 15 percent reduction every year in compensation expense for a newly minted managing director for five years, Hintz said.
For details, see
Shares of Goldman fell 1.5 percent to $163.65 on Tuesday while Morgan Stanley was off 1.3 percent at $29.77.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1220 EST 15Dec2009
Solar firms gain on JA Solar outlook
Shares of solar companies advanced on Tuesday, a day after JA Solar Holdings Co Ltd said it expects an uptick in demand to continue.
The firm also raised its fourth-quarter shipment outlook and said it expects annual shipments to rise 60 percent in 2010.
For details, see
The stock surged 10 percent to $5.85 while Canadian Solar climbed 4.5 percent to $25.88 and Trina Solar Ltd added 4.3 percent to $52.23.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1216 EST 15Dec2009
Geithner says U.S. banks on sounder footing
Treasury Secretary Timothy Geithner said on Tuesday that U.S. banks will be in a better position to resume lending as they pay back the unprecedented cash injections the government provided to keep them afloat during the financial crisis.
'As confidence in the financial system has been restored, we see private capital replacing government investments,' he said. 'As private investment comes in to replace the government's investments banks will be ... in a stronger position to lend,' he said in remarks at the Treasury.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1153 EST 15Dec2009
UBS starts coverage on regional banks
UBS started coverage on a number of midcap regional banks, including Associated Banc Corp and Zions Bancorp, with a cautious outlook.
The firm expects losses to accelerate and peak in 2011 for these banks as raising interest rates and challenging rent trends increase frequency, while commercial mortgage-backed securities market disintermediation could further intensify severity.
'The tail of this credit cycle will likely be much longer and fatter than expected,' the analysts said in a note dated Dec. 14 to clients.
For details, see
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
1343 EST 15Dec2009
Bullish risk reversals traded in Wells Fargo April contract
Wells Fargo & Co shares gained 1.1 percent to $25.76 after the bank raised funds to repay a bailout received from the U.S. government last year. In the options market, a pair of bullish risk reversals traded in the April contract, wrote Interactive Brokers Group equity option analyst Caitlin Duffy in a note. Optimistic investors utilized the bullish risk reversal strategy to position for a rebound in the stock by expiration in April 2010. One trader sold 6,000 puts at the April $26 strike for $2.36 apiece in order to buy 6,000 calls at the same strike for $2.50 each. The investor paid a net 14 cents per contract for the transaction and profits accrue if shares rally to surpass $26.14 by expiration, Duffy wrote. The other reversal involved the sale of 3,000 puts at the April $24 strike for $1.60 apiece, marked against the purchase of the same number of calls at the higher April $27 strike for $2.04 each. The bullish investor paid a net 44 cents per contract for the transaction and profits if the stock trades above $27.44 by April's expiration day, Duffy wrote. Option implied volatility on underlying stock fell roughly 9 percent to 40.06 percent.
Reuters Messaging: angela.moon.reuters.com@reuters.net
1303 EST 15Dec2009
Celgene psoriasis drug shows promise in trial
Celgene Corp said on Tuesday its experimental drug to treat the skin condition psoriasis reduced symptoms by a significant amount in a mid-stage trial.
Results of the 352-patient trial showed that 41 percent of patients treated with 30 milligrams of the drug, apremilast, twice a day, saw a 75 percent reduction in symptoms as measured by a score known as the Psoriasis Area and Severity Index after 16 weeks.
For details, see
Shares of Celgene fell 1.9 percent to $52.87.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1257 EST 15Dec2009
Reforms may add to M Stanley, Goldman EPS: firm
The U.S. Federal Reserve's latest executive compensation reforms could cut compensation expense for Morgan Stanley and Goldman Sachs temporarily, boosting profits for the firms, Sanford C Bernstein said on Tuesday.
The new changes are generally not likely to be burdensome, the research team led by analyst Brad Hintz said, as the two Wall Street giants largely met the new standards even prior to the credit crisis.
But the changes could result in a 10 percent to 15 percent reduction every year in compensation expense for a newly minted managing director for five years, Hintz said.
For details, see
Shares of Goldman fell 1.5 percent to $163.65 on Tuesday while Morgan Stanley was off 1.3 percent at $29.77.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1220 EST 15Dec2009
Solar firms gain on JA Solar outlook
Shares of solar companies advanced on Tuesday, a day after JA Solar Holdings Co Ltd said it expects an uptick in demand to continue.
The firm also raised its fourth-quarter shipment outlook and said it expects annual shipments to rise 60 percent in 2010.
For details, see
The stock surged 10 percent to $5.85 while Canadian Solar climbed 4.5 percent to $25.88 and Trina Solar Ltd added 4.3 percent to $52.23.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1216 EST 15Dec2009
Geithner says U.S. banks on sounder footing
Treasury Secretary Timothy Geithner said on Tuesday that U.S. banks will be in a better position to resume lending as they pay back the unprecedented cash injections the government provided to keep them afloat during the financial crisis.
'As confidence in the financial system has been restored, we see private capital replacing government investments,' he said. 'As private investment comes in to replace the government's investments banks will be ... in a stronger position to lend,' he said in remarks at the Treasury.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1153 EST 15Dec2009
UBS starts coverage on regional banks
UBS started coverage on a number of midcap regional banks, including Associated Banc Corp and Zions Bancorp, with a cautious outlook.
The firm expects losses to accelerate and peak in 2011 for these banks as raising interest rates and challenging rent trends increase frequency, while commercial mortgage-backed securities market disintermediation could further intensify severity.
'The tail of this credit cycle will likely be much longer and fatter than expected,' the analysts said in a note dated Dec. 14 to clients.
For details, see
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.
