Real-time equity news
U.S. stock market report
1020 ET 17Aug2010
Pactiv calls stir after Reynolds Group bid
Pactiv Corp shares rose 5.4 percent to $32.62 after the company said Reynolds Group Holdings Ltd plans to buy the maker of Hefty bags for about $6 billion. Reynolds is a subsidiary of New Zealand-based Rank Group Ltd, which is owned by billionaire investor Graeme Hart. For details, see. In the options market, 8,843 calls versus 2,147 puts crossed the tape in Pactiv by 10:18 EDT, according to Trade Alert. Traders favored the February 2011 $30 calls, with some possibly liquidating positions on the news, said WhatsTrading.com option strategist Frederic Ruffy. In the strike, 4,400 contracts traded with 69 percent on the bid price and implied volatility fell about 35 percent to 20 percent. The strike's volume expanded to 5,190 contracts in morning trade. Pactiv had been the subject of takeover chatter as recently as Aug. 4, Ruffy said. On July 23, the New York Post reported that Koch Industries might be interested in the Lake Forest, Illinois packaging and container company..
Reuters Messaging: doris.frankel.reuters.com@reuters.net
0934 ET 17Aug2010
Potential pinning for S&P 500 is at 1,100 strike
This week marks the expiration of monthly August options and early indications are pointing toward a pinning for the S&P 500 index at the 1,100 strike, based on this Friday's opening settlement value, said Scott Fullman, director of derivative investment strategy at WJB Capital Group. Pinning is when a stock or index closes at or around its corresponding at-the-money option strike. Fullman noted the number of August expiring call contracts that are currently worthless rose to 45.3 percent from 43.9 percent and the number of expiring puts with no bid climbed to 37 percent from 35.2 percent on Monday. August trading volume accounted for 48 percent of total option trading on Monday compared with 49.4 percent on Friday. The volatility indexes eased slightly on Monday. The CBOE S&P 500 Implied Volatility Index, or VIX, was lower by 0.5 percent, and its sister index, the CBOE Nasdaq 100 Implied Volatility Index, or VXN, dropped 3.5 percent. 'The trend for the volatility indicators has been down, which shows continued complacency among investors and traders,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
0912 EDT 17Aug2010
Intrepid Potash, CF rise as Potash move fuels M&A talk
U.S. traded shares of Potash Corp of Saskatchewan soared 25.4 percent to $140.59 after the company rejected BHP Billiton's unsolicited $130 per share cash offer, terming it as 'grossly inadequate,' and adopted a shareholder rights plan.
Intrepid Potash, up 5.2 percent to $25.19 and CF Industries, up 6.8 percent to $90.37, rose on the news as the rejection fueled takeover speculation in the sector.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
0900 EDT 17Aug2010
Saks loss narrows on more full price selling
Department store operator Saks Inc reported a narrower-than-expected quarterly loss as it benefited from an uptick in luxury spending and was able to sell more items at their full price.
The company's shares rose 2.4 percent to $7.79.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
0850 EDT 17Aug2010
Lilly halts development of Alzheimer's drug
Eli Lilly and Co said it is halting development of one of its experimental late-stage Alzheimer's disease treatments after preliminary results from large studies showed the drug was linked to worsening of cognition and the ability to perform daily tasks.
Lilly's shares were down 2.8 percent at $34.56.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
0845 EDT 17Aug2010
July housing starts rise less than expected
U.S. housing starts rose but only to a much weaker rate than expected in July, while permits for future home construction fell to their lowest level in more than a year, data showed.
A separate report showed U.S. producer prices rose in July for the first time in four months, pulled by higher prices for food and consumer goods.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
0820 EDT 17Aug2010
Home Depot profit beats, shares rise
Shares of Home Depot Inc gained about 2 percent after the company reported a slightly higher-than-expected quarterly profit on tighter cost controls.
The stock was up 2.56 percent at $28.10.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
0756 EDT 17Aug2010
Abercrombie profit tops Wall Street
Abercrombie & Fitch Co shares fell 8.4 percent to $34.47 after the retailer posted a quarterly profit way higher than estimates as discounts drew more customers and lifted sales. For details see.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
0753 EDT 17Aug2010-Wal
Mart profit up, U.S. sales weak
Wal-Mart Stores Inc shares edged 1.7 percent higher to $51.26 after the world's largest retailer posted a higher quarterly profit, helped by cost cuts and growth in international markets as sales at U.S. stores open at least a year fell. For details see.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2010. 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.
U.S. stock market report
1020 ET 17Aug2010
Pactiv calls stir after Reynolds Group bid
Pactiv Corp shares rose 5.4 percent to $32.62 after the company said Reynolds Group Holdings Ltd plans to buy the maker of Hefty bags for about $6 billion. Reynolds is a subsidiary of New Zealand-based Rank Group Ltd, which is owned by billionaire investor Graeme Hart. For details, see. In the options market, 8,843 calls versus 2,147 puts crossed the tape in Pactiv by 10:18 EDT, according to Trade Alert. Traders favored the February 2011 $30 calls, with some possibly liquidating positions on the news, said WhatsTrading.com option strategist Frederic Ruffy. In the strike, 4,400 contracts traded with 69 percent on the bid price and implied volatility fell about 35 percent to 20 percent. The strike's volume expanded to 5,190 contracts in morning trade. Pactiv had been the subject of takeover chatter as recently as Aug. 4, Ruffy said. On July 23, the New York Post reported that Koch Industries might be interested in the Lake Forest, Illinois packaging and container company..
Reuters Messaging: doris.frankel.reuters.com@reuters.net
0934 ET 17Aug2010
Potential pinning for S&P 500 is at 1,100 strike
This week marks the expiration of monthly August options and early indications are pointing toward a pinning for the S&P 500 index at the 1,100 strike, based on this Friday's opening settlement value, said Scott Fullman, director of derivative investment strategy at WJB Capital Group. Pinning is when a stock or index closes at or around its corresponding at-the-money option strike. Fullman noted the number of August expiring call contracts that are currently worthless rose to 45.3 percent from 43.9 percent and the number of expiring puts with no bid climbed to 37 percent from 35.2 percent on Monday. August trading volume accounted for 48 percent of total option trading on Monday compared with 49.4 percent on Friday. The volatility indexes eased slightly on Monday. The CBOE S&P 500 Implied Volatility Index, or VIX, was lower by 0.5 percent, and its sister index, the CBOE Nasdaq 100 Implied Volatility Index, or VXN, dropped 3.5 percent. 'The trend for the volatility indicators has been down, which shows continued complacency among investors and traders,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
0912 EDT 17Aug2010
Intrepid Potash, CF rise as Potash move fuels M&A talk
U.S. traded shares of Potash Corp of Saskatchewan soared 25.4 percent to $140.59 after the company rejected BHP Billiton's unsolicited $130 per share cash offer, terming it as 'grossly inadequate,' and adopted a shareholder rights plan.
Intrepid Potash, up 5.2 percent to $25.19 and CF Industries, up 6.8 percent to $90.37, rose on the news as the rejection fueled takeover speculation in the sector.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
0900 EDT 17Aug2010
Saks loss narrows on more full price selling
Department store operator Saks Inc reported a narrower-than-expected quarterly loss as it benefited from an uptick in luxury spending and was able to sell more items at their full price.
The company's shares rose 2.4 percent to $7.79.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
0850 EDT 17Aug2010
Lilly halts development of Alzheimer's drug
Eli Lilly and Co said it is halting development of one of its experimental late-stage Alzheimer's disease treatments after preliminary results from large studies showed the drug was linked to worsening of cognition and the ability to perform daily tasks.
Lilly's shares were down 2.8 percent at $34.56.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
0845 EDT 17Aug2010
July housing starts rise less than expected
U.S. housing starts rose but only to a much weaker rate than expected in July, while permits for future home construction fell to their lowest level in more than a year, data showed.
A separate report showed U.S. producer prices rose in July for the first time in four months, pulled by higher prices for food and consumer goods.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
0820 EDT 17Aug2010
Home Depot profit beats, shares rise
Shares of Home Depot Inc gained about 2 percent after the company reported a slightly higher-than-expected quarterly profit on tighter cost controls.
The stock was up 2.56 percent at $28.10.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
0756 EDT 17Aug2010
Abercrombie profit tops Wall Street
Abercrombie & Fitch Co shares fell 8.4 percent to $34.47 after the retailer posted a quarterly profit way higher than estimates as discounts drew more customers and lifted sales. For details see.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
0753 EDT 17Aug2010-Wal
Mart profit up, U.S. sales weak
Wal-Mart Stores Inc shares edged 1.7 percent higher to $51.26 after the world's largest retailer posted a higher quarterly profit, helped by cost cuts and growth in international markets as sales at U.S. stores open at least a year fell. For details see.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2010. 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.