STOCKS NEWS US-Options volume soars on Saks Inc

Real-time equity news

U.S. stock market report


1424 ET 31Aug2010
Options activity soars on Saks Inc on report of buyout bid

Saks Inc drew heavy options activity after a news report suggested that a group of private equity firms might soon bid for the New York-based luxury department store operator. For details, see

The stock was now trading up 22.3 percent at $8.08. The sharp rise in demand for options and uncertainty regarding the status of potential buyout offers fueled a 49 percent increase in the stock's overall reading of options implied volatility to a high of 86.56 percent earlier in the morning, said Caitlin Duffy, options strategist at Interactive Brokers Group.

The majority of options players populating Saks are picking up put options as 'perhaps investors are long the stock and seeking to lock in profits on the substantial run up in shares,' she said. An alternative motivation for put buying could be that traders expect Saks' shares to tumble if confirmed buyout offers fail to surface.

Trading traffic in puts is heaviest at the September $9 strike where nearly
9,000 in-the
money contracts changed, Duffy said. 'It looks like the majority of these puts were purchased at an average premium of $1.20 each. Put buying spread all the way out to the January 2011 contract where investors picked up some 4,600 lots at the January 2011 $7.50 strike for an average premium of 80 cents each.'

Reuters Messaging: [e-mail]

1414 ET 31Aug2010-Fed mulls stimulus if outlook worsens appreciably
minutes

The outlook for the U.S. economy would have to deteriorate 'appreciably' to spur fresh support from the Federal Reserve, minutes of the central bank's last policy meeting released on Tuesday suggest.

'The committee would need to consider steps it could take to provide additional policy stimulus if the outlook were to weaken appreciably further,' the Fed said in minutes of its Aug. 10 policy session.

Reuters Messaging: [e-mail]


1202 ET 31Aug2010
Markets rise on confidence, home price data

U.S. stocks rose on Tuesday as a pair of positive data surprises helped alleviate continued investor anxiety over the economy's strength.

For details, see

The Dow Jones industrial average was up 51.54 points, or 0.51 percent, at 10,061.27. The Standard & Poor's 500 Index was up 5.16 points, or 0.49 percent, at 1,054.08. The Nasdaq Composite Index was up 6.20 points, or 0.29 percent, at 2,126.17.

Reuters Messaging: [e-mail]


1051 ET 31Aug2010
Icahn raises Lions Gate offer to $7.50 per share

Activist investor Carl Icahn said on Tuesday he has increased his offer to buy Lions Gate Entertainment Corp to $7.50 per share.

Icahn said in a statement his latest offer would expire Oct. 22, unless extended or withdrawn.

For details, see

Shares of Lions Gate rose 13 percent to $7.33.

Reuters Messaging: [e-mail]


1035 ET 31Aug2010-Investor confidence falls in August
State Street

Confidence among institutional investors fell across the board in August, reflecting uncertainty about the world economy, State Street said on Tuesday.

The U.S. financial services firm said its global investor confidence index fell to 92.1 from an upwardly revised 96.5 in July. The July reading was previously stated as 96.0.

Anything below 100 implies bearish sentiment among State Street's large institutional clients. The index was last above 100 in March.

For details, see

Reuters Messaging: [e-mail]


1033 ET 31Aug2010
Discounts to weigh on August U.S. retail sales

U.S. retailers are expected to show modest sales gains in August, using discounts to attract customers as a weak economy raises concerns about clearing fall merchandise from the shelves before the holiday season.

Many retailers said inventory picked up in the second quarter, with some having boosted orders a bit after the economy showed signs of recovering earlier this year.

For details, see

Reuters Messaging: [e-mail]


1021 ET 31Aug2010
Saks shares rally on report of buyout bid

Saks Inc shares surged on Tuesday after a news report suggested a group of private equity firms may bid for the New York-based luxury department store operator.

For details, see

Shares gained 23 percent to $8.13.

Reuters Messaging: [e-mail]


1009 ET 31Aug2010
Midwest business barometer falls in August

Business activity in the U.S. Midwest registered a slowdown in August, growing just shy of the pace economists expected, a report showed on Tuesday.

The Institute for Supply Management-Chicago business barometer dropped to 56.7 in August. The reading was 62.3 in July, and economists had forecast an August reading of 57.

The employment component of the index fell to 55.5 from 56.6 in July. New orders fell to 55.0, from 64.6. A reading above 50 indicates expansion in the regional economy.

Reuters Messaging: [e-mail] 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.