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1733 ET 03June2009
U.S. economic diary for June 4
The day's economic agenda includes the Labor Department's first-time claims for jobless benefits for the week ended May 30 at 8:30 a.m. (1230 GMT) and the Labor Department's revised Q1 Productivity and Unit Labor Costs, also at 8:30 a.m. (1230 GMT).
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Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1607 ET 03Jun2009-US STOCKS SNAPSHOT
Wall St ends down as oil, data drag
U.S. stocks ended lower on Wednesday, halting a four-day winning streak, as declining oil prices hit energy shares, while less upbeat economic reports sparked more concern about recovery prospects.
Based on the latest available data, the Dow Jones industrial average fell 63.80 points, or 0.73 percent, to end at 8,677.07. The Standard & Poor's 500 Index was down 12.69 points, or 1.34 percent, at 932.05. The Nasdaq Composite Index was down 10.88 points, or 0.59 percent, at 1,825.92.
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Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1554 ET 02June2009 Option bulls surface in Western Refining
Shares of independent refiner Western Refining Inc tumbled 16.95 percent to $9.90, one day after the largest U.S. refiner Valero Energy Corp said it would post a second-quarter loss due to weak market conditions and indefinitely delay two expansion projects. In the options market, Western Refining volume was nine times the norm with about 17,000 calls and 3,142 puts traded, according to Trade Alert. 'It looks like some investors are using today's weakness to enter bullish trades,' said WhatsTrading.com option strategist Frederic Ruffy. The top trade was 1,000 June $10 calls at the offer for $1.05 per contract on the CBOE. Meanwhile, about 3,400 calls traded on the International Securities Exchange, where sentiment data point to 72 percent opening customer call buys, he added. The stock's option implied volatility spiked up to 83 percent, from about 65 percent the previous day, suggesting wider price swings.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1435 ET 03June2009
Myers shares drop after KeyBanc downgrade
Shares of Myers Industries sank on Wednesday after KeyBanc Capital Markets downgraded the stock to hold from buy, saying the benefit of the industrial manufacturer's productivity and restructuring programs seem to be factored into the stock.
'At this point, we are reluctant to assume a meaningful economic recovery in our estimates and thus have remained cautious regarding the 2010 outlook with primary earnings improvement due to restructuring cost savings,' the firm wrote.
For details, see
Shares slid 7.2 percent to $9.90.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1420 ET 03June2009-S&P 500 short interest falls as stocks rally
Jefferies
Short interest as a percent of the overall S&P 500 index has fallen since the beginning of the current market rally, suggesting investors have been forced to cover their bets as stocks bounced from 12-year lows in the last three months, analysts at Jefferies Equity Strategy said on Wednesday.
'We think this may suggest that many short sellers were caught off-guard by the recent run-up, possibly fueling short covering. This is in contrast to the drop in short interest as a percent of float at the end of last year, which coincided with a decrease in share prices,' the analysts wrote in a research note.
Short positions are when investors borrow a stock and sell it at a high price with the expectation they will be able to buy it back at a lower price, pocketing the difference. However, if the stock rises, investors may be forced to buy it at the higher price. This pushes the stock up even higher and is called a 'short squeeze'.
Since the beginning of 2008, short sellers have been most active in financials and consumer discretionary stocks, Jefferies said, two sectors that have been hardest hit by the credit crisis and recession. However, since March when the rally began, these sectors have seen the greatest decrease in short interest.
As well, consumer discretionary and technology stocks have the greatest dispersion of short interest, 'suggesting that view points differ widely between companies in these sectors,' the analysts said.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1359 ET 03June2009 Option players seek upside CBS call options
A number of bullish option traders are hoping the shares of CBS Corp will rise by about 30 percent early next year. Its shares edged up 1 cent to $8.66 in afternoon trade. 'CBS edged onto our 'hot by options volume' market scanner as option investors got long of $10 strike-call options,' said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in a note. He noticed that the December $10 strike price had nearly 5,000 lots coveted for a premium of 1.30 apiece. Further along at the January 2010 $10 strike more than 10,000 calls traded for an average premium of 1.39 per contract. Call buyers in the January contract are hoping for shares of CBS to rally by about 30 percent to the break even point at $11.39 in order to amass profits by expiration in seven months time, he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1349 ET 03June2009-La-Z
Boy shares soar after upgrade
Shares of La-Z-Boy Inc jumped on Wednesday, after Raymond James upgraded the furniture maker to strong buy.
'Clearly, industry conditions remain exceptionally difficult; however, our channel checks suggest the pace of decline may be stabilizing,' the firm wrote to clients.
For details, see
The stock advanced 28 percent to $2.79.
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
For U.S. stock market report double-click
1733 ET 03June2009
U.S. economic diary for June 4
The day's economic agenda includes the Labor Department's first-time claims for jobless benefits for the week ended May 30 at 8:30 a.m. (1230 GMT) and the Labor Department's revised Q1 Productivity and Unit Labor Costs, also at 8:30 a.m. (1230 GMT).
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1607 ET 03Jun2009-US STOCKS SNAPSHOT
Wall St ends down as oil, data drag
U.S. stocks ended lower on Wednesday, halting a four-day winning streak, as declining oil prices hit energy shares, while less upbeat economic reports sparked more concern about recovery prospects.
Based on the latest available data, the Dow Jones industrial average fell 63.80 points, or 0.73 percent, to end at 8,677.07. The Standard & Poor's 500 Index was down 12.69 points, or 1.34 percent, at 932.05. The Nasdaq Composite Index was down 10.88 points, or 0.59 percent, at 1,825.92.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1554 ET 02June2009 Option bulls surface in Western Refining
Shares of independent refiner Western Refining Inc tumbled 16.95 percent to $9.90, one day after the largest U.S. refiner Valero Energy Corp said it would post a second-quarter loss due to weak market conditions and indefinitely delay two expansion projects. In the options market, Western Refining volume was nine times the norm with about 17,000 calls and 3,142 puts traded, according to Trade Alert. 'It looks like some investors are using today's weakness to enter bullish trades,' said WhatsTrading.com option strategist Frederic Ruffy. The top trade was 1,000 June $10 calls at the offer for $1.05 per contract on the CBOE. Meanwhile, about 3,400 calls traded on the International Securities Exchange, where sentiment data point to 72 percent opening customer call buys, he added. The stock's option implied volatility spiked up to 83 percent, from about 65 percent the previous day, suggesting wider price swings.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1435 ET 03June2009
Myers shares drop after KeyBanc downgrade
Shares of Myers Industries sank on Wednesday after KeyBanc Capital Markets downgraded the stock to hold from buy, saying the benefit of the industrial manufacturer's productivity and restructuring programs seem to be factored into the stock.
'At this point, we are reluctant to assume a meaningful economic recovery in our estimates and thus have remained cautious regarding the 2010 outlook with primary earnings improvement due to restructuring cost savings,' the firm wrote.
For details, see
Shares slid 7.2 percent to $9.90.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1420 ET 03June2009-S&P 500 short interest falls as stocks rally
Jefferies
Short interest as a percent of the overall S&P 500 index has fallen since the beginning of the current market rally, suggesting investors have been forced to cover their bets as stocks bounced from 12-year lows in the last three months, analysts at Jefferies Equity Strategy said on Wednesday.
'We think this may suggest that many short sellers were caught off-guard by the recent run-up, possibly fueling short covering. This is in contrast to the drop in short interest as a percent of float at the end of last year, which coincided with a decrease in share prices,' the analysts wrote in a research note.
Short positions are when investors borrow a stock and sell it at a high price with the expectation they will be able to buy it back at a lower price, pocketing the difference. However, if the stock rises, investors may be forced to buy it at the higher price. This pushes the stock up even higher and is called a 'short squeeze'.
Since the beginning of 2008, short sellers have been most active in financials and consumer discretionary stocks, Jefferies said, two sectors that have been hardest hit by the credit crisis and recession. However, since March when the rally began, these sectors have seen the greatest decrease in short interest.
As well, consumer discretionary and technology stocks have the greatest dispersion of short interest, 'suggesting that view points differ widely between companies in these sectors,' the analysts said.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1359 ET 03June2009 Option players seek upside CBS call options
A number of bullish option traders are hoping the shares of CBS Corp will rise by about 30 percent early next year. Its shares edged up 1 cent to $8.66 in afternoon trade. 'CBS edged onto our 'hot by options volume' market scanner as option investors got long of $10 strike-call options,' said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in a note. He noticed that the December $10 strike price had nearly 5,000 lots coveted for a premium of 1.30 apiece. Further along at the January 2010 $10 strike more than 10,000 calls traded for an average premium of 1.39 per contract. Call buyers in the January contract are hoping for shares of CBS to rally by about 30 percent to the break even point at $11.39 in order to amass profits by expiration in seven months time, he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1349 ET 03June2009-La-Z
Boy shares soar after upgrade
Shares of La-Z-Boy Inc jumped on Wednesday, after Raymond James upgraded the furniture maker to strong buy.
'Clearly, industry conditions remain exceptionally difficult; however, our channel checks suggest the pace of decline may be stabilizing,' the firm wrote to clients.
For details, see
The stock advanced 28 percent to $2.79.
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.