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U.S. stock market report
1714 ET 13Jul2009-US STOCKS
Wall St flies with banks after analyst's comments
U.S. stocks rallied more than 2 percent on Monday as bullish comments on financial sector performance from analyst Meredith Whitney lifted hopes that banks' quarterly results may be stronger than expected.
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Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1630 ET 13Jul2009 ANALYSIS
Banks in spotlight as U.S. earnings get rolling
U.S. banks will hog the spotlight in the first big week for this quarter's earnings period as investors attempt to discern whether the surprising improvement in earnings in the first quarter continued through the second quarter of the year.
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Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1522 ET 13July2009 Bullish option traders circle GE calls
General Electric Co reports quarterly results this Friday and keen call option buyers this morning lifted around 7,000 bullish options granting rights to pay $11 for GE shares ahead of expiration at the weekend, said Interactive Brokers Group market analyst Andrew Wilkinson in a note. Shares in the conglomerate rose nearly 6 percent to $11.42 in late trade. 'Earnings are eagerly awaited at the start of Friday's session and will largely determine whether or not the options bought today will expire with any life left in them or not,' he said. Investors scooped up a total of 24,000 calls, starting out at a premium of 42 cents before the rally lifted them to 73 cents per contract offering instant gains for bulls. He noticed that investors then shifted their attention to the $12 strike where 15,000 calls traded at premiums ranging from Friday's 6 cent close to 18 cents ahead of noon on Monday. The July $11 strike puts were also active with 22,000 lots trading down from 53 to 28 cents per contract, he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1443 ET 13July2009 Futures on fear index suggest higher VIX
Futures on the CBOE Volatility Index, Wall Street's so-called fear gauge, suggest the sharp gains in the underlying Standard & Poor's 500 index may be short-lived, said optionMonster analyst Chris McKhann. The VIX fell 8.48 percent to 26.56 as the S&P 500 gained nearly 2 percent. The VIX is a
30
day risk forecast priced off of S&P 500 options. The fact that the spot VIX is below all the VIX futures is a normal term structure but the gap between the two is very large, especially since July futures expire in eight days, he said. July futures stand at 28.25. August futures trading at 31.05 is also at a significant premium to the VIX, which often precedes a large pullback in the SPX, McKhann added. In VIX options, which are priced off of VIX futures, McKhann noticed that a ratio call spread was initiated in the August contract involving the purchase of 10,000 35 VIX calls spread against the sale of 30,000 47.50 VIX calls. Maximum profit of the trade would be realized if VIX moves to around 47.50 by August expiration.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1433 ET 13July2009
DA Davidson sees fewer positive surprises in Q2
DA Davidson on Monday forecast fewer positive earnings surprises in the upcoming second-quarter earnings season than during the first-quarter season.
The firm also expects companies to report results weaker than expected, 'or trim revenue or earnings guidance for the third quarter or full year, may continue to see negative investor reaction.'
Despite that, DA Davidson wrote that a recent dip in the markets 'has set the stage for some room for investor reaction to positive earnings surprises.'
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1421 ET 13July2009
Oppenheimer downgrades Compass, Intrepid Potash
Oppenheimer on Monday downgraded Compass Minerals International Inc and Intrepid Potash Inc, and withdrew its price targets on the fertilizer makers' stocks, saying potash pricing could drop sharply.
Analyst Edward Yang cut Compass Minerals to 'perform' from 'outperform' and Intrepid Potash to 'underperform' from 'outperform.'
'After months of stalemate, potash pricing appears poised to rapidly crumble, with Friday's report that No. 4 producer Silvinit severely undercut rivals to settle with India at disappointing prices,' Yang wrote in a note to clients.
For details, see
Shares of Compass fell 5.2 percent to $48.35 while Intrepid sank 2.6 percent to $22.88.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1418 ET 13July2009
June budget gap $94.32 bln, record for June
The U.S. government rang up a $94.32 billion budget deficit in June, the U.S. Treasury said on Monday, reflecting the rising cost of bailing out bankrupt auto companies and financial institutions.
In June 2008, the surplus was $33.55 billion.
The June deficit was slightly smaller than analysts' forecast for a $97 billion budget gap in a Reuters poll.
For the year to date, fiscal 2009 posted a $1.086 trillion budget compared with a deficit of $285.85 in fiscal 2008.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1414 ET 13July2009
CytRx shares gain after comments on treatment
Shares of CytRx Corp rose on Monday, after the company said its experimental treatment for breast cancer caused a 'dramatic destruction' of implanted tumors in an animal model.
The company said tumors in animals treated with INNO-206 shrank to about one-half their initial volume by the end of 43 days.
'The market has reacted so much because this compound showed such great efficacy in the animal data and because of the potential for being a very large drug,' Rodman & Renshaw analyst Simos Simeonidis said.
For details, see
Shares gained 12 percent to $1.10.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1408 ET 13July2009
Philips rises as stimulus boosts recovery hopes
Philips Electronics, Europe's biggest consumer electronics maker, said some of its key markets are primed for an upturn in sales, though any growth this year would likely be driven by government spending programs.
The Dutch conglomerate -- the world's biggest lighting manufacturer -- surprised industry experts on Monday with a return to profit in the second quarter, helped by cost cuts.
For details, see
The stock gained 6.4 percent to $19.38 on the New York Stock Exchange.
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.
U.S. stock market report
1714 ET 13Jul2009-US STOCKS
Wall St flies with banks after analyst's comments
U.S. stocks rallied more than 2 percent on Monday as bullish comments on financial sector performance from analyst Meredith Whitney lifted hopes that banks' quarterly results may be stronger than expected.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1630 ET 13Jul2009 ANALYSIS
Banks in spotlight as U.S. earnings get rolling
U.S. banks will hog the spotlight in the first big week for this quarter's earnings period as investors attempt to discern whether the surprising improvement in earnings in the first quarter continued through the second quarter of the year.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1522 ET 13July2009 Bullish option traders circle GE calls
General Electric Co reports quarterly results this Friday and keen call option buyers this morning lifted around 7,000 bullish options granting rights to pay $11 for GE shares ahead of expiration at the weekend, said Interactive Brokers Group market analyst Andrew Wilkinson in a note. Shares in the conglomerate rose nearly 6 percent to $11.42 in late trade. 'Earnings are eagerly awaited at the start of Friday's session and will largely determine whether or not the options bought today will expire with any life left in them or not,' he said. Investors scooped up a total of 24,000 calls, starting out at a premium of 42 cents before the rally lifted them to 73 cents per contract offering instant gains for bulls. He noticed that investors then shifted their attention to the $12 strike where 15,000 calls traded at premiums ranging from Friday's 6 cent close to 18 cents ahead of noon on Monday. The July $11 strike puts were also active with 22,000 lots trading down from 53 to 28 cents per contract, he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1443 ET 13July2009 Futures on fear index suggest higher VIX
Futures on the CBOE Volatility Index, Wall Street's so-called fear gauge, suggest the sharp gains in the underlying Standard & Poor's 500 index may be short-lived, said optionMonster analyst Chris McKhann. The VIX fell 8.48 percent to 26.56 as the S&P 500 gained nearly 2 percent. The VIX is a
30
day risk forecast priced off of S&P 500 options. The fact that the spot VIX is below all the VIX futures is a normal term structure but the gap between the two is very large, especially since July futures expire in eight days, he said. July futures stand at 28.25. August futures trading at 31.05 is also at a significant premium to the VIX, which often precedes a large pullback in the SPX, McKhann added. In VIX options, which are priced off of VIX futures, McKhann noticed that a ratio call spread was initiated in the August contract involving the purchase of 10,000 35 VIX calls spread against the sale of 30,000 47.50 VIX calls. Maximum profit of the trade would be realized if VIX moves to around 47.50 by August expiration.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1433 ET 13July2009
DA Davidson sees fewer positive surprises in Q2
DA Davidson on Monday forecast fewer positive earnings surprises in the upcoming second-quarter earnings season than during the first-quarter season.
The firm also expects companies to report results weaker than expected, 'or trim revenue or earnings guidance for the third quarter or full year, may continue to see negative investor reaction.'
Despite that, DA Davidson wrote that a recent dip in the markets 'has set the stage for some room for investor reaction to positive earnings surprises.'
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1421 ET 13July2009
Oppenheimer downgrades Compass, Intrepid Potash
Oppenheimer on Monday downgraded Compass Minerals International Inc and Intrepid Potash Inc, and withdrew its price targets on the fertilizer makers' stocks, saying potash pricing could drop sharply.
Analyst Edward Yang cut Compass Minerals to 'perform' from 'outperform' and Intrepid Potash to 'underperform' from 'outperform.'
'After months of stalemate, potash pricing appears poised to rapidly crumble, with Friday's report that No. 4 producer Silvinit severely undercut rivals to settle with India at disappointing prices,' Yang wrote in a note to clients.
For details, see
Shares of Compass fell 5.2 percent to $48.35 while Intrepid sank 2.6 percent to $22.88.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1418 ET 13July2009
June budget gap $94.32 bln, record for June
The U.S. government rang up a $94.32 billion budget deficit in June, the U.S. Treasury said on Monday, reflecting the rising cost of bailing out bankrupt auto companies and financial institutions.
In June 2008, the surplus was $33.55 billion.
The June deficit was slightly smaller than analysts' forecast for a $97 billion budget gap in a Reuters poll.
For the year to date, fiscal 2009 posted a $1.086 trillion budget compared with a deficit of $285.85 in fiscal 2008.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1414 ET 13July2009
CytRx shares gain after comments on treatment
Shares of CytRx Corp rose on Monday, after the company said its experimental treatment for breast cancer caused a 'dramatic destruction' of implanted tumors in an animal model.
The company said tumors in animals treated with INNO-206 shrank to about one-half their initial volume by the end of 43 days.
'The market has reacted so much because this compound showed such great efficacy in the animal data and because of the potential for being a very large drug,' Rodman & Renshaw analyst Simos Simeonidis said.
For details, see
Shares gained 12 percent to $1.10.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1408 ET 13July2009
Philips rises as stimulus boosts recovery hopes
Philips Electronics, Europe's biggest consumer electronics maker, said some of its key markets are primed for an upturn in sales, though any growth this year would likely be driven by government spending programs.
The Dutch conglomerate -- the world's biggest lighting manufacturer -- surprised industry experts on Monday with a return to profit in the second quarter, helped by cost cuts.
For details, see
The stock gained 6.4 percent to $19.38 on the New York Stock Exchange.
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.