Stocks on the move Real-time Equity news
U.S. stock market report
1730 ET 14Jul2009-Economic diary for Wednesday -----------------------------------------------------------------------------
The day's economic agenda includes minutes from the last Federal Reserve meeting, CPI data and an industrial production report.
For more please double click
Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net
1644 ET 14July2009-S&P index futures up after Intel; shrs jump 7 pct -----------------------------------------------------------------------------
S&P 500 stock index futures rose about 1 percent after chip maker Intel Corp reported results that sharply beat expectations and gave a forecast for revenue that also topped estimates.
For details, see
Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net
1634 ET 14July2009-Option players take bearish stance in Humana -----------------------------------------------------------------------------
Options players appear to be anticipating a drop in the shares of Humana Inc, one day after it lost a key contract from the Defense Department's TRICARE program for the southern region. Aetna Inc and UnitedHealth Group Inc won new multibillion dollar contracts on Monday to provide services under a U.S. defense department's health care plan, replacing rivals Health Net Inc and Humana. Humana shares fell 7.55 percent to $28.28. In all about 12,000 puts and 5,862 calls traded, four times the combined daily volume, according to Trade Alert. Volume in Humana's July $27 puts rose to 4,670 against 552 contracts outstanding, said optionMonster analyst David Russell in comments on the firm's Web site. A single purchase of 4,500 contracts for 20 cents accounted for most of the volume. At $28.90, HUM would have to fall 7.3 percent the remainder of this week for the puts to turn a profit, he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1542 ET 14July2009-AIG action favors puts as buyers emerge -----------------------------------------------------------------------------
American International Group option volume of about 129,000 contracts was double the norm with puts outnumbering calls by a factor of 1.60, according to Trade Alert. Its shares fell 2.47 percent to $14.21 erasing earlier gains on a bout of short-covering as the stock became easier to borrow after a reverse stock split on July 1, said WhatsTrading.com option strategist Frederic Ruffy. He noted that short sellers have been aggressively taking positions in anticipation of future woes. In the options market, trading was brisk with about 79,000 puts and 49,000 calls crossing the tape. The July $14 put contract is the busiest, with 13,400 lots traded earlier and some opening put buyers apparently taking fresh positions, he said. The stock's option implied volatility is lower, however; and is down to 163 percent from about 170 percent the previous session.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1435 ET 14July2009-Option market suggests lower volatility ahead -----------------------------------------------------------------------------
The CBOE Volatility Index, the implied volatility measure of the S&P 500 index, fell again and stood at 25.67, down 2.39 percent. The VIX bounced off a low of 25.43 and will be testing the closing record lows of 2009 set last month, said Scott Larison, VP of options trading at Compass Point Research & Trading. Last month's 2009 low of 25.93 was the lowest close prior to Lehman Brothers fallout since mid-Sept 2008, he said. 'Investors continue to assign lower relevance to the reading of implied volatility via the equity option market,' said Andrew Wilkinson, market analyst at Interactive Brokers Group. Last week's bear run on the market only provoked a rise of 33 for the VIX. 'We still take the view that much of the world's problems have at the very least been quantified and given the scope of measures employed in dealing with them, the likelihood of a sustained rise in volatility would appear to be low,' he said. Wilkinson also noticed the sale of around 10,000 August VIX 30 calls ranging from $2.90 to $3.20. If the VIX stays below the strike through expiration, the calls are worthless.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1403 ET 14July2009-Economy leveling, but shoppers not buying: poll -----------------------------------------------------------------------------
Most U.S. consumers believe the economy is not getting any worse, but that does not mean they are willing to open their wallets wider than they were three months ago, a survey conducted for Reuters found.
Of 1,001 consumers surveyed by America's Research Group, 40.1 percent said the economy was getting better and 33.8 percent said the economy was the same.
But only 33.6 percent said they were willing to spend more now than three months ago, while 64.7 percent said they were not.
For details, see
The S&P Retail index rose 1 percent to 321.10 on Tuesday.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1357 ET 14July2009-Goldman raises price targets on 3 steel firms -----------------------------------------------------------------------------
Goldman Sachs raised its price targets on Steel Dynamics Inc, AK Steel Holding Corp and Commercial Metals Co, saying the steelmakers were the most likely acquisition targets in the sector.
'As capital markets continue to thaw, investors will start to apply higher multiples to companies that are possible takeout candidates,' analysts led by Sal Tharani said in a note to clients.
AK Steel's lack of vertical integration into raw materials makes it an attractive target for steelmakers that own iron ore and coal mines, the analyst said. Also, the company's high exposure to the U.S. auto industry will greatly benefit it as the U.S. auto market improves, Tharani said.
For details, see
Shares of Steel Dynamics rose 3.1 percent to $14.57 while AK Steel gained 5.2 percent to $17.25 and Commercial Metal gained 3.1 percent to $15.47. The Dow Jones U.S. Steel index was up 1.4 percent to 193.53.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1344 ET 14July2009-Deutsche Bank starts Cognizant at 'buy' -----------------------------------------------------------------------------
Deutsche Bank on Tuesday started coverage on Cognizant Technology Solutions with a 'buy' rating, citing optimal onsite-offsite mix, domain expertise, strong client relationships and operational excellence.
The brokerage said although the company's margins have lagged those of its peer, this, in turn, has helped it to invest in building domain expertise in segments that are less penetrated from an IT services and offshore perspective.
'We expect IT offshoring growth to outpace total IT services growth as clients continue to focus on cost efficiencies to bring their business models more in line with a slow-growing global economy, analyst Tim Fox said in a note dated July 13.
For details, see
Shares rose 0.9 percent to $27.23.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1337 ET 14July2009-Barclays raises 2009 target for S&P 500 -----------------------------------------------------------------------------
Barclays Capital on Tuesday raised its 2009 price target for the S&P 500 to 930 from 875. The firm wrote that based on recent price action, 'we expect that we may hit our original price target more than twice by the end of the year.'
Barclays said that while it was surprised by the magnitude of a recent rally in the markets, calling it 'double what we were expecting in half the time.'
'Looking ahead, we think the market will break through the midpoint (850) of its recent range (1000-700) this summer before enjoying the second leg of the 'recovery rally,' especially if Barclays Capital's upward third and fourth quarter GDP revisions prove correct,' it wrote.
'History suggests you get a 5-10 percent correction after the initial advance before witnessing another push higher (which could be 20 percent off a lower base). The bottom line is that we now see the market ending the year around 930 or up 3 percent year-over-year.'
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
1730 ET 14Jul2009-Economic diary for Wednesday -----------------------------------------------------------------------------
The day's economic agenda includes minutes from the last Federal Reserve meeting, CPI data and an industrial production report.
For more please double click
Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net
1644 ET 14July2009-S&P index futures up after Intel; shrs jump 7 pct -----------------------------------------------------------------------------
S&P 500 stock index futures rose about 1 percent after chip maker Intel Corp reported results that sharply beat expectations and gave a forecast for revenue that also topped estimates.
For details, see
Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net
1634 ET 14July2009-Option players take bearish stance in Humana -----------------------------------------------------------------------------
Options players appear to be anticipating a drop in the shares of Humana Inc, one day after it lost a key contract from the Defense Department's TRICARE program for the southern region. Aetna Inc and UnitedHealth Group Inc won new multibillion dollar contracts on Monday to provide services under a U.S. defense department's health care plan, replacing rivals Health Net Inc and Humana. Humana shares fell 7.55 percent to $28.28. In all about 12,000 puts and 5,862 calls traded, four times the combined daily volume, according to Trade Alert. Volume in Humana's July $27 puts rose to 4,670 against 552 contracts outstanding, said optionMonster analyst David Russell in comments on the firm's Web site. A single purchase of 4,500 contracts for 20 cents accounted for most of the volume. At $28.90, HUM would have to fall 7.3 percent the remainder of this week for the puts to turn a profit, he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1542 ET 14July2009-AIG action favors puts as buyers emerge -----------------------------------------------------------------------------
American International Group option volume of about 129,000 contracts was double the norm with puts outnumbering calls by a factor of 1.60, according to Trade Alert. Its shares fell 2.47 percent to $14.21 erasing earlier gains on a bout of short-covering as the stock became easier to borrow after a reverse stock split on July 1, said WhatsTrading.com option strategist Frederic Ruffy. He noted that short sellers have been aggressively taking positions in anticipation of future woes. In the options market, trading was brisk with about 79,000 puts and 49,000 calls crossing the tape. The July $14 put contract is the busiest, with 13,400 lots traded earlier and some opening put buyers apparently taking fresh positions, he said. The stock's option implied volatility is lower, however; and is down to 163 percent from about 170 percent the previous session.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1435 ET 14July2009-Option market suggests lower volatility ahead -----------------------------------------------------------------------------
The CBOE Volatility Index, the implied volatility measure of the S&P 500 index, fell again and stood at 25.67, down 2.39 percent. The VIX bounced off a low of 25.43 and will be testing the closing record lows of 2009 set last month, said Scott Larison, VP of options trading at Compass Point Research & Trading. Last month's 2009 low of 25.93 was the lowest close prior to Lehman Brothers fallout since mid-Sept 2008, he said. 'Investors continue to assign lower relevance to the reading of implied volatility via the equity option market,' said Andrew Wilkinson, market analyst at Interactive Brokers Group. Last week's bear run on the market only provoked a rise of 33 for the VIX. 'We still take the view that much of the world's problems have at the very least been quantified and given the scope of measures employed in dealing with them, the likelihood of a sustained rise in volatility would appear to be low,' he said. Wilkinson also noticed the sale of around 10,000 August VIX 30 calls ranging from $2.90 to $3.20. If the VIX stays below the strike through expiration, the calls are worthless.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1403 ET 14July2009-Economy leveling, but shoppers not buying: poll -----------------------------------------------------------------------------
Most U.S. consumers believe the economy is not getting any worse, but that does not mean they are willing to open their wallets wider than they were three months ago, a survey conducted for Reuters found.
Of 1,001 consumers surveyed by America's Research Group, 40.1 percent said the economy was getting better and 33.8 percent said the economy was the same.
But only 33.6 percent said they were willing to spend more now than three months ago, while 64.7 percent said they were not.
For details, see
The S&P Retail index rose 1 percent to 321.10 on Tuesday.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1357 ET 14July2009-Goldman raises price targets on 3 steel firms -----------------------------------------------------------------------------
Goldman Sachs raised its price targets on Steel Dynamics Inc, AK Steel Holding Corp and Commercial Metals Co, saying the steelmakers were the most likely acquisition targets in the sector.
'As capital markets continue to thaw, investors will start to apply higher multiples to companies that are possible takeout candidates,' analysts led by Sal Tharani said in a note to clients.
AK Steel's lack of vertical integration into raw materials makes it an attractive target for steelmakers that own iron ore and coal mines, the analyst said. Also, the company's high exposure to the U.S. auto industry will greatly benefit it as the U.S. auto market improves, Tharani said.
For details, see
Shares of Steel Dynamics rose 3.1 percent to $14.57 while AK Steel gained 5.2 percent to $17.25 and Commercial Metal gained 3.1 percent to $15.47. The Dow Jones U.S. Steel index was up 1.4 percent to 193.53.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1344 ET 14July2009-Deutsche Bank starts Cognizant at 'buy' -----------------------------------------------------------------------------
Deutsche Bank on Tuesday started coverage on Cognizant Technology Solutions with a 'buy' rating, citing optimal onsite-offsite mix, domain expertise, strong client relationships and operational excellence.
The brokerage said although the company's margins have lagged those of its peer, this, in turn, has helped it to invest in building domain expertise in segments that are less penetrated from an IT services and offshore perspective.
'We expect IT offshoring growth to outpace total IT services growth as clients continue to focus on cost efficiencies to bring their business models more in line with a slow-growing global economy, analyst Tim Fox said in a note dated July 13.
For details, see
Shares rose 0.9 percent to $27.23.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1337 ET 14July2009-Barclays raises 2009 target for S&P 500 -----------------------------------------------------------------------------
Barclays Capital on Tuesday raised its 2009 price target for the S&P 500 to 930 from 875. The firm wrote that based on recent price action, 'we expect that we may hit our original price target more than twice by the end of the year.'
Barclays said that while it was surprised by the magnitude of a recent rally in the markets, calling it 'double what we were expecting in half the time.'
'Looking ahead, we think the market will break through the midpoint (850) of its recent range (1000-700) this summer before enjoying the second leg of the 'recovery rally,' especially if Barclays Capital's upward third and fourth quarter GDP revisions prove correct,' it wrote.
'History suggests you get a 5-10 percent correction after the initial advance before witnessing another push higher (which could be 20 percent off a lower base). The bottom line is that we now see the market ending the year around 930 or up 3 percent year-over-year.'
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.