Stocks on the move Real-time Equity news
U.S. stock market report
1701 ET 27Jul2009-US STOCKS
Wall St ends up slightly; late rally led by banks
U.S. stocks rose slightly on Monday in a late rally as investors rotated into financial shares, which had lagged in the recent two-week run-up.
Upbeat data on new home sales underpinned financial stocks, the session's strongest sector, and prompted investors to snap up the shares of several regional banks, which had been among the worst hit by credit losses tied to a weak housing market.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1619 ET 27July2009
Western Digital attracts call spreaders
Shares of hard disk drive maker Western Digital Corp rose 3.52 percent to $31.47. Near-term bullish bets were initiated by option traders expecting further gains in the stock, said Interactive Brokers Group market analyst Andrew Wilkinson in a note. He noticed that some players had apparently established call spreads by purchasing 14,000 calls at the now in-the-money Aug $31 strike for an average premium of $1.77 each, and simultaneously selling 14,000 calls at the higher Aug $35 strike for about 37 cents per contract. The net cost of the spreads amounted to about $1.40 apiece. Call spreaders will begin to realize profits if shares rise to the breakeven point at $32.40. Finally, plain-vanilla call buying was observed at the Aug $32 strike, he said. The company is due to report quarterly earnings on Tuesday after the bell.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1502 ET 27July2009
DryShips call volume surges before earnings
A number of option traders appear to be hoping to catch extended share price gains in DryShips by snapping up call options ahead of the dry bulk carrier's quarterly results due on July 30. DryShips shares jumped 13 percent to $7.04 in late afternoon trade. The gains was accompanied by a surge in the stock's option volume of about 74,000 contracts, which was double the norm and dominated by 64,000 calls, according to Trade Alert. The near-term August contract had the bulk of the call activity with heavy trading in the $6, $7 and $8 strikes, said WhatsTrading.com option strategist Frederic Ruffy. The stock's option implied volatility, a barometer of anxiety, edged higher to 82 percent ahead of the results.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1425 ET 27July2009
Investors load up on Mylan put options
Shares of generic drugmaker Mylan Inc fell 11.39 percent to $12.28 after a newspaper report of potential quality-control problems at a key manufacturing plant. Mylan defended its quality control in an email to Reuters over the weekend and questioned the conclusions and sources cited in the Pittsburg Post-Gazette. Option traders, bracing for additional downside, scrambled for the stock's put options. The Aug $10 strike had more than 5,500 puts picked up for an average premium of 19 cents apiece, said Andrew Wilkinson, market analyst at Interactive Brokers Group. Mylan shares must fall to $9.81 in order for profits to begin to accumulate for traders long the contracts. The Aug $12.50 strike had another 4,000 puts bought for 84 cents each. Wilkinson noticed pessimistic positioning spread to the Sept $10 put strike and as far out as the Oct $10 put strike. In all, about 31,000 puts traded more than twice the number of calls, according to Trade Alert.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1401 ET 27July2009
Shanda Interactive slides after downgrade
Shanda Interactive Entertainment Ltd shares traded in the U.S. slid 11 percent to $50.76 on Monday after Citigroup cut its rating on the stock as part of a broader downgrade of the Chinese online games sector.
The firm lowered its rating on the maker of online games in China to 'sell' from 'buy,' based on weaker-than-expected traction from its Aion game, potential earnings dilution from the Shanda Games spin-off and increased margin pressure from the consolidation of lower-margin business from Hurray Holding Co Ltd.
Shanda said it would acquire a 51 percent stake in Hurray in early June.
Citi downgraded the sector to 'neutral' from 'positive' based on the strong run in the sector since late March, recent and potential new regulatory issues, lack of near-term positive news flow and increased downside risk from quarterly results misses and new game launch delays.
Reuters Messaging: Charles.mikolajczak.reuters.com@reuters.net
1343 ET 27July2009-Earnings beat-miss ratio highest since 2004
Birinyi
So far this earnings period, companies beating estimates are outnumbering companies that missed expectations by a ratio of 5 to 1, which is the highest ratio since 2004, analysts at Connecticut-based Birinyi Associates Inc. said in a research note.
Companies with the biggest beats include investment bank Goldman Sachs Group, miner Freeport-McMoRan Copper & Gold Inc, and flash memory maker SanDisk Corp.
Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net
1336 ET 27July2009-Con
Way rallies after Credit Suisse upgrade
Shares of Con-Way Inc rallied on Monday, after Credit Suisse upgraded the stock to 'neutral' from underperform, citing the trucking and logistics company's recent quarterly results, which came in better than expected.
For details, see
The shares advanced 5.2 percent to $43.42.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1235 ET 27July2009
Nortel, RIM in wireless patent talks: source
BlackBerry maker Research In Motion has held talks with Nortel Networks about buying next-generation wireless patents that were not part of a $1.13 billion wireless asset sale over the weekend, a source familiar with the situation said on Monday.
On Saturday, the bankrupt Nortel sold a portfolio of CDMA and next-generation LTE wireless assets to Swedish telecom equipment maker Ericsson .
However, Nortel and RIM have held negotiations over other key patents related to the next-generation wireless business 'for months,' the source told Reuters on Monday.
For details, see
U.S.-listed shares of RIM rose 0.5 percent to $76.76 on Monday.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1228 ET 27July2009
Analysts lift estimates on T. Rowe after results
Several analysts on Monday boosted their earnings outlook and share-price target for T. Rowe Price Group Inc to reflect the higher-than-expected quarterly profit the company posted.
'In recent months, T. Rowe's fund performance has staged a significant turnaround which, coupled with better than expected cost controls, should support better earnings growth than the peer group,' FBR Capital Markets analysts said.
FBR analysts raised their rating on the stock to 'market perform' from 'underperform,' and price target to $42 from $33.
For details, see
Shares of T. Rowe rose 0.9 percent to $45.84 on Monday.
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
1701 ET 27Jul2009-US STOCKS
Wall St ends up slightly; late rally led by banks
U.S. stocks rose slightly on Monday in a late rally as investors rotated into financial shares, which had lagged in the recent two-week run-up.
Upbeat data on new home sales underpinned financial stocks, the session's strongest sector, and prompted investors to snap up the shares of several regional banks, which had been among the worst hit by credit losses tied to a weak housing market.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1619 ET 27July2009
Western Digital attracts call spreaders
Shares of hard disk drive maker Western Digital Corp rose 3.52 percent to $31.47. Near-term bullish bets were initiated by option traders expecting further gains in the stock, said Interactive Brokers Group market analyst Andrew Wilkinson in a note. He noticed that some players had apparently established call spreads by purchasing 14,000 calls at the now in-the-money Aug $31 strike for an average premium of $1.77 each, and simultaneously selling 14,000 calls at the higher Aug $35 strike for about 37 cents per contract. The net cost of the spreads amounted to about $1.40 apiece. Call spreaders will begin to realize profits if shares rise to the breakeven point at $32.40. Finally, plain-vanilla call buying was observed at the Aug $32 strike, he said. The company is due to report quarterly earnings on Tuesday after the bell.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1502 ET 27July2009
DryShips call volume surges before earnings
A number of option traders appear to be hoping to catch extended share price gains in DryShips by snapping up call options ahead of the dry bulk carrier's quarterly results due on July 30. DryShips shares jumped 13 percent to $7.04 in late afternoon trade. The gains was accompanied by a surge in the stock's option volume of about 74,000 contracts, which was double the norm and dominated by 64,000 calls, according to Trade Alert. The near-term August contract had the bulk of the call activity with heavy trading in the $6, $7 and $8 strikes, said WhatsTrading.com option strategist Frederic Ruffy. The stock's option implied volatility, a barometer of anxiety, edged higher to 82 percent ahead of the results.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1425 ET 27July2009
Investors load up on Mylan put options
Shares of generic drugmaker Mylan Inc fell 11.39 percent to $12.28 after a newspaper report of potential quality-control problems at a key manufacturing plant. Mylan defended its quality control in an email to Reuters over the weekend and questioned the conclusions and sources cited in the Pittsburg Post-Gazette. Option traders, bracing for additional downside, scrambled for the stock's put options. The Aug $10 strike had more than 5,500 puts picked up for an average premium of 19 cents apiece, said Andrew Wilkinson, market analyst at Interactive Brokers Group. Mylan shares must fall to $9.81 in order for profits to begin to accumulate for traders long the contracts. The Aug $12.50 strike had another 4,000 puts bought for 84 cents each. Wilkinson noticed pessimistic positioning spread to the Sept $10 put strike and as far out as the Oct $10 put strike. In all, about 31,000 puts traded more than twice the number of calls, according to Trade Alert.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1401 ET 27July2009
Shanda Interactive slides after downgrade
Shanda Interactive Entertainment Ltd shares traded in the U.S. slid 11 percent to $50.76 on Monday after Citigroup cut its rating on the stock as part of a broader downgrade of the Chinese online games sector.
The firm lowered its rating on the maker of online games in China to 'sell' from 'buy,' based on weaker-than-expected traction from its Aion game, potential earnings dilution from the Shanda Games spin-off and increased margin pressure from the consolidation of lower-margin business from Hurray Holding Co Ltd.
Shanda said it would acquire a 51 percent stake in Hurray in early June.
Citi downgraded the sector to 'neutral' from 'positive' based on the strong run in the sector since late March, recent and potential new regulatory issues, lack of near-term positive news flow and increased downside risk from quarterly results misses and new game launch delays.
Reuters Messaging: Charles.mikolajczak.reuters.com@reuters.net
1343 ET 27July2009-Earnings beat-miss ratio highest since 2004
Birinyi
So far this earnings period, companies beating estimates are outnumbering companies that missed expectations by a ratio of 5 to 1, which is the highest ratio since 2004, analysts at Connecticut-based Birinyi Associates Inc. said in a research note.
Companies with the biggest beats include investment bank Goldman Sachs Group, miner Freeport-McMoRan Copper & Gold Inc, and flash memory maker SanDisk Corp.
Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net
1336 ET 27July2009-Con
Way rallies after Credit Suisse upgrade
Shares of Con-Way Inc rallied on Monday, after Credit Suisse upgraded the stock to 'neutral' from underperform, citing the trucking and logistics company's recent quarterly results, which came in better than expected.
For details, see
The shares advanced 5.2 percent to $43.42.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1235 ET 27July2009
Nortel, RIM in wireless patent talks: source
BlackBerry maker Research In Motion has held talks with Nortel Networks about buying next-generation wireless patents that were not part of a $1.13 billion wireless asset sale over the weekend, a source familiar with the situation said on Monday.
On Saturday, the bankrupt Nortel sold a portfolio of CDMA and next-generation LTE wireless assets to Swedish telecom equipment maker Ericsson .
However, Nortel and RIM have held negotiations over other key patents related to the next-generation wireless business 'for months,' the source told Reuters on Monday.
For details, see
U.S.-listed shares of RIM rose 0.5 percent to $76.76 on Monday.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1228 ET 27July2009
Analysts lift estimates on T. Rowe after results
Several analysts on Monday boosted their earnings outlook and share-price target for T. Rowe Price Group Inc to reflect the higher-than-expected quarterly profit the company posted.
'In recent months, T. Rowe's fund performance has staged a significant turnaround which, coupled with better than expected cost controls, should support better earnings growth than the peer group,' FBR Capital Markets analysts said.
FBR analysts raised their rating on the stock to 'market perform' from 'underperform,' and price target to $42 from $33.
For details, see
Shares of T. Rowe rose 0.9 percent to $45.84 on Monday.
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.