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U.S. stock market report
1644 ET 29Jul2009-US STOCKS
Wall St sags; China stirs world economy fear
U.S. stocks fell on Wednesday as investors worried that China's banks might be ready to hit the brakes on lending to stem market excesses, a move that could curb the global economic recovery.
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Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1707 ET 29July2009 Fear index attracts big risk
reversal trade
A large risk-reversal option trade based on the CBOE Volatility Index was transacted in the October contract. The VIX rose 2.40 percent to 25.61 as the underlying S&P 500 index fell 0.46 percent. A total of 82,000 options traded in the strategy, which involved being short the underlying October VIX futures contract, the sale of an out-of-the-money VIX put option and the purchase of an OTM VIX call option. Market participants said an investor sold 25,000 puts at the VIX 30 strike for a premium of $3.50 and bought the same quantity of calls at the VIX 42.50 strike for $1.15 apiece against a hedged position that consisted of 16,000 contracts traded on each side of a put-and-call combo at the 32.50 strike, which effectively created a synthetic short position in October futures. This is not necessarily a bullish strategy and is more a play on premium values of the VIX 30 puts against the 42 calls, said Jamie Tyrrell, VIX trading specialist at Group One Trading.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1513 ET 29July2009
Chinese ADRs get hammered in New York
The U.S.-traded shares of Chinese companies, also known as American depository receipts or ADRs, fell sharply in New York after the Shanghai Composite index fell 5 percent amid worries Chinese banks may begin to restrict lending.
Among the biggest losers were some of the natural resource companies, seen among the biggest beneficiaries of Chinese government stimulus spending. Aluminum Corporation of China Ltd dropped more than 7 percent, China Petroleum & Chemical Corp fell 4.8 percent, and PetroChina Co Ltd dropped 4.7 percent.
Reuters Messaging: rm://Edward.Krudy.reuters.com@reuters.net
1513 ET 29July2009
Stratasys jumps after earnings
Stratasys Inc shares jumped 16.1 percent to $14.50 on Wednesday after the company reported quarterly earnings that topped Wall Street estimates.
The maker of rapid prototyping systems posted second-quarter adjusted earnings of 5 cents per share on revenue of $24.6 million, above analysts' estimates of 3 cents a share and $23.5 million in revenue.
Rival 3-D Systems Corp slid 2.3 percent to $7.26.
Reuters Messaging: rm://Charles.mikolajczak.reuters.com@reuters.net
1505 ET 29July2009-Mizuho 'likely' to boost year-end S&P 500 target
Grigoli
Mizuho Securities is 'likely' to increase its year-end target on the S&P 500 from 1,100 as excess liquidity and low interest rates help boost shares, said Carmine Grigoli, the Japanese bank's chief U.S. investment strategist.
Grigoli said second quarter earnings are showing a steady improvement, and the performance of U.S. banks, hit by write-downs during the crisis, will be strong enough to muddle through as the economy recovers, offsetting potential hits to their balance sheets.
He expects a spate of bull and bear markets in coming years, as investors worry about deficits and higher interest rates ensue.
'There's a good chance we'll be in a period where we have three to five years where the stock market doesn't make substantial progress,' he said, speaking to Reuters.
On July 20, Goldman Sachs lifted its year-end target for the S&P 500 to 1,060 from 940. Credit Suisse followed suit a day later, lifting their target to 1050 from 920. See and
Reuters Messaging:rm://Edward.Krudy.reuters.com@reuters.net
1445 ET 29July2009
BorgWarner slides after earnings
BorgWarner Inc shares fell 8.6 percent to $32.50 on Wednesday after the company posted a quarterly net loss, hurt by weak production volumes and restructuring costs.
The producer of turbochargers and clutches that boost fuel economy reported a second-quarter adjusted loss of 5 cents a share, below the Wall Street estimate of a 7 cents per share profit.
Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1421 ET 29July2009
Wall St lower after Fed's Beige Book
U.S. stocks ticked toward session lows on Wednesday after the Federal Reserve's snapshot of economic conditions showed labor market weakness persisted even though the economic slowdown is moderating.
The Dow Jones industrial average dropped 60.76 points, or 0.67 percent, to 9,035.96. The Standard & Poor's 500 Index dropped 8.51 points, or 0.87 percent, to 971.11. The Nasdaq Composite Index dropped 14.10 points, or 0.71 percent, to 1,961.41.
Reuters Messaging: rm://Charles.mikolajczak.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
1644 ET 29Jul2009-US STOCKS
Wall St sags; China stirs world economy fear
U.S. stocks fell on Wednesday as investors worried that China's banks might be ready to hit the brakes on lending to stem market excesses, a move that could curb the global economic recovery.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1707 ET 29July2009 Fear index attracts big risk
reversal trade
A large risk-reversal option trade based on the CBOE Volatility Index was transacted in the October contract. The VIX rose 2.40 percent to 25.61 as the underlying S&P 500 index fell 0.46 percent. A total of 82,000 options traded in the strategy, which involved being short the underlying October VIX futures contract, the sale of an out-of-the-money VIX put option and the purchase of an OTM VIX call option. Market participants said an investor sold 25,000 puts at the VIX 30 strike for a premium of $3.50 and bought the same quantity of calls at the VIX 42.50 strike for $1.15 apiece against a hedged position that consisted of 16,000 contracts traded on each side of a put-and-call combo at the 32.50 strike, which effectively created a synthetic short position in October futures. This is not necessarily a bullish strategy and is more a play on premium values of the VIX 30 puts against the 42 calls, said Jamie Tyrrell, VIX trading specialist at Group One Trading.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1513 ET 29July2009
Chinese ADRs get hammered in New York
The U.S.-traded shares of Chinese companies, also known as American depository receipts or ADRs, fell sharply in New York after the Shanghai Composite index fell 5 percent amid worries Chinese banks may begin to restrict lending.
Among the biggest losers were some of the natural resource companies, seen among the biggest beneficiaries of Chinese government stimulus spending. Aluminum Corporation of China Ltd dropped more than 7 percent, China Petroleum & Chemical Corp fell 4.8 percent, and PetroChina Co Ltd dropped 4.7 percent.
Reuters Messaging: rm://Edward.Krudy.reuters.com@reuters.net
1513 ET 29July2009
Stratasys jumps after earnings
Stratasys Inc shares jumped 16.1 percent to $14.50 on Wednesday after the company reported quarterly earnings that topped Wall Street estimates.
The maker of rapid prototyping systems posted second-quarter adjusted earnings of 5 cents per share on revenue of $24.6 million, above analysts' estimates of 3 cents a share and $23.5 million in revenue.
Rival 3-D Systems Corp slid 2.3 percent to $7.26.
Reuters Messaging: rm://Charles.mikolajczak.reuters.com@reuters.net
1505 ET 29July2009-Mizuho 'likely' to boost year-end S&P 500 target
Grigoli
Mizuho Securities is 'likely' to increase its year-end target on the S&P 500 from 1,100 as excess liquidity and low interest rates help boost shares, said Carmine Grigoli, the Japanese bank's chief U.S. investment strategist.
Grigoli said second quarter earnings are showing a steady improvement, and the performance of U.S. banks, hit by write-downs during the crisis, will be strong enough to muddle through as the economy recovers, offsetting potential hits to their balance sheets.
He expects a spate of bull and bear markets in coming years, as investors worry about deficits and higher interest rates ensue.
'There's a good chance we'll be in a period where we have three to five years where the stock market doesn't make substantial progress,' he said, speaking to Reuters.
On July 20, Goldman Sachs lifted its year-end target for the S&P 500 to 1,060 from 940. Credit Suisse followed suit a day later, lifting their target to 1050 from 920. See and
Reuters Messaging:rm://Edward.Krudy.reuters.com@reuters.net
1445 ET 29July2009
BorgWarner slides after earnings
BorgWarner Inc shares fell 8.6 percent to $32.50 on Wednesday after the company posted a quarterly net loss, hurt by weak production volumes and restructuring costs.
The producer of turbochargers and clutches that boost fuel economy reported a second-quarter adjusted loss of 5 cents a share, below the Wall Street estimate of a 7 cents per share profit.
Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1421 ET 29July2009
Wall St lower after Fed's Beige Book
U.S. stocks ticked toward session lows on Wednesday after the Federal Reserve's snapshot of economic conditions showed labor market weakness persisted even though the economic slowdown is moderating.
The Dow Jones industrial average dropped 60.76 points, or 0.67 percent, to 9,035.96. The Standard & Poor's 500 Index dropped 8.51 points, or 0.87 percent, to 971.11. The Nasdaq Composite Index dropped 14.10 points, or 0.71 percent, to 1,961.41.
Reuters Messaging: rm://Charles.mikolajczak.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.