Stocks on the move
Real-time Equity news
U.S. stock market report
1733 ET 15Oct2009
Economic diary for Oct 16
The day's economic agenda includes the Federal Reserve's industrial production and capacity utilization data for September, 9:15 a.m. (1315 GMT), and the Reuters/University of Michigan Surveys of Consumers' preliminary October consumer sentiment index, 9:55 a.m. (1355 GMT).
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Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1710 ET 15Oct2009
US investors drop brokers as sole top finance adviser
More U.S. investors with a net worth of $100,000 to $1 million are turning to independent planners for investment advice and away from brokers these days, a report shows.
Mass affluent households using full-service brokers as their primary financial adviser fell to 22 percent from 30 percent the year before, according to the report released by Spectrem Group. It defines mass affluent households as those with a net worth of between $100,000 and $1 million, not including primary residence.
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Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net
1606 ET 15Oct2009-US STOCKS SNAPSHOT
Wall St rises on oil; financials slip
U.S. stocks managed modest gains on Thursday as rising oil prices underpinned energy shares, but financials retreated as investors panned earnings from Goldman Sachs and Citigroup.
For more please double click .N]
Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net
1529 ET 15Oct2009
Volatility gauge heading to new closing low
The CBOE Volatility Index, a 30-day risk forecast priced off of S&P 500 index options, fell 4.55 percent to 21.82, above its session low of 21.59 near the close. If the VIX settles below the 22 level, it would be the lowest close since early September 2008, said OptionMonster analyst Chris McKhann. The VIX, Wall Street's favorite barometer of investor sentiment, is perched above SPX historical volatility which tracks the daily gyrations of the benchmark over the past 30 days. This metric is down and stood at 15 percent, he said.
In volatility products, VIX futures are sitting above spot VIX with October futures at 22.65, November at 24.85 and most 2010 futures contracts above 27. All these metrics suggest more stock market swings going forward. The current term structure in VIX futures is what people usually see when the S&P 500 is moving higher, suggesting that additional volatility may be expected in the coming months, McKhann said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1505 ET 15Oct2009
IBM option traders turn optimistic on earns
International Business Machines Corp is reporting quarterly results after the bell and in the options market, sentiment seems optimistic. IBM reported earnings of $1.98 in the previous quarter, which trounced analyst estimates by 16 cents. In the past four quarters, it beat Wall Street estimates by an average of more than 12 cents, said WhatsTrading.com option strategist Frederic Ruffy. For that reason, Ruffy noted that sentiment seems upbeat heading into the news, Although IBM shares fell $1.22 to $127.12 just one hour before they report, the top option trades include 5,000 Oct $130-$135 call spreads bought for 80 cents. Option volume was double the norm with about 87,000 calls and 28,000 puts traded, according to Trade Alert. The stock's option implied volatility is up and stood at 26.80 percent and a volatility skew between Oct (55.9 percent ) and Nov (26.5 percent) hints at a possible $3.30, or 2.6 percent earnings gap when IBM reports after the bell, he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1450 ET 15Oct2009
Susquehanna suggests CME March call spreads
With volatility in CME Group somewhat elevated, Susquehanna Financial Group advises investors consider the benefits of more limited-volatility or volatility-neutral spread strategies. They recommend the March $310/$350 call spread as a limited cost way for upside exposure in the coming months for those investors hesitant to put on long equity positions. It would also capture the low put skew levels, which indicate out-of-the-money calls are trading at historically elevated levels vs. at-the-money options. Based on Wednesday's close of $309, the spread was setting up for a cost of $15.90.
SFG analyst Jonathan Casteleyn started coverage on CME with a $370 12-month target. In line with that view, the spread was recommended. Casteleyn also acknowledged potential regulatory risks. CME shares fell nearly 20 percent between late June and mid-July, partly on concerns of possible increased CFTC regulation of energy-related commodity products. Until there is more clarity or finality on regulatory changes, shares could lag versus other sectors.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1435 ET 15Oct2009
Investors brace for Google move post earns
Options traders exchanged about 106,000 contracts in Google Inc, double its average daily combined volume, more than a hour before the Web search giant delivers its quarterly results. The volume was dominated by 70,000 calls, according to Trade Alert. Its shares fell 1.15 percent to $529.14. Google's stock volume was relatively tame ahead of earnings. However, investors are flocking to the October puts and calls, which have one more day of life left, said William Lefkowitz, option strategist at vFinance Investments. Particularly notable are the out-of-the- money October puts and calls, which have attracted a lot of investor interest. This suggests that investors are anticipating a relatively large stock move in either direction after the results are released, he said. October options go off the board on Friday after the close.
Reuters Messaging: doris.frankel.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
U.S. stock market report
1733 ET 15Oct2009
Economic diary for Oct 16
The day's economic agenda includes the Federal Reserve's industrial production and capacity utilization data for September, 9:15 a.m. (1315 GMT), and the Reuters/University of Michigan Surveys of Consumers' preliminary October consumer sentiment index, 9:55 a.m. (1355 GMT).
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1710 ET 15Oct2009
US investors drop brokers as sole top finance adviser
More U.S. investors with a net worth of $100,000 to $1 million are turning to independent planners for investment advice and away from brokers these days, a report shows.
Mass affluent households using full-service brokers as their primary financial adviser fell to 22 percent from 30 percent the year before, according to the report released by Spectrem Group. It defines mass affluent households as those with a net worth of between $100,000 and $1 million, not including primary residence.
For more please double click
Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net
1606 ET 15Oct2009-US STOCKS SNAPSHOT
Wall St rises on oil; financials slip
U.S. stocks managed modest gains on Thursday as rising oil prices underpinned energy shares, but financials retreated as investors panned earnings from Goldman Sachs and Citigroup.
For more please double click .N]
Reuters Messaging: caroline.valetkevitch.reuters.com@reuters.net
1529 ET 15Oct2009
Volatility gauge heading to new closing low
The CBOE Volatility Index, a 30-day risk forecast priced off of S&P 500 index options, fell 4.55 percent to 21.82, above its session low of 21.59 near the close. If the VIX settles below the 22 level, it would be the lowest close since early September 2008, said OptionMonster analyst Chris McKhann. The VIX, Wall Street's favorite barometer of investor sentiment, is perched above SPX historical volatility which tracks the daily gyrations of the benchmark over the past 30 days. This metric is down and stood at 15 percent, he said.
In volatility products, VIX futures are sitting above spot VIX with October futures at 22.65, November at 24.85 and most 2010 futures contracts above 27. All these metrics suggest more stock market swings going forward. The current term structure in VIX futures is what people usually see when the S&P 500 is moving higher, suggesting that additional volatility may be expected in the coming months, McKhann said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1505 ET 15Oct2009
IBM option traders turn optimistic on earns
International Business Machines Corp is reporting quarterly results after the bell and in the options market, sentiment seems optimistic. IBM reported earnings of $1.98 in the previous quarter, which trounced analyst estimates by 16 cents. In the past four quarters, it beat Wall Street estimates by an average of more than 12 cents, said WhatsTrading.com option strategist Frederic Ruffy. For that reason, Ruffy noted that sentiment seems upbeat heading into the news, Although IBM shares fell $1.22 to $127.12 just one hour before they report, the top option trades include 5,000 Oct $130-$135 call spreads bought for 80 cents. Option volume was double the norm with about 87,000 calls and 28,000 puts traded, according to Trade Alert. The stock's option implied volatility is up and stood at 26.80 percent and a volatility skew between Oct (55.9 percent ) and Nov (26.5 percent) hints at a possible $3.30, or 2.6 percent earnings gap when IBM reports after the bell, he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1450 ET 15Oct2009
Susquehanna suggests CME March call spreads
With volatility in CME Group somewhat elevated, Susquehanna Financial Group advises investors consider the benefits of more limited-volatility or volatility-neutral spread strategies. They recommend the March $310/$350 call spread as a limited cost way for upside exposure in the coming months for those investors hesitant to put on long equity positions. It would also capture the low put skew levels, which indicate out-of-the-money calls are trading at historically elevated levels vs. at-the-money options. Based on Wednesday's close of $309, the spread was setting up for a cost of $15.90.
SFG analyst Jonathan Casteleyn started coverage on CME with a $370 12-month target. In line with that view, the spread was recommended. Casteleyn also acknowledged potential regulatory risks. CME shares fell nearly 20 percent between late June and mid-July, partly on concerns of possible increased CFTC regulation of energy-related commodity products. Until there is more clarity or finality on regulatory changes, shares could lag versus other sectors.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1435 ET 15Oct2009
Investors brace for Google move post earns
Options traders exchanged about 106,000 contracts in Google Inc, double its average daily combined volume, more than a hour before the Web search giant delivers its quarterly results. The volume was dominated by 70,000 calls, according to Trade Alert. Its shares fell 1.15 percent to $529.14. Google's stock volume was relatively tame ahead of earnings. However, investors are flocking to the October puts and calls, which have one more day of life left, said William Lefkowitz, option strategist at vFinance Investments. Particularly notable are the out-of-the- money October puts and calls, which have attracted a lot of investor interest. This suggests that investors are anticipating a relatively large stock move in either direction after the results are released, he said. October options go off the board on Friday after the close.
Reuters Messaging: doris.frankel.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.