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U.S. stock market report 1711 ET 15Jan2010 Investors line up for Aetna call options
Investors favored upside call options in U.S. health insurer Aetna Inc . Its shares slipped 5 cents to $31.36. Jon Najarian, a co-founder of optionMonster.com, noticed big blocks of February $34 call strikes were bought late in the session. 'We think it is just a healthcare play,' he said. House of Representatives Democratic Leader Steny Hoyer said on Friday that Congressional Democrats are 'very close' to reaching final agreement on healthcare reform legislation and could have a deal in days. For details, please see . The February $34 AET call strike traded 18,303 times against existing positions held by investors of 11,646 lots, indicating fresh positions were initiated. In all, about 55,000 calls and 11,000 puts traded, three times greater than its average combined daily volume, according to Trade Alert. Humana calls were also busy, Trade Alert data show.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1340 ET 15Jan2010 Option bulls eye Baidu January options
Bullish investors continue to trade the options on Baidu Inc, China's Web search leader, following U.S. rival Google Inc's warning that it may quit China on hacking and censorship concerns. Baidu's U.S. listed shares rose $2 to $466.23 in afternoon trade. Option bulls favored January options even as expiration was at hand after the close, said Andrew Wilkinson, market analyst at Interactive Brokers Group.
'Disbanding Google operations in China could allow Baidu to swoop in and procure one third of the U.S. company's market share there,' he said. Investors bought about 3,200 calls at the Jan $470 strike for an average premium of $2.08 apiece. The contracts will expire out-of-the-money and worthless unless shares move above $470. Investors long the calls breakeven if shares move up to $472.08 before expiration. He said more buying interest appeared at the Jan $480 strike where 2,000 calls were picked up for an average of 48 cents. Perhaps traders buying these contracts hope to enjoy short-swing profits by selling the lots by the end of the day for more than the average premium paid, he said. On the put side, he noted traders sold puts at the Jan $460 and $470 strike.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1151 ET 15Jan2010 Intel option volatility drops after results
The option implied volatility on Intel Corp has collapsed, one day after the chipmaker posted fourth-quarter results that beat Wall Street forecasts.. The stock's option volatility, a key driver of an options price, fell 22.40 percent to 25.95 percent this morning, said Interactive Brokers Group option analyst Caitlin Duffy. Shares of Intel, a Dow component, fell 2.09 percent to $21.03. The stock on Thursday closed just below its 52-week high before it reported results. 'There is a tendency for a pullback in the stock the next day no matter how good the earnings are,' said William Lefkowitz, options strategist at vFinance Investments. Trade Alert data show option traders exchanged about 256,000 contracts in Intel. Friday also marks the expiration of January options after the close, 'so pressure from open interest positions which need to be either closed or exercised are having an impact on the trading of expiring contracts,' said Scott Fullman, director of deriviative investment strategy at WJB Capital Group.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1037 EST 15Jan2010
Sequenom shares up, in $14 mln settlement
Sequenom Inc, a diagnostics testing and genetic analysis company, said it would pay $14 million to settle an investor class-action lawsuit arising from mistakes in the development of a prenatal test for Down Syndrome.
The lawsuit followed a 75.7 percent plunge in Sequenom shares last April 30, after the company said it would delay the launch of the SEQureDx prenatal test, citing 'mishandling' of research and development test data by employees.
For details, see
The stock climbed 4.3 percent to $4.33.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1020 EST 15Jan2010
Credit Suisse raises targets on asset managers
Credit Suisse raised its price targets on the stocks of most U.S. asset managers, including BlackRock Inc and Franklin Resources Inc, citing an improvement in the equity and bond market prices.
The brokerage said it expects stronger fourth-quarter results, helped by the market appreciation, higher net flows and investment income from proprietary assets. The companies will have higher assets under management, revenue and profits compared with the third quarter, analyst Craig Siegenthaler said in a note. For details, see
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1015 EST 15Jan2010
Barrick Gold shares fall after BMO downgrade
U.S.-listed shares of Barrick Gold Corp fell on Friday after BMO Capital Markets downgraded the stock to 'market perform' from 'outperform.' The firm cited valuation and said the company had limited growth prospects. For details see The stock slid 2.3 percent to $39.56.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1008 EST 15Jan2010-Consumer sentiment little changed in early Jan
survey
U.S. consumer sentiment was little changed in early January, as worries over income and high unemployment offset news of an improving economy, a survey showed on Friday.
For details, see
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0946 EST 15Jan2010-Capital One credit card charge
offs hit 10 pct
Capital One Financial Corp said U.S. credit-card charge-offs rose to double digits in December, showing consumers became increasingly stressed in the holiday shopping month.
In a regulatory filing on Friday, Capital One said the annualized net charge-off rate -- debts the company believes it will never collect -- for U.S. credit cards rose to 10.14 percent in December from 9.60 percent in November.
However, accounts at least 30 days delinquent -- an indicator of future loan losses -- fell to 5.78 percent from 5.87 percent.
For details, see
Shares of Capital One slid 0.7 percent to $41.36.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0941 EST 15Jan2010
Markets open lower, hurt by bank weakness
U.S. stocks opened lower on Friday as financials slumped after mixed quarterly results from JPMorgan Chase & Co, the first major bank to report earnings.
The Dow Jones industrial average was off 20.11 points, or 0.19 percent, to 10,690.44. The Standard & Poor's 500 Index slipped 1.69 points, or 0.15 percent, to 1,146.77. The Nasdaq Composite Index rose 4.34 points, or 0.19 percent, to 2,321.08.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2010. 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 1711 ET 15Jan2010 Investors line up for Aetna call options
Investors favored upside call options in U.S. health insurer Aetna Inc . Its shares slipped 5 cents to $31.36. Jon Najarian, a co-founder of optionMonster.com, noticed big blocks of February $34 call strikes were bought late in the session. 'We think it is just a healthcare play,' he said. House of Representatives Democratic Leader Steny Hoyer said on Friday that Congressional Democrats are 'very close' to reaching final agreement on healthcare reform legislation and could have a deal in days. For details, please see . The February $34 AET call strike traded 18,303 times against existing positions held by investors of 11,646 lots, indicating fresh positions were initiated. In all, about 55,000 calls and 11,000 puts traded, three times greater than its average combined daily volume, according to Trade Alert. Humana calls were also busy, Trade Alert data show.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1340 ET 15Jan2010 Option bulls eye Baidu January options
Bullish investors continue to trade the options on Baidu Inc, China's Web search leader, following U.S. rival Google Inc's warning that it may quit China on hacking and censorship concerns. Baidu's U.S. listed shares rose $2 to $466.23 in afternoon trade. Option bulls favored January options even as expiration was at hand after the close, said Andrew Wilkinson, market analyst at Interactive Brokers Group.
'Disbanding Google operations in China could allow Baidu to swoop in and procure one third of the U.S. company's market share there,' he said. Investors bought about 3,200 calls at the Jan $470 strike for an average premium of $2.08 apiece. The contracts will expire out-of-the-money and worthless unless shares move above $470. Investors long the calls breakeven if shares move up to $472.08 before expiration. He said more buying interest appeared at the Jan $480 strike where 2,000 calls were picked up for an average of 48 cents. Perhaps traders buying these contracts hope to enjoy short-swing profits by selling the lots by the end of the day for more than the average premium paid, he said. On the put side, he noted traders sold puts at the Jan $460 and $470 strike.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1151 ET 15Jan2010 Intel option volatility drops after results
The option implied volatility on Intel Corp has collapsed, one day after the chipmaker posted fourth-quarter results that beat Wall Street forecasts.. The stock's option volatility, a key driver of an options price, fell 22.40 percent to 25.95 percent this morning, said Interactive Brokers Group option analyst Caitlin Duffy. Shares of Intel, a Dow component, fell 2.09 percent to $21.03. The stock on Thursday closed just below its 52-week high before it reported results. 'There is a tendency for a pullback in the stock the next day no matter how good the earnings are,' said William Lefkowitz, options strategist at vFinance Investments. Trade Alert data show option traders exchanged about 256,000 contracts in Intel. Friday also marks the expiration of January options after the close, 'so pressure from open interest positions which need to be either closed or exercised are having an impact on the trading of expiring contracts,' said Scott Fullman, director of deriviative investment strategy at WJB Capital Group.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1037 EST 15Jan2010
Sequenom shares up, in $14 mln settlement
Sequenom Inc, a diagnostics testing and genetic analysis company, said it would pay $14 million to settle an investor class-action lawsuit arising from mistakes in the development of a prenatal test for Down Syndrome.
The lawsuit followed a 75.7 percent plunge in Sequenom shares last April 30, after the company said it would delay the launch of the SEQureDx prenatal test, citing 'mishandling' of research and development test data by employees.
For details, see
The stock climbed 4.3 percent to $4.33.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1020 EST 15Jan2010
Credit Suisse raises targets on asset managers
Credit Suisse raised its price targets on the stocks of most U.S. asset managers, including BlackRock Inc and Franklin Resources Inc, citing an improvement in the equity and bond market prices.
The brokerage said it expects stronger fourth-quarter results, helped by the market appreciation, higher net flows and investment income from proprietary assets. The companies will have higher assets under management, revenue and profits compared with the third quarter, analyst Craig Siegenthaler said in a note. For details, see
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1015 EST 15Jan2010
Barrick Gold shares fall after BMO downgrade
U.S.-listed shares of Barrick Gold Corp fell on Friday after BMO Capital Markets downgraded the stock to 'market perform' from 'outperform.' The firm cited valuation and said the company had limited growth prospects. For details see The stock slid 2.3 percent to $39.56.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1008 EST 15Jan2010-Consumer sentiment little changed in early Jan
survey
U.S. consumer sentiment was little changed in early January, as worries over income and high unemployment offset news of an improving economy, a survey showed on Friday.
For details, see
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0946 EST 15Jan2010-Capital One credit card charge
offs hit 10 pct
Capital One Financial Corp said U.S. credit-card charge-offs rose to double digits in December, showing consumers became increasingly stressed in the holiday shopping month.
In a regulatory filing on Friday, Capital One said the annualized net charge-off rate -- debts the company believes it will never collect -- for U.S. credit cards rose to 10.14 percent in December from 9.60 percent in November.
However, accounts at least 30 days delinquent -- an indicator of future loan losses -- fell to 5.78 percent from 5.87 percent.
For details, see
Shares of Capital One slid 0.7 percent to $41.36.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0941 EST 15Jan2010
Markets open lower, hurt by bank weakness
U.S. stocks opened lower on Friday as financials slumped after mixed quarterly results from JPMorgan Chase & Co, the first major bank to report earnings.
The Dow Jones industrial average was off 20.11 points, or 0.19 percent, to 10,690.44. The Standard & Poor's 500 Index slipped 1.69 points, or 0.15 percent, to 1,146.77. The Nasdaq Composite Index rose 4.34 points, or 0.19 percent, to 2,321.08.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS
COPYRIGHT Copyright Thomson Reuters 2010. 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.