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U.S. stock market report
1726 ET 17Feb2010
Goldman suggests buy Autodesk calls
Software maker Autodesk calls look attractive ahead of Feb. 23 results as better top-line trends and improving margins may drive above-consensus earnings, said Goldman Sachs derivative strategists in a note. The skew is near a one-year high and options prices are low vs. peers. Goldman upgraded the stock to 'buy' on the view that macro indicators are showing stability and improvement, which should begin to flow through to results this quarter. The stock's one-month implied volatility is in its bottom quartile, about in-line with three-month realized and below average relative to the Select Sector SPDR Technology ETF. With the stock at $25.24, the analysts recommend buying March $26 calls for 75 cents to position long volatility and capture upside around earnings. Should investors trade out on earnings day, Goldman estimates shares need to rise 2 percent to break-even, assuming volatility falls by 15 percent following earnings. Autodesk options imply a plus/minus 9 percent move on earnings.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1617 ET 17Feb2010 Wal
Mart calls stir ahead of earnings
Activity in Wal-Mart Stores Inc's options was busy ahead of the retailer's quarterly earnings on Thursday. The fourth-quarter results will show whether the company gained ground during the critical holiday sales period and if its retail strategy is holding onto its shoppers.
Its shares rose 50 cents to $54.06. Overall option volume was three times greater than norm, with about 56,000 calls and 37,000 puts traded, according to Trade Alert.
The top trade during the session was 4,810 contracts traded at the Feb $55 call strikes for a premium of 25 cents apiece on the International Securities Exchange this morning, said WhatsTrading.com option strategist Frederic Ruffy. ISEE data indicate an opening customer buyer, he added. Activity in that strike has expanded to 20,583 contracts, Reuters data show.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1522 ET 17Feb2010
Applied Materials options suggest small gains on results
Options activity on chip maker Applied Materials Inc suggests an upward move in the stock after earnings are reported after the bell on Wednesday. The stock traded at $12.90, off 13.6 percent from an intraday high of $14.94 in early January. The drop in the share price has come as short interest has increased and large-cap technology shares have underperformed in the last month, said Eric Sonis of Jefferies & Co's equity derivative sales unit in New York. Shares of Advanced Materials typically move about 5 percent in either direction after the company reports results, Sonis said, a fluctuation that could be exacerbated by short sellers. In the options market, about 15,000 calls and 5,262 puts traded in Applied Materials into afternoon trading, above its recent combined average daily turnover, according to option analytics firm Trade Alert. The most popular options were the $13 call strikes in the February and March contracts. The February calls fetched an average premium of 20 cents each, down from as high as 32 cents earlier in the session, but buyers were 'bidding on the offer,' which means buyers were aggressively taking the asking price for those call options, said Steve Claussen, chief investment strategist at online brokerage OptionHouse.com in Chicago. For full story, see
Reuters Messaging: angela.moon.reuters.com@reuters.net
1452 ET 17Feb2010
Commodities Funds See Inflows Despite Selloffs, Lipper Says
Reuters Insider: New data from Lipper shows investors continue to pour money into commodity-related funds, says Tom Roseen, Lipper Research Manager.
To view the Reuters Insider show: http://etv.thomsonreuters.com/link.html?ctype=group_channel&chid=3&cid=76806&shareToken=Mzo3NjgwNg%3D%3D%0A
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1430 ET 17Feb2010
US govt posts $42.63 bln budget deficit in Jan
The United States posted a smaller-than-expected $42.63 billion budget deficit in January, Treasury Department data showed on Wednesday, due in part to a drop in spending caused by a shift in the calendar.
The January deficit fell short of analysts' consensus forecast in a Reuters poll for a $47 billion budget gap and compares with a $91.41 billion deficit posted in December and a $63.46 billion gap for the same period a year ago.
For more please double click
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1405 ET 17Feb2010
Stocks briefly trim gains after Fed minutes
Stocks briefly trimmed gains after the release of minutes from the last Federal Reserve meeting. Several Fed policymakers want to begin selling securities relatively soon as a way to cut back their massive supply of cash to the financial system, the U.S. central bank said.
'Policymakers were unanimous in the view that it will be appropriate to shrink the supply of reserve balances and the size of the balance sheet substantially over time,' minutes of the Fed's January policy meeting said.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1402 ET 17Feb2010 Hewlett
Packard option volume pops up before earnings
Hewlett-Packard Co options traders were busy ahead of the technology giant's quarterly earnings report due after the closing bell. By late afternoon, volume was double the norm with about 36,000 puts and 29,000 calls traded, according to Trade Alert. HP shares rose 1.23 percent to $50.05. With computer hardware at the top of the shopping list for many companies this year, HP and Dell Inc offer investors two different ways to play the information technology (IT) upgrade cycle.. Investors are coveting HP calls and puts to position for either earnings elation or disappointment, said Interactive Brokers Group Caitlin Duffy. Traders anticipating strong earnings and a boost in the stock price ahead of Friday's February expiration picked up about 3,200 contracts at the Feb $50 strike for an average premium of 72 cents apiece. Call-buyers stand to accrue profits if shares rally above the break-even price of $50.72 by expiration. On the flip side, traders with more cautious views bought February and March put contracts, notably the Feb $49 strike and March $50 strikes. Those holding these contracts are perhaps expecting earnings will miss estimates, she said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1302 ET 17Feb2010
Brush Engineered climbs after results, outlook
Brush Engineered Materials Inc shares jumped on Wednesday after the company reported fourth-quarter earnings that missed analysts' estimates, but revenue topped expectations and it provided solid guidance for 2010.
The precious and specialty metal products maker reported earnings per share of 3 cents, below the Wall Street estimate of 5 cents per share, but revenue of $215.2 million was above the average analyst estimate of $199 million.
For 2010, the Brush forecast earnings of 75 cents to $1.00 per share on revenue of $1.1 billion to $1.2 billion, versus the Thomson Reuters I/B/E/S estimates of 66 cents per share and revenue of $813.3 million.
Brush Engineered shares climbed 13.1 percent to $20.13. Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1242 ET 17Feb2010
Best in show's Sadie bullish on stocks
When Sadie, a Scottish Terrier, won the top prize at the Westminster Kennel Club dog show in New York on Tuesday night, investors should have cheered. That's because years when a Scottish Terrier has taken home the blue ribbon have been stellar for stocks, with an average price gain for the S&P 500 of 23.68 percent, according to Standard & Poor's, and an average total return that's even better -- 28.86 percent annually. The Scottie's win Tuesday was its eighth Best in Show. The first was in 1911, before the S&P 500 was constructed, but the other years -- 1945, 1950, 1965, 1967, 1985, and 1995 -- have all been strong ones, with 1965's 9.06 percent rise the laggard of the bunch. The only other breed to have taken home the top prize more than the Scottie is the Wire Fox Terrier with 13 wins -- but it was unfortunately a top choice often during the Great Depression, winning in 1930, 1931, 1934 and 1937.
Reuters Messaging: david.gaffen.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
1726 ET 17Feb2010
Goldman suggests buy Autodesk calls
Software maker Autodesk calls look attractive ahead of Feb. 23 results as better top-line trends and improving margins may drive above-consensus earnings, said Goldman Sachs derivative strategists in a note. The skew is near a one-year high and options prices are low vs. peers. Goldman upgraded the stock to 'buy' on the view that macro indicators are showing stability and improvement, which should begin to flow through to results this quarter. The stock's one-month implied volatility is in its bottom quartile, about in-line with three-month realized and below average relative to the Select Sector SPDR Technology ETF. With the stock at $25.24, the analysts recommend buying March $26 calls for 75 cents to position long volatility and capture upside around earnings. Should investors trade out on earnings day, Goldman estimates shares need to rise 2 percent to break-even, assuming volatility falls by 15 percent following earnings. Autodesk options imply a plus/minus 9 percent move on earnings.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1617 ET 17Feb2010 Wal
Mart calls stir ahead of earnings
Activity in Wal-Mart Stores Inc's options was busy ahead of the retailer's quarterly earnings on Thursday. The fourth-quarter results will show whether the company gained ground during the critical holiday sales period and if its retail strategy is holding onto its shoppers.
Its shares rose 50 cents to $54.06. Overall option volume was three times greater than norm, with about 56,000 calls and 37,000 puts traded, according to Trade Alert.
The top trade during the session was 4,810 contracts traded at the Feb $55 call strikes for a premium of 25 cents apiece on the International Securities Exchange this morning, said WhatsTrading.com option strategist Frederic Ruffy. ISEE data indicate an opening customer buyer, he added. Activity in that strike has expanded to 20,583 contracts, Reuters data show.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1522 ET 17Feb2010
Applied Materials options suggest small gains on results
Options activity on chip maker Applied Materials Inc suggests an upward move in the stock after earnings are reported after the bell on Wednesday. The stock traded at $12.90, off 13.6 percent from an intraday high of $14.94 in early January. The drop in the share price has come as short interest has increased and large-cap technology shares have underperformed in the last month, said Eric Sonis of Jefferies & Co's equity derivative sales unit in New York. Shares of Advanced Materials typically move about 5 percent in either direction after the company reports results, Sonis said, a fluctuation that could be exacerbated by short sellers. In the options market, about 15,000 calls and 5,262 puts traded in Applied Materials into afternoon trading, above its recent combined average daily turnover, according to option analytics firm Trade Alert. The most popular options were the $13 call strikes in the February and March contracts. The February calls fetched an average premium of 20 cents each, down from as high as 32 cents earlier in the session, but buyers were 'bidding on the offer,' which means buyers were aggressively taking the asking price for those call options, said Steve Claussen, chief investment strategist at online brokerage OptionHouse.com in Chicago. For full story, see
Reuters Messaging: angela.moon.reuters.com@reuters.net
1452 ET 17Feb2010
Commodities Funds See Inflows Despite Selloffs, Lipper Says
Reuters Insider: New data from Lipper shows investors continue to pour money into commodity-related funds, says Tom Roseen, Lipper Research Manager.
To view the Reuters Insider show: http://etv.thomsonreuters.com/link.html?ctype=group_channel&chid=3&cid=76806&shareToken=Mzo3NjgwNg%3D%3D%0A
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1430 ET 17Feb2010
US govt posts $42.63 bln budget deficit in Jan
The United States posted a smaller-than-expected $42.63 billion budget deficit in January, Treasury Department data showed on Wednesday, due in part to a drop in spending caused by a shift in the calendar.
The January deficit fell short of analysts' consensus forecast in a Reuters poll for a $47 billion budget gap and compares with a $91.41 billion deficit posted in December and a $63.46 billion gap for the same period a year ago.
For more please double click
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1405 ET 17Feb2010
Stocks briefly trim gains after Fed minutes
Stocks briefly trimmed gains after the release of minutes from the last Federal Reserve meeting. Several Fed policymakers want to begin selling securities relatively soon as a way to cut back their massive supply of cash to the financial system, the U.S. central bank said.
'Policymakers were unanimous in the view that it will be appropriate to shrink the supply of reserve balances and the size of the balance sheet substantially over time,' minutes of the Fed's January policy meeting said.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1402 ET 17Feb2010 Hewlett
Packard option volume pops up before earnings
Hewlett-Packard Co options traders were busy ahead of the technology giant's quarterly earnings report due after the closing bell. By late afternoon, volume was double the norm with about 36,000 puts and 29,000 calls traded, according to Trade Alert. HP shares rose 1.23 percent to $50.05. With computer hardware at the top of the shopping list for many companies this year, HP and Dell Inc offer investors two different ways to play the information technology (IT) upgrade cycle.. Investors are coveting HP calls and puts to position for either earnings elation or disappointment, said Interactive Brokers Group Caitlin Duffy. Traders anticipating strong earnings and a boost in the stock price ahead of Friday's February expiration picked up about 3,200 contracts at the Feb $50 strike for an average premium of 72 cents apiece. Call-buyers stand to accrue profits if shares rally above the break-even price of $50.72 by expiration. On the flip side, traders with more cautious views bought February and March put contracts, notably the Feb $49 strike and March $50 strikes. Those holding these contracts are perhaps expecting earnings will miss estimates, she said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1302 ET 17Feb2010
Brush Engineered climbs after results, outlook
Brush Engineered Materials Inc shares jumped on Wednesday after the company reported fourth-quarter earnings that missed analysts' estimates, but revenue topped expectations and it provided solid guidance for 2010.
The precious and specialty metal products maker reported earnings per share of 3 cents, below the Wall Street estimate of 5 cents per share, but revenue of $215.2 million was above the average analyst estimate of $199 million.
For 2010, the Brush forecast earnings of 75 cents to $1.00 per share on revenue of $1.1 billion to $1.2 billion, versus the Thomson Reuters I/B/E/S estimates of 66 cents per share and revenue of $813.3 million.
Brush Engineered shares climbed 13.1 percent to $20.13. Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1242 ET 17Feb2010
Best in show's Sadie bullish on stocks
When Sadie, a Scottish Terrier, won the top prize at the Westminster Kennel Club dog show in New York on Tuesday night, investors should have cheered. That's because years when a Scottish Terrier has taken home the blue ribbon have been stellar for stocks, with an average price gain for the S&P 500 of 23.68 percent, according to Standard & Poor's, and an average total return that's even better -- 28.86 percent annually. The Scottie's win Tuesday was its eighth Best in Show. The first was in 1911, before the S&P 500 was constructed, but the other years -- 1945, 1950, 1965, 1967, 1985, and 1995 -- have all been strong ones, with 1965's 9.06 percent rise the laggard of the bunch. The only other breed to have taken home the top prize more than the Scottie is the Wire Fox Terrier with 13 wins -- but it was unfortunately a top choice often during the Great Depression, winning in 1930, 1931, 1934 and 1937.
Reuters Messaging: david.gaffen.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.