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Real-time equity news
U.S. stock market report
1731 ET 03March2010-Small-caps index ends at 17
month high
The Russell 2000, an index of small-cap stocks, hit a 17-month closing high on Wednesday, a move that suggests it may just be a matter of days before other indexes retest their highs of the run-up seen since March 2009.
Fundamentally, small-caps are considered harbingers of an early upturn in the economic cycle since smaller companies are more sensitive to domestic business activity compared with multinationals.
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1707 ET 03March2010
S&P 500 resistance seen at 1,130; support at 1,087
'With the S&P 500 back above 1,115, the short-term trend has improved as there is a clear series of higher highs and higher lows since from Feb 5,' said John Kolovos, market technician at Concept Capital in New York. 'On an intra-day basis, next chart resistance comes into play at 1,130. Support is 1,087.'
The Standard & Poor's 500 Index ended up 0.48 points, or 0.04 percent, at 1,118.79 on Wednesday.
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1700 ET 03March2010
Market finishes flat as Obama pushes regulation
U.S. stocks ended little changed on Wednesday as worries about bank regulation and a setback for drug company Pfizer offset signs of improvement in the labor market and services sector.
Pfizer Inc, the world's largest drugmaker, fell 1.6 percent after its Alzheimer's drug did not meet the main goals of a late-stage clinical trial, weighing on the Dow industrials.
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Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1649 ET 03Mar2010 VIX investor enacts ratio call spread on fear gauge
The CBOE Volatility index, the implied volatility measure of the S&P 500 index, fell 1.21 percent to 18.83 as U.S. stocks ended little changed. In VIX options, a hefty ratio call spread was implemented in the deep out-of-the-money May contracts. The investor purchased 10,000 calls at the May 27.50 strike for a premium of $1.50 apiece, and sold 20,000 calls at the higher May 35 strike for 70 cents each, resulting in a total net cost of 10 cents per contract, said Interactive Brokers Group equity options analyst Caitlin Duffy. The spread appears to be a relatively cheap way to profit from another bout of market turmoil or jump in investor uncertainty ahead of May expiration, she said in a note.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1536 ET 03Mar2010 Goldman Sachs suggests sell Darden covered calls
Investors should consider selling Darden Restaurants Inc April covered calls ahead of March 23 earnings, wrote Goldman Sachs derivative strategists in a note. 'The pre-announced results reduce the impact of upcoming earnings but options prices are up, providing an interesting opportunity to enhance return,' the note said. Darden, owner of the Red Lobster and Olive Garden chains, raised its fiscal 2010 profit outlook last month, citing improving consumer traffic.. With the stock at $40.51 and upside around earnings potentially limited due to the preannouncement, they recommend selling covered calls to collect an attractive premium. 'We would sell April $42 calls for $0.80 to take advantage of low skew and high implied volatility versus peers, and retain 6 percent upside,' the note said. Call sellers commit to sell shares at $42 at expiration.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1448 ET 03Mar2010 Goldman suggests buy Visa puts as a hedge
Visa Inc put options look attractive as a hedge ahead of March 11 analyst day, a potential near-term downside catalyst for shares, wrote Goldman Sachs derivative strategists in a note. 'The March analyst day may call consensus margin expectations into question while a stock conversion could add supply to the market and weigh on shares,' the note said. The expected conversion of 56 million Class C shares into Class A shares on March 8 under Visa's announced Class C share release program could provide a further source of short term pressure on the shares, the note said. Option prices appear attractive relative to peer MasterCard. With shares at $86.45, the strategists recommend shareholders buy V March $85 puts for $1.02 to hedge potential downside. This trade profits at expiration if shares are below $83.98. Put option buyers risk losing the entire premium paid.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1327 ET 03March2010-Greece's problem not credit, but credibility -
Wells Fargo
Wells Fargo Funds Management's Chief Portfolio Strategist Brian Jacobsen's view on Greece's debt problem:
'Greece does not have a credit problem, it has a credibility problem: is it committed to making the tough choices necessary to bring about fiscal balance? In a way though, this is the same issue that just about every developed nation has to wrestle with this year.'
Reuters Messaging rm://ellis.mnyandu.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
1731 ET 03March2010-Small-caps index ends at 17
month high
The Russell 2000, an index of small-cap stocks, hit a 17-month closing high on Wednesday, a move that suggests it may just be a matter of days before other indexes retest their highs of the run-up seen since March 2009.
Fundamentally, small-caps are considered harbingers of an early upturn in the economic cycle since smaller companies are more sensitive to domestic business activity compared with multinationals.
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1707 ET 03March2010
S&P 500 resistance seen at 1,130; support at 1,087
'With the S&P 500 back above 1,115, the short-term trend has improved as there is a clear series of higher highs and higher lows since from Feb 5,' said John Kolovos, market technician at Concept Capital in New York. 'On an intra-day basis, next chart resistance comes into play at 1,130. Support is 1,087.'
The Standard & Poor's 500 Index ended up 0.48 points, or 0.04 percent, at 1,118.79 on Wednesday.
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1700 ET 03March2010
Market finishes flat as Obama pushes regulation
U.S. stocks ended little changed on Wednesday as worries about bank regulation and a setback for drug company Pfizer offset signs of improvement in the labor market and services sector.
Pfizer Inc, the world's largest drugmaker, fell 1.6 percent after its Alzheimer's drug did not meet the main goals of a late-stage clinical trial, weighing on the Dow industrials.
For more please double click
Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net
1649 ET 03Mar2010 VIX investor enacts ratio call spread on fear gauge
The CBOE Volatility index, the implied volatility measure of the S&P 500 index, fell 1.21 percent to 18.83 as U.S. stocks ended little changed. In VIX options, a hefty ratio call spread was implemented in the deep out-of-the-money May contracts. The investor purchased 10,000 calls at the May 27.50 strike for a premium of $1.50 apiece, and sold 20,000 calls at the higher May 35 strike for 70 cents each, resulting in a total net cost of 10 cents per contract, said Interactive Brokers Group equity options analyst Caitlin Duffy. The spread appears to be a relatively cheap way to profit from another bout of market turmoil or jump in investor uncertainty ahead of May expiration, she said in a note.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1536 ET 03Mar2010 Goldman Sachs suggests sell Darden covered calls
Investors should consider selling Darden Restaurants Inc April covered calls ahead of March 23 earnings, wrote Goldman Sachs derivative strategists in a note. 'The pre-announced results reduce the impact of upcoming earnings but options prices are up, providing an interesting opportunity to enhance return,' the note said. Darden, owner of the Red Lobster and Olive Garden chains, raised its fiscal 2010 profit outlook last month, citing improving consumer traffic.. With the stock at $40.51 and upside around earnings potentially limited due to the preannouncement, they recommend selling covered calls to collect an attractive premium. 'We would sell April $42 calls for $0.80 to take advantage of low skew and high implied volatility versus peers, and retain 6 percent upside,' the note said. Call sellers commit to sell shares at $42 at expiration.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1448 ET 03Mar2010 Goldman suggests buy Visa puts as a hedge
Visa Inc put options look attractive as a hedge ahead of March 11 analyst day, a potential near-term downside catalyst for shares, wrote Goldman Sachs derivative strategists in a note. 'The March analyst day may call consensus margin expectations into question while a stock conversion could add supply to the market and weigh on shares,' the note said. The expected conversion of 56 million Class C shares into Class A shares on March 8 under Visa's announced Class C share release program could provide a further source of short term pressure on the shares, the note said. Option prices appear attractive relative to peer MasterCard. With shares at $86.45, the strategists recommend shareholders buy V March $85 puts for $1.02 to hedge potential downside. This trade profits at expiration if shares are below $83.98. Put option buyers risk losing the entire premium paid.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1327 ET 03March2010-Greece's problem not credit, but credibility -
Wells Fargo
Wells Fargo Funds Management's Chief Portfolio Strategist Brian Jacobsen's view on Greece's debt problem:
'Greece does not have a credit problem, it has a credibility problem: is it committed to making the tough choices necessary to bring about fiscal balance? In a way though, this is the same issue that just about every developed nation has to wrestle with this year.'
Reuters Messaging rm://ellis.mnyandu.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.