Real-time equity news
U.S. stock market report
1730 ET 18May2010
HP rises after result beats Street, ups outlook
Shares of Hewlett-Packard Co rose after the company reported results after the closing bell that beat expectations on good demand for personal computers and servers, and raised its full-year earnings outlook.
HP shares rose 2.5 percent to $47.97 in extended trade.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1650 ET 18May2010
Wall St bruised as regulation worries hit banks
U.S. stocks fell on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed bank stocks, adding to worries about the sustainability of the global economic recovery.
In Washington, several Republicans will vote with Democrats to wrap up debate on the sweeping reform of financial regulations and move toward final passage, Senate Majority Leader Harry Reid said. For a take a look, see
Officials in Germany added to the uncertain future for banks when they suddenly moved to ban naked short selling in the stocks of the country's 10 most important financial institutions. Naked short selling occurs when an investor sells shares without borrowing them first.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1628 ET 18May2010
Bearish options activity seen on Visa, MasterCard
Visa Inc's and MasterCard Inc's shares fell sharply after Visa's chief executive said a proposed law to curb debit card fees could cut into transaction volumes. Visa shares ended down 6.2 percent at $70.09 and MasterCard fell 3.8 percent to $202.81. In the options market, bearish investors flooded the May contract on Visa with pessimistic plays, said Caitlin Duffy, options analyst at InterActive Brokers Group.
Investors bracing for continued bearish movement in the price of the underlying stock picked up 3,600 now in-the-money puts at the May $70 strike for an average premium of $1.15 apiece.
Buying interest spread to the lower May $65 strike where 1,400 puts were purchased at an average premium of $0.36 each. Investors long the May $60 strike puts make money if Visa's shares plummet 13.15 percent from the current value of $68.92 to breach the average break-even point to the downside at $59.84 by expiration on Friday, said Duffy.
On MasterCard, investors anticipating further share price erosion ahead of May expiration purchased 1,800 now in-the-money puts at the May $200 strike for an average premium of $3.03 each. More pessimistic individuals scooped up 1,000 put options at the lower May $195 strike for an average premium of $2.15 apiece. Lower-strike put buyers profit if MasterCard's shares fall another 2.4 percent to breach the average break-even point on the puts at $192.85 by expiration day, she said.
Reuters Messaging: angela.moon.reuters.com@reuters.net
1552 ET 18May2010-Hewlett
Packard gets some option premium sellers
Hewlett-Packard Co is seeing brisk option trading ahead of its earnings which are set to be released after the close. About 57,000 calls and 27,000 puts traded with less than 30 minutes of trade left, according to Trade Alert. About 60 percent is in the front-month soon-to-expire May call options. They go off the board on Friday. The May $48 call strikes are the busiest contracts as 10,608 traded. Players are also jockeying for position in the May $47, $49 and $50 calls, said WhatsTrading.com option strategist Frederic Ruffy. He also noted that some premium selling is being seen and average implied volatility has fallen 3 percent to 35 percent.
Meanwhile, a skew between May (57 percent) and June (34.5 percent) hints of a possible earnings gap move of $2.25, or 4.8 percent, when H-P reports, Ruffy said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1507 ET 18May2010
CBOE Volatility Index jumps as financial shares weigh
The CBOE Volatility Index surged 10.77 percent to 34.16 as the underlying S&P 500 index shed 1.55 percent. The afternoon rally in the VIX comes as the euro faltered against the dollar, said WhatsTrading.com option strategist Frederic Ruffy. The euro fell as low as $1.2255 after the German government announced plans to ban naked short-selling. Germany will ban naked short-selling from midnight in shares of the country's 10 most important financial institutions. The ban will also apply to credit default swaps on euro government bonds as well as euro government bonds. Further eroding investor confidence is worry about the negative impact of financial regulation on the banking system, Ruffy said. A final vote on the biggest overhaul of Wall Street rules since the 1930s is expected in a few days after key senators reached a compromise on the balance of power between state and federal officials.
Reuters Messaging: doris.frankel.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.
U.S. stock market report
1730 ET 18May2010
HP rises after result beats Street, ups outlook
Shares of Hewlett-Packard Co rose after the company reported results after the closing bell that beat expectations on good demand for personal computers and servers, and raised its full-year earnings outlook.
HP shares rose 2.5 percent to $47.97 in extended trade.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1650 ET 18May2010
Wall St bruised as regulation worries hit banks
U.S. stocks fell on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed bank stocks, adding to worries about the sustainability of the global economic recovery.
In Washington, several Republicans will vote with Democrats to wrap up debate on the sweeping reform of financial regulations and move toward final passage, Senate Majority Leader Harry Reid said. For a take a look, see
Officials in Germany added to the uncertain future for banks when they suddenly moved to ban naked short selling in the stocks of the country's 10 most important financial institutions. Naked short selling occurs when an investor sells shares without borrowing them first.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1628 ET 18May2010
Bearish options activity seen on Visa, MasterCard
Visa Inc's and MasterCard Inc's shares fell sharply after Visa's chief executive said a proposed law to curb debit card fees could cut into transaction volumes. Visa shares ended down 6.2 percent at $70.09 and MasterCard fell 3.8 percent to $202.81. In the options market, bearish investors flooded the May contract on Visa with pessimistic plays, said Caitlin Duffy, options analyst at InterActive Brokers Group.
Investors bracing for continued bearish movement in the price of the underlying stock picked up 3,600 now in-the-money puts at the May $70 strike for an average premium of $1.15 apiece.
Buying interest spread to the lower May $65 strike where 1,400 puts were purchased at an average premium of $0.36 each. Investors long the May $60 strike puts make money if Visa's shares plummet 13.15 percent from the current value of $68.92 to breach the average break-even point to the downside at $59.84 by expiration on Friday, said Duffy.
On MasterCard, investors anticipating further share price erosion ahead of May expiration purchased 1,800 now in-the-money puts at the May $200 strike for an average premium of $3.03 each. More pessimistic individuals scooped up 1,000 put options at the lower May $195 strike for an average premium of $2.15 apiece. Lower-strike put buyers profit if MasterCard's shares fall another 2.4 percent to breach the average break-even point on the puts at $192.85 by expiration day, she said.
Reuters Messaging: angela.moon.reuters.com@reuters.net
1552 ET 18May2010-Hewlett
Packard gets some option premium sellers
Hewlett-Packard Co is seeing brisk option trading ahead of its earnings which are set to be released after the close. About 57,000 calls and 27,000 puts traded with less than 30 minutes of trade left, according to Trade Alert. About 60 percent is in the front-month soon-to-expire May call options. They go off the board on Friday. The May $48 call strikes are the busiest contracts as 10,608 traded. Players are also jockeying for position in the May $47, $49 and $50 calls, said WhatsTrading.com option strategist Frederic Ruffy. He also noted that some premium selling is being seen and average implied volatility has fallen 3 percent to 35 percent.
Meanwhile, a skew between May (57 percent) and June (34.5 percent) hints of a possible earnings gap move of $2.25, or 4.8 percent, when H-P reports, Ruffy said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1507 ET 18May2010
CBOE Volatility Index jumps as financial shares weigh
The CBOE Volatility Index surged 10.77 percent to 34.16 as the underlying S&P 500 index shed 1.55 percent. The afternoon rally in the VIX comes as the euro faltered against the dollar, said WhatsTrading.com option strategist Frederic Ruffy. The euro fell as low as $1.2255 after the German government announced plans to ban naked short-selling. Germany will ban naked short-selling from midnight in shares of the country's 10 most important financial institutions. The ban will also apply to credit default swaps on euro government bonds as well as euro government bonds. Further eroding investor confidence is worry about the negative impact of financial regulation on the banking system, Ruffy said. A final vote on the biggest overhaul of Wall Street rules since the 1930s is expected in a few days after key senators reached a compromise on the balance of power between state and federal officials.
Reuters Messaging: doris.frankel.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.