Real-time equity news
U.S. stock market report
1730 ET 08June2010
Dow, S&P rise on commodities, banks; tech dips
U.S. stocks mostly rose in volatile trading, led by materials and financial shares, but investors shied away from big-cap technology shares on concerns about their European exposure.
Once again, the market was treated to late-day volatility, this time with stocks closing at or near session highs after a wobbly session.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1659 ET 08June2010
Diamond Offshore Drilling puts heat up
Diamond Offshore Drilling Inc said it was unable to comment on reports of a leak near its Ocean Saratoga rig in the Gulf of Mexico, as its shares tumbled nearly 6 percent. The Alabama Press-Register, citing a federal document, and Business Insider both carried reports of the leak, which they said has been going on at least since April 30. Shares of Diamond, which was downgraded along with its deepwater drilling rivals by Goldman Sachs, fell 3.83 percent to $56.94 after hitting a 52-week low of $54.70. Bearish investors populated the stock with pessimistic plays, buying June puts and selling calls in the June contract, said Interactive Brokers Group equity options analyst Caitlin Duffy. Traders expecting shares to show more weakness bought 1,200 puts at the June $58.63 strike for an average premium of $4.07 apiece. These contracts would be profitable if shares drop below the break-even price of $54.56 by June expiration. Put buying interest spread to the June $54.88, $53.63 and $49.88 strikes, she said. DO's option implied volatility rose to 61.42 percent, its highest reading in the past year. It came off the highs to stand at 57.97 percent at the close.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1650 ET 08June2010-Last hour goes from best to worst
Bespoke
In the early stages of the market correction from the April peak, the last hour of the day was the strongest for stocks and indicated investors were eager to buy on weakness, according to Bespoke Investment Group.
But in the last two weeks, the trend has reversed so that the last hour of the session has gone from strongest to weakest.
'Investors have gone from buying on weakness to selling at any price,' Bespoke wrote.
Most recently, the late-day weakness has coincided with breaking through the lows reached during the so-called 'flash crash,' suggesting investors aren't willing to hold stocks overnight.
'So while most people thought that the flash crash would be an event that caused investors to lose confidence in the market, it wasn't until after the flash crash lows were broken to the downside -- an event which actually validated the down move on the day of the flash crash -- that investors really started to show it,' wrote Bespoke.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1623 ET 08June2010
Caterpillar draws large ratio put spread
A large ratio put spread was transacted in Caterpillar Inc this morning, as a trader bought 36,000 CAT August $50 puts for $2.65 per contract against the sale of 18,000 August $65 puts for $10.60, a net credit of nearly $9.5 million in premium, said Trade Alert president Henry Schwartz. The spread traded delta neutral vs 342,000 shares at $55.94. The August $65 put strikes are likely a closing position and part of a very profitable August $55-$65 put spread bought on April 22 for $1.21 when shares were nearly $10 higher, at $66.17, he said. Caterpillar affirmed its long-term profit target on Tuesday, saying it still expects to earn $8 to $10 per share in 2012, and its incoming chief executive Doug Oberhelman said he feels 'personally energized' about taking on the machinery company's competitors. CEO-elect Oberhelman takes over next month from CEO Jim Owens. CAT shares rose 1.4 percent to $56.61.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1600 ET 08June2010-Citigroup's Englander
Euro not yet at bottom
The euro has yet to bottom out against the dollar and may eventually reach parity, Citigroup chief global currency strategist Steven Englander said at the Reuters Investment Outlook Summit in New York on Tuesday.
Englander said he sees the euro between $1.10 and $1.15 over the next one to three months, adding 'the worst-case scenario for us is for the euro to hit parity against the dollar.'
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Reuters Messaging: caroline.valetkevitch.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 08June2010
Dow, S&P rise on commodities, banks; tech dips
U.S. stocks mostly rose in volatile trading, led by materials and financial shares, but investors shied away from big-cap technology shares on concerns about their European exposure.
Once again, the market was treated to late-day volatility, this time with stocks closing at or near session highs after a wobbly session.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1659 ET 08June2010
Diamond Offshore Drilling puts heat up
Diamond Offshore Drilling Inc said it was unable to comment on reports of a leak near its Ocean Saratoga rig in the Gulf of Mexico, as its shares tumbled nearly 6 percent. The Alabama Press-Register, citing a federal document, and Business Insider both carried reports of the leak, which they said has been going on at least since April 30. Shares of Diamond, which was downgraded along with its deepwater drilling rivals by Goldman Sachs, fell 3.83 percent to $56.94 after hitting a 52-week low of $54.70. Bearish investors populated the stock with pessimistic plays, buying June puts and selling calls in the June contract, said Interactive Brokers Group equity options analyst Caitlin Duffy. Traders expecting shares to show more weakness bought 1,200 puts at the June $58.63 strike for an average premium of $4.07 apiece. These contracts would be profitable if shares drop below the break-even price of $54.56 by June expiration. Put buying interest spread to the June $54.88, $53.63 and $49.88 strikes, she said. DO's option implied volatility rose to 61.42 percent, its highest reading in the past year. It came off the highs to stand at 57.97 percent at the close.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1650 ET 08June2010-Last hour goes from best to worst
Bespoke
In the early stages of the market correction from the April peak, the last hour of the day was the strongest for stocks and indicated investors were eager to buy on weakness, according to Bespoke Investment Group.
But in the last two weeks, the trend has reversed so that the last hour of the session has gone from strongest to weakest.
'Investors have gone from buying on weakness to selling at any price,' Bespoke wrote.
Most recently, the late-day weakness has coincided with breaking through the lows reached during the so-called 'flash crash,' suggesting investors aren't willing to hold stocks overnight.
'So while most people thought that the flash crash would be an event that caused investors to lose confidence in the market, it wasn't until after the flash crash lows were broken to the downside -- an event which actually validated the down move on the day of the flash crash -- that investors really started to show it,' wrote Bespoke.
Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1623 ET 08June2010
Caterpillar draws large ratio put spread
A large ratio put spread was transacted in Caterpillar Inc this morning, as a trader bought 36,000 CAT August $50 puts for $2.65 per contract against the sale of 18,000 August $65 puts for $10.60, a net credit of nearly $9.5 million in premium, said Trade Alert president Henry Schwartz. The spread traded delta neutral vs 342,000 shares at $55.94. The August $65 put strikes are likely a closing position and part of a very profitable August $55-$65 put spread bought on April 22 for $1.21 when shares were nearly $10 higher, at $66.17, he said. Caterpillar affirmed its long-term profit target on Tuesday, saying it still expects to earn $8 to $10 per share in 2012, and its incoming chief executive Doug Oberhelman said he feels 'personally energized' about taking on the machinery company's competitors. CEO-elect Oberhelman takes over next month from CEO Jim Owens. CAT shares rose 1.4 percent to $56.61.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1600 ET 08June2010-Citigroup's Englander
Euro not yet at bottom
The euro has yet to bottom out against the dollar and may eventually reach parity, Citigroup chief global currency strategist Steven Englander said at the Reuters Investment Outlook Summit in New York on Tuesday.
Englander said he sees the euro between $1.10 and $1.15 over the next one to three months, adding 'the worst-case scenario for us is for the euro to hit parity against the dollar.'
For more please double click
Reuters Messaging: caroline.valetkevitch.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.