Real-time equity news
U.S. stock market report
1720 ET 22Sept2010
US economic diary for Sept. 23
Economic data on tap on Thursday includes weekly initial jobless claims, existing home sales for August and leading economic indicators for August.
Reuters Messaging: leah.schnurr.thomsonreuters.com@reuters.net
1658 ET 22Sept2010
Options player bets on downturn in Concur Tech
Software maker Concur Technologies Inc has attracted unusual put activity with the opening purchase of 5,000 November $50 strike options at an average price of $2.47 per contract, said Patrick Mortimer, director of options trading at Pipeline Trading Systems. He noted these 43 delta options carry a share equivalence of being short 215,000 shares which amounts to 40 percent of the equity volume. Total option activity of 6,377 contracts is 23.2 times its daily average with a put/call ratio of 69.86, according to Trade Alert. Its shares fell 1.13 percent to $50.93. Concur set a new year high of $52.17 last week and has risen nearly 20 percent this year. 'Recent M+A activity in the sector has helped push the company's shares to these lofty levels and, with today's bearish option activity, it looks like at least one investor is betting on a downturn in the stock over the next two months,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1515 ET 22Sept2010
Credit Suisse says S&P calendar spreads are attractive
Selling a calendar spread in the S&P 500 index is attractive as a hedge for those investors who expect short-term S&P implied volatility to increase during the upcoming earnings season, wrote Credit Suisse equity derivative strategist Dmitry Novikov in a report. For example, in the SPDR S&P
500 exchange
traded fund, one can buy the November $114 strike call and sell the longer-dated March 2011 $114 strike call for a net credit of 2.72 percent of the spot price. This trade would profit if short-dated implied volatilities were to increase relative to longer-dated implied volatilities, thereby leading to a flattening of the term structure. Credit Suisse said the S&P implied volatility term structure -- a description of longer-term expectations of volatility compared to shorter-term expectations of volatility -- has recently steepened to 10-year highs. 'The current spread between six- and two-month implied volatilities, for example, is in the top 5 percent historically,' Novikov said. 'We believe that a major factor contributing to the wide spread between long- and short term implieds has been the disproportional decline in short-term implied volatility as the market rallied in recent weeks.'
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1608 ET 22Sept2010
Wall Street indexes end lower; led by techs, Nasdaq
U.S. stocks ended lower on Wednesday, led by the Nasdaq's decline after Adobe Systems Inc's discouraging revenue outlook and disappointment over Microsoft Corp's new dividend.
Based on the latest available data, the Dow Jones industrial average fell 21.72 points, or 0.20 percent, to end unofficially at 10,739.31. The Standard & Poor's 500 Index dipped 5.50 points, or 0.48 percent, to finish unofficially at 1,134.28. The Nasdaq Composite Index slipped 14.80 points, or 0.63 percent, to close unofficially at 2,334.55.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1548 ET 22Sept2010
Mead Johnson shares up after rival formual recall
Shares of Mead Johnson Nutrition, maker of Enfamil infant formula, rose 1.8 percent to $56.72 after Abbott Laboratories recalled rival Similac formula. Shares of Abbott slipped 0.2 percent to $52.02.
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
1720 ET 22Sept2010
US economic diary for Sept. 23
Economic data on tap on Thursday includes weekly initial jobless claims, existing home sales for August and leading economic indicators for August.
Reuters Messaging: leah.schnurr.thomsonreuters.com@reuters.net
1658 ET 22Sept2010
Options player bets on downturn in Concur Tech
Software maker Concur Technologies Inc has attracted unusual put activity with the opening purchase of 5,000 November $50 strike options at an average price of $2.47 per contract, said Patrick Mortimer, director of options trading at Pipeline Trading Systems. He noted these 43 delta options carry a share equivalence of being short 215,000 shares which amounts to 40 percent of the equity volume. Total option activity of 6,377 contracts is 23.2 times its daily average with a put/call ratio of 69.86, according to Trade Alert. Its shares fell 1.13 percent to $50.93. Concur set a new year high of $52.17 last week and has risen nearly 20 percent this year. 'Recent M+A activity in the sector has helped push the company's shares to these lofty levels and, with today's bearish option activity, it looks like at least one investor is betting on a downturn in the stock over the next two months,' he said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1515 ET 22Sept2010
Credit Suisse says S&P calendar spreads are attractive
Selling a calendar spread in the S&P 500 index is attractive as a hedge for those investors who expect short-term S&P implied volatility to increase during the upcoming earnings season, wrote Credit Suisse equity derivative strategist Dmitry Novikov in a report. For example, in the SPDR S&P
500 exchange
traded fund, one can buy the November $114 strike call and sell the longer-dated March 2011 $114 strike call for a net credit of 2.72 percent of the spot price. This trade would profit if short-dated implied volatilities were to increase relative to longer-dated implied volatilities, thereby leading to a flattening of the term structure. Credit Suisse said the S&P implied volatility term structure -- a description of longer-term expectations of volatility compared to shorter-term expectations of volatility -- has recently steepened to 10-year highs. 'The current spread between six- and two-month implied volatilities, for example, is in the top 5 percent historically,' Novikov said. 'We believe that a major factor contributing to the wide spread between long- and short term implieds has been the disproportional decline in short-term implied volatility as the market rallied in recent weeks.'
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1608 ET 22Sept2010
Wall Street indexes end lower; led by techs, Nasdaq
U.S. stocks ended lower on Wednesday, led by the Nasdaq's decline after Adobe Systems Inc's discouraging revenue outlook and disappointment over Microsoft Corp's new dividend.
Based on the latest available data, the Dow Jones industrial average fell 21.72 points, or 0.20 percent, to end unofficially at 10,739.31. The Standard & Poor's 500 Index dipped 5.50 points, or 0.48 percent, to finish unofficially at 1,134.28. The Nasdaq Composite Index slipped 14.80 points, or 0.63 percent, to close unofficially at 2,334.55.
For more please double click
Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1548 ET 22Sept2010
Mead Johnson shares up after rival formual recall
Shares of Mead Johnson Nutrition, maker of Enfamil infant formula, rose 1.8 percent to $56.72 after Abbott Laboratories recalled rival Similac formula. Shares of Abbott slipped 0.2 percent to $52.02.
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.