Real-time equity news
U.S. stock market report
1702 ET 28Sept2010
U.S. earnings diary for Sept. 29
Companies expected to report quarterly results on Wednesday include Family Dollar.
Reuters Messaging: leah.schnurr.thomsonreuters.com@reuters.net
1702 ET 28Sept2010-Stocks could see some early profit-taking Wednesday
trader
U.S. stocks' strong rebound from its lows should give way to another market sell-off early on Wednesday, said Harry Michas, technical analyst at IharMarketMonitor.com. If the market opens higher, Michas expects to see some profit taking, followed by a rally either late on Wednesday or Thursday, the last day of the quarter. Michas, a stock index futures trader on the CME floor, views key resistance at 1,158.30 and support at around 1,105-1,104 for S&P December stock index futures. 'It seems apparent that much of the sidelined money is trying to make its way into the market before the end of the month,' he said. 'That increased participation is expected to continue through the end of the year, especially if the markets have a strong move to the downside.'
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1655 ET 28Sept2010
Latecomers run to join Wall St's September rally
U.S. stocks rose as latecomers jumped onto the September bandwagon, buying up sectors that have outperformed during the month. The S&P 500 has risen 9.4 percent so far in September, historically the worst month for stocks.
Sectors associated with improving economic growth have outperformed during this rally, and those stocks once again led the advance. The Philadelphia semiconductor index rose 1.7 percent for the day and was up 13.8 percent for the month. The small-cap Russell 2000 gained 1.1 percent.
Reuters Messaging: leah.schnurr.thomsonreuters.com@reuters.net
1637 ET 28Sept2010
PulteGroup gets bearish call sellers
Options investors populating homebuilder PulteGroup Inc's November call options initiated trades suggesting the current share rally is running on empty, said Interactive Brokers Group equity options analyst Caitlin Duffy in a note to clients. PulteGroup shares rose 1.49 percent to $8.85 after Goldman Sachs upgraded the stock to 'neutral' from 'sell.'.
Pessimistic players sold about 9,500 calls outright at the November $9 strike to take in an average premium of 48 cents apiece, she said. The sale of the call options indicates that investors, particularly if they hold no position in the underlying shares, expect PHM to trade below $9 through November expiration, she said. Call sellers keep the 48-cent premium received as long as the calls are trading out-of-the-money at expiration.
PulteGroup is due to report third-quarter earnings on Nov. 3. Its shares last traded above $9 on Aug. 2, but have not topped $9.48 since June 21, she said. The shares face resistance around $8.90 - a level tested multiple times throughout September, said WhatsTrading.com options strategist Frederic Ruffy.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1603 ET 28Sept2010
DryShips gets second day of active option trading
Greek drybulk shipper and deepwater driller DryShips Inc has attracted a second day of heavy options trading. Its shares jumped 8.5 percent to $4.85 after the company said its offshore unit received a four-well contract valued at about $135 million from an American exploration company. For details, see
About 53,000 calls traded on the stock, 6.7 times its average daily volume compared to 12,000 puts, according to Trade Alert. Its shares rose to $4.47 on Monday after Morgan Stanley upgraded the shares to Equal Weight from Under Weight, said Joe Cusick, senior market analyst at optionsXpress. The $5 calls for October and November expiration are the most active on Tuesday, Trade Alert data show. Meanwhile, implied volatility rose 2 percent to 54 percent, compared to a 52-week high and low of 88 percent and 42 percent, respectively, said WhatsTrading.com options strategist Frederic Ruffy.
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
1702 ET 28Sept2010
U.S. earnings diary for Sept. 29
Companies expected to report quarterly results on Wednesday include Family Dollar.
Reuters Messaging: leah.schnurr.thomsonreuters.com@reuters.net
1702 ET 28Sept2010-Stocks could see some early profit-taking Wednesday
trader
U.S. stocks' strong rebound from its lows should give way to another market sell-off early on Wednesday, said Harry Michas, technical analyst at IharMarketMonitor.com. If the market opens higher, Michas expects to see some profit taking, followed by a rally either late on Wednesday or Thursday, the last day of the quarter. Michas, a stock index futures trader on the CME floor, views key resistance at 1,158.30 and support at around 1,105-1,104 for S&P December stock index futures. 'It seems apparent that much of the sidelined money is trying to make its way into the market before the end of the month,' he said. 'That increased participation is expected to continue through the end of the year, especially if the markets have a strong move to the downside.'
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1655 ET 28Sept2010
Latecomers run to join Wall St's September rally
U.S. stocks rose as latecomers jumped onto the September bandwagon, buying up sectors that have outperformed during the month. The S&P 500 has risen 9.4 percent so far in September, historically the worst month for stocks.
Sectors associated with improving economic growth have outperformed during this rally, and those stocks once again led the advance. The Philadelphia semiconductor index rose 1.7 percent for the day and was up 13.8 percent for the month. The small-cap Russell 2000 gained 1.1 percent.
Reuters Messaging: leah.schnurr.thomsonreuters.com@reuters.net
1637 ET 28Sept2010
PulteGroup gets bearish call sellers
Options investors populating homebuilder PulteGroup Inc's November call options initiated trades suggesting the current share rally is running on empty, said Interactive Brokers Group equity options analyst Caitlin Duffy in a note to clients. PulteGroup shares rose 1.49 percent to $8.85 after Goldman Sachs upgraded the stock to 'neutral' from 'sell.'.
Pessimistic players sold about 9,500 calls outright at the November $9 strike to take in an average premium of 48 cents apiece, she said. The sale of the call options indicates that investors, particularly if they hold no position in the underlying shares, expect PHM to trade below $9 through November expiration, she said. Call sellers keep the 48-cent premium received as long as the calls are trading out-of-the-money at expiration.
PulteGroup is due to report third-quarter earnings on Nov. 3. Its shares last traded above $9 on Aug. 2, but have not topped $9.48 since June 21, she said. The shares face resistance around $8.90 - a level tested multiple times throughout September, said WhatsTrading.com options strategist Frederic Ruffy.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1603 ET 28Sept2010
DryShips gets second day of active option trading
Greek drybulk shipper and deepwater driller DryShips Inc has attracted a second day of heavy options trading. Its shares jumped 8.5 percent to $4.85 after the company said its offshore unit received a four-well contract valued at about $135 million from an American exploration company. For details, see
About 53,000 calls traded on the stock, 6.7 times its average daily volume compared to 12,000 puts, according to Trade Alert. Its shares rose to $4.47 on Monday after Morgan Stanley upgraded the shares to Equal Weight from Under Weight, said Joe Cusick, senior market analyst at optionsXpress. The $5 calls for October and November expiration are the most active on Tuesday, Trade Alert data show. Meanwhile, implied volatility rose 2 percent to 54 percent, compared to a 52-week high and low of 88 percent and 42 percent, respectively, said WhatsTrading.com options strategist Frederic Ruffy.
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.