STOCKS NEWS US-DJ Auto index tumbles after turnaround plan nixed

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0945 ET 30March2009-DJ Auto index tumbles after turnaround plan nixed
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The Dow Jones U.S. Automobile index <.DJUSAU> tumbled on Monday, falling
after the Obama administration rejected turnaround plans proposed by U.S.
automakers. It also said it would only fund General Motors's operations
for the next 60 days, rather than granting the company's request for up to a
further $16 billion in loans.
For details, see [nSP207882]
The index shed 11.1 percent to 39.24 while shares of GM, a Dow component,
plummeted 25 percent to $2.73. Ford Motor Co dropped 8.8 percent to
$2.59.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

0934 ET 30March2009-No near-term recovery for nat gas co's: Citi
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Citi on Monday said that a recovery in the natural gas market was "unlikely
until late 2009" because of lower industrial consumption and a horizontal rig
count that is falling slower than the vertical, contributing to a supply-demand
imbalance.
"Further improvements in the credit markets are also a prerequisite for a
recovery in the group given the capital intensity of the industry," it added.
The firm recommended four companies as its top picks, citing their strong
cash flows, strong credit ratings control liquidity and minimal exposure to
commodity prices. The companies include: Energen , Oneok , Sempra
and Southwest Gas .
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

0930 ET 30March2009-Markets open lower on autos, bank woes
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Major U.S. indexes opened sharply lower on Monday, dropping after the Obama
administration raised the specter of bankruptcy for two major U.S. automakers.
Sentiment was also pressured after Spain had to rescue regional savings bank
CCM, raising concerns about the stability of the global banking industry.
The Dow Jones industrial average <.DJI> fell 1.5 percent to 7,662.04 while
the S&P 500 <.SPX> lost 1.3 percent to 803.37 and the Nasdaq <.IXIC> was off
1.8 percent to 1,516.79.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

0913 ET 30March2009-Goldman Sachs downgrades Granite Construction
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Goldman Sachs on Monday downgraded Granite Construction to neutral
from buy, arguing that there was a near-term earnings risk at the company
because of weak awards, margin compression in its materials business and a lack
of profit-recognition projects.
Goldman affirmed its cautious rating on the construction sector, and raised
its price target on Jacobs Engineering to $34 from $31.
Shares of Granite slid 4.7 percent to $39 in premarket trade. Jacobs'
shares closed Friday at $41.32
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

0907 ET 30March2009-Bottoming process may last another quarter: firm
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DA Davidson on Monday wrote that if investors sell stocks that deliver
negative surprises in their next quarterly report, "our conclusion is that the
current bottoming process will continue for at least another quarter or until
the economic data stabilizes."
If the investors maintain their position in stocks that deliver negative
surprises, "we will be encouraged that the current rally has the potential of
developing into a very substantial bull market over the next year," it added.
DA Davidson expects a large number of big earnings surprises this quarter,
but said that since analysts tend to underestimate earnings declines in a
recession, "this leads us to suspect that estimates may still be too high and
the surprises will probably fall on the negative side."
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

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