STOCKS NEWS US-ISM's Ore: growth in manufacturing 3 months away

Stocks on the move [HOT-RTRS]

Real-time Equity news [U][E][RESF/US]

For U.S. stock market report double-click [.N]
1120 ET 01July2009-ISM's Ore: growth in manufacturing 3 months
away
------------------------------------------------------------------------------

The U.S. manufacturing sector is improving but it will
probably take another three months to get it back into growth
territory, Norbert Ore, chairman of the Institute for Supply
Management's manufacturing business survey committee, said on
Wednesday.

Ore also told a teleconference of journalists that
deflationary pressures in the manufacturing sector appeared to
be abating, though the rise in oil prices had helped to stop
the decline in companies' pricing power.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1110 ET 01July2009-Goldman: Sell Alcoa covered calls to enhance
return on long stock positions
------------------------------------------------------------------------------

Alcoa Inc (AA.N) is due to report quarterly earnings on
July 8. Goldman Sachs' volatility compass shows Alcoa as very
sensitive to equity growth appetite and commodity prices while
options screen eight points higher than expected based on those
factor sensitivities, said Goldman Sachs derivative strategists
in a weekly Options Watch. The stock's implied volatility level
is nearly double its long-term average. They recommend buying
stock and selling October $12.50 covered calls for 58 cents to
retain 27 percent upside current levels if shares are called
away at $12.50 at expiration. "Our analysis of materials
returns and volatility through the business cycle suggests that
aluminum stocks should continue to outperform as the ISM moves
to and above 50," the note said. GS steel, metals and mining
analyst rates Alcoa buy as rising aluminum spot prices are
nearing cash costs and past instances of a widening in the spot
price less cash cost spread have been positive for shares.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1058 ET 01July2009-Automakers may post best sales of '09 in
June
------------------------------------------------------------------------------

Major automakers are expected to report the highest sales
rate of 2009 when they post results for June, as deep discounts
limit industrywide results to a 30 percent decline.

For the U.S. auto industry, where sales have been slumping
for four years, that would constitute good news and support the
view sales are near bottom after a punishing decline to nearly
30-year lows, analysts and executives said.

All of the largest automakers are expected to post deep
U.S. light vehicle sales declines for June to round out what
has been the weakest market since the early 1980s.

"We continue to believe that U.S. auto sales have bottomed
this cycle and are heartened by seemingly strengthening retail
sales even ahead of any impact from 'cash for clunkers' ... "
J.P. Morgan analyst Himanshu Patel said in a note to clients.

For details, see [ID:nN30434120]

Shares of Ford Motor Co (F.N) rose 0.8 percent to $6.12 on
Wednesday while the Dow Jones U.S. Automobile index .DJUSAU
rose 1 percent to 69.87.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net;
Editing by Kenneth Barry
1053 ET 01July2009-General Mills results lift stock, Kellogg
------------------------------------------------------------------------------

Shares of General Mills (GIS.N) rallied on Wednesday, after
the company reported fourth-quarter earnings that beat
expectations and gave an outlook that was above consensus.

For details, see [ID:nBNG512328]

The stock gained 3 percent to $57.69 while peer company
Kellogg (K.N) was up 2.4 percent to $47.70.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1042 ET 01July2009-Lindsay Corp jumps after earnings
------------------------------------------------------------------------------

Lindsay Corp (LNN.N) shares jumped on Wednesday after the
company reported a third-quarter profit that topped Wall Street
estimates.

The irrigation equipment maker posted third-quarter
earnings of 42 cents per share, above the average estimate of
analysts surveyed by Thomson Reuters of 25 cents per share.

Shares jumped 10.4 percent to $36.54 while fellow
irrigation equipment maker Valmont Industries Inc (VMI.N) added
3.3 percent to $74.43.

Reuters
Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net