STOCKS NEWS US-Factory orders rise in May, beating expectations

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1010 ET 02July2009-Factory orders rise in May, beating expectations
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New orders for U.S. manufactured goods jumped 1.2 percent in May, their
largest increase in nearly a year, the Commerce Department reported on
Thursday, beating analysts' expectations.

Economists polled by Reuters had forecast that factory orders would only
gain 0.8 percent. April's gain was revised downward to 0.5 percent from the
originally reported 0.7 percent. Non-defense capital goods orders excluding
aircraft, considered a measure of manufacturing activity, were up 4.7 percent
in May, after falling 3.5 percent in April.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0955 ET 02July2009-Deutsche Bank starts coverage on Cisco at "buy"
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Deutsche Bank on Thursday started coverage on Cisco Systems (CSCO.O) with a
"buy" rating, citing a growing use of mobile broadband and a shift to cloud
computing drive network traffic.

"The shifts in network architecture will likely favor vendors with higher
layer and software expertise," the firm wrote to clients, establishing a $26
price target on Cisco.

At the same time, Deutsche Bank started coverage on Juniper Networks
JNPR.O and F5 Networks (FFIV.O), two of Cisco's competitors, with "hold"
ratings.

For details, see [ID:nBNG512980]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0942 ET 02July2009-Raymond James downgrades two railroad companies
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Raymond James on Thursday downgraded a pair of railroads, citing a sharp
decline in freight volumes in the second quarter.

Both Canadian Pacific Railway (CP.N) (CP.TO) and Canadian National Railway
(CNI.N) (CNR.TO) were dropped to "market perform" from "outperform."

"Canadian 2009 second-quarter freight volumes showed steady signs of
deterioration throughout much of the quarter, down 24.6 percent during the
first 11 weeks," the firm wrote to clients.

Despite that, Raymond James wrote that, "We continue to view the long-term
outlook for the Canadian rails very favorably," citing economic indicators
suggesting the worst of the economic contraction may soon be over.

For details, see [ID:nBNG132675]

U.S.-listed shares of Canadian National fell 1.6 percent to $42.50 while
Canadian Pacific fell 2.3 percent to $39.37 on the New York Stock Exchange.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0930 ET 02July2009-Markets open lower after jobs data
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Major U.S. indexes opened lower on Thursday, after payrolls data showed
more Americans than expected lost their jobs in June, dampening hopes that the
economy may be heading out of recession quickly.

The Dow Jones industrial average .DJI fell 0.6 percent to 8,448.89 while
the S&P 500 .SPX lost 0.7 percent to 916.84 and the Nasdaq .IXIC was off
1.2 percent to 1,822.47.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0851 ET 02July2009-FCStone to merge with International Assets unit
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FCStone Group FCSX.O on Thursday said it would merge with a wholly-owned
subsidiary of International Assets Holding (IAAC.O).

Under the terms of the agreement, stockholders will receive 0.2950 shares
of International Assets' common stock for each share of FCStone common stock
they own, according to an SEC filing.

For details, see [ID:nWEN0201]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net