STOCKS NEWS US-Mortgage rates fall in latest week: Freddie Mac

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1026 ET 02July2009-Mortgage rates fall in latest week: Freddie Mac
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Interest rates on U.S. 30-year fixed-rate mortgages dropped 0.10
percentage point in the latest week, a move that bodes well for the hard-hit
U.S. housing market, according to a survey released on Thursday by home funding
company Freddie Mac (FRE.N) (FRE.P).

Interest rates on the 30-year fixed-rate mortgage averaged 5.32 percent,
with an average 0.7 point, for the week ending July 2. That was down from the
previous week's 5.42 percent, but significantly higher than the record low of
4.78 percent set the week ending April 2. Freddie Mac started the Primary
Mortgage Market Survey in 1971.

"Lower mortgage rates are helping to support the housing market," Frank
Nothaft, Freddie Mac vice president and chief economist, said in a statement.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net; Editing by
Kenneth Barry
1021 ET 02July2009 Volatility index jumps, hits session highs
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The CBOE Volatility Index .VIX, the implied volatility measure of the S&P
500 index .SPX, jumped 8.73 percent to 28.51 as disappointing jobs data and
thin volume send U.S. stocks sharply lower and to session lows. The VIX has
bounced off an intraday low set on Wednesday when it dipped to 24.80 for the
first time since Sept. 12, 2008. "We have seen a bit of a rise in the VIX this
morning based on reaction to a report where the number of jobs lost exceeded
expectations by 94,000 after prior months revisions," said Scott Fullman,
director of derivative investment strategy at WJB Capital Group. "It appears
that traders are willing to pay up for protection ahead of the end of a short
week," he said. But he said volume has been thin over the past several weeks
and today's trading is expected to reflect lower interest given that the
equities and options markets will be closed on Friday in observance of the U.S.
Independence holiday.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
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