STOCKS NEWS US-JPMorgan sees industrial intensive recovery

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1141 ET 02July2009-JPMorgan sees industrial intensive recovery
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JPMorgan on Thursday forecast a "resource/industrial-intensive" recovery,
that would be "less fueled by credit expansion for households (a la 2002) and
where emerging markets play a larger role in driving this (now 115 percent of
US GDP)."

The firm wrote that its economists "expect the global economic recovery to
"take off with a bang," with global industry retracing 1/3 of its recession
losses by year-end and leading to 8 percent annualized growth in industrial
production."

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1130 ET 02July2009 Traders circle USEC puts for second day
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Option traders are circling the put options in energy company USEC Inc
(USU.N) for the second straight day. Heavy trading on Wednesday, including a
substantial calendar spread involving 47,500 contracts, created new open
interest of more than 51,000 contracts in USU Oct $5 puts, said
WhatsTrading.com option strategist Frederic Ruffy. Shares of the company, which
enriches uranium, slipped 2 cents to $5.32 near midday and another 26,000 puts
traded vs 1,037 calls, double the norm, according to Trade Alert. The same
July/October $5 put spread is seeing interest again and traded 5,000 times,
Ruffy said. The other activity seems to include a mixture of buyers and
sellers. The stock's option implied volatility stood at 121 percent from 118
percent on Wednesday and 110 percent last Friday. McDermott International Inc
(MDR.N) said on Wednesday that its subsidiary Babcock and Wilcox won a contract
to downblend over 12 metric tons of highly enriched uranium into low enriched
uranium used in nuclear power reactors.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1121 ET 02June2009-Continental Air rises after upgrade
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Continental Airlines Inc (CAL.N) shares rose on Thursday after an analyst
upgrade of the stock as part of a broader call on the airline sector.

Morgan Stanley boosted Continental to "overweight" from "equal-weight" and
initiated coverage of Delta Air Lines Inc (DAL.N) with an "overweight," citing
indiscriminate selling of all airline equities which has excessively punished
some higher quality carriers.

The firm also cut Hawaiian Holdings Inc (HA.O) to "equal-weight" from
"overweight" and Southwest Airlines Co (LUV.N) to "underweight" from
"equal-weight," as relative valuation has become less compelling.

Continental shares rose 5 percent to $9.68 while Delta added 0.5 percent to
$5.88. Hawaiian Holdings slumped 12.9 percent to $5.27 and Southwest slid 5.2
percent to $6.45.

The NYSE Arca Airlines index .XAL shed 2 percent.

Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1056 ET 02July2009-Drug stores fall after June sales data
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Sales were up at Walgreen Co (WAG.N) and down at rival Rite Aid Corp
(RAD.N) in June, as shoppers filled more prescriptions but bought less
discretionary summer merchandise.

Walgreen posted same-store sales growth of 3.4 percent in the month, while
comparable sales were down 0.6 percent at Rite Aid.

For details, see [ID:nN02514194]

Shares of Walgreen fell 0.9 percent to $29.09 while Rite Aid plunged 8.4
percent to $1.41 and CVS Caremark (CVS.N) dropped 1.2 percent to $31.36.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1054 ET 02July2009-US to give details on reforms next week
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The Obama administration is aiming to release next week detailed
legislative language for its proposals on corporate governance, shareholder
rights, and derivatives regulation, a source familiar with government plans
said Thursday.

The U.S. Securities and Exchange Commission is helping draft the
legislative proposal for corporate governance and shareholder rights, which is
expected to be released on July 9, the source said, speaking anonymously
because the plans are not public.

For details, see [ID:nWEN0206]

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