STOCKS NEWS US-Ivanhoe Mines call options heat up

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U.S. stock market report [.N] 1159 ET-03March2009 Ivanhoe Mines call options become popular ------------------------------------------------------------------------------

Shares of Canadian-based Ivanhoe Mines Ltd (IVN.TO) were unchanged at $4.55 near midday. The company said on Tuesday that a draft investment agreement to develop its Oyu Tolgoi copper and gold project has been endorsed in principle by Mongolia's cabinet and the country's National Security Council. In the options market, the equity's April $5 calls traded 11,100 times, or nearly the entire open interest in the past 90 minutes, said optionmonster.com founder Jon Najarian in comments on the website. This is day three of strong, unusual activity in this miner, he said. Ivanhoe's out-of-the-money call open interest has more than doubled in a week to 56,000 contracts, suggesting an aggressive view that shares may see price growth into the spring, said Trade Alert president Henry Schwartz. About 14,000 calls traded vs. only 464 calls in Ivanhoe, four times the normal level for combined volume.

Reuters Messaging: doris.frankel.reuters.com@reuters.net 1149 ET 03March2009-Fed and Treasury extend securities loan program ------------------------------------------------------------------------------

The U.S. Federal Reserve and Treasury on Tuesday extended a new securities loan program to include equipment and vehicle fleet leases. It also said a future expansion to $1 trillion may also include some of the riskier mortgage and debt securities that are hurting banks.

The Fed and Treasury said the program would start offering loans on March 17, and will accept triple-A rated asset-backed securities as collateral. [ID:nN03468772]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1143 ET 03March2009-Obama has little hope for near-term improvement ------------------------------------------------------------------------------

U.S. President Barack Obama on Tuesday said he had little hope for near-term improvement in the U.S. economy, following a steep drop in fourth-quarter gross domestic product.

"Frankly, the fist quarter of this year holds out little promise for better returns," Obama said in a speech at the Department of Transportation. [ID:nL3609192]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1132 ET 03March2009-Wall Street falls on Bernanke, economic fears ------------------------------------------------------------------------------

Major U.S. indexes fell modestly on Tuesday, after opening in positive territory as financial companies fell on continued uncertainty about efforts to shore up the financial system. Also weighing on the markets was Federal Reserve Chairman Ben Bernanke, who said that economic prospects remained uncertain and urged more action to lift the economy out of the recession. [ID:nN03478101]

The Dow Jones industrial average .DJI fell 0.4 percent to 6,738.60 while the S&P 500 .SPX lost 0.7 percent to 695.98 and the Nasdaq .IXIC was off 0.3 percent to 1,319.10.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1122 ET 03March2009-Auto part retailers rise after AutoZone results ------------------------------------------------------------------------------

Shares of auto parts retailers rose on Tuesday, after AutoZone (AZO.N), the largest auto parts retailer, reported second-quarter earnings that beat expectations, lifted by higher demand for replacement parts as consumers opt to extend the life of existing vehicles rather than purchase new ones. [ID:nBNG148905]

The stock surged 7.4 percent to $150.42. Among its peers, O'Reilly Auto (ORLY.O) rose 1.1 percent to $32.58, Advanced Auto Parts (AAP.N) gained 4 percent to $37.77 and Monro Muffler (MNRO.O) advanced 3 percent to $24.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1108 ET 03March2009-Fed's Lockhart: U.S. banks remain under strain ------------------------------------------------------------------------------