STOCKS NEWS US-May auto sales suggests bottom: Citi

Stocks on the move [HOT-RTRS]

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

For U.S. stock market report double-click [.N] 0913 ET 03June2009-May auto sales suggests bottom: Citi ------------------------------------------------------------------------------

Citi on Wednesday wrote that U.S. vehicle sales in May suggested a bottom in the sector.

In the month, light vehicle sales sank 31 percent to 923,000 units, or a seasonally adjusted annual rate of 9.9 million. Citi had forecast a rate of 9.5 million.

"A recent lift in consumer confidence, prospects for a U.S. scrapping program and ongoing job assurance programs continue to suggest auto sales have likely seen their worst levels," the firm wrote.

Citi lifted its view on Ford Motor Co (F.N) after the sales data, forecasting a loss of $1.88 a share, compared with a previous estimate of a loss of $2.50 a share.

"Ford continues to enjoy momentum from its product cycle advantage and successful marketing programs like the Ford Advantage Plan," it wrote.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0902 ET 03June2009-Ebay up in premarket after upgrade to buy ------------------------------------------------------------------------------

Shares of eBay Inc (EBAY.O) rose in premarket trading on Wednesday, after the online auction site was upgraded to buy at Collins Stewart, which said it saw "may signs of a turnaround"

"Though eBay still has a long way to go, the signs we have seen so far are extremely encouraging," the firm wrote, citing an improvement in search abilities at the site, "dramatically increasing the penetration for free shipping" and an increase in selection.

"We believe that all these changes translate into higher listing conversions, GMV growth higher than listings growth, higher realized dollar value per listing for eBay, and more satisfied buyers/sellers," it wrote.

Shares of eBay rose 1.9 percent to $18.30 in premarket trading.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0849 ET 03June2009-Robert W. Baird downgrades Cardinal Health ------------------------------------------------------------------------------

Robert W. Baird on Wednesday downgraded Cardinal Health Inc (CAH.N) to neutral from outperform, writing that the company's 2010 fiscal year would be "another year of transition and investment, with company-specific and macro headwinds."

The firm cut its price target on the stock to $33 from $43.