STOCKS NEWS US-Markets open lower on banks, tech stocks

Stocks on the move [HOT-RTRS] Real-Time Equity news [U E]

U.S. stock market report [.N]
0930 ET 06April2009-Markets open lower on banks, tech stocks
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Major U.S. indexes opened lower on Monday, falling after an analyst started
coverage on several large banks with an underperform or sell rating. Tech
stocks were also pressured after a potential merger between IBM (IBM.N) and Sun
Microsystems (JAVA.O) collapsed.

The Dow Jones industrial average .DJI fell 0.8 percent to 7,954.19 while
the S&P 500 .SPX lost 1.1 percent to 833.19 and the Nasdaq .IXIC was off
1.3 percent to 1,600.48.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0918 ET-06April2009 Analyst advises long VIX positions as hedge
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"We continue to suggest long VIX positions to hedge equity exposure," said
Michael McCarty, chief equity and option strategist at Meridian Equity Partners
in a note. The CBOE Volatility index .VIX, the implied volatility measure of
the S&P 500 index .SPX, on Friday ended at 39.70, its lowest close and the
first close below 40 since Jan. 28. The VIX tracks 30-day implied volatility as
derived from SPX options prices and is using April and May options in the
calculation. With this holiday shortened week and likely volume-reduced trading
week and the bulk of earnings reports to come after April 18 expiration, it is
likely that market volatility is expected to be more muted for the next few
days, he said. But he noted April VIX futures, which reflect only May SPX
options, closed at 41.70 on Friday and VIX futures through July all trade at a
premium to the spot VIX, suggesting rising risk expectations beyond the next
few days. "Frequent readers of our note will recall similar occurrences in late
August before the 4th quarter sell-off and in late January when the VIX last
closed below 40 preceding the February market lows," he said.

Reuters Messaging: doris.frankel.reuters.com@reutersarch
0906 ET 06April2009-Rio Tinto draws up plan for rights issue: paper
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Rio Tinto (RIO.L) (RTP.N) has drawn up contingency plans to raise $8
billion in a rights issue, according to a report in the Sunday Times, which
didn't cite any sources.

The issue will be underwritten by JPMorgan Cazenove and Credit Suisse, the
paper reported.

For details, see [ID:nSP413684]

U.S.-listed shares of Rio Tinto tumbled 11.1 percent to $132.90 in
premarket trade.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0858 ET 06April2009-Credit Suisse downgrades three commercial REITs
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Credit Suisse on Monday cut its estimates and targets on a number of
commercial real estate investment trusts, seeing "continued macro headwinds,
difficulty in accessing credit
markets, and rising cap rates."

The firm also downgraded both Alexandria Real Estate Equities (ARE.N) and
Kilroy Realty (KRC.N) to neutral from outperform and SL Green Realty (SLG.N) to
underperform from neutral. The targets were cut to $42 from $65, to $18 from
$28 and to $9 from $13, respectively.

Credit Suisse downgraded SL Green, it wrote, because of its "relatively
weak liquidity outlook, high leverage on debt to TEV basis, and its focus on
the New York City office market that is at risk of higher vacancy rates from
the consolidation in the financial services industry."

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0849 ET 06April2009-Ackman urges rejection of Target board proposal
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Activist hedge fund manager William Ackman's Pershing Square Capital
Management urged shareholders of Target Corp (TGT.N) to vote against the
retailer's proposal to set the size of its board at 12 members.

Ackman also asked the company's shareholders to support his nominees to
Target's board. [ID:nBNG123499]

Shares of Target fell 1.3 percent to $36.21.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0832 ET 06April2009-UBS: 900 on S&P is justified even if GDP is flat
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UBS on Monday wrote that 900 on the S&P 500 .SPX was justified, even if
GDP was flat through the second half of 2009.

The firm expects the recovery in S&P earnings to outpace the GDP recovery
as large losses at small-cap firms either subside or the companies are removed
from the index. It also said that S&P earnings would recover on moderation in
credit costs, as well as for higher oil prices and more energy infrastructure
capital expenditures.

Despite that, UBS wrote that a recent rally in the stock market didn't mean
positive GDP in the fourth quarter.

"We think it would take 35 percent plus rise from trough to signal
expectations of positive GDP in the fourth quarter," it wrote.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0827 ET 06April2009-Crude oil down, erasing earlier gains
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May crude futures fell on Monday, erasing earlier gains as stock market
futures dipped into negative territory.

The futures were pressured after banks erased early gains and a downgrade
of tech heavyweight Cisco Systems (CSCO.O) weighed on investor sentiment.

The contract was down 1.5 percent to $51.70 per barrel.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0822 ET 06April2009-Kansas City So. may outperform peer: Barron's
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Barron's wrote that some market watchers were betting that a recent
outperformance of Union Pacific (UNP.N) compared with Kansas City Southern
(KSU.N) was ripe for a reversal.

The financial publication wrote that hedge-fund managers and other
investors could be looking for stocks that have gotten ahead of their rivals in
the market's recent 25 percent gain. It also noted that Kansas City shares down
down 30 percentage points more than Union Pacific since October.
[ID:nN05196303]

Shares of Kansas City rose 10 cents to $14.30 in premarket trade while
Union Pacific shares slid 9 cents to $46 before the bell.

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