STOCKS NEWS US-Basic materials lead the S&P on stimulus plan

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

U.S. stock market report [.N]
1155 ET 08Dec2008-Basic materials lead the S&P on stimulus plan
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Basic materials companies led the S&P 500 on Monday days after
President-elect Barack Obama announced a stimulus plan that could force states
to act quickly to build or repair roads and bridges.

The S&P Materials Sector Index .GSPM leapt 6.3 percent, outpacing the
S&P's .SPX jump of more than 3 percent. The top net gainers included Vulcan
Materials (VMC.N), U.S. Steel Corp (X.N) and Nucor (NUE.N). Vulcan stock rose
10 percent to $73.43, while U.S. Steel rose nearly 20 percent to $34.40 and
Nucor jumped 12 percent to $40.86.

Dow component Alcoa Inc (AA.N) was another standout, rising nearly 14
percent to $9.28 and Dow Chemical Co (DOW.N) was another boost, rising 7.7
percent to $20.45.

Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net
1148 ET 08Dec2008-3M shares down after lowered outlook, peers rise
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Shares of 3M (MMM.N) fell Monday after the company lowered its 2008 outlook
and said it cut 1,800 jobs because of the global economic downturn. Shares of
the company, a Dow component, slid 4.8 percent to $56.99. [ID:nN08504137]

Among other diversified manufacturers, General Electric (GE.N), a Dow
component, surged 5.2 percent to $18.77 while Icahn Enterprises (IEP.N) gained
1.5 percent to $49.92 and Textron Inc (TXT.N) surged 7.1 percent to $15.12.

Illinois Tool Works (ITW.N) was up 0.7 percent to $32.61. Earlier on
Monday, the company cut its fourth-quarter earnings outlook, citing significant
weakening in North American and global markets, as well as higher restructuring
costs. [ID:nN08505702]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1140 ET 08Dec2008-MetLife shares rally, says is well capitalized
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Shares of MetLife Inc (MET.N) rallied on Monday after the company said it
was strongly capitalized and expects to grow faster than its rivals. The
company also forecast 2009 operating earnings below expectations.
[ID:nN08498291]

The stock gained 4.1 percent to $32.05. Among MetLife's peers, Aflac
(AFL.N) rose 2.1 percent to $45.29, Prudential Financial (PRU.N) surged 7.1
percent to $30.58 and Unum Group (UNM.N) slid 2 percent to $16.95.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1134 ET 08Dec2008-Barron's sees strong upside for Leucadia
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Shares of Leucadia National (LUK.N), a conglomeration of investments in
businesses and stocks, could rally to $30 in the next year, Barron's reported
on Sunday. The financial publication said the stock could rebound if some of
its equity holdings turn around. [ID:nN07457703] Shares of the company advanced
9 percent to $20.21 on Monday.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1125 ET 08Dec2008-Caterpillar leads equipment co's gain on Obama plan
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Big equipment companies gained on Monday, two days after President-elect
Barack Obama announced a plan to create at least 2.5 million new jobs in the
largest U.S. infrastructure investment since the 1950s.

Caterpillar Inc (CAT.N), the world's largest maker of heavy construction
and mining equipment, rose 12 percent to $42.83 and was the top boost to the
Dow, which was up 3.5 percent.

The company was also the leader of the Dow Jones U.S. Industrial
Engineering Index .DJUSIQ, which rose 7.5 percent. The index was also led by
Deere (DE.N), up 9.4 percent to $35.02, Paccar Inc (PCAR.O), up 5 percent to
$29.23 and Ingersoll-Rand (IR.N), up 8.4 percent to $16.74.

Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net
1114 ET 08Dec2008-Chemical companies up, Dow to cut jobs
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Shares of chemical companies rallied on Monday after Dow Chemical (DOW.N)
said it would cut 11 percent of its work force and close 20 facilities in an
attempt to save money in a weak market. [ID:nN08468735]

Shares of the company added 7.5 percent to $20.42 while the Dow Jones U.S.
Chemical Index .DJUSCH gained 5.9 percent to 174.91. Among the other
components in the sector, Rockwood Holdings (ROC.N) gained 18 percent to $8.63,
Celanese Corp (CE.N) surged 17 percent to $12.77 and WR Grace (GRA.N) added 12
percent to $6.89.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1106 ET 08Dec2008-Cowen Group up after Rodman offers to buy
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Shares of Cowen Group COWN.O rallied on Monday, after Rodman & Renshaw
(RODM.O) made an unsolicited offer to buy the company for $7 a share, 17
percent above the firm's Friday closing price.

Cowen shares gained 11.5 percent to $6.69 while Rodman shares were up 3.8
percent to $1.09. Over the past year, Cowen shares have fallen 37 percent while
Rodman shares have slid 68 percent. [ID:nN08502809]

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