STOCKS NEWS US-Growth of last decade not "normal"-analyst

Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [RESF/US]
U.S. stock market report [.N]
1130 ET 15May2009-Economic growth of last decade not "normal"-analyst
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Although a dramatic number of investors hope the U.S. economy is showing
signs of pulling out of recession and returning to "normal", the gains of the
last decade weren't normal at all, said Basil Williams, chief executive officer
at Concordia Advisors LLC in New York.

"I would contend that the last decade was not normal and in fact was
abnormal and is what an economy looks like when it's fueled by a leverage-based
society," said Williams on Friday.

"We're going to be looking more like an economy that operated in the 1980s
as opposed to the latter half of the 1990s and the early part of this decade."

Investors are split over whether aggressive government moves to bolster the
economy will lead to sustainable growth. Williams said it's more realistic to
think that "when the government is dumping money into the market it doesn't
necessarily just find the right place to recover from."

"We need to rebuild savings in society in order for us to grow again. If
people learned something over the last decade, it's that they're going to have
to spend their income, not their assets."

Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1105 ET 15May2009-GM to cut 1,200 dealers
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General Motors (GM.N) is expected to cut up to 1,200 dealers as it
struggles to pare down its operations and eliminate billions of dollars of
costs ahead of an anticipated bankruptcy filing by the end of the month.

The news follows a report that Chrysler would eliminate almost 800 of its
3,100 dealers within the next few months.

For details, see [ID:nN15384469]

Shares of GM, a Dow component, fell 1.7 percent to $1.13 on Friday while
Ford Motor Co (F.N) advanced 4.1 percent to $5.37 and the Dow Jones U.S. Auto
index .DJUSAU added 3.6 percent to 64.55.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1049 ET 15May2009-Media index rises after Barclays upgrades sector
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The Dow Jones U.S. Media index .DJUSME rose on Friday, rising 1.4 percent
to 195.69 after Barclays Capital upgraded the sector to neutral from negative.

"We believe a cyclical recovery for U.S. advertising will serve as an
offset to well-known structural concerns in 2010/11," the firm wrote.
"Consensus rule of thumb is that an upturn to positive advertising growth
happens 2 to 3 quarters after the end of a recession. But in light of their
historically depressed valuation multiples, we think media stocks will
anticipate this recovery."

In conjunction with the sector view, Barclays upgraded Viacom Inc (VIAb.N)
to overweight from equal weight and CBS Corp (CBS.N) to equal weight from
underweight.

"Media stocks are inexpensive relative to the market and other U.S.
consumer discretionary stocks, and we can no longer justify that discount," it
wrote.

Viacom shares were trading 5.4 percent higher at $20.60 and CBS shares were
up 5.6 percent at $7.22.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1043 ET 15May2009-SunTrust shares rise after moves to raise capital
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Shares of SunTrust Banks Inc (STI.N) rose on Friday, after the company cut
its dividend by 90 percent to 1 penny and said it planned to sell up to $1.25
billion of common stock.

The moves come after the company was ordered by federal regulators to find
$2.2 billion of new equity capital.

For details, see [ID:nN15300312]

The stock gained 4.7 percent to $15.73.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1031 ET 15May2009-Gaming companies rise after Goldman lifts targets
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Shares of gaming companies rose on Friday, after Goldman Sachs lifted its
price targets on several companies in the sector, arguing that "recent and
expected capital infusions and restructurings may reduce or delay bankruptcy"
for the group.

The target on Wynn Resorts Ltd (WYNN.O) was raised to $39 from $26 while
Las Vegas Sands Corp's (LVS.N) target was raised to $8.25 from $4.50 and Boyd
Gaming Corp's (BYD.N) target was raised to $8 from $5. [ID:nWNAB0337]

The Dow Jones U.S. Gambling index .DJUSCA rose 2.7 percent to 252.11 on
Friday, while Las Vegas Sands rose 8.1 percent to $10.19, MGM was up 6.8
percent to $8.29, Boyd added 3.1 percent to $9.93 and Wynn added 2 percent to
$40.35.

Despite the increased targets, Goldman wrote that several risks persisted
for the group. "Our conclusion is that, while outright bankruptcy risk has been
lessened, these stocks still don't provide much upside and discount too a sharp
recovery."

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1020 ET 15May2009-Exelixis shares rise after drug shows promise
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Shares of Exelixis Inc (EXEL.O) rose on Friday, lifted after an
experimental drug being developed by the company and Bristol-Myers Squibb
Co(BMY.N) was shown to shrink brain tumors in some patients, according to
interim results from a mid-stage study of the drug.

For details, see [ID:nN12330063]

The stock gained 13 percent to $5.02 while Bristol-Myers shares slid 2.3
percent to $19.98.

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