STOCKS NEWS US-S&P should break 1,500 again by 2012 -strategist

Stocks on the move [HOT-RTRS]

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

For U.S. stock market report double-click [.N]
1211 ET 17June2009-S&P 500 should break 1,500 again by 2012 -strategist
------------------------------------------------------------------------------

The benchmark S&P 500 index .SPX should rise above 1,500 by the end of
2012, JPMorgan Chase's chief U.S equity strategist, Thomas Lee, said on
Wednesday.

It was last at this level in October 2007, before the start of the current
recession.

Speaking at the Reuters Investment Outlook Summit, Lee said the U.S economy
should come out of the current recession some time this summer, in a V-shaped
recovery path.

The S&P 500 slumped to a 12-year closing low in March this year but has
since rebounded by about 40 percent.

For details, see [ID:nN17330428]

Reuters Messaging: rachel.chang.reuters.com@reuters.net
1200 ET 17June2009 Traders circle Interpublic calls for second day
------------------------------------------------------------------------------

Call options were busy for the second straight session in U.S. advertising
company Interpublic Group (IPG.N) after a large block of October $7.50 calls
traded on Tuesday. The stock's call open interest rose by 38,000 contracts
after Tuesday's session. Its shares were down 0.36 percent to $5.48 after
midday even after Bernstein raised its price target to $5.25 from $4.50, rating
the company market perform. The focus shifted on Wednesday to the January 2010
calls at the $7.50 line, where 4,627 lots traded and 87 percent hit at the
offer, said WhatsTrading.com option strategist Frederic Ruffy. Another 1,000
July $7.50 and 737 October $7.50 calls changed hands. It was not clear what was
driving the action but with shares down, it seems to reflect expectations for a
move above $7.50 in the months ahead, Ruffy said. In all, 7,265 calls crossed
the tape vs. 426 puts, three times the norm, Trade Alert data show.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1147 ET 17June2009 Option traders hope to catch rebound in Navistar
------------------------------------------------------------------------------

A number of option traders appear to be bucking the downside share price
action in Navistar International Corp (NAV.N), hoping to catch a rebound in the
U.S. truck and engine maker. The stock fell 4.01 percent to $42.65 near midday.
"Bullish traders are showing interest in Navistar," said WhatsTrading.com
option strategist Frederic Ruffy. In all, 3,589 calls traded vs. 2,359 puts,
according to Trade Alert. The top trade this morning was 317 July $50 calls at
the offer for a premium of $1.25 per contract on the International Securities
Exchange. A total of 2,370 contracts earlier traded in that series and ISEE
sentiment data show 81 percent were opening customer call buyers, he said,
adding 62 percent of the volume sat on the ISE. July $45 calls were also
bought-to-open, Ruffy added.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1132 ET 17June2009-Kellogg stock rises after BMO upgrade
------------------------------------------------------------------------------

Shares of Kellogg (K.N) rose on Wednesday after BMO Capital Markets
upgraded the stock to outperform from market perform, arguing that the food
company's "superior business model will become more evident with the weakening
U.S. dollar."

It added that new products would likely keep fueling momentum in the
company's cereal line, and that concerns over inflation were exaggerated, "as
Kellogg has key levers to mitigate the risk."

BMO also raised its price target on the stock to $52 from $49, writing that
it was "convinced that the market will reward Kellogg's earnings visibility,
superior business model, and potential earnings upside with a valuation more in
line with historical levels."

Shares rose 1.4 percent to $44.05.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1120 ET 17June2009-Bernanke: community finance hurt by recession
------------------------------------------------------------------------------

U.S. Federal Reserve Chairman Ben Bernanke on Wednesday said that
specialized lenders that play an important role in low income communities have
been pummeled by the recession and must look beyond their traditional sources
of funding to stay healthy.

"The Federal Reserve recognizes that these financial flows are critically
important for many low- and moderate-income communities," he said, adding that
many institutions had seen loan defaults rise and earnings fall.

For details, see [ID:nWBT011378]

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