STOCKS NEWS US-Abercrombie to close Ruehl by end of fiscal year

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1311 ET 17June2009-Abercrombie to close Ruehl by end of fiscal year
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Abercrombie & Fitch Co (ANF.N) on Wednesday said it would close its Ruehl
unit, citing unsustainable losses. The chain posted a drop of 34 percent in its
first-quarter same-store sales.

Because of the closure, Abercrombie expects to take additional charges of
$65 million, which it will recognize largely throughout the rest of the fiscal
year.

For details, see [ID:nN17335314]

Abercrombie's shares rose 3.4 percent to $26.67.

Reuters Messaging: rachel.chang.reuters.com@reuters.net
1259 ET 17June2009 Protective puts look attractive in some coal names,
Susquehanna
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Although most names throughout the coal sector have performed well during
the three-month market rally, recent trading activity in the Market Vectors
Coal ETF (KOL.P), the coal heavy SPDR Metals & Mining ETF (XME.P) and in coal
producer Consol Energy (CNX.N) seems to suggest investors may be positioning
for protection, said Susquehanna Financial Group in a note. With the cloudy
picture surrounding coal supply and demand as well as prices, several names of
the KOL ETF are possible put protection candidates, it said. In light of strong
gains across the sector, volatility has dropped while skew levels are generally
mixed. Given the low volatility levels, Susquehanna said investors may find
puts in Foundation Coal and Walter Energy attractive due to their sector
outperformance year-to-date. In other outperformers with relatively high skew
levels, long put spreads could be a less costly means of protection. Candidates
for put spreads could include Massey Energy and Peabody Energy, SIG said..

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1211 ET 17June2009-S&P 500 should break 1,500 again by 2012 -strategist
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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
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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
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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