STOCKS NEWS US-Citi: stocks look cheap in long-term view

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1106 ET 18June2009-Citi: stocks look cheap in long-term view
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Citigroup analysts on Thursday wrote that from a long-term
view, stocks still looked cheap.

"Clearly economic fundamentals are still very challenging,
but we draw three basic conclusions," the firm wrote. "First,
investors with a longer term orientation can still find value
in the group. Second, if evidence of economic stability builds
there is room for the stocks to trade higher in the near term.
Third, the downside risk in many of our names is material, but
risk/reward profiles appear attractive for most."

Despite that, the firm wrote that stocks could be
vulnerable in the near term "given very weak fundamentals."

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1053 ET 18June2009 Huge SPX expiring option open interest sits
at 900
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This Thursday and Friday marks the quarterly expiration and
settlement of June equity options and futures, a convergence
known as quadruple witching.

Scott Larison, senior vice president of Compass Point
Research & Trading noticed massive expiring option open
interest at the Standard & Poor's 500 index .SPX June 900
strike. Reuters data show that open interest stood at 463,930
contracts combined for puts and calls in that strike.

"Dealers or market makers are generally short the strike
meaning they have the most to gain if the SPX settles and pins
at the 900 strike," he said. "Therefore, they will support the
price of the SPX at this level." The last day to trade June SPX
options is today. "Along with the 200-day moving average
support of 906, we may see a market bounce off these levels --
especially given the massive pessimism that has gathered the
past few days," he said.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1044 ET 18June2009-Carnival soars after results, lifting Royal
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Shares of Carnival Corp (CCL.N) soared on Thursday after
the company reported quarterly earnings that beat analysts'
expectations, helped by lower net cruise costs and
better-than-anticipated pricing.

For details, see [ID:nN18379172]

The stock gained 6.9 percent to $24.63 while peer company
Royal Caribbean (RCL.N) was up 4.8 percent to $13.14.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1039 ET 18June2009-Caterpillar slides after sales data
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Caterpillar Inc (CAT.N) shares fell on Thursday after the
company said that dealer retail sales of machines had declined
at a faster pace in May. [ID:nN18388033]

The heavy machinery maker said dealer retail world sales,
including Cat Japan, fell 43 percent in the three months ended
in May from the prior year versus a 39 percent decline for the
three-month period ended in April.

Sales in North America slumped 57 percent, compared with a
51 percent drop for the three-month period ended in April.

Shares slid 2.4 percent to $33.98 as the top drop on the
Dow industrials.

Reuters
Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1028 ET 18June2009-Baird downgrades a trio of auto suppliers
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Robert W. Baird on Thursday downgraded three auto supplier
companies, citing lowered expectations for a potential
recovery.

Both Johnson Controls Inc (JCI.N), the third largest North
American supplier and Gentex Corp (GNTX.O) were downgraded from
"outperform" to "neutral," while Harman International
Industries Inc (HAR.N) was dropped from "neutral" to
"underperform".

Baird said that it does not expect a return to trend demand
for the industry until 2013.

For details, see [ID:nBNG413925]

Shares of Johnson Controls fell 3.2 percent to $20.30 while
Gentex tumbled 8.5 percent to $11.56 and Harman dropped 3.8
percent to $18.51. The Dow Jones U.S. AutoParts index .DJUSAP
was down 1.5 percent to 102.03.

Reuters Messaging: rachel.chang.reuters.com@reuters.net
1016 ET 18June2009-Markets extend gains after data
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The Dow industrials and the S&P 500 added to gains while
the Nasdaq turned briefly positive on Thursday after a reading
of business conditions in the U.S. Mid-Atlantic region came in
much better than expected, suggesting a more stable
manufacturing sector.

The Dow Jones industrial average .DJI rose 0.9 percent to
8,572.65 while the S&P 500 .SPX gained 1 percent to 919.65
and the Nasdaq .IXIC was up 0.3 percent to 1,812.82.

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