STOCKS NEWS US-Solutia tumbles after stock offer

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1120 ET 18June2009-Solutia tumbles after stock offer
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Solutia Inc (SOA.N) shares slid on Thursday after the company announced a
public offering of common stock.

The specialty chemical maker said that it has initiated a public offering
of up to 18.5 million shares, with proceeds used to repay its $74 millon German
term loan.

The company also reaffirmed its full-year 2009 adjusted EBITDA guidance
from continuing operations of $325 to $350 million.

Shares tumbled 12.2 percent to $4.89.

Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
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