STOCKS NEWS US-Durable S&P profit bottom for 2009 in sight: Citi

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0908 ET 21May2009-Durable S&P profit bottom for 2009 in sight: Citi
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Citi on Thursday said that a "durable bottom" for profits for 2009 remained
in sight, and that "gains through 2010 should be evident."

The firm maintained its $51 operating earnings outlook for the S&P 500
.SPX in 2009, and raised its 2010 view to $56 from $54 "as massive financial
sector drags are being offset."

"For 2009 and 2010, we now assume a financial sector profit level
comparable to mid 1990s levels. Previously, we assumed a 'break-even' 2009," it
wrote.

Citi also forecast a 14 percent gain in 2011 earnings for the index.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0858 ET 21May2009-Stifel starts coverage on five cosmetics firms
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Stifel Nicolaus on Thursday started coverage on five cosmetics and personal
care companies, rating three of them as buys and two as holds.

Avon Products (AVP.N), Alberto Culver (ACV.N) and Nu Skin Enterprises
(NUS.N) were all initiated at buy while Estee Lauder (EL.N) and Bare Escentuals
(BARE.O) were started at hold.

"We believe 2009 will remain a difficult year for the industry generally,
and our coverage universe specifically," the firm wrote. "That said, we expect
results to sequentially improve from a bottoming around the first quarter
through the balance of 2009 and 2010.

"Longer term, we believe category growth remains attractive as consumption
will increase along with an aging worldwide population and rising GDP growth in
developing markets."

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0853 ET 21May2009-Goldman upgrades large banks to neutral
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Goldman Sachs on Thursday upgraded large U.S. banks to neutral, citing the
prospect for continued strong mortgage and capital markets earnings, which it
said was likely to persist into the second quarter.

The firm added that the leveraged loss cycle for large banks could be
over.

"Mortgage and capital market results will inflate preprovision earnings
near term-- while this can not last forever, it will help fund reserve
builds."

At the same time, Goldman kept regional banks at cautious, "given less
exposure to the mortgage and capital markets tailwind and more exposure to late
cycle commercial and commercial real estate loans."

For details, see [ID:nWNAB2395]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0846 ET 21May2009-Futures add to losses after jobless data
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U.S. index futures extended their losses on Thursday, after the government
reported the number of people staying on jobless benefits hit a fresh record in
the latest week, weakening hopes of a quick economic recovery.

For details, see [ID:nN21359975]

Dow Jones industrial average futures DJc1 fell 60 points while S&P 500
futures SPc1 slid 7.2 points and Nasdaq 100 futures NDc1 were down 10
points.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0835 ET 21May2009-Jobless claims dropped 12,000 last week
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The number of U.S. workers filing new claims for jobless aid fell 12,000
last week, Labor Department data showed on Thursday, while so-called continued
claims rose to a fresh record as the recession battered employment.

Initial claims fell to a seasonally adjusted 631,000, compared with the
Reuters estimate of 630,000.

For details, see [ID:nN20527102]

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