STOCKS NEWS US-Barclays issues bullish note on airlines

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U.S. stock market report [.N]
0943 ET 21May2009-Barclays issues bullish note on airlines
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Barclays Capital on Thursday issued a bullish note on the airline sector,
saying the group was "beyond stabilization."

"The next few months are likely to be choppy for airlines, but we see a
very compelling risk reward as demand stabilizes and as sell-side sentiment
moves more decisively into negative territory," the firm wrote. "We are buyers
of the group, but especially on the heels of optically weaker revenue data
points and any sentiment-driven weakness."

The firm said the next quarter may be hard for the group, but added that
sentiment had "turned too far into negative territory."

The AMEX Airline index .XAL fell 1.5 percent to 17.17 on Thursday.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0938 ET 21May2009-Barnes & Nobel up after results, Borders sinks
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Shares of Barnes & Noble Inc (BKS.N) rallied on Thursday, after the company
reported a first-quarter loss that was much narrower than expected. It also
raised its full-year earnings outlook.

For details, see [ID:nN21193069]

The stock gained 5.5 percent to $25.21 while peer company Borders Group
(BGP.N) sank 5.2 percent to $2.38.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0930 ET 21May2009-Markets open lower after data tempers optimism
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Major U.S. indexes opened lower on Thursday, following the release of
weekly jobless data, which fueled doubts about the prospects of a quick
economic recovery.

Sentiment was also pressured after a reduced rating outlook on Britain
signaled more fallout from the credit crisis.

The Dow Jones industrial average .DJI fell 0.5 percent to 8,379.11 while
the S&P 500 .SPX lost 0.5 percent to 899.02 and the Nasdaq .IXIC was off 1
percent to 1,711.02.

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