STOCKS NEWS US-Credit Suisse suggests SPY butterfly put spread

Stocks on the move [HOT-RTRS]

Real-time Equity news [U][E] [RESF/US]

For U.S. stock market report double-click [.N]
1017 ET 23June2009 Credit Suisse suggests Butterfly put spread on S&P 500 ETF
------------------------------------------------------------------------------

Investors who want to hedge against a broader market fall or employ a
directional bearish position can benefit from an unusually steep skew in the
S&P 500 fund (SPY.P) by purchasing a SPY butterfly put spread, said Credit
Suisse equity derivatives strategist Sveinn Palsson. In a note issued on
Monday, he recommended an August SPY $90/$80/$70 put butterfly -- buying the
$90 put and $70 put and selling 2X the $80 put for a net $1.85. The reference
price was $89.84. The trade is profitable if the exchange-traded fund closes
between $88.15 and $71.85 at August expiration. Maximum payout is $10 if the
ETF closes at $80, while the max drawdown is the premium paid. The trade is
neutral to changes in the absolute volatility level. Despite the apparent
consolidation of the S&P 500 in the 900 area, and the stabilization of the VIX
index around 30, index skew continues to steepen, reflecting the strong demand
of out-of-the-money puts vs. calls. Thus, the SPY two-month skew is approaching
the highs of fourth quarter 2008 and first quarter 2009, he said.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1003 ET 23June2009-Existing home sales up 2.4 pct in May
------------------------------------------------------------------------------

Sales of previously owned homes in the United States rose at a
slower-than-expected pace in May, an industry survey showed on Tuesday,
pointing to a sluggish recovery from the severe economic recession.

The National Association of Realtors said sales rose 2.4 percent to an
annual rate of 4.77 million units from a downwardly revised 4.66 million pace
in April. The May reading was below market forecasts for a 4.81 million-unit
pace.

"In my view the housing number suggests that things are bottoming, but
that's a far cry from improving," said Subodh Kumar, the chief investment
strategist at Subodh Kumar & Associates in Toronto. "I think the market is
focused on how fast the recovery is going to be, and I think it won't be as
fast as people are thinking. I think equities will remain in corrective mode."

For details, see [ID:nN23475172]

Following the release of the data, the Dow Jones U.S. Home Construction
index .DJUSHB rose 0.6 percent to 208.81.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0955 ET 23June2009-Boston Scientific gains after device trial
------------------------------------------------------------------------------

Shares of Boston Scientific (BSX.N) rose on Tuesday, after the company said
a large clinical trial showed early intervention with implantable devices
called cardiac resynchronization therapy can slow the progression of heart
failure.

The results could significantly expand the market for the devices, which
coordinate heart pumping through electrical pulses, beyond use for the sickest
heart failure patients.

For details, see [ID:nN23542970]

The stock rose 6.5 percent to $9.85.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0950 ET 23June2009-Thomson Reuters to delist from Nasdaq
------------------------------------------------------------------------------

Thomson Reuters Corp (TRI.N) on Tuesday said it would withdraw its shares
from the Nasdaq .IXIC and London Stock Exchange, though it will remain listed
on the New York and Toronto exchanges.

Thomson Reuters' London listing had become problematic for the company,
said Todd Bourell, a partner at hedge fund ValueAct Capital, which owns 12
million Thomson Reuters shares in London and is one of the company's largest
shareholders. Canada's Thomson family is the largest shareholder of Thomson
Reuters and holds a 55 percent voting interest.

"The fact that the stock is irrationally undervalued in London is putting a
drag on the value of the stock in New York and Toronto," Bourell said.

For details, see [ID:nN22523423]

Shares of Thomson fell 2.4 percent to $28.38 on the New York Stock
Exchange.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0939 ET 23June2009-Boeing suppliers drop after flight delay
------------------------------------------------------------------------------

Shares of Boeing (BA.N) suppliers sank on Tuesday, after the planemaker
again delayed the first flight of its 787 Dreamliner to reinforce an area
within the side-of-body section of the aircraft.

Boeing, a Dow component, sank 6.2 percent to $44 while Honeywell
International (HON.N) dropped 1.7 percent to $31, Rockwell Collins (COL.N) slid
1.8 percent to $41.68 and Goodrich (GR.N) was down 2.2 percent to $48.33.
General Electric (GE.N) was flat at $11.52.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0934 ET 23June2009-Boeing shares tumble after delaying flight
------------------------------------------------------------------------------

Shares of Boeing (BA.N) tumbled on Tuesday, after the company said the
first flight of its long-delayed 787 Dreamliner would be postponed once more to
reinforce an area within the side-of-body section of the aircraft.

The revolutionary carbon-composite aircraft, which is already two years
behind its original schedule, was to fly for the first time in the second
quarter of 2009.

For details, see [ID:nN23546619]

The stock, a Dow component, fell 6.6 percent to $43.77.

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