STOCKS NEWS US-DA Davidson: GDP may come in better than expected

Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [RESF/US]

U.S. stock market report [.N]
0945 ET 27May2009-DA Davidson: GDP may come in better than expected
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DA Davidson on Wednesday wrote that second-quarter GDP could come in better
than expected "as businesses begin to rebuild depleted inventories, consumers
slowly return to the malls and business spending stabilizes."

"We are still months away from seeing the housing or employment pictures
begin to meaningfully improve, but in the interim, we don't expect to see
either housing or employment deteriorate at the same rate seen over the last
six months. This should be good near-term news for equity investors." it
added.

DA Davidson said that U.S. gross domestic product in the quarter was
currently projected to show an annual decline of 1.5 percent to 2 percent.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0930 ET 27May2009-Dow, S&P open flat ahead of housing data
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The Dow and S&P 500 opened flat on Wednesday, ahead of the release of a key
report on the housing market.

"I think housing continues to be an overhang and until housing gets better
and job numbers get better, we're still in a struggling economy," said Warren
Simpson, managing director at Stephens Capital Management in Little Rock,
Arkansas.

The Dow Jones industrial average .DJI was flat at 8,469.27 while the S&P
500 .SPX lost 0.1 percent to 909.31 and the Nasdaq .IXIC was off 0.4
percent to 1,743.40.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0854 ET 27May2009-Citi optimistic on recovery for oil service co's
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Citi on Wednesday issued a bullish note on the prospect for a recovery for
oil service and equipment companies, saying it saw a recovery "sooner rather
than later."

"We believe investors are becoming increasingly confident that a recovery
in fundamentals will occur sooner rather than later," the firm wrote.
"Sustained $50-$60 per barrel oil stands to mitigate the pace of international
drilling decline. A return to growth is possible if activity stabilizes as new
offshore rigs enter the fleet."

Citi added that margins for the group were likely to stabilize in the
second half of the year "as full benefits of leaner operations catch up."

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0849 ET 27May2009-MGA asks court to stop transfer of franchise
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MGA Entertainment late Tuesday asked a U.S. appeals court to stop the
transfer of its Bratz franchise to rival Mattel Inc MAT.N. It also asked the
court to overturn a 2008 jury verdict, which it argued was tainted by racial
discrimination against its Iranian-born chief executive.

For details, see [ID:nN26313885]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0844 ET 27May2009-Borders results lift Barnes & Noble in premarket
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Shares of Borders Group (BGP.N) rose in premarket trading on Wednesday,
after the company reported an adjusted quarterly loss that was narrower than
expected, helped by cost cutting measures.

For details, see [ID:nN26489362]

The stock gained 8.9 percent to $2.80 in premarket trading while peer
company Barnes & Noble Inc (BKS.N) rose 1.9 percent to $26.68 on light volume.

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