STOCKS NEWS US-Allis-Chalmers to buy senior notes, shares drop

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1143 ET 29June2009-Allis-Chalmers to buy senior notes, shares drop
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Shares of Allis-Chalmers Energy (ALY.N) tumbled on Monday after the company
said it would buy up to $74.8 million of its senior notes with funds from a
rights offering completed on Friday.

The oilfield services provider, which expects to prepay an additional $8
million to $10 million of other debt in the near future, said it will have
about $41 million of cash on hand and a fully available $90 million revolving
credit line.

For details, see [ID:nBNG495556]

The stock sank 15 percent to $2.69.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1132 ET 29June2009-S&P on track to have best quarter since Q4 1998
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The S&P 500 .SPX is on track to have its best quarter since the fourth
quarter of 1998.

Thus far in the quarter, the index is up 16.1 percent, its best performance
since the fourth quarter of 1998, when it gained 20.9 percent.

The S&P rose 0.9 percent to 926.94 on Monday.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1124 ET 29June2009-Citi-Q2 profits may be small hurdle for investors
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Citigroup on Monday wrote that the second-quarter earnings season is
"likely to be less of a hurdle for investors" compared with the first quarter.
It argued that the second quarter "seems to reflect both an improved financing
environment for corporations and a lowering of expectations earlier in the
year."

The firm added that the focus may be more on outlooks for the second half
of the year.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1117 ET 29June2009-Department stores rise after J.C. Penney upgrade
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Shares of department stores rose on Monday after Morgan Stanley upgraded
J.C. Penney Co (JCP.N) to "overweight" from "equal-weight," calling the
retailer "the most likely candidate" in the sector to outperform current gross
margin expectations in the second half of the year and beyond.

The firm wrote that J.C. Penney's margins would benefit from a fall in
apparel costs, as well as from sales as private-label merchandise.

For details, see [ID:nBNG500277]

J.C. Penney shares rose 2.6 percent to $29.12 while the S&P Department
Stores Sub-Industry index .GSPRETD gained 1.2 percent to 117.24. Among other
department stores, Sears Holding (SHLD.O) added 2.8 percent to $67.19, Macy's
(M.N) was up 2.1 percent to $11.91 and Nordstrom (JWN.N) climbed 1 percent to
$19.73.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1108 ET 29June2009-Crude rallies after EIA revises April demand up
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August crude futures rose on Monday, extending gains after the Energy
Information Administration said U.S. oil demand in April was 216,000 barrels
per day more than previously expected.

Oil demand in the month was revised up by 1.18 percent from the EIA's early
estimate of 18.255 million barrels per day.

For details, see [ID:nN29382698]

The contract gained 3 percent to $71.25 per barrel while the S&P Energy
index .GSPE gained 1.5 percent to 377.41. Among specific oil companies,
ExxonMobil (XOM.N) advanced 2.1 percent to $70.47 while Chevron Corp (CVX.N)
was up 1.3 percent to $66.82. Both companies are Dow components.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1100 ET 29June2009-Markets extend gains on strength in energy
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Major U.S. indices extended their gains on Monday as a rise in the price of
crude oil boosted energy shares.

For details, see [ID:nN29382684]

The Dow Jones industrial average .DJI rose 1 percent to 8,520.46 while
the S&P 500 .SPX gained 0.8 percent to 926.06 and the Nasdaq .IXIC was up
0.3 percent to 1,843.76.

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