STOCKS NEWS US-Capital raises suggest thaw in credit: firm

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For U.S. stock market report double-click [.N] 0935 ET 03June2009-Capital raises suggest thaw in credit: firm ------------------------------------------------------------------------------

DA Davidson on Wednesday wrote that the ability of large banks to successfully raise capital by selling stock "is another indication that pressure in the credit markets is easing."

"The credit markets appear headed back to a level of risk appetite seen early last fall, but not back to the point seen at the height of the credit boom in 2006 and 2007," it added.

The firm also wrote that while banks and credit lenders continued to look for creditworthy borrowers for home and car loans, they were also continuing to restrict credit to home builders and land developers "as they struggle under the growing weight of loan write-offs and add foreclosure properties to their balance sheets."

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0930 ET 03June2009-Markets open lower following ADP data ------------------------------------------------------------------------------

Major U.S. indexes opened lower on Wednesday, following the release of data that showed that employers cut more than half a million jobs in May, signaling that conditions remained tough.

The Dow Jones industrial average .DJI fell 0.4 percent to 8,706.86 while the S&P 500 .SPX lost 0.5 percent to 940.21 and the Nasdaq .IXIC was off 0.6 percent to 1,825.60.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0913 ET 03June2009-May auto sales suggests bottom: Citi ------------------------------------------------------------------------------

Citi on Wednesday wrote that U.S. vehicle sales in May suggested a bottom in the sector.

In the month, light vehicle sales sank 31 percent to 923,000 units, or a seasonally adjusted annual rate of 9.9 million. Citi had forecast a rate of 9.5 million.

"A recent lift in consumer confidence, prospects for a U.S. scrapping program and ongoing job assurance programs continue to suggest auto sales have likely seen their worst levels," the firm wrote.

Citi lifted its view on Ford Motor Co (F.N) after the sales data, forecasting a loss of $1.88 a share, compared with a previous estimate of a loss of $2.50 a share.

"Ford continues to enjoy momentum from its product cycle advantage and successful marketing programs like the Ford Advantage Plan," it wrote.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0902 ET 03June2009-Ebay up in premarket after upgrade to buy ------------------------------------------------------------------------------

Shares of eBay Inc (EBAY.O) rose in premarket trading on Wednesday, after the online auction site was upgraded to buy at Collins Stewart, which said it saw "may signs of a turnaround"

"Though eBay still has a long way to go, the signs we have seen so far are extremely encouraging," the firm wrote, citing an improvement in search abilities at the site, "dramatically increasing the penetration for free shipping" and an increase in selection.

"We believe that all these changes translate into higher listing conversions, GMV growth higher than listings growth, higher realized dollar value per listing for eBay, and more satisfied buyers/sellers," it wrote.

Shares of eBay rose 1.9 percent to $18.30 in premarket trading.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0849 ET 03June2009-Robert W. Baird downgrades Cardinal Health ------------------------------------------------------------------------------

Robert W. Baird on Wednesday downgraded Cardinal Health Inc (CAH.N) to neutral from outperform, writing that the company's 2010 fiscal year would be "another year of transition and investment, with company-specific and macro headwinds."

The firm cut its price target on the stock to $33 from $43.

"Healthcare economic, regulatory and other market headwinds have been fierce and as each one abates or is addressed, it seems as though a replacement headwind is quickly emerging," the firm wrote.

Shares of Cardinal fell 2 percent to $31.95 in premarket trading on Wednesday.

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