STOCKS NEWS US-May auto sales suggests bottom: Citi

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For U.S. stock market report double-click [.N] 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 0845 ET 03June2009-JPMorgan to disband Principal Investment units ------------------------------------------------------------------------------

JPMorgan Chase & Co (JPM.N) is disbanding the hedge fund and private equity units of its stand-alone Principal Investment Management Group and shifting staff from this unit to sit within existing businesses, according to a person familiar with the reorganization.

The primary goal is to better align principal investing with JPMorgan's traditional investment banking business lines, the source said.

For details, see [ID:nN03545275]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0829 ET 03June2009-Collins Stewart upgrades Apple to buy ------------------------------------------------------------------------------

Collins Stewart on Wednesday upgraded Apple Inc (AAPL.O) to buy from hold, saying the tech company remained "in pole position to monetize the revenue opportunity for mobile Internet devices."

The firm added that "Within proprietary stacks, Apple operating system with new product launches and lower prices is also positioned to gain share at the expense of Research in Motion (RIMM.O) and Windows Mobile. Lower bill of materials ($130) should enable 8GB iPhone to hit the $99 price point and stimulate demand elasticity."

Shares of Apple rose 0.4 percent to $140.10 in premarket trading.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0823 ET 03June2009-Private sector cuts 532,000 jobs in May: report ------------------------------------------------------------------------------

U.S. private employers shed 532,000 jobs in May, according to the ADP Employer Services report, compared with the analysts' expectation for a loss of 520,000 jobs.

For details, see [ID:nWEN9974]

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