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1406 ET 10June2009-Goldman CEO sees long, protracted recession
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Lloyd Blankfein, the chief executive officer of Goldman
Sachs (GS.N), on Wednesday said he expects the current economic
recession to be a "long, protracted" one.
Addressing a current upturn in markets, he said: "There is
no reason to think this is it ... so many things have to be
sorted out. Why would this be the recovery? The chances are
it's not."
Shares of Goldman slid 1.2 percent to $147.46.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1358 ET 10June2009 Caterpiller gets strangle sellers-analyst
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Shares of Caterpillar Inc (CAT.N), the world's largest
maker of construction and mining equipment, fell 2.85 percent
to $37.15, on the day of its annual shareholders meeting. Its
option activity revealed that some investors expect the shares
to be rangebound through November expiration, said Andrew
Wilkinson, market analyst at Interactive Brokers Group. Thus,
sold strangles were initiated through the sale of 2,000 puts at
the November $35 strike for a premium of $3.63, while an
additional 2,000 calls were sold at the November $45 strike for
$2.18, amassing a gross premium of $5.81. The total premium
would be retained if shares remain strangled between the two
strike prices. The parameters of the trade provide ample leeway
for the price of Caterpillar to fluctuate over the next five
months, he said. But losses would accrue on the strangle should
shares swing above the break even point to the upside at $50.81
or go below the break even point to the downside at $29.19 by
expiration. Another notable trade was at the Nov $25 put strike
where a player took profits by closing out a short position.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1353 ET 10June2009-Goldman Sachs raises price target on RIM
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Shares of Research in Motion (RIMM.O) rallied on Wednesday,
lifted after Goldman Sachs raised its price target on the smart
phone maker to $96 from $85.
"Our retail checks and conversations with the supply chain
throughout the quarter suggest continued robust sell-through of
RIM devices, further helped by currency tailwinds," the firm
wrote.
Goldman said that the stock was its favorite in the
communication technology sector, "as it continues to offer the
rare combination of significant upside to estimates and a
discount multiple."
Shares of RIM rose 0.7 percent to $82.57.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1352 ET 10June2009-Obama administration to name pay czar
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The Obama administration will name a pay czar with the
power to reject compensation plans for top employees at
companies receiving "exceptional" government aid, an
administration official said on Wednesday.
The administration will also call for "say-on-pay"
legislation that would give the Securities and Exchange
Commission authority to require public companies to hold
non-binding shareholder votes each year on executive pay, the
official, who requested anonymity, said.
For details, see [ID:nN10272750]
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1332 ET 10June2009-Talbots stock falls after downgrade
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Shares of Talbots Inc (TLB.N) sank on Wednesday, after FBR
Capital Markets downgraded the women's apparel retailer to
market perform, saying that near-term catalysts for the stock
had played out.
"Concerns over the macro environment remain, and we believe
the missy sector will continue to see weak demand," the firm
wrote.
For details, see [ID:nBNG447650]
The stock sank 4.2 percent to $4.81.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1329 ET 10June2009-Lacker: Fed must not delay in policy
tightening
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Jeffrey Lacker, the Richmond Federal Reserve president, on
Wednesday said that while U.S. inflation expectations were well
anchored, the Federal Reserve must not delay tightening
monetary policy once the recovery begins.
"The challenge for us on the Federal Open Market Committee
will be to shrink our balance sheet and tighten policy soon
enough when the recovery emerges to prevent rising inflation,"
he said, referring to Fed's policy-setting committee.
[ID:nN10437956]
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
