Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [RESF/US]
U.S. stock market report [.N]
1047 ET-12Jan2009 Susquehanna highlights ratio put spreads in retailers
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Ratio put spreads in the retailers have become a popular strategy in recent
months as investors finance the purchase of protection or downside exposure
through the sale of a greater quantity of downside puts, said Susquehanna
Financial Group. Implied volatility in the SPDR S&P Retail Trust (XRT.P) has
seen a 15 point drop over the last 30 days. But volatility still remains high
when compared to levels seen in recent years. Susquehanna said with ratio put
spreads, investors look to maximize potential returns by combining fundamental
views with volatility and skew analysis. The ratio put spread involves buying
one put vs. selling a greater amount of a lower strike put. Through the sale of
more of the further out-of-the-money puts, the costs of the trade are
minimized, in some cases resulting in the trade setting up for a credit.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1027 ET 12Jan2009-CIOs expect companies to be worse off in a year: Citi
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Chief investment officers have a gloomy outlook for the next 12 months,
with many expecting their company to be worse off a year from now, said Citi on
Monday, citing a recent survey it performed of 100 CIOs in the U.S. and 100 in
Europe. The survey, conducted by Citi Investment Research, showed that 40
percent of U.S. CIOs expect their companies to be worse off in the next 12
months, which "seems to fly in the face of those expecting an economic, or I.T.
spending, rebound in the second half of 2009," Citi said in its morning
equities note.
The firm said that 28 percent of respondents said they under-spent their
2008 budget, a figure it called a "meaningful uptick." Citi added that the
under-spending "demonstrates one of the biggest potential budget consequences
in a highly uncertain environment: enterprises struggling to understand the
length and magnitude of the current recession."
This "could push CIOs to hold back spending already depressed budgets in
the first half of the year," it said.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1024 ET 12Jan2009-Citi falls, Morgan Stanley up on deal news
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Citigroup (C.N) shares fell 7.7 percent to $6.23 and Morgan Stanley (MS.N)
gained 5.3 percent to $20.06 following news that Citigroup moved close to a
deal to join its Smith Barney business with Morgan Stanley's brokerage
operation. [ID:nLC198932]
Morgan Stanley was the leading percentage gainer in the S&P financial index
.GSPF, which was down 2.2 percent.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
1007 ET 12Jan2009-Mindray Medical jumps after outlook
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Shares of Mindray Medical (MR.N) jumped on Monday after the company
forecast 2008 earnings per share of no less than $1.16 on revenue between $540
to $550 million. Current Wall Street estimates are for $1.15 a share and
$553.15 million in revenue. Shares of the medical device maker surged over 12
percent to $19.90.
Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1001 ET 12Jan2009-Markets extend losses ahead of Q4 results
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Major U.S. markets extended their losses on Monday, as investors bet that
the upcoming fourth-quarter earnings season would show the recession deepening.
Alcoa Inc (AA.N), which is scheduled to report after the bell on Monday, slid
6.3 percent to $10.13 and was one of the top drags on the Dow. [ID:nN12329963]
The Dow Jones industrial average .DJI fell 0.7 percent to 8,541.59 while
the S&P 500 .SPX slid 1 percent to 881.66 and the Nasdaq .IXIC was down 0.7
percent to 1,560.83.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0955 ET 12Jan2009-Satyam ADRs plunge 90 pct after resuming trade on NYSE
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Satyam Computer Services Ltd (SATY.BO) (SAY.N) plunged nearly 90 percent on
Monday after it resumed trading for the first time since the chairman resigned
Wednesday, saying the company's profits were inflated in recent years.
Overseas shares of India's 4th-biggest software services exporter traded on
the New York Stock Exchange fell to $1.03. The incident rattled confidence in
emerging markets and engendered concerns about fraud for private equity deals
in Asia.
For details, see [ID:nWEN2520]
Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net
0950 ET 12Jan2009-Wal-Mart CEO sees no signs of U.S. economy turning
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The chief executive officer of discount retailer Wal-Mart Stores Inc
(WMT.N), Lee Scott, said on Monday he sees no sign that the U.S. economy will
turn around soon and also expects the first half of 2009 to be challenging.
Scott, who will step down as CEO in February, said he expects the second
half of the year to be better.
Wal-Mart shares rose 0.4 percent to $51.80 in early trading.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
