Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [RESF/US]
U.S. stock market report [.N]
1049 ET 15May2009-Media index rises after Barclays upgrades sector
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The Dow Jones U.S. Media index .DJUSME rose on Friday, rising 1.4 percent
to 195.69 after Barclays Capital upgraded the sector to neutral from negative.
"We believe a cyclical recovery for U.S. advertising will serve as an
offset to well-known structural concerns in 2010/11," the firm wrote.
"Consensus rule of thumb is that an upturn to positive advertising growth
happens 2 to 3 quarters after the end of a recession. But in light of their
historically depressed valuation multiples, we think media stocks will
anticipate this recovery."
In conjunction with the sector view, Barclays upgraded Viacom Inc (VIAb.N)
to overweight from equal weight and CBS Corp (CBS.N) to equal weight from
underweight.
"Media stocks are inexpensive relative to the market and other U.S.
consumer discretionary stocks, and we can no longer justify that discount," it
wrote.
Viacom shares were trading 5.4 percent higher at $20.60 and CBS shares were
up 5.6 percent at $7.22.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1043 ET 15May2009-SunTrust shares rise after moves to raise capital
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Shares of SunTrust Banks Inc (STI.N) rose on Friday, after the company cut
its dividend by 90 percent to 1 penny and said it planned to sell up to $1.25
billion of common stock.
The moves come after the company was ordered by federal regulators to find
$2.2 billion of new equity capital.
For details, see [ID:nN15300312]
The stock gained 4.7 percent to $15.73.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1031 ET 15May2009-Gaming companies rise after Goldman lifts targets
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Shares of gaming companies rose on Friday, after Goldman Sachs lifted its
price targets on several companies in the sector, arguing that "recent and
expected capital infusions and restructurings may reduce or delay bankruptcy"
for the group.
The target on Wynn Resorts Ltd (WYNN.O) was raised to $39 from $26 while
Las Vegas Sands Corp's (LVS.N) target was raised to $8.25 from $4.50 and Boyd
Gaming Corp's (BYD.N) target was raised to $8 from $5. [ID:nWNAB0337]
The Dow Jones U.S. Gambling index .DJUSCA rose 2.7 percent to 252.11 on
Friday, while Las Vegas Sands rose 8.1 percent to $10.19, MGM was up 6.8
percent to $8.29, Boyd added 3.1 percent to $9.93 and Wynn added 2 percent to
$40.35.
Despite the increased targets, Goldman wrote that several risks persisted
for the group. "Our conclusion is that, while outright bankruptcy risk has been
lessened, these stocks still don't provide much upside and discount too a sharp
recovery."
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1020 ET 15May2009-Exelixis shares rise after drug shows promise
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Shares of Exelixis Inc (EXEL.O) rose on Friday, lifted after an
experimental drug being developed by the company and Bristol-Myers Squibb
Co(BMY.N) was shown to shrink brain tumors in some patients, according to
interim results from a mid-stage study of the drug.
For details, see [ID:nN12330063]
The stock gained 13 percent to $5.02 while Bristol-Myers shares slid 2.3
percent to $19.98.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
