Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [RESF/US]
U.S. stock market report [.N]
1214 ET 18May2009-Some HP option players may expect pullback
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Hewlett-Packard Corp (HPQ.N) is due to report quarterly results on Tuesday
and some option players may be playing it safe as they line up for HP put
options ahead of the news. Its shares rose 2 cents to $35.03 near midday. The
stock's June $34 puts grabbed some interest ahead of earnings. More than 11,200
contracts traded vs. 4,689 existing positions in that strike price, according
to Reuters data. Nearly all of the morning volume (10,000) hit ask-side,
suggesting buyers are opening new positions, said WhatsTrading.com option
strategist Frederic Ruffy. The early put positioning may indicate an expected
pullback into the report, said optionMonster.com founder Pete Najarian, in
comments on the website. He also noted the June $34 puts were bought in large
chunks for premiums of $1.20 and $1.25 a contract as the stock traded over $35.
The June $35 puts were also active and traders could be locking in some
protection.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1132 ET 18May2009 Analog Devices calls build up before earns
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Investors have been loading up on call options in U.S. chip maker Analog
Devices Inc (ADI.N) ahead of the company's second-quarter fiscal results due on
Tuesday after the bell.
More than 7,800 call contracts already traded in the stock, compared to
only 365 put options, according to Trade Alert.
Total volume is double the daily combined turnover as investors zoomed in
on the June $17.50 and $20 calls. With shares up 2.47 percent to $19.93, it
appears like premium buyers are dominating the action and possibly looking for
a rally on the news, said WhatsTrading.com strategist Frederic Ruffy. The
stock's option implied volatility earlier rose to 47 percent, up from about 44
percent the day before, he added.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1113 ET 18May2009-DA Davidson: market may give up a third of rally
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DA Davidson on Monday wrote that while it expects that consolidation in the
stock market could extend for a few weeks, the contraction wouldn't be deep.
"We wouldn't be surprised to see stock prices giving up approximately
one-third of the recent rally, but we aren't looking for a retracement of the
market indices back to the March 9th bear market low point," the firm wrote.
"Although recent economic data appears a little discouraging, it is definitely
better than seen even a couple of months ago."
DA Davidson added that investors wouldn't vacillate very long before
putting money to work during the current correction, and that there was "still
plenty of money sitting on the sidelines to fuel a big rally when market
sentiment finally turns up."
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1101 ET 18May2009-HealthSpring climbs after upgrade
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HealthSpring Inc (HS.N) shares rose on Monday after the stock was upgraded
at Wachovia, largely based on valuation.
The firm lifted its rating on the stock to "outperform" from "market
perform" and said it believes the consensus view on Medicare is overly
negative.
Wachovia said HealthSpring has the lowest cost structure in the industry
and has successfully operated under lower reimbursement in the past which leads
the firm to believe it will be able to adapt again.
HealthSpring shares rose 8.8 percent to $9.57. Rivals Humana Inc (HUM.N)
shed 3.8 percent to $30.39, Universal American Corp (UAM.N) gained 3.7 percent
to $9.20 and WellCare Health Plans Inc (WCG.N) fell 3.2 percent to $16.01.
Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1055 ET 18May2009-UAW expects talks with GM to intensify this week
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The United Auto Workers union on Monday said it expects a round of
restructuring talks with General Motors Corp GM.N to "intensify this coming
week," ahead of an end-of-May deadline set by the Obama administration.
"These negotiations will have a major impact on wages, benefits and jobs
for active and retired UAW members," the union wrote in an e-mail message send
to workers.
For details, see [ID:nN18324268]
Shares of GM, a Dow component, advanced 7.3 percent to $1.17 on Monday
while Ford Motor Co (F.N) was flat at $5.49.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1050 ET 18May2009-Indian ADRs surge after elections
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New York-traded shares of Indian companies mirrored a more than 17 percent
surge in Indian shares .BSESN following elections results which cemented the
hold of the ruling Congress party.
A victory for the Congress has raised investor hopes for a strong
government able to push through reforms in the banking and insurance sectors,
as well as move ahead on privatization. [ID:nBOM484673]
The Bank of New York Mellon's index of Indian ADRs .BKIN shot up 17.1
percent while the broad ADR index .BKADR gained 3 percent.
Among the top gainers, ADRs of ICICI Bank Ltd (IBN.N) surged 29.3 percent
to $30.25.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
1041 ET 18May2009-Markets rise on Lowe's, Bank of America
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Major U.S. indexes rose on Monday, lifted after Lowe's Cos (LOW.N) reported
better-than-expected quarterly results and raised its outlook. Sentiment was
also boosted after Goldman Sachs added Bank of America Corp (BAC.N) to its
conviction buy list.
For details, see [ID:nN18344020]
The Dow Jones industrial average .DJI rose 1.6 percent to 8,401.01 while
the S&P 500 .SPX gained 1.4 percent to 895.80 and the Nasdaq .IXIC was up 1
percent to 1,698.81.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
