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1042 ET 26June2009 Susquehanna suggests Expedia volatility sales
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Selling strangles in Expedia (EXPE.O) look attractive to capture high
volatility levels and enhance returns in the coming months, said Susquehanna
Financial Group's market intelligence team in a note. "With volatility in EXPE
elevated as a result of recent July $15 put buyers, we recommend long
shareholders who agree with SFG Internet analyst Marianne Wolk's positive
outlook on the stock take advantage by selling October $12.50 (put)/$20 (call)
strangles against positions," the note said. Over the last week, Expedia has
seen the greatest rise in 90-day implied volatility of any name within the
Nasdaq 100, they said. As of Thursday's close, the bid in the strangle was
$1.45, representing a 9 percent stand-still return between now and expiration
based on the stock price close of $15.79. Should shares stay rangebound between
$12.50 and $20, investors would fetch the $1.45 premium. Below $12.50, they
would be obligated to add to existing positions at a net effective price of
$11.05, which they believe would represent an attractive entry point. Above
$20, investors would be obligated to sell shares at $21.45, the note said.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1020 ET 26June2009-Crude oil falls, weighing on energy companies
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August crude oil futures fell on Friday, dropping after Nigeria said it
would halt a battle with rebels during a 60-day amnesty period for militants
and release a suspected rebel leader if he accepted an amnesty offer.
The news reversed early sharp gains in the oil market which followed a
statement by Nigerian rebels that they had blown up a wellhead in a Royal Dutch
Shell (RDSa.L) oilfield.
For details, see [ID:nSIN249975]
The contract dropped 1.3 percent to $69.33 per barrel while the S&P Energy
index .GSPE was down 0.6 percent to 373.33.
Among specific oil companies, Dow components ExxonMobil (XOM.N) fell 0.7
percent to $69.40 while Chevron Corp (CVX.N) was off 0.8 percent to $66.31.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1017 ET 26June2009-Bove cuts 2009 earnings outlook on Goldman Sachs
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Rochdale Securities analyst Richard Bove on Friday cut his 2009 earnings
estimates on Goldman Sachs to reflect the impact of the company repaying TARP
funds. Bove also expects the company to suffer a $1 billion loss on exposure to
commercial real estate.
The earnings view was cut to $14.95 a share from $15.71 a share.
Despite the lower estimate, Bove said the financial services company
appears to be having "a very good quarter."
For details, see [ID:nWNAB2568]
Shares of Goldman rose 1.3 percent to $146.37.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1000 ET 26June2009-Consumer sentiment rises in June: survey
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U.S. consumer confidence rose in June to the highest since February 2008,
as expectations grew that the worst economic recession since the Great
Depression may be ending, a survey showed on Friday.
The Reuters/University of Michigan Surveys of Consumers said its final
index of confidence for June was at 70.8 from 68.7 in May, equaling February
2008's reading and above the median expectation of 69.0 in a Reuters poll.
For details, see [ID:nN26441342]
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0950 ET 26June2009-Citi cuts Q2 estimates on JPMorgan, US Bancorp
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Citigroup on Friday cut its second-quarter earnings estimates on both
JPMorgan Chase (JPM.N) and US Bancorp (USB.N).
The estimate on JPMorgan was cut to 7 cents a share from 11 cents a share.
Citi forecast managed credit loss of $10.8 billion at the company in the
quarter, a rise of about $700 million from the first quarter.
The estimate on US Bancorp was dropped to account for the recently
announced TARP preferred dividend accretion charge of $153 million, the firm
wrote.
Citi forecast second-quarter earnings of 12 cents a share for US Bancorp,
compared with a previous estimate of 25 cents a share.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0940 ET 26June2009-Citizens Republic shares down, to raise capital
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Shares of Citizens Republic Bancorp (CRBC.O) tumbled on Friday, a day after
the company said it was planning to raise capital.
The company will raise the capital with common stock offerings, by
exchanging shares for debt and seeking up to an additional $290 million from
the U.S. Treasury.
For details, see [ID:nBNG46210]
The stock slid 7.4 percent to 87 cents.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0930 ET 26June2009-Markets open lower on profit taking, after data
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Major U.S. indexes opened lower on Friday, falling as investors took
profits following a sharp rally in Thursday's session.
The markets were also impacted by the release of data on consumer spending
and personal income. Analysts said a rise in personal income data suggested
that consumers were choosing to save rather than spend.
The Dow Jones industrial average .DJI fell 0.3 percent to 8,450.78 while
the S&P 500 .SPX lost 0.3 percent to 917.36 and the Nasdaq .IXIC was off
0.6 percent to 1,819.29.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
