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TMCNet:  STOCKS NEWS-Strategist predicts S&P 500 will hit 1,200

[January 05, 2009]

STOCKS NEWS-Strategist predicts S&P 500 will hit 1,200

Jan 06, 2009 (XFN via COMTEX) --
Stocks on the move Real-time Equity news
U.S. stock market report
1535 ET 05Jan2009-Strategist Wien predicts the S&P 500 at 1,200
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As part of his list of '10 surprises for 2009,' Byron R. Wien, chief
investment strategist at Pequot Capital Management, said the S&P 500 will rise
to 1,200 in anticipation of a second-half recovery in the U.S. economy. That
would mean a 30 percent rise from today's levels.
Wien also predicts for 2009 a $1,200 ounce of gold, oil at $80 per barrel,
75 yen to a U.S. dollar and the euro at $1.65.
(Reuters Messaging: rodrigo.campos.reuters.com@reuters.net)
1509 ET-05Jan2008 - Player bets on more volatility with VIX calls
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At least one option player is betting on more volatility in the stock
market by Feb. 20 option expiration. An opening customer bought 18,000 VIX Feb
55 calls at a premium of $1.05, said Scott Larison, senior trader at
broker-dealer 3-D Markets. The CBOE Volatility Index, the implied
volatility measure of the S&P 500, stood at 39.34, up 0.43 percent late in the
session. President-elect Barack Obama's inauguration is on Jan. 20, outside of
the VIX January expiration and may be a key factor in the purchase of this
February contract, Larison said. Obama went to the U.S. Capitol on Monday to
press for swift passage of a huge spending and tax-cut package amid signs his
economic stimulus plan may face delays.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1443 ET 05Jan2009-Earnings revisions could offset stimulus optimism-analyst
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An expected wave of downward earnings revisions will likely dampen
enthusiasm for the massive economic stimulus package proposed by U.S.
President-elect Barack Obama, wrote Citigroup analyst Tobias Levkovich on
Monday.
Many investors are already aware that Wall Street estimates are too high,
he wrote in a research note, citing a Citigroup survey of clients in December
2008.
"Yet it still seems hard to imagine equity markets rallying in the face of
big EPS estimate cuts, which may start as early as mid-January," he said.
Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net

1333 ET 05Jan2009-ADRs inch up as LatAm, Asia offset European companies
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The Bank of New York Mellon's index of leading American Depositary Receipts
rose 0.1 percent as gains in shares of Latin American and Asian stocks
offset declines in European companies triggered by a slide in the euro against
the U.S. dollar.
The greenback rose as tax cuts for as much as $310 million presented by
President-elect Barack Obama met raising pressure on the European Central Bank
to cut interest rates further.
The Bank of New York Mellon's index of leading European ADRs shed
0.6 percent, while Latin American ADRs jumped 4.7 percent and the Asian
ADRs sub index added 0.6 percent. For details, see
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
1315 ET 05Jan2009-Volatility will abate by late 2009-Citigroup's Levkovich
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Leading indicators suggest that volatility will diminish during the next
six to 12 months, which could help equity markets in the second half of 2009,
wrote Citigroup's Tobias Levkovich in a note on Monday.
The steepness of the yield curve, equity risk premiums and corporate credit
growth all point to lower volatility, which often entices individual investors
back into the market, Levkovich wrote.
Commodities and emerging are also likely to see a boost from decreased
volatility, but investors could see weakness in the dollar, which typically
strengthens during high volatility and trades inversely with commodities.
Reuters Messaging: deepa.seetharaman.reuters.com@reuters.net

1229 ET 05Jan2008-Players bet on big price swings in financials-analyst
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Options players are betting on an increase in volatility in the ProShares
Trust Ultra Financial exchange-traded fund. The ETF seeks to produce
twice the daily performance of the U.S. financials index. Its shares fell 4
cents to $6.04 in afternoon trade. The fund is now almost double in value from
its Nov. 21 low of $3.22 and has been increasingly less volatile as it has put
in higher lows and lower highs since that November low, said optionmonster
analyst Chris McKhann in comments on the firm's Web site. "Traders appear to be
betting for a break from this range, as they are buying the Feb $5 and $6 puts
and the Feb $6 and $7 calls," he said. More than 4,000 traded at all strikes
and were above open interest, according to optionmonster. He noted the strikes
traded in size at the same time and appear to be straddle and strangle buying.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
1217 ET 05Jan2009-U.S. stocks fall on profit-taking, telecoms
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U.S. stocks fell on Monday as large telecom companies sank on concerns
about slowing cellphone sales and investors were seeking to capitalize on the
strong gains of the previous week.
Dow components Verizon Communications Inc and AT&T stumbled
after Bernstein Research downgraded both companies, saying it expected slower
wireless growth in 2009. For details, see
The S&P telecom services index fell 4.4 percent.
Reuters Messaging: rodrigo.campos.reuters.com@reuters.net
1211 ET 05Jan2008-Players eye JA Solar calls as stock rises
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For the second straight session, Chinese solar company JA Solar Holdings Co
options are on traders' radar screens. Turnover picked up on Friday as
the stock extended its recent advance. JA Solar stock rose nearly 50 percent
last week. Its U.S. listed shares were up 5.58 percent to $5.11 near midday on
Monday and the equity's options volume is five times the average daily levels.
Solar Power Inc and JA Solar on Monday will enter a deal for up to 60
Megawatts of cells in 2009. "The February $5 calls are leading the flow, with
about 75 percent of today's 4,100 contracts traded ask-side," said
WhatsTrading.com option strategist Frederic Ruffy. By midday, about 5,590 calls
and 597 puts traded in JA Solar, with sentiment based on order flow, 64 percent
bullish, according to option analytics firm Trade Alert.
Reuters Messaging: doris.frankel.reuters.com@reuters.net
Keywords: MARKETS STOCKSNEWS
COPYRIGHT
Copyright Thomson Reuters 2009. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including
by framing or similar means, is expressly prohibited without the prior written
consent of Thomson Reuters.
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