STOCKS NEWS US-Merrill sees "heart attack" in markets

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U.S. stock market report [.N]
0853 ET 12Jan2009-Merrill sees "heart attack" in markets
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Merrill Lynch Monday forecast a "heart attack" in the stock markets,
defining the term as a "massive downside spike followed by a rebound followed
by a return to trend." The firm advised that investors shouldn't extrapolate on
either side of the "attack," but added that the deeper the plunge was, the
greater the payback was expected to be.

"We find that growth in the quarter following a plunge of more than five
percentage points is positive with a 69 percent probability and in only one
instance in the 48 episodes that fit our criteria does growth end up negative
in all four subsequent quarters," the firm wrote.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0848 ET 12Jan2009-Thermo Fisher in the "buy zone": Barron's
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Barron's Monday said that shares of Thermo Fisher Scientific (TMO.N) were
in the "buy zone" because of a recent decline in the shares as well as the
company's strong cash-flow yield.

The company has diverse customers and a defensive business mix, the
financial publication wrote. [ID:nN11284449]

Shares of Thermo Fisher closed Friday at $33.80.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0838 ET 12Jan2009-Friedman downgrades U.S. REIT industry
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Friedman Billings Ramsey downgraded the U.S. real estate investment trust
(REIT) sector to underweight on Monday, forecasting price declines of 20
percent to 30 percent for the group from from year-end 2008 levels. To compare,
the broker expects the S&P 500 .SPX to see price appreciation of 5 percent.

As part of its call, FBR downgraded Boston Properties (BXP.N), UDR (UDR.N),
AvalonBay Communities (AVB.N) and Douglas Emmett (DEI.N) to market perform.
Duke Realty (DRE.N) and Maguire Properties (MPG.N) were both downgraded to
underperform. [ID:nWNAB8762]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0832 ET 12Jan2009-Citi sees major dividend cut for Bank of America
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Citigroup Monday said it expects Bank of America (BAC.N) to slash its
dividend to 5 cents from 32 cents, and said the bank would incur cumulative
losses of $165 billion for 2008-2011, with a third of those losses already
taken.

The firm sees a fourth-quarter loss of 75 cents a share for Bank of
America. It previously saw earnings of 2 cents a share. [ID:nWNAB8766]

Shares of Bank of America, a Dow component, slid 1.8 percent to $12.75.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0816 ET 12Jan2009-Bank stocks may rise from current levels: Barrons
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Barron's Monday said that bank stocks could rise off depressed levels, and
listed Northern Trust (NTRS.O), State Street (STT.N) PNC Financial Services
(PNC.N) and Dow component JPMorgan Chase (JPM.N) as examples.

The financial publication said that there were many risks to buying into
the group now, but for investors willing to wait until 2010, they could post
gains. [ID:nN11543435]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0810 ET 12Jan2009-Futures flat ahead of start of earnings season
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U.S. index futures were flat on Monday, as investors awaited the start of
the fourth-quarter earnings season, which many expect to show that the
recession is deepening. Dow component Alcoa Inc (AA.N) is scheduled to report
after the bell on Monday. [ID:nN12317550]

Dow Jones industrial average futures DJc1 fell 13 points while S&P 500
futures SPc1 slid 2.9 points and Nasdaq 100 futures NDc1 were down 0.5
points.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net