STOCKS NEWS US-Lockheed shares up, Congress to fund more F-22s

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1131 ET 18June2009-Lockheed shares up, Congress to fund more F-22s
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Congress will fund at least 20 more Lockheed Martin (LMT.N) F-22 fighter
jets despite Obama administration plans to cap production at 187, the chairman
of a House of Representatives panel with Air Force oversight responsibilities
said on Thursday.

"You've got to do 20 more of these" as a bridging strategy while the
administration mulls longer-range strategic issues, said Rep. Neil Abercrombie,
a Hawaii Democrat who heads the House Air-Land subcommittee.

For details, see [ID:nN18275704]

Shares of Lockheed rose 2.3 percent to $83.94.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1120 ET 18June2009-Solutia tumbles after stock offer
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Solutia Inc (SOA.N) shares slid on Thursday after the company announced a
public offering of common stock.

The specialty chemical maker said that it has initiated a public offering
of up to 18.5 million shares, with proceeds used to repay its $74 millon German
term loan.

The company also reaffirmed its full-year 2009 adjusted EBITDA guidance
from continuing operations of $325 to $350 million.

Shares tumbled 12.2 percent to $4.89.

Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1106 ET 18June2009-Citi: stocks look cheap in long-term view
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Citigroup analysts on Thursday wrote that from a long-term view, stocks
still looked cheap.

"Clearly economic fundamentals are still very challenging, but we draw
three basic conclusions," the firm wrote. "First, investors with a longer term
orientation can still find value in the group. Second, if evidence of economic
stability builds there is room for the stocks to trade higher in the near term.
Third, the downside risk in many of our names is material, but risk/reward
profiles appear attractive for most."

Despite that, the firm wrote that stocks could be vulnerable in the near
term "given very weak fundamentals."

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1053 ET 18June2009 Huge SPX expiring option open interest sits at 900
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This Thursday and Friday marks the quarterly expiration and settlement of
June equity options and futures, a convergence known as quadruple witching.

Scott Larison, senior vice president of Compass Point Research & Trading
noticed massive expiring option open interest at the Standard & Poor's 500
index .SPX June 900 strike. Reuters data show that open interest stood at
463,930 contracts combined for puts and calls in that strike.

"Dealers or market makers are generally short the strike meaning they have
the most to gain if the SPX settles and pins at the 900 strike," he said.
"Therefore, they will support the price of the SPX at this level." The last day
to trade June SPX options is today. "Along with the 200-day moving average
support of 906, we may see a market bounce off these levels -- especially given
the massive pessimism that has gathered the past few days," he said.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1044 ET 18June2009-Carnival soars after results, lifting Royal
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Shares of Carnival Corp (CCL.N) soared on Thursday after the company
reported quarterly earnings that beat analysts' expectations, helped by lower
net cruise costs and better-than-anticipated pricing.

For details, see [ID:nN18379172]

The stock gained 6.9 percent to $24.63 while peer company Royal Caribbean
(RCL.N) was up 4.8 percent to $13.14.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1039 ET 18June2009-Caterpillar slides after sales data
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Caterpillar Inc (CAT.N) shares fell on Thursday after the company said that
dealer retail sales of machines had declined at a faster pace in May.
[ID:nN18388033]

The heavy machinery maker said dealer retail world sales, including Cat
Japan, fell 43 percent in the three months ended in May from the prior year
versus a 39 percent decline for the three-month period ended in April.

Sales in North America slumped 57 percent, compared with a 51 percent drop
for the three-month period ended in April.

Shares slid 2.4 percent to $33.98 as the top drop on the Dow industrials.

Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net