STOCKS NEWS US-U.S. economic diary for June 5

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1750 ET 04June2009- U.S. economic diary for June 5
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The day's economic agenda includes the Labor Department's May employment
report at 8:30 a.m. (1230 GMT). Also, the Federal Reserve issues April consumer
credit at 3 p.m. (1900 GMT).

For more please double click [ECI/US]

Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1556 ET 04June2009 Some traders optimistic on Pre smartphone
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Some option traders warmed up to the upcoming launch of the Pre smartphone
from Palm Inc PALM.O, which is due to go on sale at No. 3 U.S. mobile service
Sprint Nextel Corp (S.N) on June 6. Palm shares rose 8.89 percent to $13.60 in
late trade. "While some reviews of the new product suggest The Pre is
attractive and innovative, others have indicated that it cannot hold a candle
to Apple's iPhone," said Andrew Wilkinson, market analyst at Interactive
Brokers Group. "The real test will begin in two days when the phone goes on
sale to the public, exclusively through Sprint." A number of option traders are
hoping The Pre "will wow consumers" and boost Palm's shares and were long of
bullish calls in the June contract, he said. More than 4,300 June calls were
snapped up at the $16 strike for 29 cents apiece. Other Pre-optimists paid a
dime to pick up 2,000 June calls at the higher $20 strike price. "If Palm's new
product pleases the masses, investors long of June $20 calls may realize
profits if shares climb 47 percent to the break even point at $20.10 by
expiration," Wilkinson said in a note.
1426 ET 04June2009-Aluminum index advances on rise in metal price
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The Dow Jones Aluminum index .DJUSAL rallied on Thursday, after the price
of the metal rose to its highest level in more than three weeks.

Aluminum MAL3 for three-month delivery on the London Metal Exchange was
trading at $1,580 per ton compared with $1,482 at the close on Wednesday.
Traders attributed the rise to a weaker dollar and a second day of decreased
inventory.

For details, see [ID:nN04221412]

The index rose 6.9 percent to 87.84 while Dow component Alcoa Inc (AA.N)
advanced 7 percent to $10.77, Kaiser Aluminum (KALU.O) gained 6.2 percent to
$35.80 and Century Aluminum (CENX.O) was up 5.6 percent to $6.20.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1344 ET 04June2009-Travelers Cos raises 2009 operating earnings view
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Travelers Cos Inc (TRV.N) on Thursday raised its 2009 operating earnings
outlook, saying it was benefiting from the troubles of weakened competitors,
including American International Group (AIG.N).

The outlook was raised to $4.55 to $4.95 a share from a prior view of $4.50
to $4.40 a share.

For details, see [ID:nN04220433]

Shares of the company, which will replace Citigroup (C.N) as a Dow
component, rose 1.4 percent to $43.31.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1336 ET 04June2009-Baltic dry freight index breaks wining streak
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The Baltic Exchange's main sea freight index .BADI, which tracks rates to
ship dry commodities, fell 4.61 percent on Thursday, with doubts over the
sustainability of China's iron ore imports weighing on activity.

Gains on the index, which had scored eight-month highs in recent days, had
been driven by China's demand for goods. But an oversupply of vessels, weak
global appetite for commodities and global economic slowdown are all expected
to temper gains this year, analysts say. For details see [nL41021606]
1244 ET 04June2009-Goldman Sachs cuts May jobless forecast
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Goldman Sachs has revised down in its forecast for May payroll employment
and now expects a loss of 475,000 jobs, compared to the loss of 525,000
forecasted previously. Goldman's forecast for the unemployment rate is
unchanged at 9.2 percent. The Reuters consensus forecast is for a lost of
520,000 jobs and an unemployment rate of 9.2 percent.
1244 ET 04June2009-Star Scientific option players send out bullish signals
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Option players are again sending out bullish smoke signals on Star
Scientific STSI.O, a technology-oriented tobacco company. Its shares jumped
6.13 percent to $5.02 in afternoon trade. About 25,000 STSI calls traded
compared to 2,754 puts, double the norm, according to Trade Alert. Its June $5
and $7.50 calls led the flow and the November $5 and June $10 call strikes are
also active. "It appears that call buyers are dominating the activity," said
WhatsTrading.com option strategist Frederic Ruffy. A big chunk of today's
volume traded on the International Securities Exchange and ISEE sentiment data
indicate that 11,000 contracts were opening customer call buys, possibly in
anticipation of a ruling in a patent infringement lawsuit against RJ Reynolds
Tobacco Co, he said. Its option implied volatility is down 3 points, but
remains very high at 237 percent.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1201 ET 04June2009 CBS calls on the run for second day
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CBS Corp (CBS.N) has drawn a flurry of call action for the second straight
session with about 10,000 contracts traded compared to only 613 puts near
midday. According to Trade Alert, sentiment based on option order flow is 91
percent bullish. There was no apparent news on the stock. On Wednesday, about
24,000 calls changed hands in CBS, or about 10 times the number of puts. Its
shares on Thursday rose 17 cents to $8.94. The September and December $12.50
calls are the top favorites, with a combined 8,700 contracts earlier traded and
100 percent hitting ask-side, said WhatsTrading.com option strategist Frederic
Ruffy. Option volume exceeded open interest in both contracts, suggesting
opening buyers. On the International Securities Exchange, ISEE Sentiment data
confirm customers bought to open CBS calls. The stock's implied volatility was
steady at 78 percent, up from 74 percent on Monday, he added.

Reuters Messaging: doris.frankel.reuters.com@reuters.net