STOCKS NEWS US-Earnings diary for April 7

Stocks on the move [HOT-RTRS] Real-Time Equity news [U E]

U.S. stock market report [.N]
1750 ET-06April2009-U.S. earnings diary for April 7
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Earnings season officially gets under way on Tuesday with results from Alcoa (AA.N) expected after the closing bell. Other companies to report include Bed Bath & Beyond (BBBY.O) and Mosaic <M
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1330851406

For more details, see [RESF/US].

Reuters Messaging: leah.schnurr.reuters.com@reuters.net
1724 ET-06April2009-China ETF calendar spread looks for rally
in 2010
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Shares of the iShares FTSE/Xinhua China 25 Index exchange-traded fund (FXI.P) fell 1 cent to $30.94. In the
options market, one trader enacted a bullish calendar spread,
looking for a significant rally in the ETF at the start of
2010, said Interactive Brokers Group analyst Andrew Wilkinson.
The investor sold 8,500 calls at the May $32 strike price for
an average premium of $1.60 and repurchased 8,500 calls at the
January 2010 $40 strike price for $1.70 each. The trader gets a
credit of 10 cents for rolling the position forward while
bearing the risk that shares rise above $32 as he is short
8,500 calls at the May $32 strike, he said. This trade implies
the investor does not see shares rallying above $32 by May
expiration but does want to see shares rise by 31 percent to
break through the January $40 strike by January expiration.

Meanwhile, traders bought 15,000 puts at the May $25 strike
for 60 cents apiece along with some 10,000 puts which traded to
the middle of the market at the August $25 strike for $2 each.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1649 ET-06April2009-Option traders bet on higher volatility in
Union Pacific
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Union Pacific Corp (UNP.N) option volume was double the normal levels as 11,000 puts and 15,000 calls traded, according to Trade Alert. Shares of railroad fell 4.4 percent to $44.06 after r
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player seemed to be looking for volatility to increase on the
stock with the purchase of a May strangle, he said. At the May
$43 strike price, 5,000 puts were bought for $3.70 each along
with the purchase of 5,000 calls at the May $44 strike for 3.60
apiece. The net cost of the strangle was $7.30 and yields
effective break even points at $35.70 on the downside and at
$51.30 on the upside. This investor will begin to make money if
shares can swing outside of the break even points. Using a
reference price of $44.06, this would require either a rally of
16.4 percent or a decline in shares of 19 percent. Option
implied volatility stood at 68 percent, up from Friday's 61
percent reading, he said.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1615 ET 06Apr2009 RTRS-US STOCKS-Wall St ends lower, weighed by
bank unease
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U.S. stocks ended lower on Monday, halting a four-day run-up, as a warning from
a prominent analyst, Calyon's Mike Mayo, rekindled worries about banks, while a
potential collapse of a takeover of Sun Microsystems hurt sentiment in the
technology sector.

Even so, the market ended well off its worst levels, with
some investors encouraged by a reassuring assessment of the
bank sector from another closely followed bank analyst,
Meredith Whitney. For details, see [ID:nWEN6943]

For more details, see [.N]

Reuters Messaging: ellis.mnyandu.reuters.com@reuters.net
1557 ET 06April2009-Players scoop up TLT calls, likely betting
on bond rally
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Shares of the Barclays Capital 20+ Year U.S. Treasury Index (TLT.P) fell 33 cents to $102.59 in late trade as bonds limp into the close. But some option players seem to be preparing for a b
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offer for 35 cents traded this morning. ISEE sentiment data on
the ISE confirm the trade is an opening call buy. The activity
continued throughout the day and 11,219 TLT April $107 calls
traded, Reuters data show. The TLT tracks bonds with longer
maturities in the Treasury market. Buying calls on the TLT
reflects a bullish view on bonds. When the fund's stock price
goes up, interest rates and yields are falling while government
bond prices are rising. Conversely, the ETF's stock price drops
when interest rates and yields rise while bond prices fall.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1458 ET 06April2009-TARP repayments seen hobbling lending,
recovery
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"Because Congress has now targeted CEO pay, banks are focused on repaying TARP (bailout money) more than lending, even if they have to access capital to do so," said Marc Pado, U.S. market
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Francisco.

"Now you're going to have the banks focused on repaying
TARP and getting Congress out of their business, rather than
spurring the economy.

"They (Congress) have now defeated the very purpose they
were injecting the money for in the first place. It's that this
is going to stop the economy from recovering, but it's going to
certainly slow the pace of the recovery."

Reuters Messaging
rm://ellis.mnyandu.reuters.com@reuters.net