NEW YORK, Jan 12 (Reuters) - Short interest fell on both
the Nasdaq and New York Stock Exchange in late December,
reflecting a decrease in bearish sentiment.

Short interest fell 2.2 percent on the NYSE from
mid-December to late December, while on Nasdaq, it fell by 5.2
percent over the same period.

The following list shows stocks that saw increased interest
from short sellers, who bet that a certain stock's price will
fall, and key recent news events for those stocks. The data
reflect short trades with a settlement date of Dec. 31, 2008.

For full story please see: [ID:nnN12388048]. For the
biggest changes in NYSE short interest, please [nN12287187],
and on the Nasdaq. [ID:N12306008]

DISCOVER FINANCIAL SERVICES CO (DFS.N: Quote, Profile, Research)

Short interest rose 46.5 percent in the company.

On Dec. 22, credit card company stocks slid, with Discover
shares falling 3.5 percent, after Visa Inc (V.N: Quote, Profile, Research) said it had
set aside an additional $1.1 billion to cover legal expenses.

About 16.32 million of the company's shares were held
short, or 3.4 percent of its total shares outstanding.

DOW CHEMICAL CO (DOW.N: Quote, Profile, Research)

Short interest rose 34.1 percent in the company.

Kuwait decided on Dec. 28 to scrap a deal to form a $17.4
billion petrochemical joint venture with Dow [ID:nLS308821],
and on Dec. 31, ratings agency Fitch Ratings said it may cut
Dow's ratings. [ID:nN31312224]

About 24.6 million of the company's shares were held short,
or 2.7 percent of its total shares outstanding.

AUTONATION INC (AN.N: Quote, Profile, Research)

Short interest rose 28 percent in the company.

The auto retailer's corporate rating was lowered by
Standard & Poor's Ratings Services on Dec. 24 because of the
"additional risk that the weak economy will cause consumers to
defer" visits, S&P wrote in a note. [ID:nWNA3082]

About 28.5 million of the company's shares were held short,
or 16.1 percent of its total shares outstanding.

NOBLE CORP (NE.N: Quote, Profile, Research)

Short interest rose 39.3 percent in the company.

The offshore oil and gas drilling company's shares slid 2.3
percent on Dec. 19 after it announced plans to reincorporate in
Switzerland, rather than the Cayman Islands. [ID:nN19461291]

About 9.9 million of the company's shares were held short,
or 3.8 percent of its total shares outstanding.

PEPSICO (PEP.N: Quote, Profile, Research)

Short interest rose 26.3 percent in the company.

The soft drink maker said on Dec. 15 that it was unlikely
to make any North American soft drink acquisitions in the
current economy. [ID:nN15525227]

About 12.6 million of the company's shares were held short,
or 0.8 percent of its total shares outstanding.

GENWORTH FINANCIAL INC (GNW.N: Quote, Profile, Research)

Short interest rose 32.7 percent in the company.

The insurer said on Dec. 18 it would cut 1,000 jobs to
reduce costs amid the economic downturn, and expected to record
a pre-tax charge of about $45 million in the fourth quarter for
various restructuring costs. [ID:nN18416547]

About 10.5 million of the company's shares were held short,
or 2.4 percent of its total shares outstanding.

DILLARD'S (DDS.N: Quote, Profile, Research)

Short interest rose 32.4 percent in the company.

The department store chain's shares fell 9.4 percent on
Dec. 26 on news of the first decline in U.S. retail holiday
sales in at least 40 years. [ID:nN26272649]

About 10.4 million of the company's shares were held short,
or 14.1 percent of its total shares outstanding.

JANUS CAPITAL GROUP INC (JNS.N: Quote, Profile, Research)

Short interest rose 37.5 percent in the company.

Moody's Investors Service on Dec. 22 changed its outlook to
negative for the investment company, because of "anticipated
declines in the company's assets under management primarily
because of the dramatic drop in equity markets." [ID:nWNA2804]

About 7.6 million of the company's shares were held short,
or 4.8 percent of its total shares outstanding.

AMAG PHARMACEUTICALS INC (AMAG.O: Quote, Profile, Research)

Short interest rose 24.8 percent in the company.

The company's shares dropped 20 percent on Dec. 23 after
the U.S. Food and Drug Administration asked for additional data
about its experimental anemia drug, ferumoxytol.
[ID:nBNG185449]

About 5.3 million of the company's shares were held short,
or 31 percent of its total shares outstanding.

QUALCOMM INC (QCOM.O: Quote, Profile, Research)

Short interest rose 32.9 percent in the company.

Jefferies cut the wireless technology company's price
target to $39 from $45 on Dec. 18. [ID:nnWNAB4157]

About 37.3 million of the company's shares were held short,
or 2.3 percent of its total shares outstanding.
(Reporting by Phil Wahba; editing by Richard Chang)