STOCKS NEWS US-U.S. economic diary for June 17

Stocks on the move [HOT-RTRS]

Real-time Equity news [U][E] [RESF/US]

For U.S. stock market report double-click [.N]
1749 ET 16June2009- U.S. economic diary for June 17
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The day's economic agenda includes data on consumer prices at 8:30 a.m.
(1230 GMT)

For more please double click [ECI/US]

Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net
1532 ET 16June2009 Player takes bearish stance in Caterpillar
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One investor appears to be betting on a big downside move in the shares of
Caterpillar Inc (CAT.N), the world's largest maker of construction equipment
with a butterfly $10-$20-$30 put spread in the November contract. CAT shares
fell 44 cents to $35.68. It looks like the investor bought 20,000 puts at each
of the $10 and $30 strikes for the wings and sold 40,000 lots at the central
$20 strike, said Interactive Brokers Group market analyst Andrew Wilkinson.
With the net premium at $1.55, the trade would start to generate a profit at
$28.45, a 20 percent decline using a share price of $35.65. To reach maximum
profit potential on the trade, CAT shares would need to fall to the central
strike price of $20, below the 52-week low at 21.72 by November expiration.
"With Caterpillar a big Dow component and a significant beneficiary of the
Chinese infrastructure story, the investor is likely speculating that it will
be a casualty of the next bear move in the market," he said.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1515 ET 16June2009-Health Insurers rise after CBO estimate
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Health insurer stocks rose on Tuesday after the nonpartisan Congressional
Budget Office estimated that U.S. Senator Edward Kennedy's plan to expand
healthcare coverage would increase the federal deficit by about $1 trillion
over 10 years. [ID:nN15202216]

The CBO estimated that once the plan was fully implemented, about 39
million Americans would get coverage through new insurance exchanges.

However, the CBO estimated the net decrease in the number of uninsured
people would be about 16 million after accounting for the 15 million estimated
to be dropped by employer coverage and 8 million dropped from other coverage
sources.

Cigna Corp (CI.N) shares gained 5.7 percent to $21.56 while the Morgan
Stanley Healthcare Payor index .HMO rose 2.6 percent.

Reuters Messaging:rm://Charles.mikolajczak.reuters.com@reuters.net
1446 ET 16June2009 Traders eye VIX upside August calls
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The CBOE Volatility Index .VIX rose 5 percent to 32.34 late in the
session, and the August VIX upside 50 calls are the busiest index contract as a
number of players appeared to be looking for a substantial rise in volatility
this summer. The VIX advanced as U.S. stocks accelerated their decline on mixed
economic data that spurred worries the economic recovery may be anemic. The
VIX, a 30-day risk forecast priced off Standard & Poor's 500 .SPX index
options, often moves inversely to the S&P benchmark. One player bought 25,000
August 50 calls for 75 cents against a position in futures at 31.00, said
WhatsTrading.com strategist Frederic Ruffy. Two other blocks of 10,000 and
8,800 were also purchased this morning for 75 cents. In his daily commentary,
Stifel Nicolaus option strategist Elliot Spar noted a large buyer in the VIX 50
calls. The spot VIX took out 31.80, viewed as resistance. A two-day close above
that level would be convincing about a breakout in the VIX and implies a lower
S&P 500, he said.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1434 ET 16June2009-Ashford stock tumbles on Extended Stay's Chapter 11
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Shares of Ashford Hospitality Trust Inc (AHT.N) dropped on Tuesday, hurt by
mounting problems for its hotel lending portfolio after U.S. chain Extended
Stay Hotels filed for Chapter 11 bankruptcy protection.

Extended Stay filed Chapter 11 on Monday about two years after Lightstone
Group LLC purchased the 680-property hotel chain. Lightstone borrowed $7.4
billion from a number of lenders, including Ashford, to buy the chain from
private equity firm Blackstone Group LP (BX.N).

Extended Stay's bankruptcy filing means Ashford's investment will be worth
little, if anything, under the most likely scenario, Baird analyst David Loeb
wrote in a research note.

For details, see [ID:nN16388554]

The stock dove 20 percent to $3.09.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1431 ET 16June2009-Treasury won't pitch new insurance regs: source
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The U.S. Treasury Department will not propose a new regulatory framework
for the insurance industry when it outlines sweeping new rules for the
financial services sector, sources familiar with the plans said on Tuesday.

Rep. Barney Frank, chairman of the House Financial Services Committee, said
on Tuesday that the Treasury Department is not ready to weigh in on the key
question of an "optional federal charter" for insurers, according to industry
sources who heard him speak.

For details, see [ID:nN16450131]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
1426 ET 16June2009-Selloff pressures Wall St's technical footing
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Wall Street's selloff on Tuesday took some of the shine off what had been a
technically sound footing.

The Dow Jones industrial average .DJI was headed for its second straight
daily close below it's 200-day moving average.

For its part, the benchmark S&P 500 came within striking distance of
breaking below its 200-day moving average on an intraday basis.

The S&P 500 has not closed below the key technical measure since June 1.
Market technicians use moving averages to determine the market's likely
direction or trend.

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