STOCKS NEWS US-Earnings diary for May 21

Stocks on the move [HOT-RTRS] Real-time Equity news [U E] [RESF/US]

U.S. stock market report [.N]
1806 ET 20May2009-Earnings diary for May 21
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The following companies are due to post quarterly results on Thursday:

Aeropostale Inc (ARO.N)

Autodesk Inc (ADSK.O)

Barnes and Noble (BKS.N)

Brocade Comms (BRCD.O)

Foot Locker Inc (FL.N)

GameStop Corp (GME.N)

Gap Inc (GPS.N)

Hormel Foods Corp (HRL.N)

LDK Solar Co Ltd (LDK.N)

Suntech Power (STP.N)

For more details, see [RESF/US]

Reuters Messaging: ellis.mnyandu.reuters.com@reuters.net
1744 ET 20May2009-BofA, Citi, others spur NYSE's volume
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Financials were back to dominating market volume on Wednesday, according to
Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

Volume for Bank of America (BAC.N), Citigroup (C.N), Wells Fargo (WFC.N),
JPMorgan (JPM.N) and the following financial ETFs -- (XLF.P), (FAZ.P) and
(FAS.P) -- represented 39 percent of the New York Stock Exchange's consolidated
volume on Wednesday, he said.

Even more striking was one stock, Bank of America, traded more than a
billion shares and represented 17 percent of the NYSE consolidated volume, he
added. "The high frequency automated traders must have blown a fuse in their
supercomputers trading Bank of America today."

Reuters Messaging: ellis.mnyandu.reuters.com@reuters.net
1729 ET 20May2009-Financial ETF attracts bearish put trade
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Shares of the Financial Select Sector SPDR exchange-traded fund (XLF.P)
fell 2.66 percent to $11.71. In the options market, a number of high-roller
option investors pumped up the fund's volume. Andrew Wilkinson, senior market
analyst at Interactive Brokers Group said one transaction that grabbed his
attention occurred in the July contract. "It appears that one banking
sector-bear sold 21,000 calls at the July $13 strike price for 54 cents each in
order to finance the purchase of 21,000 puts at the July $11 strike for an
average premium of 71 cents," he said. The net cost of the protective puts was
17 cents and yields profits to the downside starting at any share price below
the break even point at $10.83. He noted the investor would require that shares
of the ETF fall another 9 percent from the reference price of $11.90 so that
profits from the long-put position would build by expiration. The XLF was
trading below $10.70 back in May and it appears the put buyer sees shares
falling back down by expiration, he said.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1606 ET 20May2009-US STOCKS SNAPSHOT-Financials, Fed caution sink Wall St
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U.S. stocks fell on Wednesday, as financial shares sold off following their
recent run-up and as the Federal Reserve offered a more pessimistic view on the
economy's prospects.

For more details, see [.N]

Reuters Messaging: ellis.mnyandu.reuters.com@reuters.net
1338 ET 20May2008-Goldman suggests sell Intuit June straddles before earns
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Sell Intuit Inc (INTU.O) June straddles to capture elevated option prices
and position short implied volatility, Goldman Sachs option strategists said in
a note. Intuit is due to report quarterly earnings today. "We see balanced
risk/reward ahead of earnings given the strong position of the company's tax
business but strong macro headwinds," they said. "Valuation is broadly in line
with peers and the recent mid-quarter update should reduce the impact of
reported numbers." But they noted implied volatility screens high versus
Goldman's software coverage and is at an 8-point premium to recent realized.
The strategists recommend shareholders sell Intuit June $25 straddles for
$2.15. With shares at $25.16, the strategy generates attractive upfront
premium, positions short volatility and breaks even at $22.85 and $27.15 with
the risk of committing to buy or sell shares at $25 at expiration. Goldman
estimates Intuit options imply a plus/minus 8 percent move on earnings vs. an
eight-quarter median swing of 4 percent.

Reuters Messaging: doris.frankel.reuters.com@reuters.net
1309 ET 20May2009-Goldman favors Boeing July calls, positive catalysts ahead
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Boeing Co (BA.N) calls look attractive as industry conferences and 787
Dreamliner events in the next two months should act as positive catalysts for
the Aerospace sector and Boeing, Goldman Sachs option strategists said in a
note. "We expect 787 first flight in June and improving order trends to drive
upside and recommend buying Boeing calls to position with limited risk, given
the still difficult operating environment and stock-specific headwinds," they
said. Implied volatility has moved lower but skew is above its one-year
average. With shares at $44.62, they suggest investors purchase July $45 calls
for $2.40. The strategy provides upside participation 1 percent above current
levels, positions long volatility at attractive levels and breaks even if
shares rise 6 percent at expiration. Call buyers lose their entire premium
invested if shares stay below $45 by expiration, they said.

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