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STOCKS NEWS US-Players snap up bearish Mosaic put options
June 3, 2009 / 3:41 PM / 8 years ago

STOCKS NEWS US-Players snap up bearish Mosaic put options

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For U.S. stock market report double-click [.N] 1131 ET 03June2009-Mosaic bearish put options gain traction ------------------------------------------------------------------------------

Investors have been loading up on bearish put options in Mosaic Co (MOS.N) as shares of the North American fertilizer company fell 5.09 percent to $53.12 near midday. The puts are a “bearish tell,” said Jon Najarian, founder of optionMonster.com, in comments on the firm’s website. About 28,000 puts traded, or more than double the amount of calls, according to Trade Alert. Mosaic averaged 6,500 puts per day over the past week, Najarian said. Recent trades include a purchase of 9,600 September $35 puts for an average of $1.425 per contract, said WhatsTrading.com option strategist Frederic Ruffy. Reuters data show that 13,294 contracts traded earlier in the strike, more than three times its open interest, indicating new positions were initiated. The stock’s option implied volatility rose to 62.5 percent from about 60 percent the previous day..

Reuters Messaging: doris.frankel.reuters.com@reuters.net 1113 ET 03June2009-Bernanke warns on deficits ------------------------------------------------------------------------------

U.S. Federal Reserve Chairman Ben Bernanke on Wednesday warned that rising U.S. debt was contributing to a jump in longer-term interest rates and said now was the time to start working on reining in deficits.

Speaking to the U.S. House of Representatives Budget Committee, he also sounded more confident that the end of the recession was getting closer and that economic growth would resume this year, citing signs that the housing market was bottoming and hopes that stimulus money would boost consumer spending.

For details, see [ID:nN03107471]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1101 ET 03June2009-Baird starts coverage on Wal-Mart, Target ------------------------------------------------------------------------------

Robert W. Baird on Wednesday started coverage on Wal-Mart Stores (WMT.N) and Target Corp (TGT.N), rating both retailers as outperform.

The firm wrote that Wal-Mart was trading at a discount while Target was poised to benefit from an expected recovery in consumer spending.

“With traffic flowing to Wal-Mart stores and customers starting to migrate over to higher margin categories, we think the market is under-appreciating the durability of the company’s improved fundamentals,” Baird wrote.

For details, see [ID:nBNG76523]

Shares of Wal-Mart, a Dow component, rose 1.9 percent to $50.90 while Target was up 0.1 percent to $41.32.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1056 ET 03June2009 Financial ETF draws big ratio put spread ------------------------------------------------------------------------------

The September $9 put options in the Financial Select Sector SPDR exchange-traded fund (XLF.P) was the top favorite in the options market in morning trade. The ETF’s shares fell 0.66 percent to $12.08. A total of 100,000 contracts traded in the September $9 strike along with 50,000 July $12 puts. The heavy volume appeared to be tied to a 1x2 ratio (diagonal) spread initiated by a buyer who purchased the July $12 strikes for a premium of 84 cents and sold the September $9 strikes for 35 cents and paid 14 cents for the trade, said WhatsTrading.com option strategist Frederic Ruffy. It looked like opening trades in both contracts, he said. If so, the investor is expecting the XLF to go below $12 but not a big move beyond that by July expiration.

Reuters Messaging: doris.frankel.reuters.com@reuters.net 1040 ET 03Jun2009-Exxon, Chevron sink on EIA data, weigh on market ------------------------------------------------------------------------------

Shares of Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N) slid to session lows following a government report that showed crude inventories rose unexpectedly in the recent week.

The data weighed on crude oil prices, with U.S. front-month crude CLc1 falling 2.03 percent, or $1.39, to $67.09 a barrel. Exxon shares slid about 2 percent to $71.57, while Chevron declined 2.6 percent to $67.55.

The energy sector was the top drag on the broader S&P 500 .SPX index, down 1.45 percent.

The S&P energy index .GSPE was off 3.1 percent.

Reuters Messaging: ellis.mnyandu.reuters.com@reuters.net 1024 ET 03June2009-Markets extend losses after data ------------------------------------------------------------------------------

Major U.S. indexes fell on Wednesday, extending their losses after weaker-than-expected factory orders and services data, which signaled that economic conditions remained tough.

For details, see [ID:nN036511]

The Dow Jones industrial average .DJI fell 1.3 percent to 8,630.24 while the S&P 500 .SPX lost 1.7 percent to 929.07 and the Nasdaq .IXIC was off 1.2 percent to 1,815.63.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1014 ET 03June2009-U.S. service sector shrank in May: ISM ------------------------------------------------------------------------------

The U.S. services sector shrank again in May, according to the Institute for Supply Management’s nonmanufacturing index.

The index edged up to 44.0 in May from 43.7 in April. The analyst consensus estimate was for a reading of 45.0.

Any reading below 50 represents contraction in the sector.

For details, see [ID:nWEN9983]

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net

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