STOCKS NEWS US-BofA-Merrill upgrades Western Digital, Seagate

STOCKS NEWS Reuters Results diary Stocks on the move Real-time Equity news U.S. stock market report 1442 ET 06July2009-BofA-Merrill upgrades Western Digital, Seagate ------------------------------------------------------------------------------ Bank of America-Merrill Lynch upgraded Western Digital Corp and Seagate Technology to "buy" from "underperform," citing improving hard disk drive (HDD) fundamentals and substantial operating leverage based on supply chain rationalization and cost reductions. The brokerage said its conclusions were based on improved pricing in desktop and notebook space on capacity reductions, continued low inventory levels for manufacturers and signs of stabilization in PC build plans. The brokerage believed recent share performance for both companies should continue and expected another run in the shares, driven primarily by leverage and positive earnings estimate revisions. For details, see Shares of Seagate dropped 3.2 percent to $9.95 while Western Digital was down 0.8 percent to $16.01. Reuters Messaging: [e-mail] 1420 ET06July2009-Smithfield slides after plant fire ------------------------------------------------------------------------------ Smithfield Foods Inc shares slid on Monday after the world's largest pork processor and hog producer said its Patrick Cudahy meat packing plant in Wisconsin was extensively damaged by fire but employees were able to escape unharmed. Smithfield shares fell 4.4 percent to $13.10 while rivals Hormel Foods Corp gained 0.5 percent to $34.70 and Tyson Foods Inc added 0.1 percent to $12.67. Reuters Messaging:rm://[e-mail] 1414 ET 06July2009-FormFactor climbs after upgrade ------------------------------------------------------------------------------ FormFactor Inc shares rose on Monday after Oppenheimer upgraded the stock, citing checks confirming an oder recovery in the near future. The firm upgraded the maker of wafer probe cards to "outperform" from "perform" and boosted its price target on the stock to $30, citing checks indicating Formfactor gained visibility after wafer probe orders tripled sequentially from its largest customer, Elpida, for the third-quarter. Shares climbed 6.2 percent to $19.79. Reuters Messaging:rm://[e-mail] 1238 ET 06July2009 Fear index rises on earnings, recovery worries ------------------------------------------------------------------------------ The CBOE Volatility Index, the implied volatility measure of the S&P 500 index, revisited the 30 level as U.S. stocks lost ground amid concerns about the potential strength and timing of an economic recovery. Investors were on the defensive when U.S. crude oil futures fell to around $64 a barrel, sending energy shares lower. The new earnings season also kicks off on Wednesday when aluminum giant Alcoa reports. The VIX rose 7.69 percent to 30.10 after notching a high of 30.60. "This is a big concern about the quality of second quarter earnings which start reporting this week. With oil prices going down (and) tech stocks looking a little weak, this is indicative that the recovery of the economy may not be taking hold as many as expected," said Herb Kurlan, chief executive of online traading firm Vtrader Pro in San Francisco. With the VIX up, this indicates SPX puts and other index puts are in demand, he added. Reuters Messaging: [e-mail] 1208 ET 06July2009-Mexico anti-trust agency rules Telmex "dominant" ------------------------------------------------------------------------------ Mexico's competition watchdog has ruled that telephone giant Telmex is dominant in the local services and dedicated line leasing markets in Mexico. The ruling opens up the behemoth, which has 80 percent market share and is owned by billionaire Carlos Slim, to extra regulation to curb its power. For analysis, see. Telmex shares fell 1.9 percent to $15.86. Slim's cellphone company America Movil, which also has 80 percent market share, fell 1.82 percent to $37.85. Reuters Messaging: [e-mail] Keywords: MARKETS STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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