STOCKS NEWS US-Akamai Tech shares up after results

Stocks on the move Real-time Equity news U.S. stock market report 1700 ET 28Oct2009-AFTER THE BELL-Akamai Tech shares up after results ------------------------------------------------------------------------------ Akamai Technologies Inc shares rose more than 4 percent in extended trading on Wednesday after the Internet content delivery company reported revenue growth that beat expectations.. Shares last traded up 4.2 percent at $21. For more please double click Reuters Messaging: [e-mail] 1656 ET 28Oct2009-Solar energy shares drop after First Solar earns ------------------------------------------------------------------------------ Shares in solar energy companies fell in extended trading on Wednesday after industry bellwether First Solar said third-quarter revenue was far below Wall Street estimates. Shares in LDK Solar fell 2.6 percent to $6.86, Sunpower lost 1.8 percent to $25.59, Trina Solar shares lost 2.3 percent to $31.10, while Suntech Power lost 2.5 percent to $11.90. For more please double click Reuters Messaging: [e-mail] 1640 ET 28Oct2009-Wall St sinks on recovery fears; S&P falls 4th straight day ------------------------------------------------------------------------------ U.S. stocks tumbled in a broad sell-off on Wednesday, sending the benchmark S&P 500 lower for a fourth straight day, after weak data on new home sales heightened concerns about the pace of the economic recovery. Financials, technology, materials and industrial sectors, which underpinned the market's advance from March, bore the brunt of the slide as investors reassessed their bets. For more please double click Reuters Messaging: [e-mail] 1616 ET 28Oct2009-VIX closes at highest since Oct. 2 ------------------------------------------------------------------------------ The CBOE Volatility Index, a popular gauge of investor fear and complacency, closed at its highest since Oct 2 at 29.87 on Wednesday. The VIX was up 12.4 percent from a day ago, and up 14 percent from its 50-day moving average. The fear gauge fell near 20 last week for the first time in nearly a year, but decline in stocks weighed on investors' appetite for risk. The Dow Jones industrial average closed down 1.21 percent on Wednesday, its biggest one day fall since Oct 1. The Standard & Poor's 500 Index also closed down 1.95 percent and the Nasdaq Composite Index fell 2.67 percent on Wednesday. Reuters Messaging: [e-mail] 1351 ET 28Oct2009-Crude oil sinks on surprise gasoline build ------------------------------------------------------------------------------ December crude futures fell on Wednesday, extending their losses after a government report showed that gasoline stockpiles unexpectedly increased last week. The expectation had been for a decline in gasoline supplies in the week. For details, see The contract sank 2.6 percent to $77.49 per barrel. Reuters Messaging: [e-mail] 1347 ET 28Oct2009-AMR to cut 700 maintenance and engineering jobs ------------------------------------------------------------------------------ AMR Corp, the parent company of American Airlines, on Wednesday said it would eliminate up to 700 jobs as it downsizes its maintenance and engineering (M&E) operations. The cuts represent about 5 percent of the company's 12,700 M&E employees systemwide. For details, see Shares of AMR fell 5.1 percent to $5.60. Reuters Messaging: [e-mail] 1343 ET 28Oct2009-CIT Group secures $4.5 bln credit facility ------------------------------------------------------------------------------ Shares of CIT Group rallied on Wednesday, after the troubled lender obtained $4.5 billion more of financing from its creditors. The financing adds to a $3 billion loan arranged in July, and is being provided by a group of lenders that includes some of CIT's bondholders. For details, see The stock gained 13 percent to $1.09. Reuters Messaging: [e-mail] 1315 ET 28Oct2009-Goldman Sachs recommends Starbucks call spreads ------------------------------------------------------------------------------ Investors should consider buying Starbucks Corp call spreads ahead of Nov. 5 earnings, wrote Goldman Sachs derivative strategists in a note. "Shares are at the lower end of their three-month range and we expect above consensus earnings," they said. With shares at $19.09, they recommend investors buy SBUX Nov $20/$22 call spreads for 37 cents to position for upside in a range at reduced cost and moderately long implied volatility. The trade profits at expiration if shares top $20.37 with a best case payout of 5:1. They also estimate shares need to move about 5 percent on earnings, assuming a 10 percent decline in volatility and that options imply a plus/minus 5 percent move on earnings. Starbucks one-month implied volatility has dropped vs. consumer discretionary peers and the overall market in the past weeks but remains above average in relative terms, the note said. Reuters Messaging: [e-mail] 1255 ET 28Oct2009-Goldman Sachs suggests selling Cisco strangles ------------------------------------------------------------------------------ Sell Cisco Systems strangles ahead of Nov. 4 earnings, Goldman Sachs derivative strategists wrote in a note. To enhance return, they recommend shareholders sell Nov $23/$25 strangles for 80 cents. With shares at $23.55, the strategy positions short implied volatility with breakevens of $22.80 and $25.80 through Nov. 20 expiration in exchange for the commitment to buy/sell shares at $23/$25 at expiration. Investors can also consider selling Dec $25 covered calls for 50 cents, while retaining 9 percent upside through year-end. Goldman estimates Cisco options imply a plus/minus 4.5 percent move on earnings vs an 8-quarter median realized stock swing of 3 percent. The strategists expect earnings to be solid but not stock moving and prefer selling options with implied volatility at a large premium to recent realized and Nasdaq 100 option prices. Reuters Messaging: [e-mail] Keywords: MARKETS STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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