STOCKS NEWS US-Major automakers post strong results

Stocks on the move Real-time Equity news U.S. stock market report 1340 ET 29Oct2009-Major auto suppliers post strong results ------------------------------------------------------------------------------ Major auto suppliers Tenneco and Federal Mogul reported improved quarterly results on Thursday and forecasted a continued recovery with the worst of the downturn now behind. Federal-Mogul's quarterly profit more than doubled from a year earlier and Tenneco Inc's results beat Wall Street's views, as both cut costs to address the economic downturn and production cuts by their automaker customers. Shares of Tenneco jumped 8.3 percent to $14.63 on the New York Stock Exchange after the results, but Federal-Mogul shares shed 5.1 percent to $11.05, with investors continuing to sell off after a strong rally in the stock that began in September. Reuters Messaging: [e-mail] 1258 ET 29Oct2009 Some option bears sell Avon call options ------------------------------------------------------------------------------ Bearish option traders threw in the towel on Avon Products Inc ,salvaging whatever premium they could by selling out-of-the-money call options in the November contract, said Andrew Wilkinson, senior market analyst at Interactive Brokers Group, in a note. Avon, the world's largest direct seller of cosmetics, reported third-quarter revenue that fell short of analysts' estimates, hurt by worse-than-expected revenue in North America, and its shares fell as much as 8.7 percent. But the stock recovered by the afternoon to stand at $32.45, down 1.7 percent. Earlier, the November $35 strike had 2,300 calls shed for 10 cents apiece while the lower November $34 strike had 1,600 calls sold for 20 cents each. "Call sales suggest investors expect no miracles ahead of expiration next month," he said. Trade Alert data show about 11,000 calls and 6,415 calls traded during the first half of the session. Reuters Messaging: [e-mail] 1220 ET 29Oct2009 Emerging market ETF draws many option plays ------------------------------------------------------------------------------ The iShares Emerging Markets Fund attracted numerous option plays that included spreads and delta-neutral strategies with both stock and option components. In afternoon trade, the exchange-traded fund's shares rose 3.9 percent to $38.21. Option traders exchanged about 151,000 contracts in the ETF, according to Trade Alert. WhatsTrading.com option strategist Frederic Ruffy highlighted some early transactions. They included a December $33-$37 put spread, which traded 7,500 times. It looked like a buyer of the spread paid 88 cents in premium, he added. Another player collected $2.77 on the Nov $36-$42 (1X2) call ratio spread. It traded 3,000 times, which was delta neutral against shares at $38.70. The January $36-$40 risk-reversal traded 2,500 times at 21 cents and was tied to shares at $38.80 on a 21 delta. In another trade, the Dec $40-$44 call spread was bought at $1.11, 2,000 times, against $38.68 on 28 delta. Reuters Messaging: [e-mail] 1216 ET 29Oct2009-Players target Human Genome call options ------------------------------------------------------------------------------ Shares of Human Genome Sciences Inc jumped more than 12 percent to $20.17 in afternoon trade after JPMorgan upgraded the stock to "overweight" from "neutral." In the options market, volume was double the average daily turnover as about 70,000 calls and 12,000 puts traded, according to Trade Alert. On Nov. 2, Human Genome expects to announce results from a second 52-week trial of its experimental lupus drug Benlysta known as BLISS-76. "Upside calls are active as some investors anticipate that its upcoming results on their lupus drug will be positive," said William Lefkowitz, option strategist at vFinance Investments. The focus was on the November $25 and $30 call strikes, which had a combined volume of 30,372 contracts traded, Trade Alert data show. Reuters Messaging: [e-mail] 1155 ET 29Oct2009-CME profit drops but beats view; shares off 1.2 pct ------------------------------------------------------------------------------ CME Group Inc's adjusted quarterly profit fell 20 percent on Thursday, but cost cuts helped the derivatives exchange operator beat expectations. The company's shares were down 1.1 percent, but the decline was relatively small, compared to its peers. CME Group's management said signs of economic recovery could soon spring volumes from a multi-quarter slump. The company, which is very sensitive to a pending revamp of U.S. markets, also said recent moves by politicians and regulators to protect markets from a future crisis point to a "net positive" for the world's biggest derivatives exchange. Reuters Messaging: [e-mail] 1115 ET 29Oct2009-Reasons to stay invested amid the pullback-Birinyi ------------------------------------------------------------------------------ With the benchmark S&P 500 declining roughly 5 percent from its post-March peak reached on Oct 19, the U.S. stock market has entered a "marginal correction" but there are reasons to stay invested, market research firm Birinyi Associates said in a note. If you did not sell at the top, reasons to stay invested: * The market remains in a strong uptrend: momentum is to the upside. * The 10-day Advance-Decline line for the S&P is now at the lower end of the range. If you did sell at the top: * The market has declined 5 percent from its peak; the average decline since 1962 is -9.98 percent over 40 days. * The bottom of the trading range is 1,022. The market has only been oversold for four trading days since the March 9 low. Reuters Messaging: [e-mail] 1048 ET 29Oct2009-Geithner says Fed should lose AIG-style bailout powers ------------------------------------------------------------------------------ U.S. Treasury Secretary Timothy Geithner said the Federal Reserve should lose its authority to bail out big, failing financial firms like AIG and Bear Stearns under proposed reforms aimed at limiting the collateral damage from such failures. In testimony to the U.S. House of Representatives Financial Services Committee, Geithner said the Fed should keep its ability to act as an emergency lender of last resort, but only to solvent firms in times of severe stress in financial markets -- with Treasury consent. Geithner also said a bill by the Financial Services Committee's chairman, Representative Barney Frank, meets the tests for key elements of a resolution authority that the Obama administration would like to see passed. Reuters Messaging: [e-mail] 1002 ET 29Oct2009-Players eye Blackstone Group call options ------------------------------------------------------------------------------ A number of option investors appear to be positioning for extended gains in private equity firm Blackstone Group LP as its shares rose 5.9 percent to $13.66 this morning. There was notable upside call buying in Blackstone. The focus is on March 2010 $16 calls, where a customer paid $1.20 to $1.25 for a total of nearly 3,500 contracts to open a new position, Trade Alert President Henry Schwartz said. In all, 5,322 calls and 917 puts traded in the first 30 minutes of trade. Directional sentiment based on order flow was 61 percent bullish, according to Trade Alert data. 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