STOCKS NEWS US-Volatility to remain high: Credit Suisse

Stocks on the move Real-time Equity news U.S. stock market report 1133 EST 02Nov2009-Volatility expected to remain elevated: Credit Suisse ------------------------------------------------------------------------------ The Chicago Board Options Exchange Volatility Index -- Wall Street's favorite barometer of investor sentiment -- rose above 30 for a second consecutive day on Monday after stocks sold off sharply on worries about the potential bankruptcy of CIT Group. The so-called VIX was now at 28.56, down from 30 in earlier trading, and after closing up more than 24 percent at 30.69 on Friday. Friday marked the first since July for VIX to end above 30. This week's combination of earnings from nearly 100 S&P 500 companies and a heavy macro calendar will continue to keep volatility elevated, said portfolio and derivatives strategists at Credit Suisse, in a note to clients. Monetary policy will be a key focus, with central banks' decisions from the U.S. on Nov 4, and Europe on Nov. 5. The VIX, a 30-day risk forecast priced off of Standard & Poor's 500 options, often rises when stocks decline as investors bid up options to manage market risk. Reuters Messaging: [e-mail] 1125 ET 02Nov2009-Option sentiment on BB&T stays cautious ------------------------------------------------------------------------------ BB&T Corp rose 4.68 percent is $25.03 near midday after two brokerage firms upgraded the bank to hold from sell. But sentiment in the options market remained cautious, said WhatsTrading.com option strategist Frederic Ruffy. According to Trade Alert, about 11,000 put options crossed the tape vs. 2,833 calls. In the January 2010 contract, the puts at the $26 line grabbed interest, with 6,130 lots traded and 79 percent trading ask-side. It appeared to be put buying, Ruffy said. The November $24 and $27 put strikes were also popular with two-way traffic, The stock's option implied volatility was steady at 48 percent, Ruffy said. Reuters Messaging: [e-mail] 1116 EST 02Nov2009-First State Bancorp slumps on wider earnings loss ------------------------------------------------------------------------------ Shares in First State Bancorp plunged 33 percent to 66 cents after the parent company of First Community Bank posted a wider quarterly loss as net interest income fell, provision for bad debt soared, and the bank said it was considered undercapitalized. Reuters Messaging: [e-mail] 1108 EST 02Nov2009-YRC Worldwide drops on details of debt exchange ------------------------------------------------------------------------------ Shares of YRC Worldwide plummeted on Monday, as the company moved to launch a critical debt exchange offer this week. Analysts said that the details of the plan to convert about $500 million of debt for equity looked to be more dilutive than expected. For details, see The stock dropped 54 percent to $1.70. Reuters Messaging: [e-mail] 1103 EST 02Nov2009-Dean Foods slumps as higher outlook falls short ------------------------------------------------------------------------------ Shares in Dean Foods Co slumped 8.9 percent to 16.63 on Monday after the Top U.S. dairy company raised its full year earnings forecast by less than expected even as it beat Wall Streets earnings estimates in the third quarter. For more, see Reuters Messaging: [e-mail] 1055 EST 02Nov2009-Clorox shares up as flu fears boost profit ------------------------------------------------------------------------------ Shares in Clorox Co rose 1 percent to $59.81 as strong sales of disinfecting products spurred by the H1N1 flu pandemic helped the household products company post a bigger-than-expected quarterly profit. The Dow Jones non-durable household products index rose 0.8 percent. For more on this story, see Reuters Messaging: [e-mail] 1041 EST 02Nov2009-Morgan Stanley upgrades Cooper Industries ------------------------------------------------------------------------------ Shares of Cooper Industries Ltd rose on Monday, after Morgan Stanley upgraded the stock to "overweight," expecting it to grow through acquisitions. "Cooper is well positioned to participate more aggressively in transactions," the firm wrote to clients. For details, see Cooper shares gained 1.1 percent to $39.13. Reuters Messaging: [e-mail] 1032 EST 02Nov2009-CIT shares tumble after trading resumed ------------------------------------------------------------------------------ Shares in CIT Group fell 64 percent to 26 cents on Monday shortly after trading in the lender's stock resumed on the New York Stock Exchange. CIT's shares were suspended after the lender filed for bankruptcy on Sunday. NYSE says it will suspend the shares prior to the market open on Tuesday. Reuters Messaging: [e-mail] 1019 EST 02Nov2009-Markets rise after home sales, ISM data ------------------------------------------------------------------------------ U.S. stocks rose on Monday, with the Nasdaq turning positive following the release of some data that was better than expected. According to the National Association of Realtors, pending home sales rose 6.1 percent in September, compared with the expectation for flat sales in the month. In addition, the Institute for Supply Management said its index of national factory activity rose to 55.7 in October, above the expectation for a reading of 53. The Dow Jones industrial average rose 1.3 percent to 9,832.25 while the S&P 500 gained 1.3 percent to 1,048.69 and the Nasdaq was up 0.6 percent to 2,058.82. Reuters Messaging: [e-mail] 0957 EST 02Nov2009-Starwood cuts annual dividend by 78 percent ------------------------------------------------------------------------------ Starwood Hotels & Resorts Worldwide Inc on Monday cut its annual cash dividend by 78 percent, lowering it to 20 cents from 90 cents. When the company reported its third-quarter results recently, it indicated that it saw a slower recovery for the hotel industry. For details, see Shares of the company fell 2.6 percent to $28.31. Reuters Messaging: [e-mail] Keywords: MARKETS STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.