STOCKS NEWS US-Wells Fargo ups semis growth projection

Stocks on the move Real-time Equity news U.S. stock market report 1245 ET 09Nov2009 Wells Fargo ups semis growth projection ------------------------------------------------------------------------------ Wells Fargo raised on Monday its 2010 chipmakers growth projection to 15 percent to 25 percent from 10 percent to 20 percent as analysts saw "very positive data on semiconductors and electronic end market fundamentals" following companies' quarterly earnings and outlooks. The equity research note said Wells Fargo believes worldwide semiconductor capacity utilization might run as high as 95 percent to 100 percent through much of 2010. The note reiterated an "overweight" rating on semis, while their top pick continued to be Intel Corp, up 2.1 percent to $19.33 on Monday. Other chipmaker stocks with "outperform" ratings at Wells Fargo include Micron Technology Inc, up 6.6 percent to $7.55, and Xilinx Inc, up 2.2 percent to $22.37. The PHLX semiconductor index jumped 2.8 percent, its largest daily percentage gain in a month. Reuters Messaging: [e-mail] 1222 EST 09Nov2009-Goldman upgrades Salesforce.com to "neutral" ------------------------------------------------------------------------------ Shares of Salesforce.com rose on Monday, lifted after Goldman Sachs upgraded the company to "neutral" and removed it from its Americas Sell List. The firm wrote that it expects the company to post strong quarterly results and a surge in bookings. For details, see The stock gained 3.7 percent to $63.27. Reuters Messaging: [e-mail] 1205 ET 09Nov2009 Volatility gauge gets November option plays ------------------------------------------------------------------------------ The CBOE Volatility Index fell 2.48 percent to 23.59, and is above session lows of 23.36. The so-called VIX, a 30-day risk forecast priced off of the S&P 500 index, dipped as the S&P benchmark rose 1.57 percent to 1,086.08. VIX futures fell with the November contract at 23.85, slightly above spot VIX, and December was trading at 25.10. VIX November options and futures come off the board next Wednesday. WhatsTrading.com option strategist Frederic Ruffy noticed several VIX option trades in the front month November contract. They include the November 20-22.50 put spread, bought at 50 cents and traded 25,000 times. Earlier, the November 35-42.50 call (1X2) ratio spread traded at one cent, 12,000 times, which was possibly a closing trade or a very cheap way to play the VIX for a rally over the next eight days, he said. Reuters Messaging: [e-mail] 1152 EST 09Nov2009-Hercules Offshore rallies after upgrade ------------------------------------------------------------------------------ Shares of Hercules Offshore Inc rallied on Monday, after Credit Suisse upgraded the stock to "outperform,' citing improving demand for Gulf of Mexico jackup rigs and inland barges. The firm wrote that though the rebound in demand was partially seasonal in nature, drillers' comments during the third-quarter earnings season and an increase in permits suggest further rig count gains were likely. For details, see The stock climbed 14 percent to $5.75. Reuters Messaging: [e-mail] 1113 EST 09Nov2009-Home prices flat in Q3, fewer underwater: Zillow ------------------------------------------------------------------------------ Home values in the United States stabilized in the third quarter and fewer mortgages were "underwater," but impending foreclosures could threaten to delay a housing market recovery, real estate website Zillow.com said on Monday. Stabilization of the hard-hit U.S. housing market is seen as key to an economic turnaround so a delayed rebound would likely prolong a recovery for the world's largest economy. The amount of single-family homes with mortgages underwater, or in negative equity, dipped to 21 percent in the third quarter, down from 23 percent in the second quarter, as home values stabilized in the short term and more underwater homeowners lost their homes to foreclosure, according to the recent quarter's Zillow Real Estate Market Reports. For details, see Reuters Messaging: [e-mail] Keywords: MARKETS STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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