STOCKS NEWS US-Traders more defensive on tech stocks

Real-time equity news U.S. stock market report 0901 ET 12Nov2010 Option traders more defensive on tech stocks-WJB analyst ------------------------------------------------------------------------------ Options traders appear to be adding to risk valuations at this time, especially on technology shares, and managers are becoming increasingly defensive towards the end of the year, said Scott Fullman, director of derivative investment strategy at WJB Capital Group. "While we continue to believe that the market will rise, led by advances in the credit markets, short-term volatility and news can result in some downward pressure in the market," Fullman said. "Conversations with customers and traders indicate that concerns of a short-term decline are increasing." Taking an early look at November options expiration next week, call contracts that are currently worthless account for 30.9 percent versus 44.5 percent for put contracts as of Thursday's close. Trading in front-month November options accounted for 41 percent of total options volume on Thursday, he said. Reuters Messaging: [e-mail] 0756 EST 12Nov2010-Icahn offers $2 bln credit line to Dynegy ------------------------------------------------------------------------------ Investor Carl Icahn bought call options that would allow him to increase his stake in Dynegy Inc to 12.9 percent and said he will vote against Blackstone Group LP's proposal to buy the debt-ridden power company and will offer a $2 billion line of credit to the firm. Private equity firm Blackstone agreed to buy Dynegy in August for $543 million, or $4.7 billion including debt, but the deal must win shareholder approval at a meeting scheduled for Nov. 17. For details, see Shares of Dynegy closed Thursday at $4.63. Reuters Messaging: [e-mail] 0749 EST 12Nov2010-Wendy's shares tumble after Q3 loss ------------------------------------------------------------------------------ Shares of Wendy's/Arby's Group Inc fell 5.4 percent to $4.77 in premarket trading on Friday after the company posted a third-quarter loss. The fast food chain operator also warned its 2010 results would be at the lower end of its previous forecast. For details, see Reuters Messaging: [e-mail] 0735 EST 12Nov2010-Futures down on Ireland debt, China rate concerns ------------------------------------------------------------------------------ U.S. stock index futures fell on Friday on expectations China would raise interest rates, hitting commodity prices and sending the local stock market into a tailspin. For details, see S&P 500 futures declined 7.2 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 45 points, and Nasdaq 100 futures dropped 11.5 points. Reuters Messaging: [e-mail] 0728 EST 12Nov2010-Disney's outlook rosy despite rare quarterly miss ------------------------------------------------------------------------------ Walt Disney Co late Thursday forecast rising ad sales, pricing and theme park attendance but also posted a quarterly profit that missed expectations. For details, see Shares of Disney, a Dow component, rose 1.2 percent to $36.35 in light premarket trading. Reuters Messaging: [e-mail] 0725 EST 12Nov2010-AIG aims to sell Taiwan life unit soon: report ------------------------------------------------------------------------------ American International Group Inc aims to sell its Taiwan Nan Shan Life unit in two months for around $2 billion, a newspaper reported on Friday, as it continues to repay its bailout debt to the U.S. government. Without citing sources, the Chinese -language Commercial Times said AIG Chairman Robert Benmosche had exchanged views with Taiwan financial regulators about the sale and expressed his hope to sell the unit again. For details, see Shares of AIG closed Thursday at $42.51. Reuters Messaging: [e-mail] 0718 EST 12Nov2010-Bernstein downgrades Boeing to "market perform" ------------------------------------------------------------------------------ Sanford C. Bernstein downgraded Boeing Co to "market perform" and said additional delays in Boeing-787 delivery are hurting the planemaker's cash flow situation. The brokerage said further slippage of the 787 delivery plan would also hurt cost absorption on the Boeing 737 and 777 flights, reducing margins for those programs. For details, see Shares of Boeing, a Dow component, edged 0.2 percent lower to $65.26 in premarket trading on light volume. Reuters Messaging: [e-mail] 0706 EST 12Nov2010-Crude oil tumbles on Irish debt concerns ------------------------------------------------------------------------------ December crude futrues fell on Friday, retreating from a 25-month high reached in the previous session, as concern about Irish debt spurred a broad retreat from riskier assets. For details, see Separately, the International Energy Agency said that global oil demand would slow in 2011 after a brief, accelerated burst at the end of this year. The burst would come on rising consumption in industrial economies and growth in China. The contract was down 2 percent to $86.10 per barrel. Reuters Messaging: [e-mail] 0700 EST 12Nov2010-M. Stanley may spin off quant trading unit-NYT ------------------------------------------------------------------------------ Morgan Stanley may spin off its quantitative trading strategy unit known as Process Driven Trading in light of the Dodd-Frank Act, the New York Times reported. The investment bank is in advanced discussions with the unit's head Peter Muller about a spinoff, after which Muller and his team would still get access to the Morgan Stanley infrastructure, including its legal resources, the newspaper said. For details, see Shares of Morgan Stanley closed Thursday at $26.31. Reuters Messaging: [e-mail] Keywords: MARKETS STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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