STOCKS NEWS US-Markets open lower on energy, materials

Real-time equity news U.S. stock market report 0947 EST 12Nov2010-Markets open lower on energy, materials ------------------------------------------------------------------------------ U.S. stocks opened lower on Friday as expectations of a China interest rate increase hit commodity prices and dragged energy and materials stocks lower. The Dow Jones industrial average dropped 62.59 points, or 0.55 percent, to 11,220.51. The Standard & Poor's 500 Index lost 7.78 points, or 0.64 percent, to 1,205.38. The Nasdaq Composite Index fell 13.99 points, or 0.55 percent, to 2,541.53. Reuters Messaging: [e-mail] 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] Keywords: MARKETS STOCKSNEWS COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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