Argentine stocks rise on safe-haven buying

Reuters: [2008-05-09 23:07:00]

BUENOS AIRES, May 9 (Reuters) - Argentine stocks bucked the downward regional trend on Friday because of safe-haven buying triggered by a prolonged farming conflict and a further weakening of the peso, traders said.

The MerVal index <.MERV> of leading stocks closed up 0.59 percent to 2,114.44 points, accumulating a gain of 0.32 percent over the course of the week despite jitters over renewed anti-government protests.

"The MerVal steered away from the global losses because a variety of rumors drove investors to look for refuge in stocks," said Ruben Pascuali, a trader at the Mayoral Bursatil brokerage.

Volume on the broad market swelled to a moderate $32 million and of active issues, 47 advanced, 24 declined and 11 were unchanged.

"Against the backdrop of uncertainty, investors found the best refuge in Petrobras Energia Participaciones <PCH.BA>," Pascuali said.

Stock in the energy firm, the Argentine arm of Brazilian state oil company Petrobras, closed up 3.83 percent to 4.33 pesos per share after it reported a higher first-quarter net profit.

Farmers lined highways for a second day on Thursday in fresh protests against a sliding-scale of grains export taxes that triggered a three-week farm strike in March.

Jitters over the dispute fueled dollar purchases, sending the Argentine peso lower for a fourth straight session. In informal trade between foreign exchange houses, as measured by Reuters, it depreciated by 0.46 percent to 3.265/3.27 per dollar <ARSB=.

However, in formal interbank trade -- where the central bank intervenes in the market to keep the currency stable -- the peso firmed by 0.08 percent to 3.175/3.1775 per dollar <ARS=RASL>.

Fresh farming protests continued to feed the cautious mood in the debt market, with locally traded bonds <AR/BONOS> falling by 0.2 percent on average due to profit-taking of gains racked up earlier in the session.

Peso-denominated Discount bonds fell 0.4 percent in over-the-counter trade while the same bond in dollars rose by the same margin.

Expectation over the release of the April inflation figure -- 0.8 percent -- also caused caution. More than 40 percent of Argentina's debt load is indexed to inflation. (Reporting by Walter Bianchi; Writing by Helen Popper; Editing by Diane Craft) ((helen.popper@thomsonreuters.com; +54-11-4318-0655; Reuters Messaging: helen.popper.reuters.com@reuters.net))

Keywords: MARKETS ARGENTINA/

US STOCKS-AIG's loss and record oil sour mood on Wall St

Reuters: [2008-05-09 22:27:00]

(Updates to close)

By Kristina Cooke

NEW YORK, May 9 (Reuters) - U.S. stocks fell on Friday as the price of oil set another record and concerns about the financial sector flared up again after American International Group Inc <AIG.N> reported a massive loss.

AIG's dismal results raised doubts that the end of the credit crisis was near. The world's largest insurer wrote down assets linked to subprime mortgages and said it would need to raise $12.5 billion to boost its balance sheet. Its shares fell almost 9 percent.

Oil rose above $126 a barrel, spurring concerns about inflation and that consumers will pare back their spending as higher prices at the pump cut into their discretionary income.

Pharmaceutical companies added to the gloomy picture. Mylan Inc <MYL.N> posted a wider loss, while Bristol Myers Squibb Co <BMY.N> fell on the threat of generic competition in Europe for its top-selling blood thinner.

"There doesn't seem to be any stopping the price of oil, it hits a record every day, and investors are starting to realize there's not going to be a quick fix to this problem," said Bucky Hellwig, senior vice president at Morgan Asset Management, in Birmingham, Alabama.

"Also, we're seeing the spiral playing out of declining home prices making financials' underlying collateral worth less. At best, financials will have to keep issuing new capital, which dilutes existing shares, so down the shares go."

The Dow Jones industrial average <.DJI> fell 120.90 points, or 0.94 percent, to close at 12,745.88. The Standard & Poor's 500 Index <.SPX> shed 9.40 points, or 0.67 percent, to end at 1,388.28, while the Nasdaq Composite Index <.IXIC> slipped 5.72 points, or 0.23 percent, to 2,445.52.

For the week, all three indexes ended lower: The Dow lost 2.4 percent, the S&P 500 slid 1.8 percent and the Nasdaq tumbled 1.3 percent.

Another big financial company, Citigroup Inc <C.N>, said it intends to shed roughly $400 billion of non-core assets in a bid to become more competitive. [ID:nN08433220].

Citi's shares fell 2.8 percent to $23.63, while AIG shares slid 8.8 percent to $40.28. AIG was the heaviest weight on both the Dow and the S&P 500.

The Nasdaq fell less than the other indexes. Its losses were kept in check by a stronger-than-expected profit from video game maker Activision Inc <ATVI.O> and upbeat broker comments on graphics company Nvidia Corp <NVDA.O>. Activision shares jumped 14.2 percent to $31.64, while Nvidia's stock gained 2.6 percent to $22.53.

Despite the rise in oil, Exxon Mobil <XOM.N> was among the top drags on the S&P 500 and the Dow. Analysts said investors may be locking in profits after strong gains in recent weeks. Others noted that when the price of oil reaches a certain level, it becomes more difficult for energy companies to pass on their higher input costs to consumers.

U.S. crude oil futures hit a record $126.25 a barrel in post-settlement trading, before pulling back somewhat to $126.17. On the New York Mercantile Exchange, June crude settled at $125.96 a barrel, up $2.27.

Shares of Exxon Mobil <XOM.N> fell 0.8 percent to $88.82 on the NYSE. EOG Resources <EOG.N> shed 0.9 percent to $138.50.

Mylan stock sank 8.4 percent to $11.42, while Bristol Myers stock declined 4.7 percent to $21.71.

A record drop in U.S. imports because of slowing domestic demand took a big bite out of the U.S. trade deficit in March despite record high oil prices.

The trade gap shrank 5.7 percent in March to $58.2 billion, the Commerce Department reported; that figure was much smaller than expected.

Volume was light on the New York Stock Exchange, where about 1.10 billion shares changed hands, below last year's estimated daily average. On the Nasdaq, about 1.71 billion shares traded, below last year's daily average of 2.17 billion.

Decliners outnumbered advancers on the NYSE by a ratio of about 8 to 7, while on the Nasdaq, about seven stocks fell for every six that rose. (Editing by Jan Paschal) ((kristina.cooke@thomsonreuters.com; +1 646 223 6154; Reuters Messaging:rm://kristina.cooke.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS

 
============================================================== 
 To access running updates on what's moving U.S. stocks double 
click on [STXNEWS/US] 
============================================================== 
 For other U.S. market data and news, click on codes in 
brackets: 
 U.S. Equities speed guide........................<US/EQUITY> 
 S&P 500 index ........................................<.SPX> 
 Dow Jones industrial average..........................<.DJI> 
 Nasdaq Composite index...............................<.IXIC> 
 Nasdaq 100............................................<.NDX> 
 Russell 2000 small cap................................<.RUT> 
 S&P major sectors..............................<0#.GSPMAJOR> 
 NYSE most active.....................................<.AV.N> 
 Nasdaq most active...................................<.AV.O> 
 Top NYSE pct gainers.................................<.PG.N> 
 Top NYSE pct losers..................................<.PL.N> 
 Top Nasdaq pct gainers...............................<.PG.O> 
 Top Nasdaq pct losers................................<.PL.O> 
 52 week highs: 
    NYSE...............<t.YH.N>  Nasdaq..............<t.YH.O> 
 52 week lows: 
    NYSE...............<t.YL.N>  Nasdaq..............<t.YL.O> 
 
    Main global stock indexes and market reports: 
 FTSE Eurotop 300 .....<.FTEU3>  European report .......[.EU] 
 Nikkei 225.............<.N225>  Tokyo report............[.T] 
 FTSE 100...............<.FTSE>  London report...........[.L] 
 Xetra DAX.............<.GDAXI>  Frankfurt market stories[.F] 
 CAC-40.................<.FCHI>  Paris market stories...[.PA] 
 World Indices.....................................<0#.INDEX> 
 Reuters survey of world bourse outlook.........<EQUITYPOLL1> 
 U.S. IPO diary........................................[IPO/] 
 U.S. Asset Allocation Table.......................[US/ASSET] 
 
 More Reuters News on equities at a glance: 
 Equities ............[E]   US company news.........[TOP/EQU] 
 
    Key non-equities market reports: 
 Foreign exchange......................................[FRX/] 
 Oil....................................................[O/R] 
 US Treasuries.........................................[US/N] 
 International bonds...................................[EUB/] 
 Gold.......................................[GOL/X] or [GOL/] 
 CRB index of commodity futures........................[CRB/] 

US STOCKS-AIG's loss and record oil sour Wall St mood

Reuters: [2008-05-09 22:08:00]

(Updates to 4 p.m.)

NEW YORK, May 9 (Reuters) - U.S. stocks fell on Friday as the price of oil set another record and concerns about the financial sector flared up again after American International Group Inc <AIG.N> reported a massive loss.

The Dow Jones industrial average <.DJI> fell 120.90 points, or 0.94 percent, to end unofficially at 12,745.88 and the Standard & Poor's 500 Index <.SPX> dropped 9.39 points, or 0.67 percent, to finish unofficially at 1,388.29. The Nasdaq Composite Index <.IXIC> slipped 5.72 points, or 0.23 percent, to close unofficially at at 2,445.52.

For the week, the Dow fell 2.4 percent, the S&P 500 dropped 1.8 percent and the Nasdaq slipped 1.3 percent. (Reporting by Chris Sanders; Editing by Jan Paschal) ((chris.sanders@thomsonreuters.com; +1 646 223 6343; Reuters Messaging:rm://chris.sanders.reuters.com@reuters.net)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) Keywords: MARKETS STOCKS

 
============================================================== 
 To access running updates on what's moving U.S. stocks double 
click on [STXNEWS/US] 
============================================================== 
 For other U.S. market data and news, click on codes in 
brackets: 
 U.S. Equities speed guide........................<US/EQUITY> 
 S&P 500 index ........................................<.SPX> 
 Dow Jones industrial average..........................<.DJI> 
 Nasdaq Composite index...............................<.IXIC> 
 Nasdaq 100............................................<.NDX> 
 Russell 2000 small cap................................<.RUT> 
 S&P major sectors..............................<0#.GSPMAJOR> 
 NYSE most active.....................................<.AV.N> 
 Nasdaq most active...................................<.AV.O> 
 Top NYSE pct gainers.................................<.PG.N> 
 Top NYSE pct losers..................................<.PL.N> 
 Top Nasdaq pct gainers...............................<.PG.O> 
 Top Nasdaq pct losers................................<.PL.O> 
 52 week highs: 
    NYSE...............<t.YH.N>  Nasdaq..............<t.YH.O> 
 52 week lows: 
    NYSE...............<t.YL.N>  Nasdaq..............<t.YL.O> 
 
    Main global stock indexes and market reports: 
 FTSE Eurotop 300 .....<.FTEU3>  European report .......[.EU] 
 Nikkei 225.............<.N225>  Tokyo report............[.T] 
 FTSE 100...............<.FTSE>  London report...........[.L] 
 Xetra DAX.............<.GDAXI>  Frankfurt market stories[.F] 
 CAC-40.................<.FCHI>  Paris market stories...[.PA] 
 World Indices.....................................<0#.INDEX> 
 Reuters survey of world bourse outlook.........<EQUITYPOLL1> 
 U.S. IPO diary........................................[IPO/] 
 U.S. Asset Allocation Table.......................[US/ASSET] 
 
 More Reuters News on equities at a glance: 
 Equities ............[E]   US company news.........[TOP/EQU] 
 
    Key non-equities market reports: 
 Foreign exchange......................................[FRX/] 
 Oil....................................................[O/R] 
 US Treasuries.........................................[US/N] 
 International bonds...................................[EUB/] 
 Gold.......................................[GOL/X] or [GOL/] 
 CRB index of commodity futures........................[CRB/] 

"Law and Order" court preps for Clear Channel trial

Reuters: [2008-05-09 21:48:00]

By Leslie Gevirtz

NEW YORK, May 9 (Reuters) - The iconic New York State Supreme Court house, a popular backdrop for movies and television shows, was busy preparing for Monday's showdown over the $20 billion buyout of Clear Channel Communications <CCU.N>.

Technicians set up laptops, projection screens, monitors and audio equipment in the 71-year-old courtroom on Friday where Judge Helen Freedman is to hear the case between private equity firms Thomas H. Lee Partners [THL.UL] and Bain Capital and a syndicate of six banks.

One court officer said he had received more than 100 phone calls by noon on Friday asking about the trial.

The trial, in which the equity firms are accusing the banks of trying to get out of financing their purchase of Clear Channel for $39.20 a share, is expected to last five days, a court officer said.

Freedman, a judge since 1979 and author of New York Objections, a handbook on trial practice, has been known to rule from the bench, court officers said.

The private equity firms said they won over regulators and shareholders of Clear Channel, the largest radio and outdoor advertising company in the United States with significant international operations, on the basis of the financing the banks said they would provide, according to court papers.

Freedman tossed out three of the four claims against the banks -- Citigroup Inc <C.N>, Morgan Stanley <MS.N>, Credit Suisse Group <CSGN.VX>, Royal Bank of Scotland Group Plc <RBS.L>, Deutsche Bank AG <DBKGn.DE> and Wachovia Corp <WB.N> -- on Wednesday.

She dismissed claims made against the banks including fraud and civil conspiracy, and said the case would go to trial on a breach of contract claim against them.

The private equity firms are seeking "specific performance" of a commitment letter detailing plans to fund the deal. Specific performance is when one party asks a judge to order another party to stick to a contract.

The banks have argued that under New York law, except in cases involving real property, a party cannot enforce a contract to lend money.

Arbitrage traders, who bet on the spread between a deal offer price and the company's share price, have been following the Clear Channel intently deal. Pre-trial hearings have been packed with BlackBerry carrying traders messaging their trading desks with the latest from the court.

"Last time there was anything like this in her courtroom, it was Broadway," he said referring to her decision in November before the Thanksgiving holiday to force the St. James Theater to open for performances of 'Dr. Seuss' How the Grinch Stole Christmas! The Musical'," the court officer said. Broadway had been darkened by a strike by stagehands.

The courthouse steps provide a set for the popular television program, "Law and Order," and scenes from "The Godfather" and "Miracle on 34th Street" were also filmed there.

Testimony is expected to begin at 9:30 a.m. and the small gallery is expected to be filled. Two rows of seats in the gallery have already been reserved for the banks' lawyers. (Additional reporting by Megan Davies; Editing by Toni Reinhold) ((leslie.gevirtz@thomsonreuters.com; +1 646-393-9461)) Keywords: CLEARCHANNEL/TRIAL

Keywords: CLEARCHANNEL/TRIAL

STOCKS NEWS US-HEADLINE STOCKS - U.S. stocks on the move

Reuters: [2008-05-09 21:31:00]

    Stocks on the move [HOT-RTRS] Real-time Equity news [U E] 
    U.S. stock market report [.N] 
    
1529 ET 09May2008-HEADLINE STOCKS - U.S. stocks on the move on May 9 
------------------------------------------------------------------------------ 
    Some U.S. stocks on the move on Friday: 
    AMERICAN INTERNATIONAL GROUP INC <AIG.N> 
    CITIGROUP INC <C.N> 
    MYLAN INC <MYL.N> 
    PRICELINE.COM INC <PCLN.O> 
    For more please double click [ID:nN09198237] 
    Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net 
 
1424 ET 09May2008-US STOCKS-Market drops on AIG's loss, higher oil 
------------------------------------------------------------------------------ 
    U.S. stocks fell on Friday as concerns about the financial sector flared up 
again after American International Group Inc <AIG.N> reported a record loss and 
as the price of oil set another record. 
    For more please double click [ID:nN09504112] 
    Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net 
 
1442 ET 09May2008-"Crunch" gets too much credit--Barclays Capital 
--------------------------------------------------------------------------- 
    "Many believe that a credit crunch will prevent the economy from growing in 
the coming quarters. While we think that tighter credit is an important force 
in the residential and commercial real estate markets, we do not believe it 
will prevent a pickup in growth in second half of 2008," Barclays Capital 
Research said in a note. 
    "Non-mortgage credit continues to flow at a robust pace to both consumers 
and corporations. Further, we think that corporate sector fundamentals will 
remain healthy, which makes it unlikely that the bond market, a far more 
important source of funds to the corporate sector than banks, will shut down in 
the coming months." 
    Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net 
    
1354 ET 09May2008-AIG on track for historic weekly slide 
--------------------------------------------------------------------------- 
    Shares of American International Group Inc <AIG.N> were on track for their 
biggest ever weekly slide, down more than 17 percent, according to Thomson 
Reuters charts. 
    The S&P insurance index <.GSPINSC> headed for its biggest weekly drop since 
mid-January, down more than 7 percent. 
    For more please double click [ID:nN09565485] 
    Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net 
    
1131 ET 09May2008-Players flock to Blue Coat calls 
------------------------------------------------------------------------------ 
    Options flow has been notably bullish in Internet monitoring equipment 
maker Blue Coat Systems Inc <BCSI.O> as its shares rose 1.75 percent to $25.54 
in morning trade. 
    There has been no stock specific news to explain the action. Option volume 
was running four times the normal level with 8,576 calls and only 786 puts 
traded, according to Trade Alert. "Today the activity is gaining and 
approaching extreme in the call options, particularly in the May call options 
that will expire in 5 trading days," said optionmonster co-founder Pete 
Najarian. The May $25 call strike traded more than 4,000 contracts vs. open 
interest of 4,532 and fetched $1.35. The higher May $30 call strike was also 
busy with 3,134 contracts vs. open interest of 778, suggesting positions were 
initiated. 
    Reuters Messaging rm://doris.frankel.reuters.com@reuters.net 
 
1058 ET 09May2008-US STOCKS-Nasdaq turns positive; Dow, S&P 500 cut losses 
------------------------------------------------------------------------------ 
    The Nasdaq turned positive in mid-morning trading on Friday, led by gains 
in Microsoft <MSFT.O> and Research in Motion <RIMM.O> <RIM.TO>. 
    Video game maker Activision Inc's <ATVI.O> stronger-than-expected profit 
was another boost for the technology sector, along with upbeat broker comments 
on graphics company Nvidia Corp <NVDA.O>. 
    For more please double click [ID:nN09484203] 
    Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net 
 
1044 ET 09May2008-Citi CEO says bank "well capitalized" 
------------------------------------------------------------------------------ 
    Citigroup Inc <C.N> CEO said the bank is "well capitalized," and that it is 
raising capital because it saw opportunity in the market. 
    "We're committed to having excess capital in this kind of an environment," 
the CEO said. 
    Shares were up 0.8 percent at $24.48. 
    For more please double click [ID:nWEN5665] 
    Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net 
 
1011 ET 09May2008-Financials are a value trap-Merrill 
------------------------------------------------------------------------------ 
    Financials are the main value trap for investors in May, according to 
Merrill Lynch's quantitative strategist Savita Subramanian. 
    Merrill defines a value trap as an industry that appears significantly 
undervalued relative to their historical multiple, but that has deteriorating 
price and earnings momentum. In other words, these industries look cheap solely 
because the price is falling faster than earnings are deteriorating. 
    Two out of three times, industries that are value traps either stagnate or 
deteriorate further, Subramanian wrote in a note to clients. 
    Apart from financials, Merrill identified health care providers and 
services, specialty retail and industrial conglomerates as value traps. 
    Tech was rotated out of the model this month due to improved momentum, 
Subramanian wrote. 
    Reuters Messaging: rm://kristina.cooke.reuters.com@reuters.net 
    
0959 ET 09May2008-Citigroup aims to sell $400 billion of assets 
--------------------------------------------------------------------------- 
    Citigroup Inc <C.N>, the largest U.S. bank, on Friday said it aims to shed 
$400 billion of assets -- nearly 20 percent of its total -- over the next two 
to three years to become more efficient and profitable. 
    Citigroup shares rose 0.7 percent to $24.45 on the New York Stock 
Exchange. 
    For more please double click [ID:nN09468753] 
    Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net 
    
0934 ET 09May2008-AIG down 5.1 pct after open 
------------------------------------------------------------------------------ 
    American International Group <AIG.N> shares fell 5.1 percent to $41.92 
after the open after the insurer posted a record loss late Thursday and as the 
company told investors on Friday that the structured credit market for 
residential mortgage securities, including subprime, does not appear to have 
rebounded. For more please double click [ID:nWEN5657] 
    Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net 
Keywords: MARKETS STOCKSNEWS