World markets hit a 9 month peak as the dollar his a yearly low

LONDON (Reuters) – World stocks extended gains to fresh 9-month peaks on Tuesday while the dollar fell to a 2009 low after upbeat U.S. data and optimism over corporate earnings prompted investors to add risky assets.

U.S. stocks rose on Monday after data showed home sales surged in June, a sign that the domestic housing market — which led the world’s biggest economy into recession — may have hit bottom and is starting to rebound. More housing data is due later.

“After yesterday’s much better new home sales data and continued theme of better-than-expected news, we may well see traders taking the opinion that this rally has a few more legs to run yet,” Jimmy Yates, head of equities at CMC markets, noted. MSCI world equity index rose 0.7 percent to its highest since October. The index is up 7.6 percent this month and has risen nearly 16 percent since January.

“The rally witnessed over the last two weeks could, in fact, imply that the market is getting ahead of itself and discounting a profit rebound, but we believe the underlying cyclical rally ultimately will be durable,” Bob Doll, global chief investment officer at BlackRock, said in a note to clients.

“The risks are that inflation expectations put Treasury yields and borrowing rates higher before the recovery gains traction, and that improving consumer spending contracts again next year after the impact of fiscal stimulus.” The FTSEurofirst 300 index rose 0.7 percent, hitting its highest since November. Deutsche Bank fell more than 5 percent after reporting a significant rise in loan provisions despite better-than-expected quarterly net profit. According to Thomson Reuters data, out of 202 firms on the S&P 500 index, 156 — or 77 percent — beat earnings expectations.

Emerging stocks rose 1.1 percent. U.S. crude oil rose 0.6 percent to $68.79 a barrel, supported by general flows into risky assets. The September bund futures fell 17 ticks. The dollar fell to its weakest level since December against a basket of major currencies while it hit eight-week lows of $1.4303 per euro. The Australian dollar hit a 2009 high against the dollar and government bonds fell after the country’s central bank governor Glenn Stevens said risks to the economy were now more balanced and warned that low interest rates could merely inflate a new housing bubble.

source Reuters

http://www.reuters.com/article/wtMostRead/idUSTRE56R0CG20090728?feedType=RSS&feedName=wtMostRead

CALL PUTS Action

Top Ten Calls as of 07/22/09, 10:10am
Symbol	Call Month/Strike	Volume	Price	Change
C	C HV Aug 3c	45300	2.68	0.00
YHOO	YHQ HT Aug 19c	5454	16.71	-0.10
C	C HV Aug 3c	5391	2.68	0.01
C	C AA Jan 2.50c	5141	2.68	0.03
BAC	BYO HM Aug 13c	5126	12.16	-0.02
C	C LU Dec 2c	4998	2.68	0.02
C	C HV Aug 3c	4877	2.68	0.01
C	C HU Aug 2c	4274	2.68	0.02
BAC	BYO HL Aug 12c	4258	12.16	0.00
WMT	WMT IX Sep 52.50c	3568	49.06	0.

Top Ten Puts as of 07/22/09, 10:10am
Symbol	Put Month/Strike	Volume	Price	Change
WFC	FHU TX Aug 24p	7176	23.94	0.45
AXP	AXP TG Aug 27p	6407	28.71	0.10
YHOO	YHQ TC Aug 15p	5803	16.71	-0.14
WDC	WDC TX Aug 22.50p	5033	30.21	-0.07
BA	BA TO Aug 41p	4764	43.27	-0.48
AXP	AXP TG Aug 27p	4114	28.71	0.15
BA	BA TO Aug 41p	2051	43.27	-0.45
YHOO	YHQ TC Aug 15p	2025	16.71	-0.12
WFC	FHU TX Aug 24p	1902	23.94	0.50
HPQ	HPQ TA Aug 39p	743	40.84	-0.20

Clorox CLX calls active on renewed takeover chatter into EPSClorox is recently up .56 to $59.30 on renewed takeover chatter. CLX is scheduled to report Q4 EPS on August 3. CLX August option implied volatility is at 25, October is at 22;

Earnings on CTXS

Citrix Systems (CTXS) reports Q2 earnings after the market close on Wednesday, July 22, Citrix Systems to announce strong Q2 results,or above current expectations, and to maintain its FY09 guidance.

The core business held up reasonably well in the quarter, with William Blair estimated XenApp license revenues of $88M. The firm’s checks continue to indicate strong customer interest in desktop and client side virtualization, and it believes the company is well positioned to capitalize on this trend in the long term. However, despite its confidence that Citrix is likely to maintain full-year guidance

Wells Fargo (NYSE:WFC) is expected to report Q2 earnings before the market open on Wednesday, July. Analysts are looking for EPS of .34 on revenue of $18.95B. The consensus range for EPS is 0c to 50c, while the consensus range for revenue is $18.95B to $21.71B, according to First Call. A Sterne Agee analyst, reporting that he heard Wells had sold $600M of non-performing subprime loans for 35c on the dollar, recently predicted that Wells would have to raise more money through the equity markets. Last month S&P lowered the ratings of Wells and 21 other banks as the ratings agency predicts that operating conditions for the banking industry will become less favorable than in the past. June that Wells could report strong Q2 results. The firm said that Q2 estimates appeared to be low. The Citigroup analyst expected Wells to provide bullish guidance, although it maintained a Hold rating on the stock based on valuation. Also, the Q2 EPS of Wells peers JP Morgan (JPM), Bank of America (BAC) Goldman Sachs (GS), and Citigroup (C), beat expectations. JP Morgan and Citigroup said they saw improvements in the performance of the financial markets, while Goldman and Citigroup both said that the trading environment was favorable. Bank of America reported that it felt less constrained by macro economic factors. On the other hand, some analysts have been unenthusiastic about both banks’ fundamentals, and their stocks have fallen in recent days. (the Fly)

ECB Bancorp (Nasdaq:ECBC) reports Q2 EPS 19c vs.

Stocks on a Gap

Stocks on a Gap up ACY 5.28%, GFA 5.65%, ETN 5.74%, ENI 5.83%, OGZPY 5.87%, ACH 6.12%, PETS 6.67%, PUK 6.68%, RHT 6.70%, YPF 8.03%, JHX 8.46%, LVL 8.63%, FBT 11.00%, CHFN 11.48%, DBX 13.47%, DIT 14.77%.

HGSI Up $7.00 at ther open Trade of the day

Human Genome news on Phase III

Human Genome Sciences (HGSI)  anounced that BENLYSTA met the primary endpoint in BLISS-52, the first of two Phase 3 trials.  In the placebo-controlled BLISS-52 study, the results showed that BENLYSTA response rate at Week 52, compared with standard of care alone. Study results also showed that belimumab was generally well tolerated, with adverse event rates comparable between belimumab and placebo treatment groups.