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U.S. stock market report 1034 ET 21Aug2009-Bernanke: prospects for return to growth good ------------------------------------------------------------------------------

The global economy appears on the mend after a deep downturn, but the recovery is likely to be sluggish and risks remain, Federal Reserve Chairman Ben Bernanke said on Friday.

"After contracting sharply over the past year, economic activity appears to be leveling out, both in the United States and abroad, and the prospects for a return to growth in the near term appear good," Bernanke said to an annual Fed conference in Jackson Hole, Wyoming.

"Although we have avoided the worst, difficult challenges still lie ahead," he said, cautioning that the "recovery is likely to be relatively slow at first, with unemployment declining only gradually from high levels."

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Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1025 ET 21Aug2009-Oppenheimer starts Tiffany at "outperform" ------------------------------------------------------------------------------

Oppenheimer began coverage of Tiffany & Co with an "outperform" rating, saying sales at the high-end jeweler, which have slowed significantly over the past several quarters hurt by weak discretionary spending, should steadily improve as the economy heals and comparisons ease.

"The sharp rebound in equity markets since spring should help to jump-start sales of more discretionary items at Tiffany in the upcoming holiday selling season," the firm wrote to clients.

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Shares of Tiffany rose 3.4 percent to $31.83 while Saks rose 2.7 percent to $5.78.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1016 ET 21Aug200-Goldman picks stocks with buy-writed names -----------------------------------------------------------------------------

Selling covered call options can be an effective strategy for generating income and cushioning downside, Goldman Sachs derivative strategists said in a note this week.

"We believe this is an attractive trade in the current environment," they wrote. They identified 50 names where, on average, investors can sell 13 percent out-of-the-money calls, collect 7 percent premium, get 1 percent dividend, and maintain 21 percent upside over six months.

From their list they picked the strike that maximizes the premium collected for selling 6-month calls based on Goldman's price targets. Among the stocks selected were OfficeMax Inc , CME Group Inc, Joy Global Inc, Macy's Inc, Seagate Technology and Starwood Hotels & Resorts.

Reuters Messaging: doris.frankel.reuters.com@reuters.net 0956 ET 21Aug2009-Existing home sales rise in July ------------------------------------------------------------------------------

Sales of previously owned U.S. homes in July notched their fastest pace in nearly two years, an industry survey showed on Friday, the strongest sign yet that housing was pulling out of a three-year slump.

The National Association of Realtors said that sales jumped 7.2 percent to an annual rate of 5.24 million units, the highest since August 2007, beating market expectations for a 5 million unit pace. Sales were at a 4.89 million pace in June.

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Following the release of the data, the Dow Jones U.S. Home Construction index gained 3.6 percent to 293.83.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0939 ET 21Aug2009-HCC Insurance raises dividend by 8 pct ------------------------------------------------------------------------------

HCC Insurance Holdings Inc said it increased its quarterly dividend by 8 percent to 13.5 cents per share.

The dividend will be paid on Oct. 14, to shareholders of record as of Oct. 1.

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The stock gained 1.1 percent to $26.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS

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