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U.S. stock market report 1549 ET 19Nov2009--Time Warner's AOL to cut one-third of work force ------------------------------------------------------------------------------

Time Warner Inc shares fell 1.6 percent to $32.30 after AOL announced its plans to cut one-third of its work force, or about 2,500 jobs. The plans was part of its efforts to trim some $300 million in annual costs as part of the Internet company's planned spin-off from Time Warner. The struggling Web pioneer, which is now focused primarily on advertising-supported content, said that it would start with a volunteer buyout program and move on to involuntary layoffs if enough workers do not step up. AOL said the layoffs would result in restructuring charges of up to $200 million, which it announced last week. It said that substantially all the charges would be incurred from the date of the spin-off through the first half of 2010.

Reuters Messaging: angela.moon.reuters.com@reuters.net 1411 ET 19Nov2009-E*Trade draws bearish risk reversal- analyst -----------------------------------------------------------------------------

Shares of E*Trade Financial Corp dipped 2.4 percent to $1.65 in afternoon trading on Thursday. The stock gained more than 9 percent to $1.69 after the bell on Wednesday, buoyed by comments from Ameritrade Holding Corp's Chief Executive on deal prospects involving E*Trade.

In options market, a bearish risk reversal in the January 2011 contract indicated long-term pessimistic sentiment on the online brokerage firm, said Andrew Wilkinson, senior market analyst at Interactive Brokers Group in a note to clients. One bearish investor established a risk reversal by selling 10,000 calls at the January 2011 $2.5 strike for 30 cents premium apiece, spread against the purchase of 10,000 puts at the same strike for $1.14 each. The trader may amass profits if the stock declines beneath the break-even share price of $1.66 by expiration, he said.

Reuters Messaging: angela.moon.reuters.com@reuters.net 1346 ET 19Nov2009-Logitech draws large bearish bet-optionMonster ------------------------------------------------------------------------------

Option traders positioned for a drop in the world's top computer mouse manufacturer Logitech International, said optionMonster analyst David Russell, in comments on optionMonster's Web site. The options firm noted unusual buying in the December $20 put options, which traded 2,244 times against open interest of 261 contracts. Overall volume is more than seven times greater than the average daily action.

The stock slipped 4.9 percent to $16.89 in early afternoon trading. Logitech shares had more than doubled between its March lows and early August but since then, they have been struggling to make new highs. By purchasing in-the-money puts on the stock, investors can profit from declines in the share price from current levels, Russell said. Compared with at-the-money options, the strategy reduces the amount of premium that will be lost if Logitech fails to move as expected. However, such a strategy costs more to implement, as premiums on in-the-money options are pricier than those at the money. It also produces smaller gains relative to moves in the stock, he said.

Reuters Messaging: angela.moon.reuters.com@reuters.net 1327 ET 19Nov2009-US STOCKS-Tech, commods lead Wall Street's broad decline ------------------------------------------------------------------------------

Technology and basic materials shares led Wall Street's broad decline on Thursday, as bearish analyst comments on the semiconductor sector and a stronger U.S. dollar dented recent gains.

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Reuters Messaging rm://caroline.valetkevitch.reuters.com@reuters.net 1228 ET 19Nov2009 Traders brace for swings in regional bank ETF ------------------------------------------------------------------------------

Shares of the SPDR KBW Regional Bank fund fell 1.89 percent to $20.75. In the options arena, a number of players are bracing for possible volatility in the sector during the weeks ahead, said WhatsTrading.com option strategist Frederic Ruffy. The exchange-traded fund's average implied volatility, a barometer of anxiety and a key driver of an options price, is moving near 50 percent, up from 46.3 percent on Wednesday.

Ruffy highlights several option plays in the ETF where trading is active in the December put and calls. One player bought 7,000 December $22.50 calls at an average premium of 27.5 cents each. Earlier, a sweep buyer picked up 2,500 December $20 puts across multiple exchanges at the offer for 65 cents. Another sweep of 5,000 December $20 puts traded at the offer for 72 cents a little later. A total of 10,100 contracts traded in that strike. Finally, a lot of 2,000 December $17.50 puts hit ask-side at 20 cents and drew volume of 5,250 lots.

Reuters Messaging: doris.frankel.reuters.com@reuters.net 1127 EST 19Nov2009 MasterCard call options stir as shares rise ------------------------------------------------------------------------------

Shares of MasterCard Inc, the world's second-largest credit card network, rose 2.97 percent to $234.03 near midday, bucking weakness in the broad market. In the options patch, investors circled its call options ahead of a presentation at the Janney Montgomery Scott 2009 Electronic Payments Summit, which is due to begin this afternoon, said WhatsTrading.com option strategist Frederic Ruffy. Particularly notable have been the soon-to-expire November $230 call strikes and the December $240 call strikes. About 3,400 contracts traded combined in those strikes and two-thirds of the volume traded ask-side, Ruffy said. In all, about 11,000 calls and 7,359 puts traded in MasterCard. Directional sentiment based on option order flow was 50 percent bullish, Trade Alert data show.

Reuters Messaging: doris.frankel.reuters.com@reuters.net 1109 EST 19Nov2009-UBS bullish on pharma services sector ------------------------------------------------------------------------------

UBS on Thursday started coverage on the pharmaceutical service sector, rating several companies "buy" on what it called a better-than-expected generic drug opportunity.

Many big-selling drugs are set to lose their patent protection over the next few years, starting 2011, the firm wrote, adding that this would see the entry of many cheap, but high-margin, generic drugs into the market.

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AmerisourceBergen Corp, Cardinal Health Inc and Express Scripts Inc were among the companies rated "buy."

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1046 EST 19Nov2009-Avoid commodities for deflationary risk --analyst ------------------------------------------------------------------------------

Avoiding commodities could be the best protection against the deflationary threats that are the major risk to the economic recovery and which would be the likely cause of any potential double dip, says Mike O'Rourke, chief market strategist at BTIG, an institutional brokerage firm in New York.

"Commodities do not provide protection from a deflationary environment," he said in a note. "During the summer, we walked away from commodities for several reasons, such as expected regulation, a weak fundamental picture, and the threat of deflation should the recovery falter."

Reuters Messaging rm://ellis.mnyandu.reuters.com@reuters.net 1032 EST 19Nov2009-Philly Fed factory activity grows in November ------------------------------------------------------------------------------

Factory activity in the U.S. Mid-Atlantic region grew in November for a fourth straight month, and faster than expected, a survey showed on Thursday.

The Philadelphia Federal Reserve Bank said its business activity index was at 16.7 in November versus 11.5 in October. Economists polled by Reuters had forecast a reading of 12.0.

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Separately, a gauge of the U.S. economy's prospects rose for a seventh straight month in October to a two-year high, a private research group said on Thursday, indicating the recovery was becoming entrenched.

The Conference Board said its index of leading economic indicators climbed 0.3 percent to 103.8, the highest level since September 2007.

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

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