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U.S. stock market report 1425 EST 30Nov2009-AIG shares down after analyst comment ------------------------------------------------------------------------------

Shares of American International Group fell on Monday, after an analyst raised concerns about a possible deficiency in the company's non-life insurance reserves.

According to CNBC, Bernstein Research estimated AIG's property-casualty operations could face an $11 billion reserve deficiency in the next year.

Bernstein cut its target price for AIG shares to $12 from $20 to reflect the possible reserve deficiency, the business television channel reported.

For details, see

The stock dropped 14 percent to $28.66.

Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1411 ET 30Nov2009 Traders eye Terra Industries put options ------------------------------------------------------------------------------
Option traders appear to be taking defensive put positions in Terra

Industries against a backdrop of deal making between fertilizer companies Agrium Inc, CF Industries Holdings Inc and Terra. Terra drew notable put volume in the December $39 and January $40 strikes which traded more than 6,700 contracts each, according to Reuters data. A block of 5,000 lots went off as a spread with the purchase of the January $40 strike against the sale of the December $39 strike, said independent trader Steve Smith. Canadian fertilizer maker Agrium said last week it would persist in its hostile bid for U.S. rival CF, a move that could prolong the already drawn-out three-way merger battle in the sector. CF has been fending off Agrium's overtures since February and is itself locked in a hostile campaign to acquire U.S. fertilizer maker Terra.

Agrium's roughly $5 billion bid for CF is contingent on CF dropping its bid for Terra. In CF, about 22,000 puts traded vs. 17,000 calls, according to Trade Alert. One top trade included 4,000 January 2010 $75-$80 put spreads bought at $1.55, said WhatsTrading.com option strategist Frederic Ruffy. Reuters Messaging: doris.frankel.reuters.com@reuters.net 1246 ET 30Nov2009-U.S. department stores fall on holiday spending ------------------------------------------------------------------------------

Shares in U.S. department stores fell sharply on Monday as investors worried about the strength of retail spending after early signs from the start of the holiday spending season on "Black Friday."

The S&P department store index, which evaluates the performance of six U.S. department stores, fell 3.4 percent, compared with a 1.3 percent drop in the wider S&P retail index.

Higher-end retailer Saks Inc was a big percentage loser along with Macy's Inc. Macy's fell 5.7 percent to $16, while Saks dropped 8.3 percent to $5.98.

Total spending for the holiday weekend rose to an estimated $41.2 billion, up 0.5 percent from a year earlier, the National Retail Federation said that while average spending per person fell 8 percent to $343 per person. For more, see

Reuters Messaging:rm://Edward.Krudy.reuters.com@reuters.net Keywords: MARKETS STOCKSNEWS

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