(Adds NYSE figures)
DOW JONES NEWSWIRES
Short interest in Nasdaq- and New York Stock Exchange-listed
stocks declined in the second half of October, according to the
latest figures for the exchanges' semimonthly statistic.
U.S. stocks have been helped most recently by impressive
quarterly results and some economic data improvement. Last week,
they rallied to their highest level since September 2008 as
investors applauded the Federal Reserve's latest effort to
stimulate the struggling economy.
The Nasdaq's short interest totaled 7.03 billion shares of 2,872
Nasdaq securities as of Oct. 29, falling to a seven-month low,
compared with 7.19 billion shares from 2,878 securities as of Oct.
15. The short ratio, or the number of days' average volume
represented by outstanding share positions, grew to 3.48 days from
3.46 days.
At the NYSE, a unit of NYSE Euronext (NYX), short interest
declined to 13.78 billion shares, equal to 3.6% of total shares
outstanding. That was down from a revised 14.06 billion in the
prior period.
Investors who short shares first borrow shares and then sell
them, betting that share prices will fall and that they can buy
them back at a lower price for return to the lender. Stocks can
also be shorted for reasons other than bearish bets, including
hedging strategies.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com