DAILY MARKET HIGHLIGHTS

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Thursday 10.22.2009

CURRENT MARKET SENTIMENT

Presumably, a downgrade of Wells Fargo Book–“All regions reported a weak or

coupled with Wal-Mart Stores Inc., declining commercial real estate market”, thus
challenging holiday guidance triggered the sell the bullish sentiment is winding down fast.
off on the Dow of 92 points to 9949, and the Technically, the indices are filling gaps on the
S&P to 1081. The reality is, the financial downside which may lead to test 9800 and
statement of the banking sector is weak due to 1069. Failure to retake the weekly Pivot,
the housing meltdown. Loan losses seem to be today the upside for the bull will confirm
accelerating and reserves to cover future loan yesterday’s sell off.
losses are growing as confirmed by the Beige

PRISM CALL ECONOMIC CALENDAR

All world markets were in the red due

TIME INDICATOR RANGE EXPECTATION PRIOR ACTUAL
to the sell off. Sell on the news has
yielded nice profit. The question is will 8:30 Initial 500K 515K 514K 531K
there be followed through? The best AM to
Jobless
540K
strategy is to sell the retracement as Claims
long as the indices are below the weekly 8:30 Continuing 5895K 5970K 5992K 5923K
pivot. The only reprieve might be the AM Claims to
6010K
jobless claims and leading indicator;
10:00 Leading 0.3% 0.8% 0.6%
however, the market may use these AM Indicators to
numbers to take profit. After all, today 1.1%
is Thursday, usually a volatile and 10:00 House -0.2% 0.3% 0.3%
tradeable day. AM Price to
Index 1.9%
MoM
10:30 EIA 5 to 27 21 58
INDU & SPUZ TECHNICALS AM Natural
Gas
Storage
INDICES S2 S1 PIVOT R1 R2 Change

INDU
9828 9895 10004 10112 10179
(DOW)
SPUZ
(S&P) 1067 1075 1087 1100 1108
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 FOREIGN MARKETS
NEWS

MARKET PRICE
 %
EU steel market 'stuck in
FTSE 5203.89 53.96 -1.03 slow motion,' Eurofer says -
Reuters.com
DAX 5757.25 76.24 -1.31

HANG SENG 22210.52 107.59 -0.48 DO Diamond Offshore

NIKKEI 10267.17 66.22 -0.64
announces special cash
dividend of $1.875 (105.88 ) -
CHINA 3051.412 19.177 -0.62 Update-

DOW STOCKS TO WATCH COMMODITY PRICES Pound drops on slow retail

sales, BOE governor
STRONG WEAK
COMMODITY PRICE
 comments – WSJ
MCD IBM

OIL 80.74 0.63

MMM BA
U.K. retail sales flat in
UTX JPM September – WSJ
GOLD 1058.2 6.30
KFT HD
European market summary;
U.K. retail sales flat, pound
lower: FTSE -1.29%, CAC -
1.58%, DAX -1.58%
UPGRADES & DOWNGRADES

STOCKS UPGRADED

BROKERAGE
COMPANY RATINGS CHANGE PRICE TARGET
FIRM
Freeport-McMoran
Deutsche Bank Hold >> Buy 79.72 72 >> 100
(FCX)
Market Weight >>
Motorola (MOT) Thoma Weisel 8.20 7 >> 11
Overweight

STOCKS DOWNGRADED

BROKERAGE
COMPANY RATINGS CHANGE PRICE TARGET
FIRM
Neutral >>
Pepco Hldgs (POM) J.12P Morgan 15
Underweight
SAP (SAP) Merrill Lynch Buy >> Neutral
52.04
EOG Resources (EOG) UBS Buy >> Neutral 92.94

Chesapeake Energy UBS Buy >> Neutral 28.83

(CHK)

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 EARNINGS

BMY Bristol-Myers beats by $0.01, reports revs in-line; guides FY09 EPS in-line (22.69 )

ESI ITT Educational beats by $0.03, beats on revs (110.43 )

MMM 3M beats by $0.20, beats on revs; raises FY09 EPS and revs guidance (76.33 )

CELG Celgene beats by $0.02, beats on revs (54.58 )

KMB Kimberly-Clark beats by $0.27, reports revs in-line; guides FY09 EPS above consensus (59.69 )

T AT&T beats by $0.04, reports revs in-line (25.94 )

MJN Mead Johnson Nutrition misses by $0.02, misses on revs; guides FY09 EPS below consensus
(43.65

MRK Merck beats by $0.08, reports revs in-line; guides FY09 EPS in-line, revs in-line (32.68 )

SON Sonoco Products beats by $0.04, misses on revs (29.11 )

BDK Black & Decker beats by $0.09, reports revs in-line; guides Q4 EPS above consensus; guides FY09
EPS above consensus (48.91 )

AF Astoria Fincl beats by $0.01, misses on revs (10.85 )

JBLU Jetblue Airways misses by $0.01, reports revs in-line (5.74 )

ZMH Zimmer Hldgs beats by $0.02, beats on revs; reaffirms FY09 EPS guidance, revs guidance
(52.23 )

NCR NCR Corp misses by $0.05, misses on revs; lowers FY09 rev and EPS guidance (12.22 )

HSY Hershey Foods beats by $0.06, misses on revs; guides FY09 EPS above consensus (40.67 )

CXG CNX Gas misses by $0.04, beats on revs (35.28 )

RTN Raytheon beats by $0.09, revs in-line; guides FY09 in-line; guides FY10 EPS below consensus, revs
in-line (45.18 )

LH Laboratory Corp beats by $0.07, reports revs in-line; guides FY09 EPS above consensus (68.85 )

GR Goodrich beats by $0.09, misses on revs (54.65 )

ETR Entergy misses by $0.08, misses on revs; guides FY09 EPS in-line (80.75 )

PM Philip Morris International beats by $0.02, misses on revs; raises FY09 guidance (50.82 )

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EMC EMC Corp beats by $0.02, beats on revs; guides Q4 EPS and revs above consensus; guides FY09
revs and EPS above consensus (17.51 )

DAL Delta Air Lines reports Q3 (Sep) results, revs in-line (8.33 -0.69)

WCC Wesco misses by $0.05, misses on revs (29.48 )

LM Legg Mason reports Q2 (Sep) results, beats on revs (31.71 )

DO Diamond Offshore beats by $0.32, beats on revs (105.88 )

XRX Xerox beats by $0.02, beats on revs; guides Q4 EPS in-line (7.72 )

PNC PNC Bank beats by $0.69, beats on revs (44.96 )

JCG J. Crew raises Q3 guidance above consensus (37.74 )

BG Bunge beats by $0.15, misses on revs; guides FY09 EPS below consensus (66.90 )

DOW Dow Chemical beats by $0.14, beats on revs (25.50 )

SGP Schering-Plough reports EPS in-line, revs in-line (29.01 )

PFS Provident Finl beats by $0.01 (9.85 )

OXY Occidental Petro beats by $0.06, reports revs in-line (81.55 )

RAI Reynolds American beats by $0.07, misses on revs; guides FY09 EPS above consensus (49.04 )

UNP Union Pacific beats by $0.02, reports revs in-line; volumes down 15% YoY (62.92 )

MCD McDonald's beats by $0.04, reports revs in-line (58.33 )

R Ryder System beats by $0.05, reports revs in-line (45.27 )

UPS UPS revs $11.15 bln vs $11.17 bln First Call consensus

UPS UPS: Wires reporting EPS of $0.55 vs $0.52 First Call consensus

UNP Union Pacific prelim $1.02 vs $1.00 First Call consensus; revs $3.67 bln vs $3.69 bln First Call
consensus; Q3 volumes were down 15%++

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 TECHNICAL ANALYSIS

Symbol S7 S6 S5 S4 S3 S2 S1 PIVOT R1 R2 R3 R4 R5 R6 R7
Sectors
SPX 1046.66 1054.53 1059.39 1067.25 1075.12 1077.55 1079.97 1087.84 1095.72 1098.14 1100.57 1108.43 1116.30 1121.16 1129.02
INDU 9652.78 9719.90 9761.37 9828.49 9895.61 9916.34 9936.99 10004.20 10071.41 10092.05 10112.79 10179.91 10247.03 10288.50 10355.62
NDX 1701.93 1713.36 1720.42 1731.85 1743.28 1746.81 1750.32 1761.77 1773.21 1776.73 1780.26 1791.69 1803.12 1810.18 1821.61
XBD 112.33 113.85 114.78 116.30 117.82 118.29 118.75 120.27 121.79 122.26 122.72 124.24 125.76 126.69 128.21
BKX 42.50 43.23 43.68 44.41 45.14 45.37 45.59 46.32 47.05 47.28 47.50 48.23 48.96 49.41 50.14
TRAN 3713.78 3764.66 3796.09 3846.98 3897.86 3913.58 3929.23 3980.18 4031.13 4046.78 4062.49 4113.38 4164.26 4195.69 4246.58
OIX 671.44 678.27 682.50 689.33 696.16 698.28 700.38 707.22 714.06 716.17 718.28 725.11 731.94 736.17 743.00
OSX 193.33 196.39 198.29 201.35 204.41 205.36 206.30 209.37 212.44 213.38 214.33 217.39 220.45 222.35 225.41
XNG 514.67 519.67 522.76 527.76 532.76 534.30 535.84 540.85 545.85 547.39 548.94 553.94 558.94 562.03 567.03
CYC 749.06 755.45 759.41 765.80 772.19 774.17 776.14 782.54 788.94 790.91 792.89 799.28 805.67 809.63 816.02
UTY 390.92 393.23 394.66 396.97 399.28 400.00 400.71 403.02 405.33 406.05 406.76 409.07 411.38 412.81 415.12
DRG 287.17 288.87 289.91 291.60 293.30 293.82 294.34 296.03 297.73 298.25 298.77 300.46 302.16 303.20 304.89
RLX 362.09 366.89 369.86 374.66 379.46 380.95 382.42 387.23 392.04 393.52 395.00 399.80 404.60 407.57 412.37

Tradeables

SPY 104.58 105.40 105.91 106.74 107.56 107.82 108.07 108.90 109.72 109.98 110.23 111.06 111.88 112.39 113.22
DIA 96.43 97.12 97.54 98.22 98.91 99.12 99.33 100.01 100.70 100.91 101.12 101.80 102.49 102.91 103.59
QQQQ 41.82 42.11 42.29 42.58 42.87 42.96 43.05 43.34 43.63 43.72 43.81 44.10 44.39 44.57 44.86
QLD 49.83 50.53 50.97 51.67 52.37 52.59 52.81 53.51 54.21 54.43 54.65 55.35 56.05 56.49 57.19
IWM 57.12 57.88 58.35 59.11 59.87 60.11 60.34 61.10 61.86 62.10 62.33 63.09 63.85 64.32 65.08
OIH 119.48 121.38 122.55 124.46 126.36 126.95 127.53 129.44 131.34 131.93 132.51 134.42 136.32 137.49 139.40
XLE 56.08 56.74 57.15 57.81 58.47 58.67 58.87 59.54 60.20 60.40 60.61 61.27 61.93 62.34 63.00
FAZ 16.13 16.80 17.21 17.89 18.56 18.77 18.97 19.65 20.32 20.53 20.73 21.41 22.08 22.49 23.17
FAS 67.66 70.65 72.49 75.47 78.46 79.38 80.30 83.28 86.27 87.19 88.11 91.09 94.08 95.92 98.90
SRS 8.63 8.84 8.98 9.20 9.41 9.48 9.55 9.77 9.98 10.05 10.12 10.34 10.55 10.69 10.91
SDS 34.84 35.41 35.75 36.32 36.89 37.06 37.23 37.80 38.37 38.54 38.71 39.28 39.85 40.19 40.76
USO 37.36 38.07 38.52 39.23 39.94 40.17 40.38 41.10 41.82 42.04 42.26 42.97 43.68 44.13 44.84
SKF 21.34 21.91 22.26 22.82 23.39 23.56 23.74 24.30 24.87 25.04 25.22 25.78 26.35 26.70 27.26

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