March 9h 2011

BAC led the Dow 30 table on Tuesday with 4.7% gains after it upgraded its pre-tax earnings
forecast to between $35 billion and $40 billion a year when the business normalizes. Another boost
to stocks was the falling oil prices on the back of news of Gaddafi’s resignation offer although this
was later rejected.

The Dow index surged 124.35 points to 12,214.38 or up 1.03%; S&P 500 index was also up 0.89%
or 11.69 points and settled 1,321.82; the tech-heavy Nasdaq composite climbed 20.14 points to
finish at 2,765.77, up 0.73%.

Oil prices were the key factors in guiding the stock markets. Brent crude futures for April delivery
ended down $1.98 to $113.06 a barrel while the US crude settled at $105.02, slipping $0.42 a
barrel after hitting intraday low at $103.33. Falling oil led to gold edging down 0.2% to
$1,427.54/oz. at the spot market. Gold futures for April delivery ended down $7.30 at
$1,427.20/oz.

AXP zoomed to the second spot in terms of WTD gains, just behind PFE’s 4.35% gains. MMM came at
third with 3.88%. MTD, DIS & CVX still lead the pack with 11% gains each. CAT, BAC, and PFE are
next at the 8% range of returns. YTD, XOM and DIS remain the top performers at over 15% of gains.
Long-term top performers are CAT with 65.68%, DD with 45.7% and CVX with 36.85%.

Corporate News
BAC CEO said that BAC would focus on its customers and cutting costs instead of doing
acquisitions. Brian Moynihan said that the bank has no interest in buying European banks or
expanding abroad. U.S. will be the main source of BAC’s earnings, according to the BAC’s CEO. In
2010 BAC booked $1.3 billion of pretax losses due to writedowns of goodwill and problems
from prior buyouts. In 2008 and 2009, BAC had $4.4 billion of gains, while in 2007 it gained
$20.9 billion in pretax, down from 2006’s earnings of $32 billion. As for dividends, the bank may
provide returns to shareholders in the forms of regular dividends, share buybacks and special
cash dividends. To slash costs BAC may shut down 10% of its 5,900 banks in the U.S. BAC also
plans to spin off 6.7 million bad mortgages (mostly from its buyout of Countrywide Financial) and
placing them at a “bad bank” to be sold in around three years afterwards.
BA also provided positive news for the market as it signed an agreement with Air China for five
747-8 jets. The planes are to be delivered in 2014. HNA Group, the parent company of HK
Airlines also announced that it plans to buy 38 jets from BA: 6 777 cargo planes, 30 787-9s and
2 787s.
JNJ recalled another faulty product, and this time it came from its Animas unit which produces
insulin cartridges. The leaky insulin cartridges could cause serious health damages and the recall
affects 2-ml versions shipped between November 30th and January 4th.
MCD reported its February sales which increased 3.9% globally. In the U.S. alone, sales went up
2.7%, while in Europe it increased 5.1% and in Asia/Pacific and Middle East as well as Africa,
the sales went up 4%.

1 .DJI 12,214.38 (+1.03%) .SPX 1,321.82 (+0.89%) .IXIC 2,765.77 (+0.73%)

 March 9h 2011

Stock Focus: Bank of America Corporation

BAC
Last Mar 8th Resistances 15.38 16.11 16.44 17.75 20.52
$14.69 4.70% Supports 14.48 13.79 13.40 13.11 12.59
WTD MTD Outlook
3.45% 8.01%
POSITIVE
YTD 12-Month
10.12% 17.70% Strategy BUY on weakness to $14.48, risk < $13.40, PT $17.75

2 .DJI 12,214.38 (+1.03%) .SPX 1,321.82 (+0.89%) .IXIC 2,765.77 (+0.73%)

 March 9h 2011

Stock Focus: Caterpillar, Inc.

CAT
Last Mar 8th Resistances 104.43 104.95 106.13 108.41 109.27
$104.13 1.96% Supports 103.15 102.35 101.05 99.35 98.04
WTD MTD Outlook
2.09% 8.83%
POSITIVE
YTD 12-Month
11.18% 65.68% Strategy BUY on dips to $103.15, PT $108.41, risk < $101.05

3 .DJI 12,214.38 (+1.03%) .SPX 1,321.82 (+0.89%) .IXIC 2,765.77 (+0.73%)

 March 9h 2011

Stock Focus: Cisco Systems, Inc.

CSCO
Last Mar 8th Resistances 18.79 19.02 19.67 20.18 20.69
$18.22 0.11% Supports 18.00 17.51 16.94 16.74 16.68
WTD MTD Outlook
2.25% 12.95%
NEGATIVE
YTD 12-Month
9.94% 30.00% Strategy Speculative BUY > $18.00, tight stop $18.00 PT $19.02

4 .DJI 12,214.38 (+1.03%) .SPX 1,321.82 (+0.89%) .IXIC 2,765.77 (+0.73%)

 March 9h 2011

US Economic Calendar
Date Time Report Period Actual Forecast Previous
7-Mar 3:00 PM Consumer credit Jan $5.01 bln $3.50 bln $4.09 bln
8-Mar 7:30 AM NFIB small business index Feb 94.5 95.0 94.1
9-Mar 10:00 AM Wholesale inventories Jan - 1.0% 1.0%
10-Mar 8:30 AM Jobless claims 5-Mar - 378K 368K
10-Mar 8:30 AM Trade balance Jan - -$41.5 bln -$40.6 bln
10-Mar 2:00 PM Federal budget Feb - n/a $221 bln
11-Mar 8:30 AM Retail sales Feb - 1.3% 0.3%
11-Mar 8:30 AM Retail sales ex-autos Feb - 0.9% 0.3%
11-Mar 9:55 AM Consumer sentiment March - 75.8 77.5
11-Mar 10:00 AM Inventories Jan - 0.8% 0.8%
11-Mar 10:00 AM Job openings Jan - n/a 3.06 mio

Analysts' Upgrades & Downgrades

Ratings Price Target
Stock Code House
Previous Current Previous Current
General Electric, Co. GE Barclays Capital - Overweight $22.00 $25.00
n Sector-wide n Upgrade n Downgrade n Initiation

Price Performance - as of Mar 8th 2011

Code Last Dy WTD MTD YTD 12-Mos Code Last Dy WTD MTD YTD 12-Mos
AA 16.49 1.48% -1.14% 2.23% 7.15% 15.80% JPM 46.40 2.68% -0.60% 4.18% 9.38% 3.69%
AXP 45.24 3.50% 3.93% 3.15% 5.41% 9.65% KFT 31.45 0.38% -0.82% 3.01% -0.19% 4.00%
BA 72.04 1.64% -0.36% 4.06% 10.39% -0.79% KO 65.64 0.64% 2.07% 5.51% -0.20% 19.35%
BAC 14.69 4.70% 3.45% 8.01% 10.12% -17.70% MCD 75.54 -0.98% 1.48% 3.08% -1.59% 13.22%
CAT 104.13 1.96% 2.09% 8.83% 11.18% 65.68% MMM 93.75 1.46% 3.88% 7.22% 8.63% 12.18%
CSCO 18.22 0.11% -2.25% -12.95% -9.94% -30.00% MRK 32.98 0.46% 2.45% -0.27% -8.49% -11.70%
CVX 103.77 0.74% 1.64% 11.14% 13.72% 36.85% MSFT 25.91 0.74% -2.41% -6.66% -7.17% -11.54%
DD 54.26 1.88% 0.35% 7.89% 8.78% 45.70% PFE 19.68 0.36% 4.35% 8.43% 12.39% 14.75%
DIS 43.20 0.42% 0.58% 11.20% 15.17% 23.75% PG 62.05 0.55% -1.26% -3.35% -3.54% -1.93%
GE 20.63 1.23% -0.91% 2.13% 12.79% 13.35% T 28.45 1.97% 1.14% 3.49% -3.17% 10.10%
HD 37.04 0.46% -0.11% 0.93% 5.65% 14.50% TRV 59.06 0.17% -0.91% 5.82% 6.01% 9.49%
HPQ 42.40 1.00% -0.66% -6.83% 0.71% -20.23% UTX 83.26 1.19% -0.13% 2.25% 5.77% 13.11%
IBM 162.28 1.47% 0.00% 1.93% 10.58% 26.53% VZ 36.48 1.31% 1.42% 2.39% 1.96% 17.60%
INTC 21.13 -0.38% -3.34% -1.54% 0.48% -5.20% WMT 52.44 0.81% 1.33% -7.51% -2.76% -5.68%
JNJ 60.71 0.51% 1.79% 1.17% -1.84% -6.89% XOM 84.60 -0.14% -0.87% 7.10% 15.70% 26.31%

Disclaimer: This report is provided for information purposes only. It is not an offer to sell or to buy any securities. This
report has been prepared based on sources believed to be reliable, but there is no assurance or guarantee regarding its
completeness and accuracy. The author accepts no responsibility or liability arising from any use of the report.

5 .DJI 12,214.38 (+1.03%) .SPX 1,321.82 (+0.89%) .IXIC 2,765.77 (+0.73%)