March 18th 2011

Dow Strikes Back

Dow Jones Industrial Average ended higher on Thursday, gaining 1.39% to end at 11,774.59 on the
eased tension over the nuclear crisis in Japan. S&P 500 index also ended firmer at 1,273.72, up
16.84 points or 1.34%. Tech stocks remained vulnerable, as its gains were capped at 0.73% or
19.23 points sending Nasdaq Composite index to end at 2,636.05.

From the Middle East, the UN Security Council has agreed to impose no-fly-zone on Libya, sending the
oil prices back above $100 a barrel. US light crude finished at $103 a barrel on Thursday, up
5.79% from Wednesday’s settlement. Brent crude also soared 4.45% to end at $115.13 a barrel.
Gold jumped 1.42% to return above $1,400/oz. as the precious metal ended Thursday at
$1,407.35/oz.

US economic indicators also lend a strong footing to the US stocks as jobless claims fell in the recent
week and that the Philly Fed index beat the market’s consensus. Jobless claims maintained its level
below 400K at 385K, better than the expected 389K and lower than the 401K recorded a week
earlier. Philly Fed index was at 43.4% in March, dumbfounding the market’s consensus that the index
was falling to 30.9%. The jump from 35.9% to 43.4% helped boost the investors’ sentiment
somewhat. Other notable releases were industrial production which fell 0.1% in February, the same
pace as in January despite the market saw an increase of 0.7% earlier. CPI inched faster to 0.5%
from 0.4% in February, as expected. The core measure which excludes food and energy components
showed a rise of 0.2%, the same pace as in January but slightly above what the market initially
expected.

Corporate News
Goldman Sachs raised AA’s Q1 EPS estimates from $0.25 to $0.28 on the back of higher
aluminum prices. Aluminum price for Q2 has been raised to $1.12/lb from $1.06/lb. Q2 EPS was
unchanged. AA’s FY11 EPS in turn, also rose to $1.03 from $1.00 while its 2012 EPS stays at
$1.25 and 2013 EPS remains at $1.40. AA has been kept at NEUTRAL with PT at $17.
Citigroup analyst said that JPM is ‘Best Stock to Own’ while BAC is ‘Inexpensive’. BAC however, is
currently under the investigation over Libor manipulation by the SEC and the Justice Department.
CAT’s analyst meeting will be held on March 23rd at 3:45 PM.
DIS announced that its operations in Tokyo have been suspended following the quake last week in
Japan.
IBM has been kept at BUY by Canaccord Genuity with PT at $180.
INTC bought Silicon Hive, a developer of programmable parallel processor technology. Silicon
Hive is based in Netherlands.
KFT has increased its Maxwell coffee prices by 22% while instant coffee has been raised by 10%
on the back of rising green coffee.
PFE has recalled its painkiller Embeda due to stability issue.

1 .DJI 11,774.59 (+161.29 ● +1.39%) .SPX 1,273.72 (+16.84 ● +1.34%) .IXIC 2,636.05 (+19.23 ● +0.73%)
 March 18th 2011

Stock Focus: Walt Disney, Co.

DIS
Last Mar 17th Resistances 41.35 41.90 42.40 42.85 43.40
$40.76 0.39% Supports 40.00 39.15 37.55 35.90 33.95
WTD MTD Outlook
5.05% 4.92%
NEUTRAL
YTD 12-Month
8.66% 16.76% Strategy BUY dips to 40.00, PT 43.40, risk < 39.15

DIS’s ascend has been interrupted by the Japan’s quake. Since the recent peak at $44.34, the stock
has fallen by as much as 8.8%. Currently it’s stuck below the 50-day EMA, the MACD is on the slide,
and the RSI still shows no signs of divergences building up. Yet, despite its operations in Japan have
been interrupted due to quake and nuclear crisis, DIS is expected to return to its peak once the
pessimism dissipates. Building up LONGS could be started around $40.00 and down through $39.15,
while aiming at a return to $43.40 and possibly higher.

2 .DJI 11,774.59 (+161.29 ● +1.39%) .SPX 1,273.72 (+16.84 ● +1.34%) .IXIC 2,636.05 (+19.23 ● +0.73%)
 March 18th 2011

Price Performance - as of Mar 17th 2011

Code Last Dy WTD MTD YTD 12-Mos
AA 16.01 2.30% -0.12% -0.74% 4.03% 12.43%
AXP 43.42 2.50% -1.94% -1.00% 1.16% 5.24%
BA 68.30 0.90% -4.66% -1.34% 4.66% -5.94%
BAC 13.98 2.12% -2.78% 2.79% 4.80% -21.68%
CAT 103.12 2.71% 3.10% 7.78% 10.10% 64.07%
CSCO 17.00 -0.29% -5.29% -18.78% -15.97% -34.69%
CVX 102.24 2.74% 2.31% 9.50% 12.04% 34.83%
DD 52.33 1.55% -1.08% 4.06% 4.91% 40.52%
DIS 40.76 0.39% -5.05% 4.92% 8.66% 16.76%
GE 19.22 1.42% -5.60% -4.85% 5.08% 5.60%
HD 35.76 0.22% -3.72% -2.56% 2.00% 10.54%
HPQ 41.43 3.21% -0.72% -8.97% -1.59% -22.05%
IBM 154.18 0.77% -5.08% -3.16% 5.06% 20.22%
INTC 19.90 0.45% -4.65% -7.27% -5.37% -10.72%
JNJ 58.13 0.82% -2.61% -3.13% -6.01% -10.84%
JPM 44.56 1.71% -2.58% 0.04% 5.04% -0.42%
KFT 30.76 -0.29% -2.97% 0.75% -2.38% 1.72%
KO 62.28 1.10% -3.90% 0.11% -5.31% 13.24%
MCD 73.40 0.03% -4.34% 0.16% -4.38% 10.01%
MMM 88.69 1.30% -3.19% 1.43% 2.77% 6.13%
MRK 31.44 1.16% -3.94% -4.93% -12.76% -15.82%
MSFT 24.78 -0.04% -3.50% -10.73% -11.21% -15.40%
PFE 19.88 3.01% 2.11% 9.53% 13.54% 15.92%
PG 60.43 1.17% -1.72% -5.87% -6.06% -4.49%
T 27.74 1.50% -2.53% 0.91% -5.58% 7.35%
TRV 58.68 1.09% -0.34% 5.14% 5.33% 8.79%
UTX 79.49 1.48% -2.20% -2.38% 0.98% 7.99%
VZ 35.33 3.00% -1.45% -0.84% -1.26% 13.89%
WMT 51.37 -0.02% -2.32% -9.40% -4.75% -7.61%
XOM 81.16 2.33% -1.17% 2.75% 11.00% 21.17%

3 .DJI 11,774.59 (+161.29 ● +1.39%) .SPX 1,273.72 (+16.84 ● +1.34%) .IXIC 2,636.05 (+19.23 ● +0.73%)
 March 18th 2011

US Economic Calendar
Date Time Report Period Actual Forecast Previous
15-Mar 8:30 AM Import price index Feb 1.4% 1.0% 1.3%
15-Mar 8:30 AM Empire state index March 17.5 18.3 15.4
15-Mar 10:00 AM Home builders' index March 17 16 16
15-Mar 2:15 PM FOMC statement - 0%-0.25% 0%-0.25% 0%-0.25%
16-Mar 8:30 AM Producer price index Feb 1.6% 0.7% 0.8%
16-Mar 8:30 AM Core PPI Feb 0.2% 0.2% 0.5%
16-Mar 8:30 AM Housing starts Feb 479K 570K 618K
16-Mar 8:30 AM Current account deficit 4Q -$113.3bln n/a -$126 bln
17-Mar 8:30 AM Jobless claims 12-Mar 385K 389K 401K
17-Mar 8:30 AM Consumer price index Feb 0.5% 0.5% 0.4%
17-Mar 8:30 AM Core Consumer price index Feb 0.2% 0.1% 0.2%
17-Mar 9:15 AM Industrial production Feb -0.1% 0.7% -0.1%
17-Mar 10:00 AM Leading indicators Feb 0.8% 1.0% 0.1%
17-Mar 10:00 AM Philly Fed March 43.4% 30.9 35.9

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.

4 .DJI 11,774.59 (+161.29 ● +1.39%) .SPX 1,273.72 (+16.84 ● +1.34%) .IXIC 2,636.05 (+19.23 ● +0.73%)