March 30th 2011

The Dow Jones Industrial Average climbed 81.13 points on Tuesday, or 0.67% to settle at 12,279.01,
the S&P 500 index finished at 1,319.44 or up 0.71%, while the Nasdaq composite also added
0.96% to end at 2,756.89, up 26.21 points.

Economic data brought minimal impact to the markets, despite the consumer confidence slumped in
March and that the housing prices in the US still weak in January.

Global events remain the same, with European debt crisis still lurking in the background, Japan’s
nuclear crisis also far from over, and Middle East still hot in conflict. The market will look for direction
on the next payrolls report on Friday as the labor market has been one of the Fed’s main issues.

Today, ADP employment report is going to provide the clue to how we could expect the payrolls will
be. Forecast is at 205K, down from 217K attained in January.

Corporate News
BA’s 777 freighters are on the China Southern buying list, while also getting a contract for
additional C-130 modernization kits from the USAF worth $31 million.
A lawsuit against BAC regarding CDO investments has been dismissed.
CSCO is interested in acquiring newScale, a leading provider of software that delivers a service
catalog and self-service portal for IT organizations. These IT organizations then select and deploy
cloud services within their businesses.
DIS and China Mobile Ltd. have agreed to work together on mobile video services. China Mobile
will offer movies, TV series and the “new media” animated works made by DIS in its mobile
services.
GE plans to acquire Converteam by purchasing 90% of the company’s share. Converteam
provides electrification and automation equipment and systems. The value of the deal would be
around $3.2B and to be closed around 3Q11.
HD jumped 2.9% after the company announced that it sold $2B in notes, using $1B from it for
share-buyback program through Barclays Plc.
HPQ and Acacia Research Corp. reached a settlement over a dispute on patents for monitoring
computer applications.
IBM has been appointed by NBN Co. as prime systems integrator of its operational and business
support systems. The deal worth $200 million and will span for three year.
JNJ made another round of recalls. This time 34,000 bottles of Tylenol were withdrawn due to
musty or moldy odor while various products ranging from Benadryl and Sudafed have been
recalled as well.
JPM’s loan to T has been considered as CREDIT NEGATIVE by Moody’s.
WMT denied talks of JV with Future Group, while the giant retailer is set to have its discrimination
case brought to the Supreme Court.

1 .DJI 12,297.01 (+81.13 ● +0.67%) .SPX 1,319.44 (9.25 ● +0.71%) .IXIC 2,756.89 (+26.21 ● +0.96%)
 March 30th 2011

Stock Focus: Alcoa, Inc.

AA
Last Mar 29th Resistances 17.70 20.15 22.45 24.85 29.55
$17.49 1.45% Supports 16.85 16.50 16.15 15.90 15.42
WTD MTD Outlook
2.34% 8.43%
POSITIVE
YTD 12-Month
13.65% 22.82% Strategy BUY dips to 16.85, PT 20.15, risk < 15.42

Prior recommendation to SHORT was stopped out when the aluminum giant AA zoomed higher to as
high as 17.54 recently. Now the outlook has shifted to NEUTRAL from NEGATIVE and looks set to be
shifted further to POSITIVE. Dips to 16.85 create buying opportunities, with PT at 20.15, and risk
below 15.42. EMAs, RSI, MACD are all supporting the positive outlook right now.

2 .DJI 12,297.01 (+81.13 ● +0.67%) .SPX 1,319.44 (9.25 ● +0.71%) .IXIC 2,756.89 (+26.21 ● +0.96%)
 March 30th 2011

Price Performance - as of Mar 29th 2011

Code Last Dy WTD MTD YTD 12-Mos
AA 17.49 1.45% 2.34% 8.43% 13.65% 22.82%
AXP 45.65 -0.15% 0.13% 4.08% 6.36% 10.64%
BA 73.62 0.44% 0.38% 6.34% 12.81% 1.39%
BAC 13.35 -0.15% 0.07% -1.84% 0.07% -25.21%
CAT 110.54 1.04% 1.33% 15.53% 18.02% 75.88%
CSCO 17.44 1.45% 0.93% -16.67% -13.79% -33.00%
CVX 107.37 1.25% 0.55% 14.99% 17.67% 41.59%
DD 54.59 1.22% 0.91% 8.55% 9.44% 46.59%
DIS 42.94 0.99% -0.07% 10.53% 14.48% 23.00%
GE 19.86 0.56% 0.56% -1.68% 8.58% 9.12%
HD 37.70 2.86% 0.75% 2.72% 7.53% 16.54%
HPQ 41.11 -2.44% -3.34% -9.67% -2.35% -22.65%
IBM 162.88 0.94% 0.43% 2.31% 10.98% 27.00%
INTC 20.28 -0.29% -0.44% -5.50% -3.57% -9.02%
JNJ 59.22 -0.03% 0.41% -1.32% -4.25% -9.17%
JPM 46.02 0.13% 0.35% 3.32% 8.49% 2.84%
KFT 31.27 -0.64% 0.03% 2.42% -0.76% 3.41%
KO 65.72 1.06% 0.77% 5.64% -0.08% 19.49%
MCD 75.37 0.49% 0.16% 2.85% -1.81% 12.96%
MMM 92.84 0.78% 0.62% 6.18% 7.58% 11.09%
MRK 32.78 1.02% 0.64% -0.88% -9.05% -12.24%
MSFT 25.49 0.31% -0.51% -8.18% -8.67% -12.97%
PFE 20.38 0.54% 0.15% 12.29% 16.39% 18.83%
PG 61.28 1.02% 0.66% -4.55% -4.74% -3.15%
T 30.05 2.35% 4.16% 9.31% 2.28% 16.29%
TRV 59.26 0.59% 0.47% 6.18% 6.37% 9.86%
UTX 84.12 0.78% 0.72% 3.30% 6.86% 14.28%
VZ 38.29 1.43% 2.68% 7.47% 7.02% 23.44%
WMT 52.26 0.13% -0.17% -7.83% -3.10% -6.01%
XOM 83.25 -0.26% -0.44% 5.39% 13.85% 24.29%

3 .DJI 12,297.01 (+81.13 ● +0.67%) .SPX 1,319.44 (9.25 ● +0.71%) .IXIC 2,756.89 (+26.21 ● +0.96%)
 March 30th 2011

Analysts' Upgrades & Downgrades

Ratings Price Target
Code House
Previous Current Previous Current
AA Argus Buy Buy - -
CAT Zacks Investment Rsrch Outperform Neutral $112.00 $112.00
DD BofA/ML Buy Buy - $62.00
XOM Argus Buy Buy - $100.00
TRV Goldman Sachs Neutral Sell $61.00 $61.00
n Sector-wide n Upgrade n Downgrade n Initiation

US Economic Calendar
Date Time Report Period Actual Forecast Previous
28-Mar 8:30 AM Personal income Feb 0.3% 0.4% 1.2%
28-Mar 8:30 AM Consumer spending Feb 0.7% 0.6% 0.2%
28-Mar 8:30 AM Core PCE price index Feb 0.2% 0.2% 0.2%
28-Mar 10:00 AM Pending home sales Feb 2.1% n/a -2.8%
29-Mar 9:00 AM Case-Shiller home prices Jan -1.0% n/a -1.0%
29-Mar 10:00 AM Consumer confidence March 63.4% 62.3 72.0
30-Mar 8:15 AM ADP employment March n/a 217K
31-Mar 8:30 AM Jobless claims 26-Mar 380K 382K
31-Mar 9:45 AM Chicago PMI March 68.9% 71.2%
31-Mar 10:00 AM Factory orders Feb 0.5% 3.1%
1-Apr 8:30 AM Nonfarm payrolls March 178K 192K
1-Apr 8:30 AM Unemployment rate March 9.0% 8.9%
1-Apr 8:30 AM Average hourly earnings March 0.2% 0.0%
1-Apr 10:00 AM ISM March 61.6% 61.4%
1-Apr 10:00 AM Construction spending Feb 0.4% -0.7%
1-Apr TBA Motor vehicle sales March 13.1 mln 13.4 mln

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 12,297.01 (+81.13 ● +0.67%) .SPX 1,319.44 (9.25 ● +0.71%) .IXIC 2,756.89 (+26.21 ● +0.96%)