April 4th 2011

Payrolls Lifted the Mood

The Dow 30 finished up 56.99 points or 0.46% at 12,376.72 while the S&P 500 index gained
0.50% or 6.58 points at 1,332.41. The tech stocks also rose as represented by the NASDAQ
Composite which finished at 2,789.60, 8.53 points or 0.31% higher.

Leading the Dow 30 on Friday was CAT (1.59%), followed by GE (1.45%) and HD (1.35%). At the
bottom of the table were INTC (-2.28%), AA (-1.08%) and CSCO (-0.64%).

For the whole week, T was the top performer with gains of 6.14%, while CAT at the second spot with
3.69% increase. VZ was the next with 3.16% gains. HPQ plunged 3.64%, the worst Dow 30
performer, followed by INTC with 3.19% decline, and CSCO at the third from the bottom with losses
of 1.39%.

US stocks got a lift from the better-than-expected nonfarm payrolls. Payrolls counted for 216K in
March, up from 194K in February and better than the consensus count of 194K. Unemployment also
ticked lower at 8.8% in March from 8.9% in February, against the expected rise to 9.0%.

Other economic data showed ISM for manufacturing edged lower from 61.4 to 61.2 in March, less
than the anticipated 61.3, while the construction spending declined 1.4% in February, worse than the
expected rise of 0.1%. Spending was down 1.8% in January. Also, motor vehicle sales were down to
13.1M from 13.4M, in line with the consensus. Japan’s quake had put dents on the sales of Japanese
cars such as Toyota, Honda, and Nissan.

The coming week will be quiet on the economic data front. There’s going to be no economic data on
Monday, but the coming week will feature ISM for non-manufacturing sector, seen up from 59.7 in
February to 60.0 in March. FOMC minutes will be released on Tuesday, while the jobless claims data
is expected on Thursday, as usual. Consumer credit will due on Thursday as well. The wholesale
inventories for February will wrap up the week.

Usual issues will remain such as MENA tensions, the end of QE2 chatter, what’s left of Japan’s nuclear
disaster, and the Eurozone fiscal crisis.

1 .DJI 12,376.72 (+56.99 ● +0.46%) .SPX 1,332.41 (+6.58 ● +0.50%) .IXIC 2,789.60 (+8.53 ● +0.31%)
 April 4th 2011

Corporate News
Southwest Airlines has cancelled flights of its 737s due to a hole in the fuselage. Meanwhile, BA
received order for 15 Next-Generation 737s from Turkish Airlines, while Jackson Square Aviation
said that 777-300ER has been delivered to Air France.
CSCO’s WebEx solutions have been picked by BA again. CSCO shares have been considered as
undervalued by Pacific Crest as the sell-off is overdone. By FY2013, CSCO’s switching business
could triple in revenues, while non-switch could be more than double in FY2011.
JPM’s $20B loan to T has been syndicated to 11 other banks such as Citigroup, BAC, and Morgan
Stanley.
DIS to start the construction of its theme park in Shanghai on April 8th.
GE’s Jeff Immelt said that the nuclear complex in Japan had been built decades ago, so GE would
not be held liable for the damages. On the recent tax issue, Immelt said that GE follows all tax
regulations and had huge losses as well during the financial crisis.
MMM bought assets from Zargis Medical such as TELESTETH online auscultation software,
STETHASSIST software and heart sound analysis software. The terms of the transaction were not
disclosed.
iPhone sales at VZ outlets have been outsold by HTC’s Thunderbolt. Elsewhere, President Obama
announced that VZ, along with T, FedEx, PepsiCo, and UPS have agreed to utilized more than
20,000 advanced tech vehicles which will cut gasoline use by 7M gallons.

2 .DJI 12,376.72 (+56.99 ● +0.46%) .SPX 1,332.41 (+6.58 ● +0.50%) .IXIC 2,789.60 (+8.53 ● +0.31%)
 April 4th 2011

Stock Focus: Home Depot, Inc.

HD
Last Mar 28th Resistances 37.87 38.08 38.45 39.52 40.74
$37.56 1.35% Supports 36.81 36.62 36.03 35.43 34.07
WTD MTD Outlook
0.37% 1.35%
POSITIVE
YTD 12-Month
7.13% 6.61% Comment BUY while above 35.43, PT 40.74, risk < 34.07

HD has been gyrating in a congestion zone between 37.87 and 36.62 recently, and is expected to
break the resistance at 37.87 and move higher, aiming at 39.52 first and 40.74, afterwards. With all
indicators suggesting POSITIVE readings, it would take a dive below 34.07 to negate the POSITIVE
outlook. Look to BUY with tight stop below 34.07, with PT set at 39.52 or 40.74. Risk < 34.07.

3 .DJI 12,376.72 (+56.99 ● +0.46%) .SPX 1,332.41 (+6.58 ● +0.50%) .IXIC 2,789.60 (+8.53 ● +0.31%)
 April 4th 2011

Price Performance - as of Apr 1st 2011

Code Last Dy WTD MTD YTD 12-Mos
AA 17.47 -1.08% 2.22% -1.08% 13.52% 30.08%
AXP 45.36 0.35% -0.50% 0.35% 5.68% -1.65%
BA 74.01 0.11% 0.91% 0.11% 13.41% 2.18%
BAC 13.37 0.30% 0.22% 0.30% 0.22% -25.01%
CAT 113.12 1.59% 3.69% 1.59% 20.78% 66.13%
CSCO 17.04 -0.64% -1.39% -0.64% -15.77% -36.72%
CVX 108.32 0.77% 1.44% 0.77% 18.71% 33.01%
DD 55.19 0.40% 2.01% 0.40% 10.65% 38.53%
DIS 42.85 -0.56% -0.28% -0.56% 14.24% 16.31%
GE 20.34 1.45% 2.99% 1.45% 11.21% 7.85%
HD 37.56 1.35% 0.37% 1.35% 7.13% 6.61%
HPQ 40.98 0.02% -3.64% 0.02% -2.66% -21.15%
IBM 164.27 0.74% 1.29% 0.74% 11.93% 27.34%
INTC 19.72 -2.28% -3.19% -2.28% -6.23% -13.66%
JNJ 59.49 0.41% 0.86% 0.41% -3.82% -7.48%
JPM 46.35 0.54% 1.07% 0.54% 9.26% 8.85%
KFT 31.61 0.80% 1.12% 0.80% 0.32% 6.79%
KO 67.22 1.33% 3.07% 1.33% 2.20% 25.76%
MCD 75.99 -0.13% 0.98% -0.13% -1.00% 7.65%
MMM 93.13 -0.40% 0.93% -0.40% 7.91% 5.03%
MRK 33.07 0.18% 1.54% 0.18% -8.24% -5.62%
MSFT 25.48 0.35% -0.55% 0.35% -8.71% -16.57%
PFE 20.38 0.34% 0.15% 0.34% 16.39% 21.89%
PG 62.08 0.78% 1.97% 0.78% -3.50% -0.13%
T 30.62 0.03% 6.14% 0.03% 4.22% 17.50%
TRV 59.71 0.39% 1.24% 0.39% 7.18% 17.68%
UTX 85.32 0.79% 2.16% 0.79% 8.38% 13.84%
VZ 38.47 -0.18% 3.16% -0.18% 7.52% 33.11%
WMT 52.13 0.15% -0.42% 0.15% -3.34% -2.82%
XOM 84.68 0.65% 1.27% 0.65% 15.81% 24.95%

4 .DJI 12,376.72 (+56.99 ● +0.46%) .SPX 1,332.41 (+6.58 ● +0.50%) .IXIC 2,789.60 (+8.53 ● +0.31%)
 April 4th 2011

Analysts' Upgrades & Downgrades

Ratings Price Target
Code House
Previous Current Previous Current
CSCO Pacific Crest - Outperform - $25.00
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 201K 205K 217K
31-Mar 8:30 AM Jobless claims 26-Mar 388K 380K 382K
31-Mar 9:45 AM Chicago PMI March 70.6% 68.9% 71.2%
31-Mar 10:00 AM Factory orders Feb -0.1% 0.5% 3.1%
1-Apr 8:30 AM Nonfarm payrolls March 216K 185K 194K
1-Apr 8:30 AM Unemployment rate March 8.8% 9.0% 8.9%
1-Apr 8:30 AM Average hourly earnings March 0.0% 0.2% 0.0%
1-Apr 10:00 AM ISM March 61.2% 61.3% 61.4%
1-Apr 10:00 AM Construction spending Feb -1.4% 0.1% -1.8%
1-Apr TBA Motor vehicle sales March 13.1 mln 13.1 mln 13.4 mln

US Economic Calendar
Date Time Report Period Actual Forecast Previous
5-Apr 10:00 AM ISM Non-Manufacturing Mar 60.0% 59.7%
5-Apr 2:00 PM FOMC Minutes 15-Mar
7-Apr 8:30 AM Jobless Claims 2-Apr 388K
7-Apr 3:00 PM Consumer Credit Feb n/a $5B
8-Apr 10:00 AM Wholsesale Inventories Feb n/a 1.1%

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 12,376.72 (+56.99 ● +0.46%) .SPX 1,332.41 (+6.58 ● +0.50%) .IXIC 2,789.60 (+8.53 ● +0.31%)