DAILY MARKET HIGHLIGHTS

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Monday 10.19.2009

CURRENT MARKET SENTIMENT

Wall Street spirits dampened by the reported earnings
of GE and BAC thus causing a cautious and realist
approach to the recovery. With eleven Dow components
reporting, their faith might be that of GS and IBM if
the whisper expectation is not met. This may add
some serious downside pressure on stock. Despite all,
the indices did increase by 1.3 percent and 1.5 percent,
Dow and S&P 500 respectively. All eyes are focusing on
the Beige book for confirmation and reaffirmation on
Wednesday and Thurs initial claims. The Upside will be
limited by mediocre earning while the downside will be
earning driven

PRISM CALL
Negative futures turned positive overnight therefore starting this week on a positive note. With Apples’ earnings after the
bell, the technology sector should be stealing the show thus setting the tone for the week. Trading range may be limited till
tomorrow as the street anticipates and evaluates the next move. Monday’s call for cautious trading.

TECHNICALS ECONOMIC CALENDAR

INDICES S2 S1 PIVOT R1 R2 TIME INDICATOR RANGE EXPECTATION PRIOR ACTUAL

NAHB
INDU Housing
9878 9924 9999 10074 10120 1:00 PM
Market
18 to 21 20 19
(DOW)
Index
SPUZ
(S&P) 1075 1080 1088 1096 1100

FOREIGN MARKETS

PRICE
 %
MARKET

FTSE 5266.55 66.31 1.28

DAX 5818.71 75.32 1.31

HANG SENG 22200.46 270.56 1.23

NIKKEI 10236.51 21.05 -0.21

CHINA 2028.273 61.64 2.07

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 DOW STOCKS TO WATCH COMMODITY PRICES NEWS

STRONG WEAK XNPT Xenoport announces it has

COMMODITY PRICE

HPQ MMM
initiated a Phase 2b clinical trial of
arbaclofen placarbil, also known as
OIL 78.43 0.10 XP19986, in patients with
BA IBM
gastroesophageal reflux disease who
MCD DD remain symptomatic despite
GOLD 1055.5 4.00 treatment with a proton pump
WMT JPM inhibitor (19.41 )

BAC Bank of America: Pre-provision

profits slowed, but credit beat
expectations - Collins Stewart (17.26 )
UPGRADES & DOWNGRADES
UTX United Tech's Carrier Corp. to
sell its residential air-conditioning
STOCKS UPGRADED operations in Israel
BROKERAGE
COMPANY RATINGS CHANGE PRICE TARGET GOLD Randgold Resources signs
FIRM
agreement to sell interest in Kiaka
Sohu (SOHU) Pali Research Neutral 64.72
(75.39 )
Whiting Petroleum Sun Trust Rbsn Neutral » Buy $74
( WLL) Humphrey TXN Beat and raises Likely at TXN,
Continental Resources Sun Trust Rbsn Neutral » Buy $53 ATHR; PC commentary key from
( CLR) Humphrey hard disk suppliers - FBR Capital
Dick's Sporting Goods Piper Jaffray Underweight » Mkts
( DKS) Neutral
Air Tran Holdings JP Morgan Neutral » Overweight $9.50 » $11 POT Potash: BHP can offer 30%
( AAI) premium for Potash Corp., BofA says
American Express FBR Capital Underperform » Mkt $25 » $37 - Bloomberg.com (97.40 )
( AXP) Perform
China Automotive\ Merriman Neutral » Buy
( CAAS)

STOCKS DOWNGRADED

BROKERAGE
COMPANY RATINGS CHANGE PRICE TARGET
FIRM
Abercombie (ANF) Brean Murray Sell 30 37.59
New York & Co ( NWY) Brean Murray Buy » Hold

Mattel ( MAT) Morgan Joseph Buy » Hold

Callaway Golf ( ELY) Morgan Joseph Buy » Hold

Southwest Air ( LUV) JP Morgan Neutral » $11.50 »

Underweight $6.50
Accenture ( CAN) UBS Buy » Neutral

Cellcom Israel ( CEL) Deutsche Securities Buy » Hold

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 EARNINGS

HTZ Hertz announces offering of $1.2 bln term asset-backed notes (10.70 )

EXH Exterran mentioned negatively in Barron's (25.37 )

APC Anadarko Petroleum mentioned positively in Barron's (67.11 )

WFT Weatherford reports EPS in-line, revs in-line (20.58 )

HAS Hasbro beats by $0.06, misses on revs (29.52 )

ETN Eaton beats by $0.29, misses on revs; guides Q4 EPS above consensus; guides FY09 EPS above consensus
(60.42 )

HGSI Human Genome announces $75 mln milestone payment for ZALBIN progress (19.96 )

TRA Terra Industries prelim Q3 revs approx. $347.0 mln vs $359.25 mln First Call consensus

BBT BB&T Corp prelim $0.23 vs $0.22 First Call consensus

TRA Terra Industries sees Q3 revs and net income below consensus, announces $600 mln senior notes offering
along with acquisition of AGU assets (36.36 )

BBT BB&T Corp beats by $0.01 (28.25 )

COF Capital One tgt raised to $40 at FBR Capital on higher normalized EPS est; firm sees a substantial Q3 beat
due Thursday afternoon (36.35 )

CELG Celgene: Leerink Swann expects a good 3Q driven by strong sales of Revlimid (56.42 )

BAC Bank of America ests lowered below consensus at Stifel Nicolaus following Friday's results (17.26 )

BUCY Bucyrus initiated with a Outperform at RBC Capital Mkts; tgt $49 (39.05 )

CAT Caterpillar initiated with a Outperform at RBC Capital Mkts; tgt $65 (54.57 )

DE Deere initiated with a Sector Perform at RBC Capital Mkts; tgt $49 (44.04 )

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