Index Last Δ (%) : Dow Jones 11,891.93 S&P 500 1,286.12 Nasdaq 2,700.08

Feb 1 2011
The Dow Jones Industrial Average

ended the final day of January at Index Last Δ (%)
11,891.93, up 68.23 points or Dow Jones 11,891.93 +68.23 0.58%
0.58%. Other indexes, the Nasdaq
S&P 500 1,286.12 +9.78 0.77%
and S&P 500, also ended up. S&P
500 finished at 1,286.12, up 0.77%, Nasdaq 2,700.08 +13.19 0.49%
and Nasdaq closed the session at 2,700.08 or 0.49% higher.
Egypt remains on the spotlight as Moody’s Investors Service yesterday downgraded its rating
to Ba2 from Ba1. Another significant event this week would be the release of nonfarm payrolls
in the US on Friday. So far, the market expected January payrolls to have risen from 103K to
140K while the unemployment rate to also rise towards 9.5% from 9.4%.
Monday’s economic indicators released were personal income which was flat at 0.4% in
December; consumer spending which slightly higher at 0.7% after it posted a 0.3% rise in
November. The November’s spending was earlier expected at 0.6%. Chicago PMI showed
more improvement as it was at 68.8% in January, up from 66.8% in December.
AA was the top performer of the day, gaining 2.73%. The aluminum producer was set to
buy Transdigm’s aerospace fastener business. The value of the deal will be around $240
million.
The second best performer of the day was XOM. The oil giant
reported a strong Q4 report. Q4 EPS was at $1.85, better than the
expected $1.63 the market had predicted. Revenue was also beat
estimate at $105.19 billion. The market consensus was at $99.11
billion. Breakdown of the report showed upstream earnings up $1.7
billion in Q4 from a year ago at $7.48 billion, while production increased by 19%.
Downstream earnings also increased to $1.15 billion, up $1.3 billion from the same
quarter in 2009. Chemical earnings hit $1.07 billion in Q4, $351 million higher than a
year earlier. The company planned shares repurchases in Q1 by about $5 billion. XOM
ended the day up 2.14% at $80.68. Technically speaking, the outlook is bullish as it has
just broken through $80.00, a stiff resistance which has been blocking XOM for several
times. Next resistance is seen at $82.09.
IBM added 1.75% on Monday, further boosting its January gains to a total of 9.75%,
firming its position as the third best of the day and at the same time also the third best of
the month.
PG slumped at the bottom with a drop of 1.67%, thus rounding up its January negative
returns of 0.23%.
WMT gained 6.75% in January, but it could have been better if it had not posted a loss
of 1.11% on Monday. The giant retailer was said to plan clearing out its stores and
warehouses of excess goods which were unsold during last Christmas. This brought concerns
over its most recent quarter performance.
INTC was unchanged on Monday, but its new chip was said to be flawed and had to be
fixed and replaced. The cost for fixing the chip would be around $700 million. Also, INTC
Feb 1 2011
revised its first-quarter sales forecast upwards. The company expected sales of $11.7
billion, within the expected range of $11.3 billion to $12.1 billion. This first quarter’s
forecast was better than earlier target of $11.5 billion. INTC’s problem however, boosted
its rival AMD higher by 4.54%.
PFE will be delivering its report today, but the company is expected to post an EPS of
$0.46 per share, down from the same period a year earlier which was at $0.49 per
share.
Dow 30 - Jan 31st 2011

AA 2.73% 1 DD 0.78% 11 DIS 0.05% 21
XOM 2.14% 2 MMM 0.55% 12 INTC 0.00% 22
IBM 1.75% 3 MCD 0.53% 13 VZ -0.03% 23
CVX 1.67% 4 HPQ 0.40% 14 MSFT -0.11% 24
CAT 1.39% 5 PFE 0.39% 15 UTX -0.16% 25
CSCO 1.05% 6 BA 0.36% 16 GE -0.30% 26
KO 1.03% 7 MRK 0.30% 17 JNJ -0.40% 27
BAC 0.96% 8 HD 0.19% 18 AXP -1.09% 28
JPM 0.90% 9 KFT 0.13% 19 WMT -1.11% 29
TRV 0.81% 10 T 0.11% 20 PG -1.67% 30
Dow 30 - Month-to-Date - Jan 31st 2011

HPQ 11.02% 1 PFE 5.54% 11 VZ 1.98% 21
GE 10.88% 2 DIS 5.20% 12 TRV 1.65% 22
IBM 9.75% 3 UTX 4.92% 13 DD 0.78% 23
XOM 9.25% 4 CVX 3.84% 14 PG -0.23% 24
HD 8.33% 5 AXP 3.77% 15 JNJ -1.89% 25
BAC 8.12% 6 MSFT 3.44% 16 KFT -3.08% 26
AA 7.02% 7 INTC 3.42% 17 MCD -3.14% 27
WMT 6.75% 8 MMM 3.35% 18 T -4.25% 28
JPM 6.32% 9 CAT 3.17% 19 KO -4.67% 29
CSCO 5.98% 10 BA 2.47% 20 MRK -7.74% 30
Feb 1 2011
Dow 30 - Trailing Twelve Months (TTM) - Jan 31st 2011
CAT 85.70% 1 UTX 20.48% 11 T 8.52% 21
DD 55.41% 2 MCD 18.00% 12 WMT 4.94% 22
IBM 32.36% 3 KO 15.85% 13 PG 2.57% 23
CVX 31.63% 4 JPM 15.41% 14 MSFT -1.60% 24
DIS 31.54% 5 AXP 15.19% 15 PFE -2.36% 25
HD 31.27% 6 BA 14.65% 16 HPQ -2.93% 26
AA 30.16% 7 TRV 11.03% 17 JNJ -4.92% 27
GE 25.25% 8 INTC 10.62% 18 CSCO -5.87% 28
XOM 25.22% 9 KFT 10.52% 19 BAC -9.55% 29
VZ 21.07% 10 MMM 9.23% 20 MRK -13.12% 30
US Economic Calendar
Date Time Report Period Actual Forecast Previous
1-Feb 10:00:00 AM ISM Jan - 58.50% 58.50%
1-Feb 10:00:00 AM Construction spending Dec - 0.20% 0.40%
3-Feb 8:30:00 AM Jobless claims 1/29/2011 - 415K 454K
3-Feb 8:30:00 AM Productivity 4Q - 2.20% 2.30%
3-Feb 10:00:00 AM ISM non-manufacturing Jan - 57.10% 57.10%
3-Feb 10:00:00 AM Factory orders Dec - -0.40% 0.70%
4-Feb 8:30:00 AM Nonfarm payrolls Jan - 150K 103K
4-Feb 8:30:00 AM Unemployment rate Jan - 9.60% 9.40%
4-Feb 8:30:00 AM Average hourly earnings Jan - 0.20% 0.10%
Stock in focus: PFE
PFE had bumped into a solid resistance at $18.75 and tumbled

towards $18.14, its first fibo support. Next fibo support lies at
$17.77, just below its pivotal high at $17.86. Drug maker stocks have
not been impressive lately, as we can see from MRK which, despite its
0.30% gains on Monday, slumped 7.74% in January alone.
Compared to a year ago, MRK lost 13.12% of its value while PFE lost 2.36%. PFE however,
gained 5.54% in January. Nearest resistance is seen at around $18.30 - $18.35. Higher,
$18.52 and $18.73 will also become tough obstacles for the drug maker to advance higher.
At the nearest, $18.00 will provide minor resistance. The outlook is bearish, with potential slide
towards $18.00 and later $17.76 en route to $17.48 before the stock could stage a new
rally attempt towards $18.67 again.
Feb 1 2011
Judging from the chart indicators, a bearish divergence is currently forming with RSI falling as
well as MACD. Its EMA 50 also points at $17.73, further bolstering this level’s significance in
containing a drop.
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.

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Feb 1 2011

The Dow Jones Industrial Average

Dow 30 - Jan 31st 2011

Dow 30 - Month-to-Date - Jan 31st 2011

PFE had bumped into a solid resistance at $18.75 and tumbled

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