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    Strikes Back: .DJI 12,723.58 (-83.93) .SPX 1,347.32 (-9.30) .IXIC 2,828.23 (-13.39)

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    Andre Setiawan
    1. INTC introduced its new chip called Ivy Bridge, which uses 3-D transistor technology, allowing it to enter the smartphone and tablet markets currently dominated by ARM. 2. Economic data missed estimates, with the ADP report showing lower than expected job growth and the ISM services index slipping. 3. Stocks fell in response to the weak economic data, with the Dow closing down 83.93 points, while INTC gained on hopes Ivy Bridge will increase its market share.

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    Strikes Back: .DJI 12,723.58 (-83.93) .SPX 1,347.32 (-9.30) .IXIC 2,828.23 (-13.39)

    Uploaded by

    Andre Setiawan
    74 views6 pages
    1. INTC introduced its new chip called Ivy Bridge, which uses 3-D transistor technology, allowing it to enter the smartphone and tablet markets currently dominated by ARM. 2. Economic data missed estimates, with the ADP report showing lower than expected job growth and the ISM services index slipping. 3. Stocks fell in response to the weak economic data, with the Dow closing down 83.93 points, while INTC gained on hopes Ivy Bridge will increase its market share.

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    INTC Strikes Back

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    D30050511

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    1. INTC introduced its new chip called Ivy Bridge, which uses 3-D transistor technology, allowing it to enter the smartphone and tablet markets currently dominated by ARM. 2. Economic data missed estimates, with the ADP report showing lower than expected job growth and the ISM services index slipping. 3. Stocks fell in response to the weak economic data, with the Dow closing down 83.93 points, while INTC gained on hopes Ivy Bridge will increase its market share.

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    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    74 views6 pages

    Strikes Back: .DJI 12,723.58 (-83.93) .SPX 1,347.32 (-9.30) .IXIC 2,828.23 (-13.39)

    Uploaded by

    Andre Setiawan
    1. INTC introduced its new chip called Ivy Bridge, which uses 3-D transistor technology, allowing it to enter the smartphone and tablet markets currently dominated by ARM. 2. Economic data missed estimates, with the ADP report showing lower than expected job growth and the ISM services index slipping. 3. Stocks fell in response to the weak economic data, with the Dow closing down 83.93 points, while INTC gained on hopes Ivy Bridge will increase its market share.

    Copyright:

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    of 6

    May 5th 2011

    INTC Strikes Back


    INTC introduced its new chip named Ivy Bridge on Wednesday, opening a path to enter the
    smartphone and tablet PC markets. Currently the booming smartphone and tablet markets have been
    dominated by UK’s ARM Holdings while INTC’s playground has been limited to the PC market,
    providing chips for desktop, laptop, and netbook.

    Ivy Bridge will be using 3-D structure, setting a major breakthrough in the evolution of transistor. The
    early design of this transistor was actually introduced as Tri-Gate in 2002, but it set to come into mass
    production this year. Not only that it could power all kinds of computers, mobile phones and consumer
    electronics, but it could also powers car electronics, spacecraft, household appliances, medical devices
    and other everyday devices.

    INTC gained 1.96% on Wednesday, settled the day at $23.50 and making it as the top gainer of
    the day. Next was HPQ with 1.51% gains, and followed by PG which was up by 1.16%. Down at the
    bottom three were CAT (-2.21%), GE (-1.79%) and DD (-1.73%).

    The Dow itself finished 83.93 points or 0.66% lower at 12,723.58 after a double whammy of
    economic data knocked stocks down.

    ADP employment report indicated that the US private sector added 179K new jobs to the economy in
    April, missing economists’ estimates which predicted the figure to be near to 200K. March’s figure was
    revised up from 201K to 207K. Service sector employment gained 138K in April while in the
    manufacturing sector employment rose 41K. Based on the company size, large companies added 11K
    new jobs while medium-sized ones gained 84K. For companies with less than 50 employees,
    employment rose 84K. The result painted a bleak picture of the US labor market condition since ADP
    has been considered as the guide to the nonfarm payrolls figure set to release on next Friday.

    Currently, the consensus for the Friday’s payrolls lies at 175K, down from the March figure of 216K.

    The second data missing the consensus was the Institute for Supply Management index on services.
    After hitting 57.3 in March, the index slipped to 52.8 in April. The market had expected the index to
    rise instead to 57.8. The index, if lies above 50, indicates growth while below 50 indicates
    contraction.

    1 .DJI 12,723.58 (-83.93 ● -0.66%) .SPX 1,347.32 (-9.30 ● -0.69%) .IXIC 2,828.23 (-13.39 ● -0.47%)
    May 5th 2011

    Here are the graphics describing the ISM releases:

    62
    Actual Forecast Previous
    60

    58

    56

    54

    52

    50

    48
    ISM Nonmanufacturing ISM Manufacturing

    ISM Nonmanufacturing breakdown:

    Inventory sentiment
    Imports Previous
    New export orders Actual
    Backlog
    Prices
    Inventories
    Supplier deliveries
    Employment
    New orders
    Business activity

    0.0 20.0 40.0 60.0 80.0

    2 .DJI 12,723.58 (-83.93 ● -0.66%) .SPX 1,347.32 (-9.30 ● -0.69%) .IXIC 2,828.23 (-13.39 ● -0.47%)
    May 5th 2011

    ISM Manufacturing Breakdown:

    Customers' Inventories
    Imports Previous
    New export orders Actual
    Backlog
    Prices
    Inventories
    Supplier deliveries
    Employment
    New orders
    Business activity

    0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0

    Moving towards the commodities markets, another day another drop for both silver and gold. Silver
    fell for another 4.9% as the metal hit $39.58 an ounce after reaching the intraday low at $38.95.
    Spot gold also settled lower at $1,515.30 an ounce, down 1.6%. Gold futures for June delivery also
    declined by $25.10 or 1.6% towards $1,515.30. The news that Soros and Burbank have seen selling
    gold and silver has put gold and silver under pressure.

    Next on Thursday, KFT is set to report its earnings:

    Revenues in billions of Earnings Per Share


    dollars F/C Prv
    F/C Prv
    $0.47
    $12.33

    $11.32 $0.15

    Revenue EPS

    Economic data expected on Thursday will be jobless claims data which is expected to show claims
    falling to 412K from 429K in prior week. A rising claims may trigger another weakness in the US
    labor market and thus could spark another reason for investors to sell. Another data, productivity, is
    seen slowing down in 1Q to 1.5% from 2.6%.

    3 .DJI 12,723.58 (-83.93 ● -0.66%) .SPX 1,347.32 (-9.30 ● -0.69%) .IXIC 2,828.23 (-13.39 ● -0.47%)
    May 5th 2011

    Stock Focus: Intel, Corp.


    INTC
    Last May 4th Resistances 23.97 24.37 24.75 25.21 26.82
    $23.50 1.16% Supports 22.57 21.95 21.46 20.96 20.35
    WTD MTD Outlook
    1.51% 1.51% POSITIVE
    YTD 12-Month PT
    11.75% 9.71% $25.21

    INTC has recoiled higher to as high as $23.56 recently and this has bent the EMAs from declining to
    curling higher at the expense of RSI hovering around the overbought area. MACD is also declining,
    demanding caution over the current rally’s continuity in the coming sessions. Regardless of the bearish
    divergence pattern forming on the daily chart, INTC’s rise has been fueled by its earnings report
    which somehow embarrassed analysts predicting weakness in 1Q. Now, INTC is on a fresh
    breakthrough to level the competition in the semiconductor market with ARM Holdings as it unleashed
    Ivy Bridge.

    4 .DJI 12,723.58 (-83.93 ● -0.66%) .SPX 1,347.32 (-9.30 ● -0.69%) .IXIC 2,828.23 (-13.39 ● -0.47%)
    May 5th 2011

    Price Performance - as of May 4th 2011


    Code Last Dy WTD MTD YTD 12-Mos
    AA 17.47 -1.13% 2.76% 2.76% 13.52% 50.09%
    AXP 49.70 -0.40% 1.26% 1.26% 15.80% 24.66%
    BA 78.84 -0.84% -1.18% -1.18% 20.81% 22.84%
    BAC 12.49 -0.87% 1.71% 1.71% -6.37% -20.65%
    CAT 110.77 -2.21% -4.02% -4.02% 18.27% 82.31%
    CSCO 17.47 0.34% -0.29% -0.29% -13.64% -24.57%
    CVX 104.68 -1.40% -4.35% -4.35% 14.72% 41.71%
    DD 54.51 -1.73% -4.01% -4.01% 9.28% 50.71%
    DIS 42.62 -1.04% -1.11% -1.11% 13.62% 27.53%
    GE 20.27 -1.79% -0.88% -0.88% 10.83% 23.98%
    HD 37.19 -0.43% 0.11% 0.11% 6.08% 9.83%
    HPQ 40.94 1.51% 1.41% 1.41% -2.76% -11.02%
    IBM 170.62 -1.30% 0.02% 0.02% 16.26% 36.21%
    INTC 23.50 1.16% 1.51% 1.51% 11.75% 9.71%
    JNJ 65.67 -0.89% -0.08% -0.08% 6.18% 12.64%
    JPM 45.50 -0.91% -0.28% -0.28% 7.26% 14.96%
    KFT 33.85 -0.06% 0.77% 0.77% 7.43% 18.36%
    KO 67.46 -0.62% 0.00% 0.00% 2.57% 31.25%
    MCD 79.07 0.16% 0.97% 0.97% 3.01% 18.24%
    MMM 96.20 -0.65% -1.04% -1.04% 11.47% 21.30%
    MRK 36.56 0.41% 1.70% 1.70% 1.44% 8.52%
    MSFT 26.06 0.97% 0.54% 0.54% -6.63% 1.01%
    PFE 20.64 0.98% -1.57% -1.57% 17.88% 35.52%
    PG 66.47 1.16% 2.42% 2.42% 3.33% 8.81%
    T 31.79 -0.22% 2.15% 2.15% 8.20% 30.82%
    TRV 63.54 -0.80% 0.41% 0.41% 14.05% 28.44%
    UTX 89.38 -0.52% -0.22% -0.22% 13.54% 32.65%
    VZ 37.67 -0.34% -0.29% -0.29% 5.28% 36.88%
    WMT 55.37 -0.16% 0.71% 0.71% 2.67% 9.51%
    XOM 84.81 -0.95% -3.60% -3.60% 15.99% 40.27%

    5 .DJI 12,723.58 (-83.93 ● -0.66%) .SPX 1,347.32 (-9.30 ● -0.69%) .IXIC 2,828.23 (-13.39 ● -0.47%)
    May 5th 2011

    Analysts' Upgrades & Downgrades


    Code House Ratings PT
    BA Credit Suisse Outperform $88 $94
    BAC UBS Neutral $13.50
    CSCO Morgan Keegan - $27.5 $24.5
    CSCO UBS Neutral - Cut EPS $19.00
    JPM UBS Buy $54.00
    n Reiterate n Upgrade n Downgrade n Initiation
    US Economic Calendar
    Date Time Report Period Actual Forecast Previous
    2-May 10:00 AM ISM Apr 60.4% 59.5% 61.2%
    2-May 10:00 AM Construction spending Mar 1.4% 0.8% -2.4%
    3-May 10:00 AM Factory orders Mar 3.0% 2.2% 0.7%
    3-May TBA Motor vehicle sales Apr 13.2 mln 13.1 mln 13.1 mln
    4-May 8:15 AM ADP employment Apr 179K 195K 207K
    4-May 10:00 AM ISM nonmanufacturing Apr 52.8 57.8 57.3
    5-May 8:30 AM Jobless claims 30-Apr 412K 429K
    5-May 8:30 AM Productivity 1Q 1.5% 2.6%
    5-May 8:30 AM Unit labor costs 1Q 1.0% -0.6%
    6-May 8:30 AM Nonfarm payrolls Apr 175K 216K
    6-May 8:30 AM Unemployment rate Apr 8.8% 8.8%
    6-May 8:30 AM Avg hourly earnings Apr 0.2% 0.0%
    6-May 3:00 PM Consumer credit Mar $5.0B $7.6B

    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.

    6 .DJI 12,723.58 (-83.93 ● -0.66%) .SPX 1,347.32 (-9.30 ● -0.69%) .IXIC 2,828.23 (-13.39 ● -0.47%)

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