March 16th 2011

Japan’s massive earthquake and tsunami on Friday sent aftershocks to global stock market. The
market has been jittery over the damaged reactors which could lead to a nuclear meltdown if things
get out of control.

Briefly plunging over 300 points, the Dow Jones Industrial Average bounced back and settled at
11,855.42, down 137.74 points or 1.15%. Still a heavy damage, but well, better. Nasdaq composite
of which rather heavily affected by the Japan’s quake fell 33.64 points or 1.25% to end at
2,667.33. S&P 500 index finished at 1,281.87, down 14.52 points or 1.12%.

US import price and Empire State Manufacturing index releases received muted response from the
market, but it was the FOMC that pulled the US stocks out of the abyss. Well, not out, but at least not
as deep as earlier in the session. The US economy is seen improving as the jobs market has been
improving gradually. The FOMC kept the interest rates unchanged and also it maintains its $600
billion Treasury bond-purchase program to kick start the economy.

Elsewhere, in Europe Portugal’s rating has been downgraded by 2 notches to A3 by Moody’s.

Corporate News
MMM’s Patrick Campbell will retire May 1 and to be replaced by David Meline as CEO.
KFT’s CFO’s departure is not seen as a problem. Timothy McLevish will leave the company mid-
2011.
AXP’s net write-off rate in February was unchanged at 3.8%, while 30-day delinquencies edged
lower to 2% from 2.1%.
JPM net charge offs was at 6.21% in February vs. 5.97 in January, while card delinquencies
slowed to 3.29% from 3.39%.
BA has component exposure of 35% on its 787 structure as the components have been supplied
by Japanese companies. Gabelli maintains BUY rating on BA, however. BA also sees increased
revenue from 747-8 orders and other aircrafts.
HPQ expected its FY14 EPS at $7 at least while its FY11 EPS is seen at $5.20-$5.28, roughly in
line with the consensus of $5.24. HPQ also announced its plans to develop cloud services from
infrastructure to platform. HPQ recently stated its plan to raise quarterly dividend by 50% to
$0.12.

This Wednesday, the market will remain focused on the development in Japan. Already Asian stocks
rebounded off their respective lows set on Tuesday. Still, whether the rebound would result in reversal
or another rout we cannot be sure at the moment. Do not forget that tensions in the Middle East could
also hit the market any time as well as European debt crisis.

1 .DJI 11,855.42 (-137.74 ● -1.15%) .SPX 1,281.87 (-14.52 ● -1.12%) .IXIC 2,667.33 (-33.64 ● -1.25%)
 March 16th 2011

Stock Focus: American Express, Co.

AXP
Last Mar 15th Resistances 44.24 44.75 45.27 46.93 49.19
$43.64 0.61% Supports 42.58 41.25 39.60 37.13 36.60
WTD MTD Outlook
1.45% 0.50%
NEUTRAL
YTD 12-Month
1.68% 5.77% Strategy Range trade 42.58-46.93

2 .DJI 11,855.42 (-137.74 ● -1.15%) .SPX 1,281.87 (-14.52 ● -1.12%) .IXIC 2,667.33 (-33.64 ● -1.25%)
 March 16th 2011

Stock Focus: Bank of America, Corp.

BAC
Last Mar 15th Resistances 44.24 44.75 45.27 46.93 49.19
$13.96 1.90% Supports 42.58 41.25 39.60 37.13 36.60
WTD MTD Outlook
2.92% 2.65%
NEUTRAL
YTD 12-Month
4.65% 21.79% Strategy Hold LONG, PT 17.75, < 13.00 risk 11.86

3 .DJI 11,855.42 (-137.74 ● -1.15%) .SPX 1,281.87 (-14.52 ● -1.12%) .IXIC 2,667.33 (-33.64 ● -1.25%)
 March 16th 2011

Stock Focus: JP Morgan Chase & Co.

JPM
Last Mar 15th Resistances 45.57 46.10 46.64 47.29 48.36
$44.61 1.52% Supports 43.81 43.32 41.78 40.20 38.27
WTD MTD Outlook
2.47% 0.16%
NEUTRAL
YTD 12-Month
5.16% 0.31% Strategy BUY dips to 43.32, PT 46.64, risk < 41.78

4 .DJI 11,855.42 (-137.74 ● -1.15%) .SPX 1,281.87 (-14.52 ● -1.12%) .IXIC 2,667.33 (-33.64 ● -1.25%)
 March 16th 2011

US Economic Calendar
Date Time Report Period Actual Forecast Previous
15-Mar 8:30 AM Import price index Feb 1.4% 1.0% 1.3%
15-Mar 8:30 AM Empire state index March 17.5 18.3 15.4
15-Mar 10:00 AM Home builders' index March 17 16 16
15-Mar 2:15 PM FOMC statement - 0%-0.25% 0%-0.25% 0%-0.25%
16-Mar 8:30 AM Producer price index Feb 0.7% 0.8%
16-Mar 8:30 AM Core PPI Feb 0.2% 0.5%
16-Mar 8:30 AM Housing starts Feb 573K 596K
16-Mar 8:30 AM Current account deficit 4Q n/a -$126 bln
17-Mar 8:30 AM Jobless claims 12-Mar 388K 397K
17-Mar 8:30 AM Consumer price index Feb 0.5% 0.4%
17-Mar 8:30 AM Core Consumer price index Feb 0.1% 0.2%
17-Mar 9:15 AM Industrial production Feb 0.7% -0.1%
17-Mar 10:00 AM Leading indicators Feb 1.0% 0.1%
17-Mar 10:00 AM Philly Fed March 30.5 35.9
Analysts' Upgrades & Downgrades
Ratings Price Target
Code House
Previous Current Previous Current
CAT Chutinush Taksinapinunt Neutral Buy - -
CVX BoA/ML Neutral Buy - -
CVX Goldman Sachs - - $105.00 $120.00
CVX UBS - Buy - $115.00
HPQ Brean Murray - Buy - $60.00
HPQ Citigroup Buy Buy - $65.00
INTC Nomura Buy Neutral $27.00 $22.00
XOM Goldman Sachs Neutral Buy $82.00 $102.00
n Sector-wide n Upgrade n Downgrade n Initiation

5 .DJI 11,855.42 (-137.74 ● -1.15%) .SPX 1,281.87 (-14.52 ● -1.12%) .IXIC 2,667.33 (-33.64 ● -1.25%)
 March 16th 2011

Price Performance - as of Mar 15th 2011

Code Last Dy WTD MTD YTD 12-Mos Code Last Dy WTD MTD YTD 12-Mos
AA 16.04 -0.50% 0.06% -0.56% 4.22% 12.64% JPM 44.61 -1.52% -2.47% 0.16% 5.16% -0.31%
AXP 43.64 -0.61% -1.45% -0.50% 1.68% 5.77% KFT 31.13 -0.73% -1.80% 1.97% -1.21% 2.94%
BA 69.69 -1.48% -2.72% 0.66% 6.79% -4.02% KO 63.03 -1.42% -2.75% 1.32% -4.17% 14.60%
BAC 13.96 -1.90% -2.92% 2.65% 4.65% -21.79% MCD 75.12 -0.73% -2.10% 2.51% -2.14% 12.59%
CAT 100.75 -1.32% 0.73% 5.30% 7.57% 60.30% MMM 89.50 -1.67% -2.30% 2.36% 3.71% 7.10%
CSCO 17.39 -2.58% -3.12% -16.91% -14.04% -33.19% MRK 31.86 -1.61% -2.66% -3.66% -11.60% -14.70%
CVX 101.23 0.43% 1.30% 8.42% 10.94% 33.50% MSFT 25.39 -1.17% -1.13% -8.54% -9.03% -13.32%
DD 52.40 -1.17% -0.95% 4.20% 5.05% 40.71% PFE 19.76 -0.25% 1.49% 8.87% 12.85% 15.22%
DIS 41.62 -1.47% -3.05% 7.13% 10.96% 19.22% PG 60.66 -1.12% -1.35% -5.51% -5.70% -4.13%
GE 19.61 -1.56% -3.68% -2.92% 7.22% 7.75% T 27.81 -1.35% -2.28% 1.16% -5.34% 7.62%
HD 36.29 -1.06% -2.29% -1.12% 3.51% 12.18% TRV 58.52 -0.58% -0.61% 4.86% 5.04% 8.49%
HPQ 40.93 -1.35% -1.92% -10.06% -2.78% -22.99% UTX 79.51 -1.52% -2.18% -2.36% 1.00% 8.02%
IBM 159.02 -1.47% -2.10% -0.12% 8.35% 23.99% VZ 34.87 -0.88% -2.73% -2.13% -2.54% 12.41%
INTC 20.18 -3.17% -3.31% -5.96% -4.04% -9.47% WMT 52.06 -0.50% -1.01% -8.18% -3.47% -6.37%
JNJ 58.48 -1.10% -2.03% -2.55% -5.45% -10.31% XOM 81.39 -1.20% -0.89% 3.04% 11.31% 21.51%

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 11,855.42 (-137.74 ● -1.15%) .SPX 1,281.87 (-14.52 ● -1.12%) .IXIC 2,667.33 (-33.64 ● -1.25%)