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CURRENT MARKET SENTIMENT

Up we went, never came down only for the Dow and S&P to finish
9791, 1068 respectively, making the ever anticipating retracement
fading further in the background. The market will stay in neutral MARKET
territory until the Philadelphia Fed number releases and thereafter
will show its real intention. While volume has been a bit more than HIGHLIGHTS
usual, the selling pressure has been non-existent. The net result is
an unbounded upside. Only an unlikely occurrence will trigger a 09/17/2009
downfall. The pivot is the best guidance.
PRISM CALL
ECONOMIC NUMBERS AND DATA Housing and employment data
Time Indicator Date Actual Expectation Range Prior came out this morning mixed.
(ET)
Housing was in line with
8:30 Housing Sep 598K 598K 570K to 581K expectations, and initial claims
AM Starts 17 640K
were a tad better, but continuing
8:30 Building Sep 579K 583K 566K to 560K claims were significantly worse.
AM Permits 17 610K Futures are trading down a little,
8:30 Initial Jobless Sep 545K 555K 530K to 550K but mostly neutral. We are
AM Claims 17 580K looking at conservatively selling
the oil, gold and maybe steel
8:30 Continuing Sep 6230K 6100K 6000K 6088K stocks off the open for a quick
AM Claims 17 to
6230K move down. At 10AM we have the
10:00 Philadelphia Sep 8.0 2.5 to 4.2 Philadelphia Fed number, which
AM Fed 17 14.4 we anticipate will be bullish. The
best move has been to fade the
10:30 Nat Gas Sep 80 59 to 86 69
AM Storage 17 spike, if it spikes up short it, if
Change down, buy it. After the dust
settles, the market will probably
TECHNICAL be range bound, up 50 to down 50
Indices S2 S1 Pivot R1 R2 points. This market won’t sell-off
until we see selling pressure,
INDU 9636 9682 9756 9831 9877 which has been lacking. When
(DOW) pressure comes in, the market will
eventually get smacked, but until
SPUZ 1036 1053 1063 1073 1079 then, play the trend, which is
(S&P) mostly positive.

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DOW STOCK TO WATCH
Strong Weak
DD TRV

AA MRK

UTX VZ

JPM HPQ

UPGRADES / DOWNGRADES
Stock
Current Price Target
Upgraded House
Price Adjustment Price


Nucor (NUE) Citigroup 48.11 Buy $57
Genworth Deutsche 13.14 Buy $18
Financial Bank
(GNW)
Blockbuster S&P 1.37 ‘B’
(BBI)
Viacom UBS 28.10 Buy
(VIA.B)
Anadarko Boutique 64.85 Strong Buy
Petro (APC) firm
Citigroup Boutique 4.20 Accumulate
(C) firm

Stock
Current Price Target
Downgraded House
Price Adjustment Price

ABB (ABB) Deutsche 21.02 Hold
Bank
Arcelor Societe 42.00 Hold
Mittal (MT) Generale
BorgWarner KeyBanc 32.87 Hold
(BWA)
Black & UBS 50.53 Neutral $50
Decker
(BDK)
BHP Billiton JP Morgan 68.89 Underweight
(BHP)

Page |2
COMMODITY PRICES
Commodity Price


OIL 72.27 0.24

GOLD 1018 2.00

FOREIGN MARKETS
Market Price
 %

FTSE 5155.81 31.68 0.62

DAX 5728.87 28.61 0.5

NIKKEI 10443.8 173.03 1.68

HANG SENG 21768.51 365.59 1.71

CHINA 3060.26 60.55 2.02

Page |3
 NEWS ALERT
Growth in UK retail sales stalls – BBC

European market summary; FTSE hits highest close in 12 months: FTSE +0.8%,
CAC +0.49%, DAX +0.6%

JAH Jarden ests and target raised to $31 at Oppenheimer following sit down
with President and COO (26.96 )

TSRA Tessera Tech raises Q3 revenue guidance above consensus (27.95 )

AMR AMR Corp announces $2.9 bln in additional liquidity and new aircraft
financing (7.35 )

MGM MGM Mirage announces proposed private placement of $350 mln in senior
unsecured notes due 2018 (12.40 )

ALV Autoliv raises Q3 sales outlook, raises Q3 operating magin; sees FY09 sales
above consensus (36.56 )

MHS Medco Health Solutions cut to Neutral from Buy by Goldman- DJ (55.96 )

Asia markets close: Nikkei +1.68%, Hang Seng +1.71%, Shanghai Composite
+2.02%, Sensex -8 pts

FWLT Foster Wheeler raised to Buy from Neutral by Goldman- DJ (32.99 )

XNPT Xenoport: Positive Ph. 2b results for GSK1838262 (XP13512) reported

for

EBAY Skype founders balk at eBay deal - WSJ (24.32 )

BIIB Biogen Idec: Phase III study showed patients lived longer without low-grade
lymphoma progressing when Rituxan was used first-line for maintenance
(51.55 )

SNY Sanofi-Aventis receives complete response letter from the FDA for
Eplivanserin (Ciltyri) Submission (35.79 +0.52)

Sanofi-aventis is currently reviewing the content of the complete response letter, in

which the FDA has requested additional information regarding benefit-risk.

AUXL Auxilium Pharma sees initial sell-the-news reaction to panel

recommendation; stock trades down to 35.50 after resumption of trading
(35.86 ) -Update-

VVUS Vivus announces 9 mln common share offering (10.79 -0.44)

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 NEWS ALERT
Regulators of big bond buyers challenge the raters – WSJ

The Wall Street Journal reports regulators of some of the biggest bond buyers in the
world are considering cutting credit-ratings firms' role in the market in response to
botched ratings of complicated mortgage securities. Ratings firms including
Standard & Poor's and Moody's Investors Service are facing fresh dissent from state
insurance regulators, who are considering moving away from the firms ratings' as a
way of measuring the health of insurer portfolios of mortgage-backed bonds. The
firms originally assigned high ratings to the securities in the middle of the decade,
but they were found to be far less stable when housing prices began declining in
2007. The move is a notable challenge to a ratings system that has long embedded
itself in the markets. Insurers are among the most important users of bond ratings,
collectively holding some $3 trln in rated bonds in their portfolios. The regulators'
moves are at a preliminary stage, but could change how state regulators gauge the
quality of the investments backing insurers' policies. The effects of such a change
could trickle throughout the world of bond investing, given insurers' outsize role in
neuropathic pain associated with post-herpetic neuralgia (19.70 the bond
markets. "We just need to take stock of this reliance on a system that allows that
kind of shock," in the form of swift and severe downgrades, "and frankly evaluate if
there are other alternatives," said New York Insurance Department Deputy
Superintendent Hampton Finer in an interview. Amid criticism of ratings agencies,
he added, "we're under quite a bit of pressure to respond." Representatives from
S&P, a unit of McGraw-Hill (MHP), and Fimalac SA's Fitch Ratings declined to
comment on the insurance regulators' plans. Moody's, a unit of Moody's (MCO),
declined to comment on the plans as well. The National Association of Insurance
Commissioners is scheduled to hold hearings on the matter next week.

ORCL Oracle reports EPS in-line, misses on revs (22.13 -0.53)

CCL Carnival removed from Conviction Sell List at Goldman; keeps Sell rating-
Reuters (33.22 )

QDEL Quidel Obtains Special 510(k) Clearance to Add 2009 H1N1 Influenza A
Virus Reactivity Information to the QuickVue Influenza A+B Test Package Insert
(17.24 )

COL Rockwell Collins narrows FY09 guidance to $3.78-3.83, ex-items vs $3.82

First Call consensus

GR Goodrich cut to Buy from Conviction Buy by Goldman Sachs - DJ (55.68 )

COL Rockwell Collins narrows FY09 EPS guidance; sees FY10 EPS in-line, FY10
revs above consensus (48.74 )

Page |5
 NEWS ALERT
FDX FedEx reports EPS in-line, misses on revs; guides Q2 EPS in-line; announces
FedEx Express rate increase (78.20 )

WLP WellPoint reinstated with a Neutral at Goldman- Reuters (54.86 )

ESRX Express Scripts reinstated with a Buy at Goldman- Reuters (77.97 )

U.S. unemployment not to peak until 2011, Krugman says - Reuters.com

DFS Discover Financial Services prelim $1.07, not comparable to the ($0.11)
First Call consensus; managed charge off rate of 8.39% vs the 8.5-9.0% guidance

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