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CURRENT MARKET SENTIMENT

Expectation is king! The grand daddy Goldman
disappointed the whisper number. This led to an initial
drift down, yet not enough to take the overall market MARKET
down. Once again, all economic data is expected to be
positive. But the question is would a drift lead to a sale?
HIGHLIGHTS
Selling pressure seems to be non-existent with a 40 10/16/2009
points range on the downside. Therefore defending the
pivot is today’s focus. Sell only if 10,000 is broken.
PRISM CALL
ECONOMIC NUMBERS AND DATA
Time Indicator Range Expectation Prior Actual Google is the new kid
(ET)
Monthly Budget -$98.0 -$34.0B $45.7B
in town and the net
Statement-Sep to barometer of the
-$30.0B
economic recovery. If
9:15 Industrial -0.5% to 0.2% 0.8% yesterday is any
am Production/Sept 0.5%
indication the
9:15 Capacity 69.2% 69.8% 69.6% downside is no longer
am Utilization/Sept to
74.0% a gift. 20-30 points
10:00a U of Michigan 70.0 to 73.1 73.5
range is the norm.
m Confidence/Oct 77.1 Watch for selling
pressure on this
TECHNICAL expiration day.
Indices S2 S1 Pivot R1 R2
Market continues to
INDU 9948 9981 10034 10087 10119 be resilient on the
(DOW)
downside..
SPUZ 1083 1086 1093 1099 1103
(S&P)

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DOW STOCK TO WATCH
Strong Weak
UTX BA

AXP JPM

MCD BAC

PFE JNJ

COMMODITY PRICES
Commodity Price


OIL 77.31 0.27

GOLD 1047.9 2.70

FOREIGN MARKETS
Market Price
 %

FTSE 5192.73 30.22 -0.58

DAX 5770.81 59.96 -1.03

HANG SENG 21929.9 69.18 -0.31

NIKKEI 10257.56 18.91 0.18

CHINA 2976.633 3.155 -0.11

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UPGRADES / DOWNGRADES
Stocks Upgraded


GOLD Randgold Resources upgraded to Outperform from Sector Perform at RBC

Capital Mkts (72.92 )

GOOG Google upgraded to Buy at Benchmark following better-than-expected

quarter; tgt raised to $625 (529.91 )

Company Ticker Brokerage Firm Ratings Change Price Target

Nordstrom JWN Sterne Agee Neutral » Buy $44

Cytec CYT Credit Suisse Neutral » Outperform $40 » $46

Masco MAS Credit Suisse Underperform » Neutral $9 » $13

Randgold GOLD RBC Capital Mkts Sector Perform » Outperform

Resources

Kroger KR BB&T Capital Mkts Hold » Buy $30

Google GOOG Benchmark Hold » Buy

Lloyds TSB LYG Deutsche Securities Hold » Buy

plc

American AEL FBR Capital Mkt Perform » Outperform $8.50 » $11

Equity
Investment
Life

Royal Philips PHG HSBC Securities Neutral » Overweight

Electronics

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 Stocks Downgraded


OGE OGE Energy downgraded to Hold at Wunderlich based on valuation; tgt $35
(34.13 )

WSM Williams-Sonoma downgraded to Neutral from Buy by Goldman- DJ (22.25 )

Company Ticker Brokerage Firm Ratings Change Price Target

OGE Energy OGE Wunderlich Buy » Hold $35

Teledyne Tech TDY BB&T Capital Mkts Buy » Hold

Shaw Group SHAW Robert W. Baird Outperform » Neutral $32

F5 Networks FFIV Oppenheimer Outperform » Perform

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 NEWS ALERT
Google beats by $0.47, beats on revs (529.91 -5.41) : Reports Q3 (Sep) earnings
of $5.89 per share, $0.47 better than the First Call consensus of $5.42;
revenues rose 8.4% year/year to $4.4 bln vs the $4.24 bln consensus.

FHN First Horizon beats by $0.08, misses on revs (13.49 )

BAC Bank of America prelim ($0.26) vs ($0.21) First Call consensus; revs $26.04
bln vs $27.61 bln First Call consensus

HAL Halliburton beats by $0.03, beats on revs (29.85 )

FSLR First Solar ests raised at Kaufman on stronger-than-expected demand in

German (152.76 )

China regulator urges big banks to curb lending risks – DJ

Soros says U.S. economy will be drag on world growth - Reuters.com

SLT Sterlite Industries announces pricing of convertible senior notes offering

(16.62 )

GRS Gammon Gold initiated with a Sector Perform at CIBC Wrld Mkts (8.91 )

SXT Sensient misses by $0.03, misses on revs; guides FY09 EPS below consensus
(29.07 )

AZN AstraZeneca: FDA approves CRESTOR for use in pediatric patients with
heterozygous familial hypercholesterolemia (45.07 )

EL Estee Lauder expects better-than-anticipated 1Q10 results (39.12 )

AKAM Akamai Tech tgt upped to $23 at Jefferies; firm does not believe co is
takeover tgt (22.04 )

AEO American Eagle tgt raised to $22 at Jefferies as EPS estimates should restart
an upward path entering 4Q (19.35 )

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