THE DAILY BRIEF

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Friday 12.04.2009

CURRENT MARKET SENTIMENT

A soft ISM Non-Mfg Index and a slightly better take the Dow to retest the weekly pivot of
than initial claims fuelled concerns about the 10346-50. This opens the possibility to a flat or
pace of economic recovery. Consequently, the negative finish for the week by breaking 10310
Dow shed 86 points to finish at 10366 and the and likewise for the S&P at 1091. However, a
S&P at 1100 prior to the “Big Kahuna,” the positive surprise may stop the bleeding and allow
unemployment rate. A negative number will the indices to regain some of yesterday’s loss.

PRISM CALL
Unemployment is the axe of the economic recovery. It caused the sell off the last twenty minutes
yesterday and it is bound to lead to a long awaiting reversal with today’s unemployment rate data. A
positive number will facilitate “Squeezola” to a weekly positive finish.

ECONOMIC CALENDAR INDU & SPUZ TECHNICALS

TIME INDICATOR RANGE EXPECTATION PRIOR ACTUAL INDICES S2 S1 PIVOT R1 R2

8:30 Change in Non -180 to -30 -125K -190K INDU
am farm Payrolls 10250 10311 10408 10505 10566
(DOW)
8:30 Unemployment 9.9% to 10.2% 10.2% SPUZ
am Rate 10.4% (S&P) 1087 1094 1105 1117 1124
8:30 Change in -60K to - -45K -61K
am Manufacturing 20K
Payrolls

8:30 Average Hourly 0.0% to 0.2% 0.3%

am Earnings MoM 0.3%

8:30 Average Hourly 2.2% to 2.3% 2.4%

am Earnings YoY 2.3%

8:30 Average Weekly 33.0 to 33.1 33.1

am Hours 33.1

10:00 Factory Orders -1.0% to 0.0% 0.9%

am 1.0%

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 FOREIGN MARKETS NEWS

ENDP Endo Pharm: Complete response

MARKET PRICE
 % for Aveed is negative for ENDP -
Collins Stewart (21.26 )
FTSE 5350.34 37.34 0.7
GPS Comps weak across the Board,
DAX 5828.78 58.43 1.01 GPS and AEO in Line - FBR capital
(21.44 )
HANG SENG 22498.15 55.72 -0.25

NIKKEI 10022.59 44.92 0.45 AZN AstraZeneca announces US FDA

approves SEROQUEL XR for add-on
treatment of major depressive disorder
CHINA 3317.044 52.416 1.61 (45.62 )

RY Royal Bank of Canada profit rises

COMMODITY PRICES despite rising loan losses - Reuters.com
DOW STOCKS TO WATCH
(54.66 )

STRONG WEAK COMMODITY PRICE
 Creditors to refuse Dubai World deal -

Guardian Unlimited
INTC CAT
OIL 75.88 0.58 BA Boeing: Korean Air to buy 5 Boeing
JNJ WMT passenger jets for $1.5 bln - DJ (53.77 )

T XOM UK real estate defaults double to 30 bln

GOLD 1205.5 -12.80 pounds – FT
VZ HD
AMT American Tower target raised to
$50 at Benchmark (40.99 )

CCI Crown Castle target raised to $45 at

UPGRADES & DOWNGRADES
Benchmark (36.67 )

STOCKS UPGRADED TUP Tupperware profiled in New

BROKERAGE America section of IBD (47.86 )
COMPANY RATINGS CHANGE PRICE TARGET
FIRM
STJ St. Jude Medical receives FDA
CIBC (CM) Credit Suisse Underperform » Neutral
approval for five-column
Akamai Tech (AKAM) Citigroup Hold » Buy $23 » $31
neurostimulation lead to manage
chronic pain (36.86 )
Reynolds American (RAI) Citigroup Hold » Buy $52 » $59
DD DuPont updates its
First Solar (FSLR) Collins Stewart Hold » Buy $160 commercialization timelines for
Optimum GAT corn and soybeans;
Astoria Fincl (AF) FBR Capital Underperform » Mkt Perform $10 » $11 reaffirms outlook for greater than 15%
compounded annual earnings growth of
Synovus (SNV) FBR Capital Underperform » Mkt Perform $2.50 Agriculture & Nutrition business
segment through 2013 (34.83 )
STOCKS DOWNGRADED
RBS Royal Bank of Scotland: Report
BROKERAGE shows U.K. Treasury underestimated
COMPANY RATINGS CHANGE PRICE TARGET
FIRM RBS troubles - WSJ (11.43 )
Comcast (CMCSA) Credit Suisse Outperform » Neutral $18
MTH Meritage initiated with a Buy at
Take-Two (TTWO) MKM Partners Buy » Neutral Pali (17.34 )

AK Steel (AKS) Citigroup Buy » Hold $21 SVNT Savient Pharma initiated with an
Overweight at JP Morgan- tgt $19
Netflix (NFLX) Citigroup Buy » Hold $59 (13.55 )

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 EARNINGS

LQDT Liquidity Services misses by $0.01, beats on revs; guides Q1 EPS above consensus; guides FY10
EPS in-line (8.77 -0.54)

MENT Mentor Graphics prelim $0.05 vs $0.01 First Call consensus; revs $189.20 mln vs $183.50 mln
First Call consensus

MENT Mentor Graphics sees Q4 ~$0.28 vs $0.32 First Call consensus; sees revs ~$230 mln vs $234.20
mln First Call consensus

MRVL Marvell beats by $0.08, beats on revs (16.53 )

MRVL Marvell on call guides Q4 above consensus (16.53 +0.00)

AMR AMR Corp reports November traffic; traffic decreased 0.5% y/y (6.87 +0.08)

FDX FedEx Groud to increase 2010 rates by 4.9% (85.94 -1.16)

BAC Bank of America prices $19.3 bln offering of common equivalent shares at $15.00 - CNBC
(15.76 +0.11)

CME CME Group files mixed securities shelf offering in an S-3ASR (330.01 +1.65)

GNW Genworth Financial prices $300 mln debt offering with an interest rate of 8.625% per year
(11.30 -0.24)

BIG Big Lots beats by $0.09, beats on revs; guides Q4 EPS above consensus; guides FY10 EPS above
consensus; authorizes $150.0 mln share repurchase program (23.54 )

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 TECHNICAL ANALYSIS

Symbol S7 S6 S5 S4 S3 S2 S1 PIVOT R1 R2 R3 R4 R5 R6 R7
Sectors
SPX 1068.23 1075.32 1079.69 1086.77 1093.86 1096.04 1098.22 1105.31 1112.40 1114.58 1116.77 1123.85 1130.94 1135.31 1142.39
INDU 10092.78 10152.98 10190.17 10250.36 10310.56 10329.15 10347.67 10407.94 10468.22 10486.73 10505.33 10565.52 10625.72 10662.91 10723.10
NDX 1741.16 1750.55 1756.36 1765.75 1775.14 1778.05 1780.93 1790.34 1799.75 1802.64 1805.54 1814.93 1824.32 1830.13 1839.52
XBD 106.85 108.19 109.02 110.35 111.69 112.10 112.51 113.85 115.19 115.60 116.02 117.35 118.69 119.52 120.85
BKX 39.46 40.33 40.86 41.72 42.59 42.85 43.12 43.98 44.85 45.11 45.38 46.24 47.11 47.64 48.50
TRAN 3906.94 3930.90 3945.70 3969.67 3993.63 4001.03 4008.40 4032.40 4056.39 4063.76 4071.16 4095.13 4119.09 4133.89 4157.86
OIX 665.66 670.02 672.71 677.08 681.44 682.79 684.13 688.50 692.86 694.21 695.55 699.92 704.28 706.97 711.34
OSX 178.20 180.17 181.38 183.35 185.32 185.93 186.53 188.50 190.47 191.08 191.68 193.65 195.62 196.83 198.80
XNG 484.08 488.03 490.47 494.41 498.36 499.58 500.79 504.74 508.69 509.91 511.13 515.07 519.02 521.46 525.40
CYC 759.26 766.57 771.08 778.39 785.70 787.96 790.20 797.52 804.84 807.09 809.34 816.65 823.96 828.47 835.78
UTY 400.20 402.63 404.13 406.55 408.98 409.73 410.47 412.90 415.33 416.08 416.83 419.25 421.68 423.18 425.60
DRG 306.27 307.35 308.03 309.11 310.19 310.53 310.86 311.95 313.04 313.37 313.71 314.79 315.87 316.55 317.63
RLX 412.41 412.41 412.41 412.41 412.41 412.41 412.41 412.41 412.41 412.41 412.41 412.41 412.41 412.41 412.41

Tradeables

SPY 107.17 107.89 108.34 109.06 109.78 110.01 110.23 110.95 111.67 111.90 112.12 112.84 113.56 114.01 114.73
DIA 100.97 101.58 101.96 102.56 103.17 103.36 103.55 104.15 104.76 104.95 105.14 105.74 106.35 106.73 107.33
QQQQ 42.85 43.09 43.23 43.47 43.71 43.78 43.85 44.09 44.33 44.40 44.47 44.71 44.95 45.09 45.33
QLD 51.98 52.57 52.94 53.53 54.12 54.30 54.48 55.08 55.67 55.85 56.03 56.63 57.22 57.58 58.18
IWM 56.54 57.09 57.43 57.98 58.53 58.70 58.87 59.42 59.97 60.14 60.31 60.86 61.41 61.75 62.30
OIH 110.28 111.49 112.23 113.44 114.65 115.02 115.39 116.60 117.81 118.18 118.55 119.76 120.97 121.71 122.92
XLE 54.43 54.85 55.11 55.54 55.96 56.09 56.22 56.65 57.07 57.20 57.33 57.76 58.18 58.44 58.87
FAZ 15.65 16.46 16.96 17.77 18.58 18.83 19.08 19.89 20.70 20.95 21.20 22.01 22.82 23.32 24.13
FAS 57.36 60.57 62.55 65.76 68.97 69.96 70.95 74.16 77.38 78.36 79.35 82.56 85.77 87.75 90.96
SRS 7.25 7.44 7.56 7.75 7.94 8.00 8.06 8.25 8.44 8.50 8.56 8.75 8.94 9.06 9.25
SDS 33.48 33.94 34.22 34.68 35.14 35.28 35.42 35.88 36.34 36.48 36.62 37.08 37.54 37.82 38.28
USO 37.01 37.32 37.51 37.83 38.14 38.24 38.33 38.65 38.96 39.06 39.15 39.47 39.78 39.97 40.29
SKF 21.03 21.72 22.15 22.84 23.53 23.75 23.96 24.65 25.34 25.56 25.77 26.46 27.15 27.58 28.27

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