March 10h 2011

Wednesday saw IBM zoomed to the first spot with 2.21% of gains. The second placed HD gained
1.7% and T booked 1.2% gains. At the bottom was CAT with 1.7% decline, CVX and AA with 1.57%
and 1.15% losses, respectively. PFE remains as the best performer this week with 4.24% of gains
despite it edged 0.1% lower on Wednesday. AXP, MRK and MMM have so far gained around 3.4%
of gains each. INTC is the biggest loser of the week with -3.02% of losses, followed by MSFT and AA
with 2.49% and 2.28% declines, respectively.

As we enter the second third of the month, DIS remains on top of other Dow components with gains of
10.99%. CVX holds the second with 9.39% gains, and PFE is at third place with 8.32%. CSCO stays
at the bottom with 13.43% of losses, while HPQ becomes the second worst with 7.6%. WMT’s decline
of 7.11% puts it at the third from the bottom.

Dow Jones Industrial Average ended the day at 12,213.09 as it lost 1.29 points or 0.01%, while S&P
500 finished 0.14% lower at 1,320.02, and Nasdaq composite settled at 2,751.72 or down 14.05 (-
0.51%).

IBM’s gains were triggered by analysts upgrading its ratings after they attended the company’s
analysts’ day, helping the Dow 30 index to limit its losses. BofA/Merrill, Caris, Collins Stewart, BMO
Capital, Deutsche Bank, and RBC Capital analysts updated their price targets and/or ratings on IBM
(see the Upgrades & Downgrades table for the details).

US Light Crude slipped 64 cents to $104.38 a barrel on Wednesday due to the higher-than-
expected U.S. oil reserves at 2.51 million barrel, while the consensus was at 400,000 barrel. Brent
crude however, added $2.88 to end at $115.94 a barrel after briefly hitting intraday high at
$116.18 as Middle East tensions remain a negative factor in the market. Elsewhere, gold futures for
April delivery climbed $2.40 to $1,429.60/oz. as the ghosts of Eurozone fiscal crisis have resurfaced.

Meanwhile, in Europe Spain has been downgraded to Aa2 by Moody’s from Aa1with the outlook set
at NEGATIVE. Other rating firms such as Fitch Ratings has Spain at AA+ with also a NEGATIVE
outlook, updated just on March 4th. S&P however, has Spain rated at AA.

From Asia, China reported a surprise $7.3 billion trade deficit as exports increased 2.4% in February
from a year earlier. Imports however, jumped 19.4%. The sharp, unexpected drop in trade balance
had sent Asian stocks tumbling on Thursday and it points at a potential weakness in the upcoming US
session.

1 .DJI 12,213.09 (-0.01%) .SPX 1,321.82 (-0.14%) .IXIC 2,765.77 (-0.51%)

 March 10h 2011

Stock Focus: Pfizer, Inc.

PFE
Last Mar 9th Resistances 20.15 20.64 22.56 22.74 28.14
$19.66 0.10% Supports 19.35 19.28 19.18 18.62 18.02
WTD MTD Outlook
4.24% 8.32%
POSITIVE
YTD 12-Month
12.28% 14.64% Strategy Buy with risk < $18.02, PT $22.74

2 .DJI 12,213.09 (-0.01%) .SPX 1,321.82 (-0.14%) .IXIC 2,765.77 (-0.51%)

 March 10h 2011

Stock Focus: Merck & Co., Inc.

MRK
Last Mar 9th Resistances 34.05 34.73 35.41 36.26 37.68
$33.29 0.94% Supports 31.57 30.97 28.27 26.82 25.13
WTD MTD Outlook
3.42% 0.67%
NEGATIVE
YTD 12-Month
7.63% 10.87% Strategy Short while below $37.68, PT $28.27 risk > $37.68

3 .DJI 12,213.09 (-0.01%) .SPX 1,321.82 (-0.14%) .IXIC 2,765.77 (-0.51%)

 March 10h 2011

Stock Focus: Johnson & Johnson

JNJ
Last Mar 9th Resistances 61.48 62.14 62.80 63.61 64.00
$60.40 0.51% Supports 59.75 59.15 58.76 56.86 55.58
WTD MTD Outlook
1.27% 0.65%
NEUTRAL
YTD 12-Month
2.34% 7.36% Strategy Range trade between $59.75-$64.00

4 .DJI 12,213.09 (-0.01%) .SPX 1,321.82 (-0.14%) .IXIC 2,765.77 (-0.51%)

 March 10h 2011

US Economic Calendar
Date Time Report Period Actual Forecast Previous
7-Mar 3:00 PM Consumer credit Jan $5.01 bln $3.50 bln $4.09 bln
8-Mar 7:30 AM NFIB small business index Feb 94.5 95.0 94.1
9-Mar 10:00 AM Wholesale inventories Jan 1.1% 1.0% 1.0%
10-Mar 8:30 AM Jobless claims 5-Mar - 378K 368K
10-Mar 8:30 AM Trade balance Jan - -$41.5 bln -$40.6 bln
10-Mar 2:00 PM Federal budget Feb - n/a $221 bln
11-Mar 8:30 AM Retail sales Feb - 1.3% 0.3%
11-Mar 8:30 AM Retail sales ex-autos Feb - 0.9% 0.3%
11-Mar 9:55 AM Consumer sentiment March - 75.8 77.5
11-Mar 10:00 AM Inventories Jan - 0.8% 0.8%
11-Mar 10:00 AM Job openings Jan - n/a 3.06 mio

Analysts' Upgrades & Downgrades

Ratings Price Target
Stock Code House
Previous Current Previous Current
IBM IBM RBC Capital - Sector Perform $165.00 $176.00
IBM IBM BofA/Merrill - - $180.00 $190.00
IBM IBM Caris - - $175.00 $185.00
IBM IBM BMO Capital - Outperform $165.00 $180.00
IBM IBM Collins Stewart - Buy $175.00 $185.00
IBM IBM Deutsche Bank Buy Buy $175.00 $200.00
n Sector-wide n Upgrade n Downgrade n Initiation
Price Performance - as of Mar 9th 2011
Code Last Dy WTD MTD YTD 12-Mos Code Last Dy WTD MTD YTD 12-Mos
AA 16.30 -1.15% -2.28% 1.05% 5.91% 14.47% JPM 46.56 0.34% -0.26% 4.54% 9.76% 4.04%
AXP 45.05 -0.42% 3.49% 2.71% 4.96% 9.19% KFT 31.67 0.70% -0.13% 3.73% 0.51% 4.73%
BA 72.09 0.07% -0.29% 4.13% 10.47% -0.72% KO 65.62 -0.03% 2.04% 5.48% -0.23% 19.31%
BAC 14.59 -0.68% 2.75% 7.28% 9.37% -18.26% MCD 75.78 0.32% 1.80% 3.41% -1.28% 13.58%
CAT 102.36 -1.70% 0.35% 6.98% 9.29% 62.86% MMM 93.17 -0.62% 3.24% 6.55% 7.96% 11.49%
CSCO 18.12 -0.55% -2.79% -13.43% -10.43% -30.39% MRK 33.29 0.94% 3.42% 0.67% -7.63% -10.87%
CVX 102.14 -1.57% 0.04% 9.39% 11.93% 34.70% MSFT 25.89 -0.08% -2.49% -6.74% -7.24% -11.61%
DD 53.71 -1.01% -0.67% 6.80% 7.68% 44.23% PFE 19.66 -0.10% 4.24% 8.32% 12.28% 14.64%
DIS 43.12 -0.19% 0.40% 10.99% 14.96% 23.52% PG 62.00 -0.08% -1.34% -3.43% -3.62% -2.01%
GE 20.63 0.00% -0.91% 2.13% 12.79% 13.35% T 28.79 1.20% 2.35% 4.73% -2.01% 11.42%
HD 37.67 1.70% 1.59% 2.64% 7.44% 16.45% TRV 59.40 0.58% -0.34% 6.43% 6.62% 10.12%
HPQ 42.05 -0.83% -1.48% -7.60% -0.12% -20.88% UTX 82.89 -0.44% -0.58% 1.79% 5.30% 12.61%
IBM 165.86 2.21% 2.21% 4.18% 13.01% 29.33% VZ 36.65 0.47% 1.89% 2.86% 2.43% 18.15%
INTC 21.20 0.33% -3.02% -1.21% 0.81% -4.89% WMT 52.67 0.44% 1.78% -7.11% -2.34% -5.27%
JNJ 60.40 -0.51% 1.27% 0.65% -2.34% -7.36% XOM 84.38 -0.26% -1.12% 6.82% 15.40% 25.98%

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.

5 .DJI 12,213.09 (-0.01%) .SPX 1,321.82 (-0.14%) .IXIC 2,765.77 (-0.51%)