April 20th 2011

Off the S&P and On to Earnings … Again

The Dow Jones Industrial Average ended up 65.16 points or 0.53% on Tuesday as the average
settled at 12,266.75. NASDAQ composite advanced 0.35% or 9.59 points to 2,744.97 while the
S&P 500 index settled at 1,312.62 or up 7.48 points (+0.57%).

JNJ led the Dow 30 gainers with a rise of 3.69%, followed by CAT which climbed 2.12% and AA as
the aluminum producer added 1.92%. On the contrary, TRV slumped 1.41% along with CSCO and
BAC which fell 0.72% and 0.64%, respectively.

JNJ’s rally stemmed from its solid Q1 earnings. It surpassed revenue expectation despite missing the
consensus EPS estimate and despite numerous products recalls. INTC also surprised the market
considering the expected decline in PC sales as tablets dominate the PC industry. IBM beat both
revenue and EPS estimates, but it was down 0.85% during the after-hours as investors worried about
the decline in contract signings.

Elsewhere, in the commodity markets, gold continues to shine as it soared to hit $1,500 mark before it
retreated to settle at $1,495.10, up $2.20 an ounce for the June contract. At the spot market, gold
advanced 11c to settle at $1,495.19 after it touched intraday peak at $1,499.31. Crude oil for June
delivery ended up 59c at $108.28 while the Brent crude for June delivery finished at $121.33, down
28c.

Day Ahead
AXP is set to report on Wednesday. Its Q1 result is expected to show EPS of 92c on revenue of
$6.98B. Market consensus ranges from 78c to $1.01 on EPS and $6.65B to $7.17B for revenue. In
prior year AXP booked EPS of 73c. As card delinquencies rate dropped, AXP may post an upside
surprise results.

Meanwhile, T also scheduled to report today. EPS is expected at 57c on revenue of $31.27B.
Consensus ranges from 54c to 60c and revenue between $30.86B and $31.55B. The loss of iPhone
exclusivity may be the dominant factor to weigh on the stock today.

Finally, UTX is also set to announce its Q1 results. Market consensus sees Q1 EPS at $1.07, better than
93c recorded in the same quarter a year before.

On the international issues, the Eurozone debt crisis remains an issue. S&P warning on US debt ratings
is slowly fading, while the market now seems to be re-focusing itself on the earnings releases.

Economic indicator front will feature the existing home sales data which is seen edging higher in
March to 5.05M from 4.88M. Still, no significant impact is seen from the figure.

1 .DJI 12,266.75 (+65.16 ● +0.53%) .SPX 1,312.62 (+7.48 ● +0.57%) .IXIC 2,744.97 (+9.59 ● +0.35%)
 April 20th 2011

Stock Focus: American Express, Co.

AXP
Last Apr 19th Resistances 47.10 48.20 49.19 50.05 50.70
$46.64  1.26% Supports 45.13 44.57 44.00 43.31 42.19
WTD MTD Outlook
 0.84%  3.19% NEUTRAL
YTD 12-Month Price Tgt
 8.67%  1.13% $48.20

It’s going to take a firm break of $47.10 barrier in order to turn AXP’s outlook to POSITIVE. Right
now, signs of that event occurring are rising EMAs, MACD which starts to rise again, and some ample
room for a rise as indicated by the RSI value. After the market closes on Wednesday we will have
AXP reporting its earnings. If $47.10 gives way, the next objective will be simply $48.20, en route to
$50.05. For now, let’s just focus on $47.10.

2 .DJI 12,266.75 (+65.16 ● +0.53%) .SPX 1,312.62 (+7.48 ● +0.57%) .IXIC 2,744.97 (+9.59 ● +0.35%)
 April 20th 2011

Price Performance - as of Apr 19th 2011

Code Last Dy WTD MTD YTD 12-Mos
AA 16.44 1.92% -0.48% -6.91% 6.82% 22.41%
AXP 46.64 1.26% 0.84% 3.19% 8.67% 1.13%
BA 73.15 0.49% 0.76% -1.06% 12.09% 0.99%
BAC 12.34 -0.64% -3.74% -7.43% -7.50% -30.79%
CAT 106.10 2.12% -1.04% -4.71% 13.28% 55.82%
CSCO 16.61 -0.72% -2.47% -3.15% -17.89% -38.32%
CVX 105.40 0.86% -0.79% -1.94% 15.51% 29.42%
DD 54.67 1.62% -0.40% -0.55% 9.60% 37.22%
DIS 41.35 0.36% -0.41% -4.04% 10.24% 12.24%
GE 20.27 1.45% 1.15% 1.10% 10.83% 7.48%
HD 37.77 0.03% -1.05% 1.92% 7.73% 7.21%
HPQ 39.99 0.60% -0.67% -2.39% -5.01% -23.05%
IBM 165.40 -0.33% -0.49% 1.43% 12.70% 28.22%
INTC 19.86 1.22% 0.56% -1.59% -5.56% -13.05%
JNJ 62.69 3.69% 3.52% 5.81% 1.36% -2.50%
JPM 44.65 1.57% -0.53% -3.15% 5.26% 4.86%
KFT 33.40 0.54% 0.12% 6.51% 6.00% 12.84%
KO 67.09 -0.33% -1.35% 1.13% 2.01% 25.52%
MCD 76.60 -0.52% -1.01% 0.67% -0.21% 8.51%
MMM 91.86 0.45% -1.03% -1.75% 6.44% 3.60%
MRK 33.75 -0.53% -2.20% 2.24% -6.35% -3.68%
MSFT 25.15 0.28% -0.87% -0.95% -9.89% -17.65%
PFE 20.53 0.64% 0.00% 1.08% 17.25% 22.79%
PG 63.86 -0.22% -0.50% 3.67% -0.73% 2.73%
T 30.31 0.00% -1.11% -0.98% 3.17% 16.31%
TRV 58.18 -1.41% -2.71% -2.19% 4.43% 14.66%
UTX 82.36 0.81% -1.31% -2.71% 4.62% 9.89%
VZ 37.24 -0.19% -1.61% -3.37% 4.08% 28.86%
WMT 53.35 0.08% -0.37% 2.50% -1.08% -0.54%
XOM 83.80 0.84% -0.58% -0.39% 14.61% 23.65%

3 .DJI 12,266.75 (+65.16 ● +0.53%) .SPX 1,312.62 (+7.48 ● +0.57%) .IXIC 2,744.97 (+9.59 ● +0.35%)
 April 20th 2011

EPS Revenues
Date Company Period F/C Prv Actual F/C Prv Actual
19-Apr IBM Q1 $2.30 $1.97 $2.41 $24.02B $22.90B $24.61B
19-Apr Intel Corp. Q1 $0.46 $0.43 $0.59 $11.60B $10.30B $12.85B
19-Apr Johnson & Johnson Q1 $1.26 $1.29 $1.25 $15.83B $15.60B $16.20B

Date ET Company Periode F/C Prv

20-Apr AMC American Express Q1 $0.92 $0.73
20-Apr BMO AT&T Q1 $0.57 $0.59
20-Apr BMO United Technologies Q1 $1.07 $0.93
21-Apr BMO Dupont Q1 $1.36 $1.24
21-Apr 12:00 General Electric Q1 $0.28 $0.21
AMC = After market closes BMO = Before market closes

Analysts' Upgrades & Downgrades

Code House Ratings PT
BAC Citigroup Buy $17.00
n Reiterate n Upgrade n Downgrade n Initiation

US Economic Calendar
Date Time Report Period Actual Forecast Previous
18-Apr 10:00 AM Home builders' index Apr 16 17 17
19-Apr 8:30 AM Housing starts Mar 549K 529K 512K
19-Apr 8:30 AM Single-family permits Mar 405K n/a 382K
20-Apr 10:00 AM Existing home sales Mar 5.05M 4.88M
21-Apr 8:30 AM Jobless claims 16-Apr 390K 412K
21-Apr 10:00 AM Leading indicators Mar 0.2% 0.8%
21-Apr 10:00 AM Philly Fed Apr 38.0 43.4

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.

4 .DJI 12,266.75 (+65.16 ● +0.53%) .SPX 1,312.62 (+7.48 ● +0.57%) .IXIC 2,744.97 (+9.59 ● +0.35%)