Feb 2 2011

The Dow ended on a positive note on the first day of February, gaining 148.23 points or
1.25%. The index has finally breached the 12K mark as it settled the day at 12,040.16. S&P
500 index also passed the 1,300 mark with gains of 1.67%. Tech-laden Nasdaq index
finished the day at 2,751.19 or up 51.11 points (+1.89%).

Investors seemed to be buoyed by the better-than-expected ISM manufacturing index

released on Tuesday. The ISM index beat the consensus at it read 60.8% in January. The
market had expected the index to be steady at 58.5%. Construction spending however
declined 2.5% in December, worse than the expected rise of 0.1%. The December decline
was worse than the November’s slight decline of 0.2%.

Political turmoil in Egypt seemed to have been ignored, albeit temporarily. The market
probably had factored in all the negativity surrounding the matter and chose to rather focus
on the brightening outlook of the US economy.

 Among the Dow 30 constituents, Pfizer was the only company to report its performance for
the most recent quarter on Tuesday. Q4 EPS was reported at $0.47 per share, better than
the consensus of $0.46 per share. The company expected 2011 EPS to be around $2.16
and $2.26 per share with revenue around $66 billion to $68 billion, while analysts see it
at $2.22. Its 2012 EPS projection was maintained between $2.25 and $2.35, roughly in
line with the consensus of $2.30. In addition to its existing $4 billion authorized stock
buyback program, PFE’s board has approved an additional $5 billion shares to be bought
back this year. Earnings in Q4 was recorded at $2.89 billion, or $0.36 per share
(including items), a lot better than that of the same period a year earlier which was at
$767 million or $0.10 per share. Part of the gains was tax-related, which amounted to $2
billion. Wyeth products earned PFE $2.3 billion from $17.6 billion of total revenue that it
gained in Q4. A year earlier, revenue was at $16.5 billion. FactSet had expected Q4
revenue at $16.99 billion. PFE’s top drugs Lipitor, saw a decline in sales by 17% to $2.63
billion. The drug will lose its US patent protection later this year. Regarding its M&A
activity, PFE is in the process of acquiring King Pharmaeceuticals which will cost PFE around
$3.6 billion. PFE was the top gainer on Tuesday, scoring a 5.49% gains and settled at
$19.22.
 XOM remained strong, up 4% to end at $83.91 as it built momentum on its strong Q4
performance. XOM ranked fourth on Tuesday’s chart.
 AA was at the second place with 4.53%. The aluminum producer settled the day at
$17.32.
 PG found itself at the bottom again with a loss of 0.33% as it ended at $62.92.
 Two more companies with negative performance on Tuesday were MMM and MCD. MMM
fell 0.15% while MCD inched 0.27% lower.
 Despite it reported its chip flawed, INTC managed to hold on the positive area with
0.09% gains. The chipmaker now sits at $21.48.
 Feb 2 2011

Dow 30 - Feb 1st 2011

PFE 5.49% 1 HPQ 1.82% 11 UTX 0.65% 21
AA 4.53% 2 CSCO 1.51% 12 HD 0.60% 22
BAC 4.22% 3 JNJ 1.44% 13 AXP 0.51% 23
XOM 4.00% 4 CVX 1.36% 14 WMT 0.46% 24
GE 3.28% 5 T 1.27% 15 KFT 0.33% 25
DIS 2.60% 6 BA 1.17% 16 KO 0.32% 26
MRK 2.50% 7 CAT 1.03% 17 INTC 0.09% 27
JPM 2.20% 8 TRV 0.98% 18 MMM -0.15% 28
DD 1.93% 9 IBM 0.96% 19 MCD -0.27% 29
VZ 1.82% 10 MSFT 0.94% 20 PG -0.33% 30

Dow 30 - Trailing Twelve Months (TTM) - Feb 1st 2011

CAT 71.80% 1 UTX 19.20% 11 KFT 7.88% 21
DD 53.20% 2 HD 18.56% 12 INTC 4.63% 22
CVX 33.08% 3 MCD 15.07% 13 WMT 4.18% 23
AA 30.23% 4 AXP 14.17% 14 PG -0.57% 24
GE 29.51% 5 T 12.33% 15 MSFT -2.37% 25
XOM 29.09% 6 BA 11.29% 16 JNJ -3.76% 26
IBM 28.63% 7 MMM 9.53% 17 MRK -7.81% 27
DIS 27.66% 8 PFE 9.52% 18 HPQ -8.41% 28
VZ 25.37% 9 JPM 9.44% 19 CSCO -11.76% 29
KO 19.59% 10 TRV 8.02% 20 BAC -14.11% 30
 Feb 2 2011

US Economic Calendar
Date Time Report Period Actual Forecast Previous
31-Jan 8:30:00 AM Personal income Dec 0.4% 0.4% 0.4%
31-Jan 8:30:00 AM Consumer spending Dec 0.7% 0.6% 0.3%
31-Jan 8:30:00 AM Core PCE price index Dec 0.0% 0.1% 0.1%
31-Jan 9:45:00 AM Chicago PMI Jan 68.8% 65.0% 66.8%
1-Feb 10:00:00 AM ISM Jan 60.8% 58.5% 58.5%
1-Feb 10:00:00 AM Construction spending Dec -2.5% 0.1% -0.2%
3-Feb 8:30:00 AM Jobless claims 1/29/2011 - 415K 454K
3-Feb 8:30:00 AM Productivity 4Q - 2.20% 2.30%
3-Feb 10:00:00 AM ISM non-manufacturing Jan - 57.10% 57.10%
3-Feb 10:00:00 AM Factory orders Dec - -0.40% 0.70%
4-Feb 8:30:00 AM Nonfarm payrolls Jan - 150K 103K
4-Feb 8:30:00 AM Unemployment rate Jan - 9.60% 9.40%
4-Feb 8:30:00 AM Average hourly earnings Jan - 0.20% 0.10%

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.