prism morning call 10-22-09

8/14/2019 Prism Morning Call 10-22-09

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Thursday 10.22.2009

Presumably, a downgrade of Wells Fargo

coupled with Wal-Mart Stores Inc.,

challenging holiday guidance triggered the sell

off on the Dow of 92 points to 9949, and the

S&P to 1081. The reality is, the financial

statement of the banking sector is weak due to

the housing meltdown. Loan losses seem to be

accelerating and reserves to cover future loanlosses are growing as confirmed by the Beige

Book–“All regions reported a weak or

declining commercial real estate market”, thus

the bullish sentiment is winding down fast.

Technically, the indices are filling gaps on the

downside which may lead to test 9800 and

1069. Failure to retake the weekly Pivot,

today the upside for the bull will confirm

yesterday’s sell off.

All world markets were in the red due

to the sell off. Sell on the news has

yielded nice profit. The question is will

there be followed through? The best

strategy is to sell the retracement as

long as the indices are below the weeklypivot. The only reprieve might be the

jobless claims and leading indicator;

however, the market may use these

numbers to take profit. After all, today

is Thursday, usually a volatile and

tradeable day.

TIME INDICATOR RANGE EXPECTATION PRIOR ACTUAL

8:30

AMInitial

Jobless

Claims

500K

to

540K

515K 514K 531K

8:30

AM

Continuing Claims

5895K

to

6010K

5970K 5992K 5923K

10:00

AM

Leading

Indicators

0.3%

to

1.1%

0.8% 0.6%

10:00

AM

House

Price

Index

MoM

-0.2%

to

1.9%

0.3% 0.3%

10:30

AM

EIA

Natural

Gas

Storage

Change

5 to 27 21 58

INDICES S2 S1 PIVOT R1 R2

INDU

(DOW)9828 9895 10004 10112 10179

SPUZ(S&P) 1067 1075 1087 1100 1108

DAILY MARKET HIGHLIGHTSDAILY MARKET HIGHLIGHTSDAILY MARKET HIGHLIGHTSDAILY MARKET HIGHLIGHTS

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CURRENT MARKET SENTIMENT

PRISM CALL

INDU & SPUZ TECHNICALS

ECONOMIC CALENDAR



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MARKET PRICE %

FTSE 5203.89 53.96 -1.03

DAX 5757.25 76.24 -1.31

HANG SENG 22210.52 107.59 -0.48

NIKKEI 10267.17 66.22 -0.64

CHINA 3051.412 19.177 -0.62

STRONG WEAK

MCD IBM

MMM BA

UTX JPM

KFT HD

COMMODITY PRICE

OIL 80.74 0.63

GOLD 1058.2 6.30

STOCKS UPGRADED

COMPANYBROKERAGE

FIRMRATINGS CHANGE PRICE TARGET

Freeport-McMoran

(FCX)Deutsche Bank Hold >> Buy 79.72 72 >> 100

Motorola (MOT) Thoma WeiselMarket Weight >>

Overweight8.20 7 >> 11

STOCKS DOWNGRADED

COMPANYBROKERAGE

FIRMRATINGS CHANGE PRICE TARGET

Pepco Hldgs (POM) J.12P MorganNeutral >>

Underweight15

SAP (SAP) Merrill Lynch Buy >> Neutral52.04

EOG Resources (EOG) UBS Buy >> Neutral 92.94

Chesapeake Energy

(CHK)

UBS Buy >> Neutral 28.83

DOW STOCKS TO WATCH

FOREIGN MARKETS

UPGRADES & DOWNGRADES

NEWS

EU steel market 'stuck in

slow motion,' Eurofer says -

Reuters.com

DO Diamond Offshoreannounces special cash

dividend of $1.875 (105.88 ) -

Update-

Pound drops on slow retail

sales, BOE governor

comments – WSJ

U.K. retail sales flat in

September – WSJ

European market summary;

U.K. retail sales flat, pound

lower: FTSE -1.29%, CAC -

1.58%, DAX -1.58%

COMMODITY PRICES




BMY Bristol-Myers beats by $0.01, reports revs in-line; guides FY09 EPS in-line (22.69 )

ESI ITT Educational beats by $0.03, beats on revs (110.43 )

MMM 3M beats by $0.20, beats on revs; raises FY09 EPS and revs guidance (76.33 )

CELG Celgene beats by $0.02, beats on revs (54.58 )

KMB Kimberly-Clark beats by $0.27, reports revs in-line; guides FY09 EPS above consensus (59.69 )

T AT&T beats by $0.04, reports revs in-line (25.94 )

MJN Mead Johnson Nutrition misses by $0.02, misses on revs; guides FY09 EPS below consensus

(43.65

MRK Merck beats by $0.08, reports revs in-line; guides FY09 EPS in-line, revs in-line (32.68 )

SON Sonoco Products beats by $0.04, misses on revs (29.11 )

BDK Black & Decker beats by $0.09, reports revs in-line; guides Q4 EPS above consensus; guides FY09

EPS above consensus (48.91 )

AF Astoria Fincl beats by $0.01, misses on revs (10.85 )

JBLU Jetblue Airways misses by $0.01, reports revs in-line (5.74 )

ZMH Zimmer Hldgs beats by $0.02, beats on revs; reaffirms FY09 EPS guidance, revs guidance

(52.23 )

NCR NCR Corp misses by $0.05, misses on revs; lowers FY09 rev and EPS guidance (12.22 )

HSY Hershey Foods beats by $0.06, misses on revs; guides FY09 EPS above consensus (40.67 )

CXG CNX Gas misses by $0.04, beats on revs (35.28 )

RTN Raytheon beats by $0.09, revs in-line; guides FY09 in-line; guides FY10 EPS below consensus, revs

in-line (45.18 )

LH Laboratory Corp beats by $0.07, reports revs in-line; guides FY09 EPS above consensus (68.85 )

GR Goodrich beats by $0.09, misses on revs (54.65 )

ETR Entergy misses by $0.08, misses on revs; guides FY09 EPS in-line (80.75 )

PM Philip Morris International beats by $0.02, misses on revs; raises FY09 guidance (50.82 )

EARNINGS




EMC EMC Corp beats by $0.02, beats on revs; guides Q4 EPS and revs above consensus; guides FY09

revs and EPS above consensus (17.51 )

DAL Delta Air Lines reports Q3 (Sep) results, revs in-line (8.33 -0.69)

WCC Wesco misses by $0.05, misses on revs (29.48 )

LM Legg Mason reports Q2 (Sep) results, beats on revs (31.71 )

DO Diamond Offshore beats by $0.32, beats on revs (105.88 )

XRX Xerox beats by $0.02, beats on revs; guides Q4 EPS in-line (7.72 )

PNC PNC Bank beats by $0.69, beats on revs (44.96 )

JCG J. Crew raises Q3 guidance above consensus (37.74 )

BG Bunge beats by $0.15, misses on revs; guides FY09 EPS below consensus (66.90 )

DOW Dow Chemical beats by $0.14, beats on revs (25.50 )

SGP Schering-Plough reports EPS in-line, revs in-line (29.01 )

PFS Provident Finl beats by $0.01 (9.85 )

OXY Occidental Petro beats by $0.06, reports revs in-line (81.55 )

RAI Reynolds American beats by $0.07, misses on revs; guides FY09 EPS above consensus (49.04 )

UNP Union Pacific beats by $0.02, reports revs in-line; volumes down 15% YoY (62.92 )

MCD McDonald's beats by $0.04, reports revs in-line (58.33 )

R Ryder System beats by $0.05, reports revs in-line (45.27 )

UPS UPS revs $11.15 bln vs $11.17 bln First Call consensus

UPS UPS: Wires reporting EPS of $0.55 vs $0.52 First Call consensus

UNP Union Pacific prelim $1.02 vs $1.00 First Call consensus; revs $3.67 bln vs $3.69 bln First Call

consensus; Q3 volumes were down 15%++




Symbol S7 S6 S5 S4 S3 S2 S1 PIVOT R1 R2 R3 R4 R5 R6 R7 Sectors

SPX 1046.66 1054.53 1059.39 1067.25 1075.12 1077.55 1079.97 1087.84 1095.72 1098.14 1100.57 1108.43 1116.30 1121.16 1129.02

INDU 9652.78 9719.90 9761.37 9828.49 9895.61 9916.34 9936.99 10004.20 10071.41 10092.05 10112.79 10179.91 10247.03 10288.50 10355.62

NDX 1701.93 1713.36 1720.42 1731.85 1743.28 1746.81 1750.32 1761.77 1773.21 1776.73 1780.26 1791.69 1803.12 1810.18 1821.61

XBD 112.33 113.85 114.78 116.30 117.82 118.29 118.75 120.27 121.79 122.26 122.72 124.24 125.76 126.69 128.21

BKX 42.50 43.23 43.68 44.41 45.14 45.37 45.59 46.32 47.05 47.28 47.50 48.23 48.96 49.41 50.14

TRAN 3713.78 3764.66 3796.09 3846.98 3897.86 3913.58 3929.23 3980.18 4031.13 4046.78 4062.49 4113.38 4164.26 4195.69 4246.58

OIX 671.44 678.27 682.50 689.33 696.16 698.28 700.38 707.22 714.06 716.17 718.28 725.11 731.94 736.17 743.00

OSX 193.33 196.39 198.29 201.35 204.41 205.36 206.30 209.37 212.44 213.38 214.33 217.39 220.45 222.35 225.41

XNG 514.67 519.67 522.76 527.76 532.76 534.30 535.84 540.85 545.85 547.39 548.94 553.94 558.94 562.03 567.03

CYC 749.06 755.45 759.41 765.80 772.19 774.17 776.14 782.54 788.94 790.91 792.89 799.28 805.67 809.63 816.02

UTY 390.92 393.23 394.66 396.97 399.28 400.00 400.71 403.02 405.33 406.05 406.76 409.07 411.38 412.81 415.12

DRG 287.17 288.87 289.91 291.60 293.30 293.82 294.34 296.03 297.73 298.25 298.77 300.46 302.16 303.20 304.89

RLX 362.09 366.89 369.86 374.66 379.46 380.95 382.42 387.23 392.04 393.52 395.00 399.80 404.60 407.57 412.37

Tradeables

SPY 104.58 105.40 105.91 106.74 107.56 107.82 108.07 108.90 109.72 109.98 110.23 111.06 111.88 112.39 113.22

DIA 96. 43 97.12 9 7.54 98.22 98.91 99.1 2 99. 33 100.01 100. 70 100.91 101. 12 101.80 102. 49 10 2.91 103.59

QQQQ 41.82 42.11 42.29 42.58 42.87 42.96 43.05 43.34 43.63 43.72 43.81 44.10 44.39 44.57 44.86

QLD 49.83 50.53 50.97 51.67 52.37 52.59 52.81 53.51 54.21 54.43 54.65 55.35 56.05 56.49 57.19

IWM 57.12 57.88 58.35 59.11 59.87 60.11 60.34 61.10 61.86 62.10 62.33 63.09 63.85 64.32 65.08

OIH 119.48 121.38 122.55 124.46 126.36 126.95 127.53 129.44 131.34 131.93 132.51 134.42 136.32 137.49 139.40

XLE 56.08 56.74 57.15 57.81 58.47 58.67 58.87 59.54 60.20 60.40 60.61 61.27 61.93 62.34 63.00

FAZ 16.13 16.80 17.21 17.89 18.56 18.77 18.97 19.65 20.32 20.53 20.73 21.41 22.08 22.49 23.17

FAS 67.66 70.65 72.49 75.47 78.46 79.38 80.30 83.28 86.27 87.19 88.11 91.09 94.08 95.92 98.90

SRS 8.63 8.84 8.98 9.20 9.41 9.48 9.55 9.77 9.98 10.05 10.12 10.34 10.55 10.69 10.91

SDS 34.84 35.41 35.75 36.32 36.89 37.06 37.23 37.80 38.37 38.54 38.71 39.28 39.85 40.19 40.76

USO 37.36 38.07 38.52 39.23 39.94 40.17 40.38 41.10 41.82 42.04 42.26 42.97 43.68 44.13 44.84

SKF 21.34 21.91 22.26 22.82 23.39 23.56 23.74 24.30 24.87 25.04 25.22 25.78 26.35 26.70 27.26

TECHNICAL ANALYSIS

prism morning call 10-22-09

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