After starting the session on a weak footing, the Dow Jones Industrial Average climbed steadily on
Friday and finished the day at 12,044.40, up 59.79 points or 0.5%. S&P 500 index and the Nasdaq
Composite also shared the same fate and settled up 0.71% and 0.54%, respectively.
MMM led the gainers with 1.78% gains, CAT was next with 1.66%, and AA at the third spot as it
edged up 1.46%. Four components were in the red: VZ (-1.51%), T (-0.52%), WMT (-0.11%) and KO
(-0.02%). PG was unchanged on Friday at $61.49.
PFE was the top gainer this week with 3.23% gains, followed by MCD which added 3.08%. Sector
downgrade hammered INTC as the stock fell 4.53% this week, sending it at the bottom of the Dow 30
table. AA and XOM were also down by 3.9% and 3.77% this week as commodities retreated.
DIS maintained its lead as March’s top gainer with 10.5% increase. Next was PFE with 7.03%, while
CVX gained 7.03%, putting it at the third. CSCO (-14.24%), HPQ (-8.31%), and WMT (-7.25%)
were the top losers this month.
US crude for April was down 1.5% to $101.16, Brent crude for April was also down 1.38% to
$113.84 and Gold contract for April settled at $1,419.00 or 0.46% lower.
Market will remain focused on the Middle East, especially Saudi Arabia, scanning for signs of
worsening conditions. A new issue jumped into the market as Japan suffered a massive earthquake,
followed by tsunami which swept through its coastal areas. Adding another woe is the threat of
nuclear disaster on a damaged nuclear facility in Japan. Still, despite its major impact on Japan, the
market could see it as a rather positive factor for stocks, especially resources and construction firms as
Japan looks forward to reconstruct its damaged cities.
Saudi Arabia was spared a violent clash between the government and the protesters on Friday. This
resulted in the declines in oil prices as the market worries have eased off.
Economic indicators were muted on Friday as Japan brushed aside all other news. The retail sales for
February came in below the forecast at +1.1%, while excluding autos the sales were rising 0.7%.
Both figures were below the analysts’ consensus of +1.3% and +0.9%, respectively. Consumer
sentiment for March dipped to 68.2, despite being expected at 75.8. This was a big drop from prior
reading of 77.5.
Next week, FOMC will be the market’s first big event, although there seems to be no changes in the
Fed’s monetary policy for now. Then, inflation data will be released: PPI on Wednesday, and CPI on
the following day. Still, situations in Japan will remain the highlighted issue as well as unrests in the
Middle East. China will become a wildcard as recent data showed that CPI remained stubbornly high
at 4.9% in February. This could prompt another swift response from the People’s Bank of China either
in the form of interest rates increase or another drain in liquidity as reserve requirement ratio is to be
tweaked again.
1 .DJI 12,044.40 (+59.79 ● +0.50%) .SPX 1,304.28 (+9.17 ● +0.71%) .IXIC 2,715.61 (+14.59 ● +0.54%)
March 14th 2011
2 .DJI 12,044.40 (+59.79 ● +0.50%) .SPX 1,304.28 (+9.17 ● +0.71%) .IXIC 2,715.61 (+14.59 ● +0.54%)
March 14th 2011
T
Last Mar 11th Resistances 29.00 29.22 29.42 29.86 30.80
$28.46 0.52% Supports 27.61 27.20 26.94 26.19 25.27
WTD MTD Outlook
1.17% 3.53%
NEUTRAL
YTD 12-Month
3.13% 10.14% Strategy Range play $27.61-$29.42, risk < $27.20 & > $29.86
3 .DJI 12,044.40 (+59.79 ● +0.50%) .SPX 1,304.28 (+9.17 ● +0.71%) .IXIC 2,715.61 (+14.59 ● +0.54%)
March 14th 2011
4 .DJI 12,044.40 (+59.79 ● +0.50%) .SPX 1,304.28 (+9.17 ● +0.71%) .IXIC 2,715.61 (+14.59 ● +0.54%)
March 14th 2011
US Economic Calendar
Date Time Report Period Actual Forecast Previous
7-Mar 3:00 PM Consumer credit Jan $5.0 bln $3.50 bln $4.1 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% 1.3%
10-Mar 8:30 AM Jobless claims 5-Mar 397K 378K 371K
10-Mar 8:30 AM Trade balance Jan -$46.3 bln -$41.5 bln -$40.3 bln
10-Mar 2:00 PM Federal budget Feb -$223 bln n/a -$221 bln
11-Mar 8:30 AM Retail sales Feb 1.1% 1.3% 0.7%
11-Mar 8:30 AM Retail sales ex-autos Feb 0.7% 0.9% 0.6%
11-Mar 9:55 AM Consumer sentiment March 68.2 75.8 77.5
11-Mar 10:00 AM Inventories Jan 0.9% 0.8% 0.8%
11-Mar 10:00 AM Job openings Jan 2.80 mio n/a 3.06 mio
5 .DJI 12,044.40 (+59.79 ● +0.50%) .SPX 1,304.28 (+9.17 ● +0.71%) .IXIC 2,715.61 (+14.59 ● +0.54%)
March 14th 2011
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.
6 .DJI 12,044.40 (+59.79 ● +0.50%) .SPX 1,304.28 (+9.17 ● +0.71%) .IXIC 2,715.61 (+14.59 ● +0.54%)