THE ECONOMIC MONITOR

23 September 2010

U.S.
Free Edition

INSIDE THE REPORT MARKETS AT A GLANCE

 Stock recommendations and price targets from top brokerage
firms
 Forecasts on Economic Indicators
 List of companies earnings that hit and miss the analysts’
Important Events Scheduled on 24 September
Economic Events
 Federal Reserve Chairman Ben Bernanke speaks
"Implications of the Financial Crisis for Economics"
 Treasury Secretary Timothy Geithner speaks before the United
States Hispanic Chamber of Commerce 31st Annual National
Convention & Business Expo at 1245 GMT
 The Dow Jones fell 76.89 points, or 0.72 percent, to
10,662.42
 The dollar fell 0.2 percent to 84.38 yen after hitting 84.26
 The benchmark 10-year Treasury note was up 1/32 in price,
its yield easing to 2.56 percent from 2.57 percent late on
Wednesday
 Gold rose to near $1,300 an ounce on Thursday
on
 On the New York Mercantile Exchange, November crude
rose 47 cents, or 0.6 percent, to settle at $75.18 a barrel,
trading from $73.58 to $75.61.

Corporate Events STOCK INDICES

 KB Homes will announce its Q3 results INDEX LAST CHNG % CHNG

 Comtech Telecommunications and Finish Line will host the DJIA* 10662.42 -76.89 -0.72
earnings conference call Nasdaq* 2327.08 -7.47 -0.32

S&P 500* 1124.83 -9.45 -0.83

Breaking News DJ Total Stock Market* 11729.17 -97.3 -0.82

Russell 2000* 648.84 -7.87 -1.2

 Petrobras all set for record share sale
Global Dow* 1922.63 -9.6 -0.5
 Airgas CEO back on board NYSE Composite* 7141.51 -69.34 -0.96

 McDonald's raises quarterly dividend Nasdaq 100* 1982.15 -0.61 -0.03

DJ Transportation Avg* 4382.93 -84.71 -0.82
 Novell shares fall
S&P 100* 1124.83 -9.45 -0.83
 Rite Aid posts loss * CLOSING VALUES

 Jobless claims rise CURRENCIES

 AstraZeneca pill waits for approval INDEX LAST PRIOR

 Glaxo's Avandia under scanner

Euro (EUR/USD) 1.3309 1.3393
U.K. Pound (GBP/USD) 1.5678 1.5668
 Blockbuster files for bankruptcy
Japanese Yen (USD/JPY) 84.33 84.55
All prices are at 04:11PM EDT

FUTURES
SETTLE CHANGE

Crude Oil (Oct) 74.85 0.14

Natural Gas (Nov) 4.159 0.063
Gold (Dec) 1293.1 1
Copper ( Dec) 357.2 0.7
Wheat (Dec) 698 0
All prices are at 04:02 PM EDT
THE ECONOMIC MONITOR - U.S.

STOCK RECOMMENDATIONS BY BROKERAGE HOUSES

BROKERAGE/COMPANY ACTIONS RATING

Credit Suisse

Entergy Corp Cuts to neutral from Outperform Neutral

Firstenergy Corp Raises to outperform from neutral Outperform

Allegheny Energy Raises to outperform from neutral Outperform

Carmax Inc Raises price target to $28 from $23 Neutral

Goldman Sachs

Mylan Inc Adds to conviction buy list Buy

Jefferies Removes from Americas conviction sell list Sell

Raymond James

Red Hat Inc Raises target price to $43 from $36 Outperform

Family Dollar Stores Inc Raises target price $49 from $45 Outperform

Patterson-Uti Energy Inc Raises to strong buy from Outperform Buy

Citigroup

Progress energy Raises target price to $45 from $40 Hold

Energy transfer equity Raises target price to $43.50 from $37 Rating buy

Southern company Raises target price to $38 from $36 Hold

Bed bath & beyond Target price to $59 from $54 Buy

XL Group Target price to $25 from $23 Buy

Barclays

Red hat inc Raises price target to $36 from $33 Equal weight

Philip morris Raises price target to $59 from $54 Overweight

JA Solar Raises price target to $8 from $6 Equal weight

Disclaimer: The views and investment tips expressed by investment experts are their own, and not that of IBTimes or its management. We advise users to check with
certified experts before taking any investment decisions.

MARKET BRIEFING

 The Dow Jones fell 76.89 points, or 0.72 percent, to 10,662.42. S&P 500 was also down by 9.34 points, or 0.82 pct, at 1,124.94. Nasdaq
closes down 7.47 points, or 0.32 percent, at 2,327.08

 The dollar fell 0.2 percent to 84.38 yen after hitting 84.26, the euro was down 0.4 percent against dollar on the day at $1.3345 after hit-
ting a five month-high on Wednesday.

 U.S. Treasury debt prices rose on Thursday, though a bout of corporate hedging kept price gains in check for much of the afternoon.
Treasury prices continued their upward march and yields headed lower, with the 10-year yield briefly touching a 3-week low, as traders
continued to focus on the prospects for more quantitative easing by the Federal Reserve. The benchmark 10-year Treasury note was up
1/32 in price, its yield easing to 2.56 percent from 2.57 percent late on Wednesday. The 30-year bond was up 5/32, yielding 3.74 per-
cent, down from 3.75 percent on Wednesday.

 Gold rose to near $1,300 an ounce on Thursday, on track for a fourth day of gains as uninspiring U.S. jobless claims and housing data
renewed desire to buy bullion as a hedge against economic uncertainty. Spot gold rose 0.3 percent to $1,292.95 an ounce at 1:45 p.m.
EDT (1745 GMT). U.S. gold futures for December delivery rose $2.50 to $1,294.60.

 U.S. crude oil futures settled higher on Thursday, led higher by RBOB gasoline futures that were lifted by news that ConocoPhillips' New
Jersey refinery is undergoing major maintenance and also helped by Wall Street paring its losses. On the New York Mercantile Ex-
change, November crude rose 47 cents, or 0.6 percent, to settle at $75.18 a barrel, trading from $73.58 to $75.61. NYMEX front-month
October RBOB gasoline rose 1.60 cents, or 0.84 percent to settle at $1.9174 a gallon, well above an early low of $1.8747.
THE ECONOMIC MONITOR - U.S.
COMPANY NEWS
Petrobras all set for record share sale
Brazilian state oil company Petrobras could raise up to $79 billion, in
what would be the world's biggest share offering. Brazil's government
will use oil reserves to buy $43 billion in new Petrobras stock, while
minority shareholders including institutional investors and state pension
funds will pay cash for as much as $36 billion in shares. The offering will
help raise funds the company needs to pay for the world's largest oil
exploration plan -- which aims to turn Brazil into a global energy
powerhouse.
Airgas CEO back on board
A week after shareholders ousted the chief executive of industrial gas
supplier Airgas Inc, now he is back on the board of the company but
he will not regain his title of chairman. Directors unanimously
reappointed Peter McCausland to the Airgas board, effectively
increasing its size to 10 from nine. The board chose John C. van
Roden, a former executive at paper producer P.H. Glatfelter, for
company chairman. At its annual shareholder meeting last week, Airgas
shareholders replaced McCausland and two other directors with a slate
favored by Air Products.
Casey's investors reject Couche-Tard board picks
Casey's General Stores shareholders voted against a slate of directors
proposed by Canadian convenience store operator Alimentation
Couche-Tard , a result that supported management efforts to fend off
Couche-Tard's hostile takeover bid. Couche-Tard's nominees for the
board of directors garnered less than 10 percent of the shareholder
vote. Japanese-owned 7-Eleven, which operates more than 31,400
stores around the world, made a late, nonbinding proposal to buy
Casey's for $2.03 billion, or $40 a share, earlier this month. That
trumped Couche-Tard's latest offer of $2 billion, or $38.50 a share.
McDonald's raises quarterly dividend
McDonald's Corp has raised its quarterly cash dividend by 11 percent
now the quarterly dividend is equivalent to $2.44 per share annually. It
said it will now pay a dividend of 61 cents a share, and sees total cash
returned to shareholders of about $5 billion in 2010, split between
dividends and share repurchases. The dividend is payable on December
15 to shareholders of record as of December 1.
Novell shares fall
Shares of software maker Novell Inc fell 6 percent in early morning
trading hour after news that the company's auction process was facing
setbacks. Gilman, a Capstone Investments analyst said, "There's some
chatter that Novell is having problems closing the deal."
People familiar with the matter revealed that Los Angeles-based
Platinum Equity had been among the private equity firms participating
in the auction, has dropped out.
Avis raises offer for Dollar Thrifty
Topping the deal offered by rival Hertz, Avis Budget group raised its
bid to acquire Dollar Thrifty more than 10 percent to $1.51 billion,
topping the latest deal Dollar Thrifty. Avis said that it was increasing the
cash portion of its offer to $45.79 per share from $40.75 a share. The
stock portion of the offer remains unchanged at 0.6543 Avis shares for
every Dollar Thrifty share. Earlier this month, Dollar Thrifty accepted
Hertz's increased offer, currently worth around $1.44 billion, or $50.36 in
cash and stock for each Dollar Thrifty share.
ECONOMY NEWS
Jobless claims rise
Breaking two straight weeks of declines the initial claims for state
unemployment benefits increased 12,000 to a seasonally adjusted
465,000, the Labor Department said today. Financial markets had
forecast claims steady at 450,000. New U.S. claims for unemployment
benefits rose unexpectedly highlighting continued labor market
weakness. The four-week average of new jobless claims, considered a
better measure of underlying labor market trends, fell 3,250 to463,250,
the lowest since July 31.
We're still in a recession: Warren Buffett
Warren Buffett said the U.S. economy remains in recession. Buffett told
CNBC television in an interview broadcast on Thursday, "We're still in a
recession.”
""We've used up a lot of bullets," Buffett said. "And we talk about
stimulus. But the truth is, we're running a federal deficit that's 9 percent
of GDP. That is stimulative as all get out." Buffett said he defines a
recession differently from the NBER. A great majority" of these
businesses are "coming back slowly," he said.
Shipments at Burlington Northern are "61 percent of the way back,"
Buffett said. "Our carpet business, our brick business, our insulation
business, they're not back 61 percent, but they are moving back."
REGULATORY NEWS
AstraZeneca pill waits for approval
An AstraZeneca pill has submitted for regulatory approval as a
treatment for thyroid cancer, offering the drugmaker a smaller sales
opportunity. The company failed last year in treating lung cancer.
AstraZeneca said that the agency will make a decision by Jan. 7, 2011,
as FDA has granted priority review status. It also stated that the U.S.
Food and Drug Administration and the European Medicines Agency
had accepted submissions for vandetanib.
Glaxo's Avandia under scanner
European regulators asked GlaxoSmithKline to take out the diabetes
drug Avandia from the market but U.S. officials allowed it to stay. In
Europe, officials at the EMA said the drug's suspension was expected to
be formally endorsed by the European Commission within two weeks.
Although, in separate but coordinated statements, the U.S. Food and
Drug Administration in Washington and the European Medicines
Agency (EMA) in London said they agreed on the risks associated with
the drug but had reached different conclusions on action.
Blockbuster files for bankruptcy
Video chain Blockbuster Inc filed for bankruptcy protection. According
to the court document, a group of bondholders led by billionaire Carl
Icahn and hedge funds have signed off on a restructuring deal that
gives them a controlling stake in the company. The bankruptcy allows
the company to break leases. Blockbuster filed its Chapter 11 petition
with the U.S. bankruptcy court in Manhattan. According to its plan,
Blockbuster would cut its debt to about $100 million from nearly $1
billion. Icahn and hedge funds that together hold 80 percent of
Blockbuster's senior notes agreed to support the plan and provide $125
million of debtor-in-possession (or DIP) financing to help it operate
while in bankruptcy.
THE ECONOMIC MONITOR - U.S.

NEXT TRADING DAY NEXT TRADING DAY (contd…)

Oxygen Biotherapeutics will conducts its shareholders meeting at

ECONOMIC EVENTS
13:00 GMT.
Federal Reserve Chairman Ben Bernanke speaks on "Implications of the
Graham Corp will participate in Western New York Investors Conference at
Financial Crisis for Economics" before a conference co-sponsored by the Center
13:30 GMT.
for Economic Policy Studies and the Bendheim Center for Finance at Princeton
University at 2030 GMT .
Ultralife Corp will participate in Western New York Investors Conf at14:00 GMT.
Federal Reserve Board Governor Elizabeth Duke gives welcome and opening
remarks before the final of four Federal Reserve public hearings on potential
revisions to the Board's Regulation C at 1300 GMT, the regulation which
implements the Home Mortgage Disclosure Act (HMDA). HMDA requires ECONOMIC INDICATOR WATCH
mortgage lenders to provide detailed information about their mortgage lending
activity to federal agencies and the public.
Durable Goods (August)
Treasury Secretary Timothy Geithner speaks before the United States
Hispanic Chamber of Commerce 31st Annual National Convention & Business Forecast -1% Prior 0.3%
Expo at 1245 GMT

Bank for International Settlements chair Jaime Caruana addresses the

Chicago Fed's International Banking Conference at 1715 GMT .
Federal Reserve Bank of New York First Vice President Christine Cumming
participates in "Structuring Macroprudential Regulation Theory, Governance and
Informational Needs" panel at the Federal Reserve Bank of Chicago
International Banking Conference at 1315 GMT .
Federal Reserve Bank of Richmond President Jeffrey Lacker speaks about
reflections on economics, policy and financial crisis before the Kentucky
Economic Association's annual conference at 700 GMT .
President Barack Obama will host a meeting with leaders of the Association of
South East Asian Nations (ASEAN).
President Barack Obama due to attend a U.N. organized high-level meeting on
Sudan on the margins of the U.N. General Assembly. President Barack Obama
meets Azerbaijan President Ilham Aliyev and Colombian President Juan Manuel
Santos on the sidelines of the United Nation's General Assembly.
House of Representatives Ways and Means Committee expected to vote on
a bill that would allow the U.S. Commerce Department to apply duties against
China's "undervalued" currency. U.S. appeals court to hold rare oral arguments
over whether to temporarily allow federal funding of human embryonic stem cell
research.
COMPANY EVENTS
KB Homes will announce its Q3 results at 1530 GMT, analysts expect the
company to report a profit of $0.155 per share, down from $0.870 reported for
the corresponding period a year ago.
In second quarter it reported revenues of $374.1 million, down from $384.5
million reported for the same quarter in 2009 on lower housing revenues. The
Company's net loss narrowed 61 percent to $30.7 million, or $.40 per diluted
share, in the second quarter of 2010, compared to a net loss of $78.4 million, or
$1.03 per diluted share, in the year-earlier quarter.
Comtech Telecommunications will host the earnings conference call for the
fourth quarter at 1230 GMT, analysts expect the company to report earnings of
$0.576 per share, against $0.210 reported for the same period a year earlier.
Ex-Transportation (August)
Forecast 1% Prior -3.80%
Ex-Defense (August)
Forecast -0.4% Prior 0.3%
Nondefense ex-aircraft (August)
Forecast 2% Prior -8.0%
The U.S. Census Bureau will release numbers on Durable Goods, Ex-
Transportation, Ex-Defense, Nondefense ex-aircraft for the month of August at
0830 EDT. New orders for manufactured durable goods in July increased $0.6
billion or 0.3 percent to $193.0 billion. This increase followed two consecutive
monthly decreases including a 0.1 percent June decrease. Excluding
transportation, new orders decreased 3.8 percent. Excluding defense new orders
increased 0.3 percent. Transportation equipment also up following two
consecutive monthly decreases, had the largest increase, $6.1 billion or 13.1
percent to $52.6 billion. Nondefense ex-aircraft orders fell 8.0%
Source: U.S. Census Bureau (Department of Commerce)
New Home Sales (August)
Forecast 0.29 mln Prior 0.276 mln
The U.S. Census Bureau will release numbers on new home sales at 1000 EDT,
new houses in July 2010 were at a seasonally adjusted annual rate of 276,000,
according to estimates released jointly Census Bureau and the Department of
Housing and Urban Development. This is 12.4 percent (±10.8%) below the
revised June rate of 315,000 and is 32.4 percent (±8.7%) below the July 2009
estimate of 408,000. The median sales price of new houses sold in July 2010 was
$204,000; the average sales price was $235,300. The seasonally adjusted estimate
of new houses for sale at the end of July was 210,000. This represents a supply of
9.1 months at the current sales rate.
Source: U.S. Census Bureau (Department of Commerce), Department of
Housing and Urban Development

In third quarter net sales rose to $216.3 million compared to $128.5 million for ECRI Weekly Index
the third quarter of fiscal 2009. The period-over-period increase in net sales
contributed to higher sales in both mobile data communications and
Forecast N/A Prior 122.6
telecommunications transmission segments. GAAP net income was $21.8 million
for the third quarter of fiscal 2010.
The Economic Cycle Research Institute will release its weekly index performance
at 1030 EDT, the index increased to 122.6 for the week ending September 10
Finish Line will host the earnings conference call for the second quarter at 1230
from an unrevised 122. The smoothed, annualized growth rate increased to -
GMT, analysts expect the company to report profit of $0.354 per share, against
9.2% from an unrevised -10.1%. With the latest gain, it appears that the index
$0.210 reported for the same quarter a year earlier, net sales increased 9 percent
has resumed a modestly upward trend, though is not yet consistent with a stable
to $282.4 million in the first quarter compared to $259.1 million a year ago.
recovery.

Source: Economic Cycle Research Institute

THE ECONOMIC MONITOR - U.S.

DAILY EARNINGS HITS & MISSES AS ON 23 SEPTEMBER, 2010

DIFFERENCE REV ACT DIFFERENCE
COMPANY PERIOD CURRENCY EPS EST EPS ACT REV EST (mln)
EPS (mln) REV (mln)

Ameron International Q3 USD 0.84 0.96 0.12 130.9 134.2 3.3

Park Electrochemical Q2 USD 0.45 0.46 0.01 59.3 54.5 -4.8

ECONOMIC CALENDAR MARKET PERFORMANCE

DATE EDT INDICATOR F’CAST PRIOR

FRI 09/24 0830 Durable Goods (Aug) -1% 0.30%
DJIA
0830 Ex-Transportation 1% -3.80%

0830 Ex-Defense -0.40% 0.30%

0830 Nondefense ex-air 2% -8.00%

1000 New Home Sales (Aug) 0.29 mln 0.276 mln

1030 ECRI Weekly Index NA 122.6

MON 09/27 0830 Chicago Fed Index NA NA

1200 Chicago Midwest (Aug) NA 81.4

TIME TBA Building Permits NA NA

TUE 09/28 0745 ICSC/GS Report ww NA NA

0855 Redbook mm NA NA

0900 S&P CS 20 mm sa NA 0.30%

0900 S&P CS 20 mm nsa NA 1%

0900 S&P CS 20 yy 3.20% 4.20%

1000 Consumer Conf (Sep) 54 53.5

1000 Richmond Fed Mfg (Sep) NA 11

A. Stocks pared losses after another round of economic data
1000 Mfg Shipments NA 11 offered more positive readings, with U.S. existing home
1000 Service Revenues NA -10
sales rebounding 7.6% and leading indicators rising 0.3% in
August. After an 80-point fall, the Dow Jones was off 28.53
1700 ABC CCI NA NA
points to 10,710.78.
CORPORATE RESULTS B. Natural gas stocks moved into positive territory at midday
DATE - 24/September2010
on bullish supply data and strength in shares of National
Fuel Gas Co., while petroleum producers and oil service
COMPANY NAME EVENT shares remained in the red. The Dow Jones rose 4 points,
KB Home Q3 2010 after moving into negative territory earlier in the session.
Index components Exxon Mobil Corp. and Chevron Corp.
Comtech Telecommunications Q4 2010
dropped 0.2% and 0.1%, respectively.
Finish Line Q2 2011
C. After a mild rise, the Dow Jones Industrial Average was off
Oxygen Biotherapeutics Shareholders Meeting
81 points at 10,658 with all but four of its 30 components
declined.

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