10 January 2011 The Intelligent Investor

U.S.
The Economic Monitor Series. Free Edition.

INSIDE THE REPORT MARKETS AT A GLANCE

 Stock recommendations and price targets from top
brokerage firms
 Analysis and views on Why is the SEC eyeing
Facebook?
 Economic Indicator Watch
 Important Events Scheduled on January 11
Economic Events
 Federal Reserve Bank of Philadelphia President
Charles Plosser speaks on the economic outlook
before the RMA Philadelphia Chapter Meeting - 1330
GMT
Corporate Events
 Supervalu Inc. is scheduled for quarterly results
 The Dow Jones industrial average fell 37.31 points, or 0.32
percent, to 11,637.45. The Standard & Poor's 500 Index dipped
1.75 points, or 0.14 percent, to 1,269.75. The Nasdaq Composite
Index gained 4.63 points, or 0.17 percent, to 2,707.80.
 U.S. Treasuries prices rose on Monday, helped by new Federal
Reserve bond purchases and a safe-haven bid sparked by
concerns over new debt sales by some of the weakest European
nations. Benchmark 10-year Treasury notes rose 5/32 in price. Five
-year notes increased 5/32 in price to yield 1.94 percent from 1.96
percent on Friday, while 30-year bonds rose 3/32 to yield 4.48
percent from 4.49 percent on Friday.
 The euro last traded up 0.4 percent at $1.2952. Against the yen,
the dollar slipped 0.5 percent to 82.72 yen.
 Gold rose above $1,370 an ounce on Monday as the dollar moved
into negative territory versus the euro. Spot gold was bid at
$1,370.75 an ounce at 1635 GMT, against $1,368.80 late in New
York on Friday. U.S. gold futures for February delivery rose $1.90
an ounce to $1,370.80.
 U.S. crude oil for February delivery rose $1.22, or 1.39 percent, to
settle at $89.25 a barrel, trading from $88.13 to $89.98.

Top Stories STOCK INDICES

INDEX LAST CHNG % CHNG
 DuPont to buy Danisco at $5.8 bln
DJIA* 11637.45 -37.31 -0.32
 Duke Energy to buy Progress Energy Nasdaq* 2707.8 4.63 0.17

 Genzyme shares up as Sanofi revealed talks S&P 500* 1269.75 -1.75 -0.14
DJ Total Stock Market* 13424.38 -4.56 -0.03
 iGate buys majority stake in Patni computers Global Dow* 2083.38 -9.42 -0.45

 Morgan Stanley to spin off prop trading unit by * CLOSING VALUES

2012
CURRENCIES
 Oil up on Alaska pipeline leak
INDEX LAST PRIOR
 Gas to sell at $3.50/gal: Toyota exec Euro (EUR/USD) 1.2947 1.2954

U.K. Pound (GBP/USD) 1.5573 1.5579

Japanese Yen (USD/JPY) 82.70 82.73

All prices are at 05:44 PM EST

FUTURES
LAST CHANGE

Crude Oil, Feb. 89.35 1.22

Natural Gas, Mar. 4.38 -0.013

Gold, Dec, Feb. 1375.80 5.2

Copper, Mar. 428.00 -1.80

All prices are at 05:30 PM EST

The Intelligent Investor - U.S.

http://www.europac.net/special_report/whats_ahead_canadian_energy_trusts?s=ibt1
The Intelligent Investor - U.S.

STOCK RECOMMENDATIONS BY BROKERAGE HOUSES

BROKERAGE/COMPANY ACTIONS RATING

Goldman Sachs

3M Co Raises price target to $101 from $93 Neutral

CSX Corp Raises price target to $71 from $63 —

Dow Chemical Raises to buy from neutral Buy

FedEx Corp Raises price target to $107 from $105 —

GE Raises price target to $22 from $21 Buy

Honeywell Raises price target to $65 from $57 Neutral

International Paper Raises price target to $33 from $30 —

Wal Mart Cuts to neutral from buy Neutral

FBR

Broadcom Corp Raises price target to $52 from $49 Outperform

NVIDIA Corp Raises price target to $16 from $14 Market perform

Qualcomm Inc Raises price target to $55 from $51 Outperform

Wells Fargo Cuts to market perform from outperform Market perform

Barclays

Conocophillips Raises price target to $75 from $63 Equal-weight

Exxon Mobil Cuts to equal weight from overweight Equal-weight

Ford Motor Raises price target to $23 from $17 Overweight

GM Raises price target to $48 from $42 Overweight

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.

ECONOMIC INDICATOR WATCH ON 11 JANUARY 2011

ICSC Chain Stores (weekly)

Forecast: N/A, Prior: 0.4%

ICSC Chain Stores (YoY)

Forecast: N/A, Prior: 3.6%

The International Council of Shopping Centers and Goldman Sachs will issue their weekly report on U.S. chain store sales at 0745 EST. Wholesale Inventories
(MoM)

Forecast: 1.0%, Prior: 1.9%

Wholesale sales (MoM)

Forecast: 1.5%, Prior: 2.2%

The Commerce Department will release its report on wholesale inventories and sales for the month of November at 1000 EST.

Redbook (Weekly)

Forecast: N/A, Prior: 0.4%

Redbook Research will release weekly report for U.S. chain store sales at 0855 EST.

EST/GMT Indicator Period Unit F’cast Prior

1000/1500 IBD Consumer Conf Jan -- -- 45.8

1700/2200 ABC CCI Weekly -- -- -45

The Intelligent Investor - U.S.

ANALYSIS AND VIEWS

Why is the SEC eyeing Facebook?

By Hao Li, IBTimes

Facebook shares are hot, but they're starting to behave like publicly-traded shares, which has attracted the
scrutiny of the Securities and Exchange Commission (SEC).
Shares of the social-networking giant have been traded in the secondary market as employees and former
employees sell their shares to eager investors. These shares can then be resold and traded similar to the
way public stocks are traded.

SecondMarket is a part of the secondary market that offers a platform to trade Facebook shares. In addition to Facebook, it also has
allowed the trading of Twitter, LinkedIn, Zynga, and Tesla shares.

But the SEC's main concern is about something else.

Ever since Facebook gained traction among internet users, institutional investors have been itching to get their hands on a piece of
the company's bright future. Microsoft (Nasdaq: MSFT), Goldman Sachs (NYSE: GS), Interpublic Group (NYSE: IPG) and a whole
bunch of venture capital/investment firms all own a part of Facebook.

What alarmed the SEC, however, is that Goldman Sachs is setting up a special-purpose vehicle to allow some of its wealthy clients to
invest as much as $1.5 billion in Facebook shares, reported the Wall Street Journal.

In order to protect public investors, the SEC requires companies that publicly raise money through equity offerings to disclose certain
financial information. For public companies, required disclosures include quarterly and annual earnings reports. For companies
wishing to issue initial public offerings, they are required to draft up prospectuses.

Back when corporate and professional entities were investing in Facebook, the SEC had no problem. Now, as wealthy individual
clients of Goldman Sachs invest in the company, the line between the public investors and sophisticated private investors is blurred.

Combine that blurred line with the fact that one can get price quotes for Facebook shares from the secondary market, Facebook is
starting behave more and more like a publicly-traded company.

If Facebook is indeed being treated as a public company, the SEC may also force it to make financial disclosures like any other publicly
traded company.

Currently, Goldman Sachs' latest investment in Facebook and the value of Facebook shares traded on the secondary market indicate
that the company has a total value of around $50 billion, placing it above Yahoo! (Nasdaq: YHOO) and eBay (Nasdaq: EBAY), but
below Amazon.com (Nasdaq: AMZN) and Google (Nasdaq: GOOG).

THE NEXT TRADING DAY

Economic Events
 Federal Reserve Bank of Philadelphia President Charles Plosser speaks on the economic outlook before the RMA
Philadelphia Chapter Meeting - 1330 GMT

Federal Reserve Bank of Philadelphia President and CEO Charles I. Plosser will speak on the perspectives on issues affecting the
progress of U.S. economic recovery at RMA Philadelphia Chapter Meeting. He is supposed to shares his views on current business
conditions, unemployment, and inflation.

Company Events
 Supervalu Inc is expected to post a profit of 32 cents per share for its third quarter, down from the profit of 46 cents
previous year for the same quarter. It reported second quarter 2011 earnings of $0.28 per share on October 19, 2010.
The Intelligent Investor - U.S.

TOP STORIES

DuPont to buy Danisco at $5.8 bln

DuPont has agreed for $5.8 billion takeover of Danisco, the Danish food company. Danisco shares rose as high as 670.50 crowns
early trading hours, above DuPont's cash bid, but then fell back to 660 crowns. DuPont will pay $5.8 billion in cash, assuming $500
million of Danisco debt. DuPont will use $3 billion in existing cash to pay for the deal, and raise the rest in debt. The deal is expected
to cut Dupont’s 2011 earnings by 30 to 40 cents per share. In its previous outlook before the deal DuPont had forecast 2011 earnings
of $3.30 to $3.60 per share. Danisco's Chairman Jorgen Tandrup said he and did not expect any anti-trust problems with the
acquisition. In a statement, DuPont CEO Ellen Kullman called Danisco a "premium entity."

Duke Energy to buy Progress Energy

Duke Energy confirmed its deal to buy Progress Energy Inc for $13.7 billion in stock. Its offer was a 6.4% premium over the last 20
trading days, creating the largest US power company. Progress Energy shareholders would receive 2.6125 shares of common stock of
Duke Energy for each share held, or $46.48 per share. The deal would create an industry giant with approximately 7.1 million
electricity customers in North Carolina, South Carolina, Florida, Indiana, Kentucky and Ohio, and 57,000 megawatts of generating
capacity.

Genzyme shares up as Sanofi revealed talks

The confirmation by French drugmaker Sanofi-Aventis that it is in direct talk with Genzyme Corp send Genzyme Corp’s share up for
more than 3 percent in the market. Sanofi revealed about the proceedings and said that representatives from both companies had
entered discussions about ways to value key Genzyme drug Campath, which the U.S. biotech hopes to market as a multiple sclerosis
(MS) treatment under brand name Lemtrada.

iGate buys majority stake in Patni computers

Software firm iGate will buy majority of stake in Patni Computer Systems for $1.2 billion. Backed by private equity firm Apax
Partners, iGate said it has agreed to pay 503.50 rupees a share for a 63 percent stake in Patni, valuing the deal at $921 million. It will
buy an additional 20.6 percent stake through an open offer to Patni minority shareholders for $301 million afterwards.

Morgan Stanley to spin off prop trading unit by 2012

Morgan Stanley will spin off its proprietary trading business into an independent firm in 2012 as the bank will act under new financial
rule passed by congress. Morgan Stanley's proprietary trading chief, Peter Muller will run the unit along with 60 employees from
Morgan Stanley's global proprietary trading business. The unit will be named as PDT Advisers. During a two-year transition period, it
will continue to manage Morgan Stanley's proprietary trading and will expand its business to include third-party investors.

Oil up on Alaska pipeline leak

Oil rose over 1 percent after a leak shut an Alaskan pipeline that carries 12percent of U.S. crude output. The Trans Alaska Pipeline was
shut down on Saturday because of a leak in Prudhoe Bay, forcing oil companies to cut output to5 percent of their daily average of
630,000 barrels. Although the price was capped down by the strong dollar as it rose in the market due to the euro worries.

Gas to sell at $3.50/gal: Toyota exec

According to a top Toyota Motor Corp executive, the price of gasoline will rise to an average of about $3.50 a gallon. Bob Carter, the
Toyota brand chief for the United States, told Reuters at the North American International Auto Show in Detroit that states with high
taxes and other costs, such as California, prices could hit $4 a gallon. "What we see is national average gas prices will remain above $3
a gallon through 2011, approaching $3.50," he said.

This report is produced by

International Business Times
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