18 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 FCC Approves Comcast-
NBCU Deal
 Economic Indicator Watch
 Important Events Scheduled on January 19
 U.S. stocks gained, overcoming weak Citigroup results and
concerns circling Apple after news of Chief Executive Steve
Jobs' medical leave. The DJIA gained 50.55 points, or 0.43
percent, to end at 11,837.93.
 U.S. Treasury prices fell in a market traders said took its
tone in part from hedging operations at the start of a
heavy week of corporate bond issuance. Benchmark 10-
year notes last traded down 11/32 in price to yield 3.37
percent, up from 3.33 percent on Friday.

Economic Events  The dollar fell 0.1 percent to 82.62 yen, while sterling hit an
eight-week peak of $1.6060 after higher-than-forecast UK
 No economic events scheduled inflation data

 U.S. crude oil for February delivery fell 16 cents to settle at

Corporate Events $91.38 a barrel in seesaw trading between $90.55 and
$91.90.
 eBay, Goldman Sachs, Northern Trust, U.S.
Bancorp and Wells Fargo are some of the S&P 500  Gold rose as strong Asian physical demand and a weaker
companies reporting quarterly results dollar helped retrace some of this month's losses. Spot
gold rose 0.2 percent to $1,367.80 an ounce by 3:19 p.m.
Top Stories
STOCK INDICES
 NY State manufacturing index expands in January
INDEX LAST CHNG % CHNG
 Obama plans red tape cutting spree DJIA* 11837.93 50.55 0.43
Nasdaq* 2765.85 10.55 0.38
 Home builder sentiment unchanged in January
S&P 500* 1295.02 1.78 0.14
 Citigroup’s quarterly profit below expectations NYSE Composite* 8190.91 16.79 0.21

Global Dow* 2161.03 16.76 0.78

 Apple shares plunge on Jobs’ departure
* CLOSING VALUES

 Delta misses profit estimates

CURRENCIES
 Forest Labs profit jumps
INDEX LAST PRIOR

Euro (EUR/USD) 1.3383 1.3284

U.K. Pound (GBP/USD) 1.5961 1.5885

Japanese Yen (USD/JPY) 82.58 82.71

All prices are at 04:28 PM EST

FUTURES
LAST CHANGE

Crude Oil, Feb. 91.28 -0.26

Natural Gas, Mar. 4.434 -0.056

Gold, Dec, Feb. 1367.3 6.8

Copper, Mar. 442.5 1.3

All prices are at 04:18 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.

ANALYSIS AND VIEWS

FCC Approves Comcast-NBCU Deal

By Gabriel Perna, IBTimes

The Federal Communications Commission (FCC) has approved the joint venture between NBC Universal and Comcast.
The deal will allow General Electric to transfer the rights to NBC Universal's broadcast, satellite, and other radio licenses to Comcast,
the nation's largest cable company. The deal passed by a four-to-one vote.

"After a thorough review, we have adopted strong and fair merger conditions to ensure this transaction
serves the public interest," FCC chairman Julius Genachowski said in a statement.
"The conditions include carefully considered steps to ensure that competition drives innovation in the
emerging online video marketplace. Our approval is also structured to spur broadband adoption among
underserved communities; to increase broadband access to schools and libraries; and to increase news
coverage, children's television, and Spanish-language programming."

On its website, Comcast says the venture will bring together the cable network portfolio with 234 NBC-affiliated stations, 10 owned
and operated stations, various Telemundo Network properties, a movie production studio and theme parks in Orlando and
Hollywood among other things.

The FCC says the Comcast-NBCU joint venture will have to ensure fair competition in the video marketplace. Critics of the deal say it
puts too much power into one company, Comcast, and would allow them to monopolize content and pricing.

"The Comcast-NBCU joint venture opens the door to the cable-ization of the open Internet. The potential for walled gardens, toll
booths, content prioritization, access fees to reach end users, and a stake in the heart of independent content production is now very
real," The only dissenting FCC Commissioner Michael J. Copps said in a statement.
However, the affirming parties have trusted that Comcast-NBCU will live up to the strict regulations the commission imposed on the
deal. Mignon L. Cyburn, who worked on the deal, said she got several commitments from Comcast, including agreeing to anti-
retaliation language.

"Up until now, online video distributors have lived in fear of having Comcast refuse to carry their programming if they offered it
online. But now, if a content provider licenses its programming to an online video distributor, like Netflix, it will be protected from
retaliatory discrimination," Cyburn said.

Other agreements Comcast made were to ensure reasonable access to Comcast-NBCU programming for multichannel distribution,
access to Comcast's distribution systems and protecting localist concerns.

The two companies, Comcast and NBCUniversal, could not be reached for immediate comment.

STOCK RECOMMENDATIONS BY BROKERAGE HOUSES

BROKERAGE/COMPANY ACTIONS RATING

RBC

Abbott lab Cuts to outperform from top pick Outperform

BAXTER Raises to top pick from outperform Top pick

JP Morgan Raises price target to $53 from $47 —

McDonald's Raises to outperform from sector perform Outperform

M&T Bank Raises price target to $95 from $86 —

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.
The Intelligent Investor - U.S.

TOP STORIES

NY State manufacturing index expands in January

Manufacturing activity in the New York State expanded in January with the corresponding index posting its second consecutive
positive reading. The index showing general business conditions in New York State rose to 11.9 points in January, up 2 points from
December 2010, the Empire State Manufacturing Survey from the Federal Reserve Bank of New York said on Tuesday. Markets had
expected the NY Empire State Manufacturing Index to rise to 12 points in January. While the index for new orders increased by 10
points to 12.4 points, the shipments index surged 18 points to 24 points in January. The inventories index rose 20 points, to 4.2 after
slipping into negative in the previous month. The index showing future capital expenditure rose sharply to 34.7 points in January from
22.7 points in December, reaching an 8-month high.

Obama plans red tape cutting spree

As part of his ongoing efforts to cut red tape in government, President Barack Obama is asking all the agencies under his control to
review any of the rules which place "unreasonable burdens" upon businesses and hinder economic growth. Obama signed on
Tuesday an executive order for the agencies to do so. "[The executive order] orders a government-wide review of the rules already on
the books to remove outdated regulations that stifle job creation and make our economy less competitive," Obama wrote in an op-
ed published on Tuesday. Senior officials said Tuesday the latest order is a "natural outgrowth" of the work the White House has
already been doing. How medical devices are approved will be in the spotlight tomorrow as the FDA introduces its latest effort to
improve the process, Obama said. The President cited two examples of work which reflects Tuesday's order. Last year, several
agencies in his Administration worked together to turn a "tangle of rules into one aggressive new fuel standard" which created
certainty about rules for car companies. He said the order strikes "the right balance" between ensuring the rules protect safety, health
and the environment while promoting economic growth.

Home builder sentiment unchanged in January

The National Association of Home Builders released its monthly reading of builders' sentiment which was unchanged in January at
16, where it's been since November. The reading for current sales conditions was unchanged at 16, while the index for sales
expectations over the next six months stayed put at 25. The index measuring foot traffic from prospective buyers rose one point to 12.
The latest builder sentiment report reflects a survey of 420 residential developers across the United States.

Citigroup’s quarterly profit below expectations

Citigroup reported a net profit of $1.3billion, or 4 cents per share, for the fourth quarter which was well below analysts’ expectation.
The quarterly result got setback due to sharp drop in bond trading revenue. The bank's fixed-income revenue alone dropped 58
percent from the third quarter. "This was one of the weaker quarters for trading," Chief Financial Officer John Gerspach told reporters
in a conference call.

Apple shares plunge on Jobs’ departure

Apple shares plunged in opening minutes of trading in New York. While Apple is expected to release record-breaking quarterly
results today after the market closes, investors are worried about the extent of CEO Steve Jobs’ undisclosed illness and the lack of
clear plan of succession at the company. Yesterday, Jobs stated that he was taking a medical leave, but did not indicate the expected
duration of his absence. He has a long history of serious health issues. The stock closed at $340.65 down 7.83 points or 2.25%

Delta misses profit estimates

Delta Air Lines Inc reported a lower-than-expected quarterly profit of 19 cents per share while analysts on average expected 24 cents
for the fourth quarter. Delta said net income was $19 million, or 2 cents a diluted share, in the fourth quarter, compared with a year-
earlier loss of $25 million, or 3 cents a share. Excluding items such as merger-related costs, profit was 19 cents a share. Its operating
revenue rose 14 percent to $7.79 billion, compared with $7.74 billion which was expected by Wall Street analysts. The company said
its profit was majorly affected by its operating expenses which increased 9 percent, or $644 million. Also, fuel costs rose 13 percent to
$1.93 billion, and plane maintenance expenses were up 39 percent at $395 million in the fourth quarter. Shares of Delta were down
2.4 percent at $12.45 in morning.

Forest Labs profit jumps

Forest Laboratories Inc posted a 53 percent jump in its quarterly profit and forecast fiscal-year profit well above analyst targets. Its
net income rose to $320.7 million or $1.11 per share for the fiscal third quarter that ended December 31 compared to $210.2 million,
or 69 cents per share, a year earlier. Excluding a charge tied to a licensing payment, earnings of $1.34 per share topped the average
estimate of analysts by 35 cents. Its revenue rose about 6 percent to $1.13 billion. For the fiscal year ending in March, Forest expects
earnings to be between $4.20 and $4.30 per share, excluding certain items.
The Intelligent Investor - U.S.

ECONOMIC INDICATOR WATCH ON 19 JANUARY 2011

Mortgage Index

Forecast: NA Prior:482.7

Refinancing Index

Forecast: N/A Prior: 2219.2

The Mortgage Banker Association will release Mortgage data at 0700 EST.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity rose 2.2 percent in the week
ended Jan. 7 to its highest level in about a month. It had dropped on the back of refinancing activity as influential U.S. Treasury yields
soared in late 2010.

Fixed 30-year mortgage rates averaged 4.78 percent in the week, down from 4.82 percent the prior week and 4.93 percent before the
Christmas holiday.

The MBA's seasonally adjusted index of refinancing applications climbed 4.9 percent last week, and its gauge of loan requests for
home purchases dropped 3.7 percent.

Housing Starts (December)

Forecast: 0.55 million, Prior: 0.555 million

House starts mm: Change

Forecast: N/A, Prior: 3.9%

Building Permits

Forecast: 0.555 million, Prior: 0.530 million

The Commerce Department will release data Housing data at 0830 EST.
U.S. housing starts rose slightly more than expected in November, but a surprise drop in permits for future home construction to a 1-1/2 year low
indicated continued weakness in the housing market even as the economic recovery gains traction.

The Commerce Department had said that housing starts rose 3.9 percent to a seasonally adjusted annual rate of 555,000 units. October's starts were
revised up to a 534,000-unit pace from the previously reported 1-1/2 year low rate of 519,000 units.

Despite last month's pick-up in residential construction, housing remains weak as a 9.8 percent unemployment rate weighs on demand and
homeowners' ability to hang on to their properties, lagging an acceleration in broader economic activity.

New building permits fell 4.0 percent to a 530,000-unit pace in November, the lowest since April 2009, after a 0.9 percent increase in October.
Permits were dragged down by a 23 percent plunge in the volatile multi-family segment. Permits for single-family homes rose 3 percent last month.

Analysts had expected overall building permits to rise to a 560,000-unit pace in November.

November was lifted by a 6.9 percent rise in single-family home construction. Starts for the multi-family segment, however, fell 9.1 percent. New
home completions tumbled 14.1 percent to a record low 513,000 units in November.
The Intelligent Investor - U.S.

THE NEXT TRADING DAY

Economic Events

 No economic events scheduled

Company Events
 eBay will release its fourth quarter results. Analysts expect the company to report a profit of 47 cents per share, slightly up
from 44 cents reported in the year-ago quarter. eBay Inc. reported GAAP net income of $432 million or 33 cents per share
for the third quarter, compared to $350 million or $0.27 per share in the prior year quarter. Net revenue grew 1% to $2.25
billion from $2.24 billion a year earlier. Excluding Skype, net revenue rose 10% from $2.05 billion in the third quarter of
2009.

 Analysts expect Goldman Sachs’ profits to decline heavily for the fourth quarter with an expectation of $3.76 per share,
compared to $8.2 reported in the same quarter last year. For the third quarter, Goldman Sachs reported net earnings of
$1.74 billion or $2.98 per share, sharply lower than $3.03 billion or $5.25 per share in the prior-year quarter, but sharply
higher than $613 million or 78 cents per share in the second quarter of 2010. Its quarterly net revenues for the quarter,
including net interest income, dropped 28% to $8.90 billion from $12.37 billion in the same quarter last year.

 The fifth-largest US bank by deposits, U.S. Bancorp, is scheduled to release its fourth-quarter earnings. Analysts, expect
the company to report earnings of 46 cents per share on revenue of $4.52 billion. In the year ago quarter, the company
reported earnings of 30 per share on revenue of $4.33 billion.

This report is produced by

International Business Times
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