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
Earnings Results Analysis

Stocks slide after earnings

Bank of America

Market topping out?

Next week earnings
+0.61%
S&P 500: +0.61%
Dow:
+0.69%
Russell 2K: +0.05%

134 companies have reported

109 companies have beat expectations
Reporting
Company
Surprise Type
Percent
surprise
Stock Reaction
Apple (AAPL)
Positive
13.6%
Down
IBM
Positive
2.6%
Down
CitiGroup (C)
Positive
22.8%
Down
Yahoo (YHOO)
Positive
95.9%
Up
Bank of America
(BAC)
Positive
66.7%
Mixed
Goldman Sachs
(GS)
Positive
28.7%
Up
Reporting
Company
Surprise Type
Percent
surprise
Stock Reaction
Wells Fargo (WFC) Positive
8.9%
Up
Capital One (COF)
Positive
50.3%
Up
Boeing (BA)
Positive
5.7%
Up
Caterpillar (CAT)
Positive
12.4%
Down
Chipoltle (CMG)
Positive
16.2%
Up
Freeport
MacMoRan (FCX)
Positive
10.9%
Up
*13.4%
Airtime: Tues. Oct. 19 2010 | 10:00 AM ET
Stocks Slide after Earnings

China raises interest rates
 Dollar increased
 Commodities Drop

Peter Costa: “I’m getting out, the markets
don’t have a lot of legs on the upside”

Being Sued by:
 BlackRock
 New York Federal Reserve
 PIMCO
Companies want B of A to buy back over $47
billion in mortgages
 B of A plans to fight the case


For further Information visit: http://www.cnbc.com/id/15840232?video=1619466644&play=1
Airtime: Thurs. Oct. 21 2010 | 11:31 AM ET
Market Topping Out

B of A continues to underperform

Small regional banks underperforming shows
financials have greater problems
 The more commercial real-estate exposure, the
worse position they are

Gold trade is crowded and is peaking

Companies Mentioned
 Jefferies (JEF)
 Caterpillar (CAT)
 Freeport MacMoRan (FCX)

Can be thought of as a “mini” Goldman Sacs

Looking for more exposure to the US

Possible takeover target
Monday
Tuesday
Wednesday
Amazon (AMZN)
Ford (F)
Comcast (CMCSA)
UBS
Procter & Gamble (PG)
Bristol Meyers (BMY)
ConocoPhillips (COP)
Thursday
Friday
Exon (XOM)
Chevron (CVX)
Microsoft (MSFT)
Merck (MRK)

Small signs often signal larger underlying
problems or potential

Euro Debt Crisis
Mortgage Mess
M&A Speculation



http://www.bloomberg.com/news/2010-10-22/g-20-to-pledge-to-refrain-from-currency-devaluationsas-sought-by-geithner.html

Corrections Corporation of America (CXW)

During elections, few inmates are sent to
prison. After elections, increase flows of
inmates are sent to prison

Has competitive advantage over other two
main private prison companies
 Can operate at a 15% less than the fed
http://www.correctionscorp.com/