Market Update

1
Market Update

• February 4 February 15, 2008
• Steve Regan
• Chief Investment Officer

2
SP 500 Daily Close
3
Super Bowl Hangover Rally Ahead?

• Dow down 108 pts day after Super Bowl, but
• NFC Victories 9.5 rally over 90 days
• AFC Victories 1.5
• 8 weeks after Giants Victories
• SP up average 11.5
• NASDAQ up 15

4
Credit World

• More write-downs to come
• Bernanke warns Congress banks arent out of the
  clear
• Strong balance sheets coming into crisis,
  solvency not an issue
• AIG mis-valued credit derivatives
• UBS drops on larger than expected write-downs
• Cash infusion coming?
• C down 12.50 over two weeks

5

• Buffett offered to reinsure Ambac, MBIA, and FGIC

6
More Bad Consumer News

• Slow BBY traffic in January
• Consumer sentiment 16 year low
• Technology and food seem to be only bright spots

7
Going Up

• Buffett takes stake in KFT (Kraft Foods)
• Bargain-hunters seek of technology
• RIMM
• AAPL
• Gold 908.90
• Oil 95.97
• Energy stocks

8
Microsoft Yahoo Update

• Google fearful
• Yahoo! Reaching out to News Corp and Time Warner
  to fend off deal
• Alibaba Chinese Yahoo! partner concerned

9
One Month Charts
Google
Yahoo!
10
Looking Forward

• Tues National Association of Home Builders
  builder sentiment (expect flat)
• Tues WMT HPQ report earnings
• Wed January CPI (expect rise 0.3)
• Wed Fed meeting minutes
• Thu Philadelphia Feds Feb business activity
  index