Club News and Notes

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Market Update –Oct. 16 – Oct. 23, 2006

Earnings – Stocks We Own

Club Stuff

Dues: $15, Collected at the end of Today’s meeting

• Come to the front of the room

• Only ½ have paid, needed so we can order T-shirts and start having pizza parties.

Market Watch Game – 171 players

• First Prize - $100

• Second Prize - $50

• Third Prize - $25

Club Leadership Position

Sector Leader

• If you are interested in becoming a Sector Leader, please come see me at the end of the meeting.

• Sectors include:• Financial

• Energy

• Retail

• Technology

• Utilities

IBM Sold at 87.81

• 91.56, excellent earnings, suing Amazon over patent infringement.

SOLD

Market Overview - DOW

• The Dow closed at 12,116.91 today setting a record for the highest close ever.

• Led by Walmart – Up 3.93% today– Plan to slow store growth

5-day DOW Performance

Oil

• Though OPEC's Friday decision to cut output by 1.2 million barrels a day, Analysts are skeptical that they will actually do this.

• 58.81 down .52

Jeff Skilling

• Former Enron Chief sentenced to 24 years, 3 months in prison for accounting fraud.

• Will immediately go into hole confinement before he heads to prison in Ohio.

• Just 52 years old

Ford’s Earnings

• Ford Loss Widens to $5.8 Billion in 3Q due to massive restructuring charges.

• Third-quarter profit rose 15% but sharply reduced its forecast for the full year and said it expects a slowdown in 2007.

• Down - $9.51 or 12%• Cautioned that the weak residential housing market in the U.S.

and a dropoff in sales of truck engines will restrain revenue growth next year

Caterpillar’s Earnings

Google’s Earnings

• Revenues exceeded analyst estimates by 48% while EPS missed analyst estimates by 2.4%. • EPS increased 79.4% to $2.36. • Increase in capital expenditures led to a 6.2% fall in free cash flow to $1.1 billion.

• Exxon Mobil (XOM) • Chevron (CVX),

Companies Reporting this week