Market Update For Week Ending 2/17/2012

International index is MSCI EAFE index. Bond data reflect net change in yield, not price. Indices are unmanaged and you cannot directly invest in an index.
More market data

Market Wrap
Global stocks rebounded this week even though a long-awaited rescue for the Greek government failed to materialize. The blue-chip Dow industrials gained 1.16% and the broad S&P 500 added 1.38%. An improving U.S. economic outlook gave the technology-rich Nasdaq added upward momentum, sending that index up 1.65%, while the economically sensitive Russell 2000 surged 1.89%. Foreign shares kept pace, up 1.54% in dollar terms. As money flowed into stocks, demand for U.S. Treasury debt declined, allowing bond yields to edge upward. For more on recent trading activity, please read:
TFvdnRqYzJoBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25zB
HRlc3QD;_ylv=3

Surging Oil Prices Reflect Strong Economic Growth, But Could Climb Too High
Oil markets have demonstrated that global investors feel better about the world economy's health. After all, as the pace of industrial activity accelerates, so do consumers' demands for energy of all types, especially petroleum. However, oil markets can become too robust for the world's comfort. Are we near that level now? For a discussion of what the energy sector is telling us about the broader economic environment, please read:
http://bottomline.msnbc.msn.com/_news/2012/02/17/10435968-oil-price-surge-could-
dampen-global-recovery

The Clock Is Now Ticking For Greece
After last week's eleventh-hour budget compromise failed to earn approval from Brussels, Greece is back on a tight timetable to do whatever it takes to make the European Union happy. Otherwise, the country will be unable to make its next $20 billion bond payment, due on March 20. With the window for pleasing all of the continent's finance ministers -- not to mention private investors -- now extremely narrow, some analysts are worried that the negotiations have dragged on too long. What is going on in Europe, and how might it affect global investors? For more, please read:
http://money.cnn.com/2012/02/17/markets/greece_bailout/index.htm?iid=HP_LN

Index

Close

Net Change

% Change

YTD

YTD %

DJIA

12,801.23        

-61.00        

-0.47        

+583.67        

4.78        

NASDAQ

2,903.88        

-1.78        

-0.06        

+298.73        

11.47        

S&P500

1,342.64        

-2.26        

-0.17        

+85.04        

6.76        

Russell 2000

813.33        

-17.78        

-2.14        

+72.41        

9.77        

International

1,524.97        

-4.49        

-0.29        

+112.43        

7.96        

10-year bond

1.97%       

+0.02%       

+0.10%        

30-year T-bond

3.12%       

-0.03%       

+0.23%        

Market Update For Week Ending 2/3/2012

International index is MSCI EAFE index. Bond data reflect net change in yield, not price. Indices are unmanaged and you cannot directly invest in an index.
More market data

Market Wrap
U.S. stocks surged this week amid much better-than-expected economic news and a sense that the world's central bankers are moving closer to claiming victory over the long recession. The economically sensitive Russell 2000 led the way with a 4.04% surge and the tech-heavy Nasdaq jumped 3.16% to its highest level since 2000. The Dow industrials climbed 1.59% to their post-recession peak and the S&P 500 gained 2.17%. Foreign shares joined the rally, up 2.27%, while bond yields edged higher. For more on recent trading activity, please read:
http://www.cnbc.com/id/46251590

Unemployment Plunges To A Three-Year Low
U.S. businesses continued to expand their payrolls in January, giving economists and investors alike welcome confirmation that the improved numbers they saw in December were more than a holiday aberration. In all, employers added 243,000 jobs in January. As a result, the broad unemployment rate dropped all the way to 8.3% -- its lowest level since the 2008-9 credit crunch was still devastating the global economy. For more, please read:
http://money.cnn.com/2012/02/03/news/economy/jobs_report_unemployment/index.htm

Ben Bernanke Sees Stimulus Working, No Need For Austerity Yet
The Federal Reserve's chairman came under fire from Congress this week when he argued that years of loose monetary policy have done their job without generating above-trend inflation. While lawmakers insisted that now is the time to reduce government spending, Ben Bernanke pointed to the numbers -- and the economy's still-fragile state-- to make his case. For more on the Fed chairman's latest testimony, please read:
http://www.usatoday.com/money/economy/story/2012-02-02/bernanke-testimony-0202/5
2928394/1

Market Update For Week Ending 1/27/2012

International index is MSCI EAFE index. Bond data reflect net change in yield, not price. Indices are unmanaged and you cannot directly invest in an index.
More market data

Market Wrap
After delivering the best early January performance in recent memory, U.S. stocks turned mixed as the end of the month approached. The blue-chip Dow industrials gave up 0.47% and the S&P 500 closed only minimally higher. However, the technology-rich Nasdaq surged 1.07% and the economically sensitive Russell 2000 ended the week with a 1.81% gain. Foreign shares held up well, up 1.60%. Treasury yields declined significantly after the Federal Reserve's latest policy meeting indicated that interest rates would likely remain low for some time to come. For more on recent trading activity, please read:
http://money.cnn.com/2012/01/27/markets/markets_newyork/index.htm?iid=HP_LN

U.S. Economy Grows At Its Best Rate Since Mid-2009
Far from dipping into a recession as some pundits feared, American gross domestic product (GDP) -- the broadest gauge of the economy's health -- actually improved significantly in the fourth quarter. GDP growth accelerated to an annualized 2.8% between October and December. While investors hoping for even better growth were disappointed, economists noted that there was still room for consumer spending in particular to improve in 2012 and beyond. For more on the latest reading on the U.S. economy, please read:
http://www.cnbc.com/id/46163831

Federal Reserve Vows To Keep Interest Rates Low Through Late 2014
The Federal Reserve's monetary policy committee surprised few investors this week by leaving short-term U.S. rates unchanged. However, the Fed unexpectedly announced that it is extending its zero-rate policy a little further into the future in order to shield the economy from long-term risk. As it stands, Ben Bernanke and company now believe they can keep interest rates at zero for roughly the next three years. Whether they can do this without inviting inflation remains to be seen. For more, please read:
http://www.bloomberg.com/news/2012-01-26/credit-default-swaps-drop-to-lowest-sin
ce-august-on-fed-outlook.html

Market Update For Week Ending 1/20/2012

International index is MSCI EAFE index. Bond data reflect net change in yield, not price. Indices are unmanaged and you cannot directly invest in an index.
More market data

Market Wrap
U.S. stocks delivered strong performance in a holiday-abbreviated four-day week as the "January effect" continued to favor the markets. The Dow industrials added 2.40% to their year-to-date performance, the S&P 500 gained 2.04%, and the Russell 2000 jumped 2.67%. Despite a few high-tech disappointments, the Nasdaq fared even better, up 2.80% for the week. Foreign shares rebounded 4.02% in dollar terms, leaving global capital pouring back out of the relative safety of Treasury debt. For more on recent trading activity, please read:
http://www.bloomberg.com/news/2012-01-20/u-s-stock-futures-decline-amid-greek-ta
lks-google-slumps-as-ibm-advances.html

Housing Market Showing Signs Of Life
Sales of U.S. homes improved 5% in December over the previous month as low interest rates and solid economic growth continued to heal the real estate markets. Even foreclosures seem to have plateaued, shrinking the inventory of homes for sale. And with sentiment showing a "dramatic" improvement, economists hope for even better news ahead. For more, please read:
http://money.cnn.com/2012/01/20/real_estate/home_sales/index.htm?iid=HP_River

World Bank Warns Of A Recession For The Euro Zone
A week after Standard & Poor's cut its credit ratings on many of Europe's leading economies, the World Bank is now predicting a full-fledged recession on the horizon for the continent. While much of the reporting around this story has focused on the worst-case scenarios, the outlook for the United States in particular still looks reasonable. For more, please read:
http://www.msnbc.msn.com/id/46036397/ns/business-stocks_and_economy/#.TxnNWGNSSK
0

Market Update For Week Ending 1/13/2012

International index is MSCI EAFE index. Bond data reflect net change in yield, not price. Indices are unmanaged and you cannot directly invest in an index.
More market data

Market Wrap
U.S. equities continued their quiet rally into the second week of the new year, with the Dow industrials edging up 0.50%, the S&P 500 up 0.88%, and the technology-rich Nasdaq gaining 1.36%. The small-cap Russell 2000 fared even better, up 1.93% as traders bet on the prospects of more robust economic growth ahead. Even foreign stocks joined in the upward move, although new storm clouds in the euro zone kept the gains on the tentative side. Bond yields plunged as nervous traders piled back into the relative haven of Treasury debt. For more on recent trading activity, please read:
http://money.cnn.com/2012/01/13/markets/markets_newyork/index.htm?iid=HP_LN

French Debt Rating Cut As Markets Expected
Standard & Poor's confirmed months of speculation on Friday by announcing that France no longer merits the prestigious AAA rating on its debt. The development heralds just how far the euro crisis has moved, from the relatively small markets of the periphery to the continent's second-biggest economy. With the likelihood of other downgrades on the horizon, S&P says that at least Germany is safe. For more on the latest from the euro zone and what it may mean for investors, please read:
http://www.msnbc.msn.com/id/45985510/ns/business-world_business/

Federal Reserve Mulls Additional Economic Stimulus
Central bank watchers pointed out this week that the Federal Reserve's interest rate panel is losing three of its most hawkish or inflation-wary voters, which could in turn tip the balance in favor of more economic stimulus programs ahead. Recent statements from the Fed indicate a lack of conviction in the health of the U.S. economy, especially if the euro situation worsens. As such, new support may be back on the bargaining table as soon as the next rate policy meeting. For more, please read:
http://www.cnbc.com/id/45977098

Market Update For Week Ending 1/6/2012

International index is MSCI EAFE index. Bond data reflect net change in yield, not price. Indices are unmanaged and you cannot directly invest in an index.
More market data

Market Wrap
U.S. stocks got the year off to a bullish start as the traditional "January Effect" led investors off the sidelines and into financial markets. The somewhat battered Nasdaq was the week's biggest winner, up 2.65%, while the blue-chip Dow industrials opened 2012 with a 1.17% gain. The broad S&P 500 and small-cap Russell 2000 gained 1.61% and 1.19%, respectively. Foreign shares suffered on the euro's continued weakness, leaving the MSCI EAFE down 0.41% in dollar terms. Bond prices opened the year under pressure, pushing Treasury yields upward in response. For more on recent trading activity, please read:
http://finance.yahoo.com/news/stocks-mixed-despite-strong-december-164649557.htm
l

U.S. Unemployment Falls To Near-Three-Year Low
American businesses hired another 200,000 people in December, driving the broad unemployment rate down to 8.5%. Analysts viewed the news as a definite step in the right direction for many people who have either been out of work or simply depressed at the state of the labor market. And even the battered construction industry has started hiring again. Is this the start of the boom that many economists have predicted, or simply business as usual for the nation? For perspectives, please read:
http://money.cnn.com/2012/01/06/news/economy/jobs_report_unemployment/index.htm?
iid=HP_LN

Small Businesses Are Leading The Way
Last week's data reports painted a much healthier picture of the job market than many investors have seen in years. The primary driver of all that good news has been small and medium-sized businesses, which cut their staffing to nearly zero in the 2008 credit crunch and are now hiring again. As the pace of new business formation picks up, this could become a trend. For more on the dynamics behind the new job market, please read:
http://bottomline.msnbc.msn.com/_news/2012/01/05/9980564-small-business-leading-
job-market-back

Market Update For Week Ending 12/30/2011

International index is MSCI EAFE index. Bond data reflect net change in yield, not price. Indices are unmanaged and you cannot directly invest in an index.
More market data

Market Wrap
The last trading week of 2011 ended with U.S. stock markets giving up some ground, but performance was sharply mixed for the full year. The Dow industrials shed 0.62 percent closing 2011 with a 5.53% gain,and the S&P 500 shed 0.61% over the week, closing 2011 with 0.00% gain. The technology-heavy Nasdaq drifted down 0.52% for the week and ends the year with a 1.80% loss, while the economically sensitive Russell 2000 fell 0.87% for the week and a cumulative 5.45% for the entirety of 2011. Foreign shares rebounded slightly in dollar terms, up 0.78% for the week, but Europe's woes still pushed the MSCI EAFE down 14.82% for the year. Treasury bonds remained an investment of choice, with long-term yields plunging over both the week and the year. For more on recent trading activity, please read:
http://www.cnbc.com/id/45824871

Treasury Bonds Bask In Their Best Year Since The Credit Crisis
Yields on U.S. government securities fell to record lows this year as the sovereign debt situation in Europe worsened. Over the last 12 months, 30-year Treasury bonds have returned a stunning 35%, more than in any rolling period since the 2008 credit crisis sent global investors fleeing to the Treasury market. While few analysts expect a repeat performance in 2012, the results demonstrate that the U.S. government remains a preferred haven for risk-wary capital around the world. For more, please read:
http://www.bloomberg.com/news/2011-12-30/treasuries-fall-for-first-time-in-four-
days-on-economy-gain-9-6-in-2011.html

Will 2012 Be Another Year Of Pain For The Euro?
The U.S. dollar defied inflation fears and the summer's Treasury credit downgrade last year, remaining the world's safe haven of choice. As 2012 looms, some economists see even worse news ahead for the euro zone, which might give the greenback even more support among currency traders. For many, the question is now not so much whether Europe will avoid a recession but how bad it will be -- and whether the currently resilient U.S. economy will weather the storm. For more, please read:
http://money.cnn.com/2011/12/29/markets/dollar_europe/index.htm?iid=HP_River