Weekly Update

The Markets   Financial markets were mostly flat for the week as investors took advantage of continued better than expected earnings reports to take profits built up over the past 6 months. Treasury yields moved higher ahead of record note sales planned for the coming week. Economic data was uneventful as chain store sales were slightly positive, consumer sentiment fell slightly, the Fed suggested the economy was stabilizing in some areas and recovering in others and the index of leading indicators improved. Market/Index 2008 Close Prior Week As of 10/18/09 Week Change YTD Change DJIA 8776.39 9995.91 9972.18 -0.24% 13.63% S&P 500 903.25 1087.68 1079.60 -0.11% 19.52% MSCI World 920.226 1170.638 1153.422 -0.02% 26.65% Russell 2000 499.45 616.18 600.86 -2.49% 20.30% Fed. Funds .25% .25% .25% 0 bps 0 bps 10-year Treasuries 2.24% 3.42% 3.48% 6 bps 124 bps Last Week's Headlines ·      Consumer confidence fell suggesting consumer spending will not lead the nascent recovery ·       The index of leading indicators rose for the sixth consecutive month to a 2 year high ·       Sales of previously owned homes improved to a 2 year high     Upcoming Items of Interest Earnings season has ended and investors will now focus on holiday retail sales for evidence that consumers will be contributing to the economic recovery via holiday spending. Investors will also note the 10 year note sales, durable goods orders, GDP growth, jobless claims and personal income and outlays reports. Data source: All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results. The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The MSCI World Index is a free-float adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets.