Weekly Update

The Markets                            Equity markets were mostly flat all week before finally falling on Friday thanks to weaker than expected news from Intel. Fixed income markets were firm as yields declined by 15 bps. The Fed’s Beige Book also showed economic growth continued slow and steady while businesses increased inventories. On the downside, retail sales for December disappointed as consumers failed to spend as much as expected. The bottom line for the weekly reports was slow and cautious growth with continued regulatory uncertainty contributing to a lack of hiring by businesses.   Market/Index 2009 Close Prior Week As of 01/15/10 Week Change YTD Change DJIA 10428.05 10618.19 10609.05 (0.08)% 1.74% S&P 500 1115.10 1144.98 1136.03 (0.78)% 1.88% MSCI World 1168.47 1198.26 1198.22 (0.75)% 2.55% Russell 2000 625.39 644.56 637.96 (1.02)% 2.01% Fed. Funds .25% .25% .25% 0 bps 0 bps 10-year Treasuries 3.84% 3.83% 3.68% (15) bps (16) bps Last Week's Headlines ·      Trade deficit increased more than expected. ·         Initial jobless claims were slightly higher than expected. ·         CPI increased less than expected. ·         Industrial production increased and met expectations.   Upcoming Items of Interest   Earnings season continues which will clearly influence investor behavior. Additional news will include the latest updates on the producer price index and residential new construction. On Thursday, we’ll get the Conference Board update on the leading indicators index.     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. Headlines and upcoming items of interest are pulled from published reports of Vanguard, Briefing.com and Reuters. 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.