Market Week: December 6, 2010

The Markets Domestic equities managed to shrug off Friday's disappointing unemployment figure, buoyed by back-to-back triple-digit midweek gains. However, bond prices took a hit as the 10-year Treasury yield returned to last summer's levels. Investment Company Institute data showed that investors pulled money out of municipal bond funds for the third week in a row, as they have been doing with domestic equity mutual funds since May.

Market/Index 2009 Close Prior Week As of 12/3 Week Change YTD Change DJIA 10428.05 11092.00 11382.09 2.62% 9.15% NASDAQ 2269.15 2534.56 2591.46 2.24% 14.20% S&P 500 1115.10 1189.40 1224.71 2.97% 9.83% Russell 2000 625.39 732.73 756.42 3.23% 20.95% Global Dow 1984.48 1978.32 2039.21 3.08% 2.76% Fed. Funds .25% .25% .25% 0 bps 0 bps 10-year Treasuries 3.85% 2.87% 3.03% 16 bps -82 bps Last Week's Headlines After idling at 9.6% for the previous three months, unemployment rose to 9.8% in November, while nonfarm payrolls remained static. Despite the onset of holiday shopping, retail businesses had job losses, though there were gains in temporary help and healthcare. People unemployed for more than 27 weeks represented almost 42% of the 15 million people without jobs. The manufacturing sector in the U.S. expanded in November for the 15th straight month. The 56.6 reading on the Institute for Supply Management's manufacturing index was the second fastest rate of growth in the last six months. The ISM's November reading on the services sector also increased slightly, with retail trade leading the way. European leaders said they would continue to buy bonds to help support troubled sovereign debt there, and the head of the European Central Bank assured investors that his organization will take whatever steps are necessary to protect the euro. Preliminary indications from post-Thanksgiving shopping were strong, according to the National Retail Federation, which reported Black Friday sales that were higher than the previous year and an increased volume of shoppers. The bipartisan National Commission on Fiscal Responsibility and Reform failed to muster enough votes to send its proposals for cutting the national deficit to Congress. Eye on the Week Ahead With few economic data releases scheduled for the week, eyes will be on Washington for any sign of a decision on tax cut extensions, and on Irish leaders who will vote on a new budget needed to implement the country's recent bailout. Key dates and data releases: International trade (12/10). Data source: Includes data provided by Brounes & Associates. 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. Equities data reflect price change, not total return. 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 Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indexes listed are unmanaged and are not available for direct investment. --see disclaimer below--