Week in Review: Greek turmoil shakes global financial markets

U.S. economic news

U.S. economy grows, and inflation remains tame
The U.S. economy grew at a 3.2% pace in the first quarter as consumer spending rose the most in three years, according to a report released today by the U.S. Department of Commerce. He same report showed that the U.S. Federal Reserve Board's preferred measure of inflation climbed at the slowest pace on record. Tame inflation led the Fed this week to keep interest rates unchanged and to reaffirm its intention to keep interest rates near zero for an extended period. The central bank also moderately upgraded its assessment of the economy.

Home prices and mortgage applications fall
Home prices slipped for the fifth straight month in February as many markets remained under pressure from foreclosures and high inventories. Overall, mortgage applications slipped 2.9% last week, while requests to purchase homes rose 7.4%, as a looming deadline for homebuyer tax credits boosted purchased for a fifth time in six weeks. Applications were still down 24% from a year ago, while applications to refinance fell 8.8% amid an increase in mortgage rates.
.Consumer confidence rises
The Conference Board's consumer confidence index rose to 57.9 for April, from 52.3 in March, and increase that brought it to the highest level since September 2008. The index still remains well below pre-recession levels.

U.S. and global corporate news

Moody's downgrades nine Greek banks
On Friday Moody's Investors Service downgraded its ratings on nine Greek banks as the country's debt crisis took its toll on financial institutions. Among the banks downgraded are the National Bank of Greece, Alpha Bank, Emporiki Bank of Greece, EFG Eurobank Ergasias, Piraeus Bank, Agricultural Bank of Greece, General Bank of Greece, Marfin Egnatia Bank, and Attica Bank.
WSJ reports Goldman under criminal investigation
 
The Wall Street Journal, citing people familiar with the probe, reported on Friday that federal prosecutors are conducting a criminal investigation into whether Goldman Sachs Group, or its employees, committed securities fraud in connection with the firm's mortgage trading.

Oil companies book profits as oil costs rise
Exxon Mobil posted a smaller-than-expected gain in the first quarter after health care legislation increased costs and U.S. refineries operated at a loss. Corporate expenses rose by $364 million from a year earlier because of higher health-care costs stemming from U.S. reform legislation passed last month. Net income rose 38%. Royal Dutch Shell booked a 57% rise in first-quarter profit amid higher oil prices and an increase in natural gas output. Revenue rose 48%. Occidental Petroleum's first-quarter earnings nearly tripled as the company benefited from stronger prices and cost cutting.

Ford Motor reported a better-than-expected $2.1 billion profit for the first quarter, fueled by the firm's rising U.S. sales and market share.

Hewlett-Packard agreed to buy Palm for about $1 billion in cash. The move will give HP a greater presence in the smartphone market.

Global economic news

Greece agrees to austerity measures in effort to seal aid deal
As the Greek crisis continued to unfold, this week Greece agreed to austerity measures, expected to cut about $30 billion from its budget, as a precondition for financial assistance. The measures will range from a pension overhaul to wage cuts and they come after weeks of negotiations between the IMF and Greece. However, Greek labor unions have vowed to fight the spending cuts. The agreements follows a week of turmoil in which S&P downgraded the debt of Greece, Spain, and Portugal. S&P cut Spain's rating to "AA" and said in a statement that its outlook for the country's debt was negative, suggesting the possibility of future downgrade if Spain cannot resolve its budget problems.

Despite turmoil, Albania vows to proceed with debt offering
With its neighbor to the south embroiled in financial turmoil and investors reeling from emerging market debt, Albania announced that it would push on with its first sales of Eurobonds. Albania, a nation once rated the poorest country in Europe and where remittances from abroard account for about one sixth of the economy, has the same S&P "B+" rating as Belarus, Nigeria, and Senegal. The bond sale will proceed even as emerging market borrowing costs are surging the most they have in a year. That surge has prompted the Czech Republic to delay its planned sale of bonds.

Russia cuts rates
Russia's central bank lowered its benchmark interest rate for the thirteenth time in a year amid an unsteady economic recovery in the country. It cut the rate a quarter of a percentage point to a record low of 8%. The bank has come under political pressure to keep rates low in an effort to boost lending and contain ruble appreciation.

IMF ups expectations for Asia growth
The International Monetary Fund said Thursday it expects Asia's economic growth this year and next to be slightly higher than its recent estimates because of an upward revision in Singapore's forecasts. The IMF, however, urged Asian policymakers to guard against potential bubbles in local asset markets.

Spain's unemployment rate tops 20%
Spain's unemployment rate breached 20% in the first quarter as the economy continued to shed jobs. The country is reeling from the collapse of a decade-long construction boom. The unemployment rate is the highest in the developed world.


Stay focused and diversified
In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your financial advisor, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon, and tolerance for risk. Diversification does not guarantee a profit or protect against loss.

The views expressed here are those of MFS^®and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any MFS investment product. Individual securities mentioned are for illustrative purposes only and may not be relied upon as investment advice or as an indication of trading intent on behalf of any MFS product.

Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual, or quarterly report.

Past performance is no guarantee of future results.

Sources: MFS research; The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; Financial Times; boston.com.

--see disclaimer below--

Market Week: April 26, 2010

The Markets

Equities markets may have been knocked down initially by the SEC's charges against Goldman Sachs, but last week's broad rebound was as robust as first-quarter profits for Goldman and other financials that reported earnings last week. Small caps once again took the lead as corporate earnings reports were generally encouraging and good economic news suggested the housing market might be emerging from its coma.

Market/Index	2009 Close	Prior Week	As of 4/23	Week Change	YTD Change
DJIA	10428.05	11018.66	11204.28	1.68%	7.44%
NASDAQ	2269.15	2481.26	2530.15	1.97%	11.5%
S&P 500	1115.10	1192.13	1217.28	2.11%	9.16%
Russell 2000	625.39	714.62	741.92	3.82%	18.63%
Global Dow	1984.48	2052.54	2037.28	-.74%	2.66%
Fed. Funds	.25%	.25%	.25%	0 bps	0 bps
10-year Treasuries	3.85%	3.79%	3.84%	5 bps	-1 bps

Last Week's Headlines

• Though consumer costs remain contained, inflation at the wholesale level jumped 0.7% during March, according to the Bureau of Labor Statistics. That represents a 6% increase from last March--the biggest year-over-year increase since September of 2008. Rising prices hit hardest at the earliest stage of production; crude goods such as agricultural products and iron were up 3.2%.
• With time running out to qualify for the homebuyer tax credit, home resales were up 6.8% in March, and up 16% from a year ago. The National Association of Realtors® said distressed properties represented 35% of sales, and 44% of home buyers were first-timers. Meanwhile, new home sales were up a buoyant 26.9% from February.
• After three months of increases, durable goods orders were down in March, hit by reduced spending on nondefense transportation equipment such as aircraft parts.
• Greece got a double dose of bad news (triple if you count the strike by civil servants protesting budget cuts). The agency responsible for European economic statistics said Greece's budget deficit might be even bigger than previously believed. Moody's immediately downgraded the country's sovereign debt from A2 to A3 and said additional downgrades are likely, making it even more difficult for Greece to attract private investment to avoid default on 8.5 billion euros' worth of principal due May 19. As a result, Athens finally said it would need to tap the line of credit from its eurozone colleagues and the International Monetary Fund.
• As planes took to the skies around the globe once again, the International Air Transport Association estimated the cost of the Icelandic volcano travel chaos at $1.7 billion--and that's just the impact on the airlines.

Eye on the Week Ahead
On tap are more earnings reports, more debate on financial reform, and more congressional inquiries into financial shenanigans. Any change in the Fed's "extended period" language about interest rates would get a lot of attention, and first-quarter gross domestic product (GDP) will give further clues to the state of the economy.

Key data releases: Home prices, consumer confidence (4/27); FOMC announcement (4/28); Q1 GDP estimate, employment costs, consumer sentiment (4/30).


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.


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--

Week in Review: U.S. stocks get a boost from solid earnings and economic data

U.S. economic news

Home sales rise; requests for jobless benefits drops
In March, purchases of new homes surged 27%, the most in almost five decades, and sales of previously owned homes rose for the first time in four months, climbing 6.8%, as buyers rushed to qualify for a government tax credit. New applications for jobless benefits fell 24,000, to 456,000 in the week ended April 17. The U.S. Department of Labor said that distortions associated with the Easter holiday contributed to a rise in claims in the two prior weeks. Producer prices rise The Labor Department also reported that producer prices rose 0.7% in March. The increase came on the back of the biggest gain in food prices since 1984.

Durable goods orders drop
Durable goods orders dropped unexpectedly in March, falling 1.3%, after a 67% decline in demand for commercial aircraft. Excluding transportation, orders surged 2.8%, the most since the recession began in December 2007. Durable goods orders are seen as a barometer of capital spending by businesses.

U.S. and global corporate news

Questions about the fraud lawsuit filed against Goldman Sachs overshadowed the company's announcement that its profits soared 91% in the first quarter. The gain was the second-highest quarterly profit in the company's 141-year history and was powered by the strongest net revenue ever in Goldman's fixed-income, currency, and commodities operations.


Morgan Stanley posted a profit in the first quarter thanks to strong bond trading and increased client activity. The investment bank reported a $1.78 billion profit, versus a $177 million loss in the year-ago period.
In the first quarter, Apple's profit surged 90% and revenue rose 49%. The company said the results were driven by the company shipping more than twice as many iPhones as it did a year ago.


Toyota Motor's credit rating was cut by Moody's Investors Service, and Fitch Ratings said it may also downgrade the company as recalls of more than 8 million vehicles hurt profit. The rating was reduced to "Aa2" from "Aa1."


Verizon Communications posted a 29% decline in its first-quarter earnings because of a charge related to the health care bill and because the telecommunications provider had to rely on lower-end customers to keep growth going in its wireless business.

Global economic news

Greece asks for aid after bond yields soar
Greece requested that its financial lifeline be activated this week after bond yields soared to what Prime Minister George Papandreou called unsustainable levels. The high rates have been undermining Greece's efforts to cut a budget deficit of more than four times the European Union limit. The lifeline combines as much as $60 billion in loans for the year. Greek bond yields soared this week after the EU said Greece's budget deficit was worse than previously forecast and Moody's Investor Service cut the country's creditworthiness. Eurostat, the EU's statistics office reported Thursday that Greece's deficit was 13.6% of gross domestic product in 2009 and may be revised to as high as 14.1% because of "uncertainties" about Greek economic data.

IMF urges governments to tax financial institutions
The International Monetary Fund advised the Group of 20 nations to tax the balance sheets, profits, and compensation of financial institutions to reduce the chances of another financial crisis and pay for the costs if one occurs.

U.K. economy weaker than expected
The U.K. economy grew half as much as forecast in the first quarter. Gross domestic product rose 0.2%.


Europe's services and manufacturing industries expand
Europe's services and manufacturing industries expanded more than expected in April as an export-led recovery prompted companies to step up production. A composite index based on a survey of euro-area purchasing managers in both industries rose to 57.3, the highest level since August 2007, from 55.9 in March.


Stay focused and diversified
In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your financial advisor, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon, and tolerance for risk. Diversification does not guarantee a profit or protect against loss.

The views expressed here are those of MFS^®and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any MFS investment product. Individual securities mentioned are for illustrative purposes only and may not be relied upon as investment advice or as an indication of trading intent on behalf of any MFS product.

Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual, or quarterly report.


Past performance is no guarantee of future results.

Sources: MFS research; The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; Financial Times; boston.com.

--see disclaimer below--

Market Week: April 19, 2010

The Markets

The Dow and S&P 500 finally cranked it up to 11 and 12 respectively--until Friday, when the Securities and Exchange Commission's fraud charges against Goldman Sachs detonated the Wall Street equivalent of the Icelandic volcano. The news helped spook investors already concerned that stocks were overdue for a tumble. The Dow recovered a bit later in the day from a 180-point drop to end the week up, but the S&P fell back below 1200. Renewed risk aversion also hit prices for gold and other commodities but helped buoy Treasury prices.

Market/Index	2009 Close	Prior Week	As of 4/16	Week Change	YTD Change
DJIA	10428.05	10997.35	11018.66	.19%	5.66%
NASDAQ	2269.15	2454.05	2481.26	1.11%	9.35%
S&P 500	1115.10	1194.37	1192.13	-.19%	6.91%
Russell 2000	625.39	702.95	714.62	1.66%	14.27%
Global Dow	1984.48	2054.70	2052.54	-.11%	3.43%
Fed. Funds	.25%	.25%	.25%	0 bps	0 bps
10-year Treasuries	3.85%	3.90%	3.79%	-11 bps	-6 bps

Last Week's Headlines

• It was a good news/bad news week for the financials. Both Bank of America and J.P. Morgan Chase reported strong earnings. However, the SEC filed civil charges alleging that Goldman Sachs committed securities fraud by selling a subprime-mortgage derivative it had structured in April 2007 with the help of a hedge fund that then profited from taking a short position against the security (thereby betting the derivative would fail).
• Increased housing starts in the South pushed March figures up for the third straight month; the starts also were up 20.2% from a year ago. Building permits, an indicator of future construction, were up 7.5% from February, and 34% from March 2009.
• After February's bad weather, shoppers turned out in force in March. Retail sales were up an encouraging 1.6% from the month before, according to the Commerce Department. Though electronics and appliance sales were down, they were still better than in March 2009, and sales of cars, clothing, building materials, and furniture rose. And according to the Federal Reserve, manufacturing output for such big-ticket items as furniture, cars, and appliances also rose 0.9% in March.
• Consumer inflation remained tame in March at an annual rate of 2.3%, according to the Bureau of Labor Statistics. Prices were up only 0.1% for the month; not counting food and energy, they remained the same.
• The National Bureau of Economic Research (NBER) said it's not yet ready to put an end date to the recession.
• In the first three months of 2010, foreclosures were up 7% from the previous quarter and up 16% from a year earlier. The number of real estate owned (REO) properties is at its highest level since January 2005, according to RealtyTrac, which said that number coupled with a 19% monthly jump in March foreclosures may indicate the pace of foreclosures on distressed properties is picking up.
• Despite solid demand for short-term Greek debt at last week's auction, yield spreads on longer-term debt continued to reflect investor anxiety, and Greek leaders asked to meet with the International Monetary Fund.

Eye on the Week Ahead
Public and financial fallout from the Goldman shocker will be interesting to watch, especially as the company is scheduled to announce first-quarter earnings Tuesday. The news also will likely heat up debate on legislation introduced last week in the Senate that would regulate derivatives. Investors will be assessing the financial impact of the volcano-related chaos, and earnings season gets into high gear.

Key data releases: Wholesale inflation, existing home sales (4/22); durable goods orders, new home sales (4/23).

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.

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--  

Week in Review: U.S. stocks pass psychological highs as earnings and data show recovery

U.S. economic news

More signs of consumer spending
Retail sales surged 1.6% in March. The increase, which is the largest in four months, is encouraging some analysts to upgrade their assessments of the economy's ability to generate a sufficient number of jobs to sustain the recovery. Companies are said to have benefited from an earlier Easter, better weather, and a pickup in hiring. Recovery in the retail area is seen as an indication that the expansion is no longer solely dependent on manufacturing gains. In March manufacturing activity rose 0.9% as stronger sales and inventories gave a boost to factory production. Housing starts rebounded to a 16-month high in March, a pickup suggests that the burst of stronger home sales has persuaded a few builders to ramp up construction again. Starts climbed to an annual rate of 626,000 for the month of March, up 1.6% from February.


Jobless claims rise again amid shaky recovery in labor market
The U.S. Department of Labor reported that jobless claims rose by 24,000 to 484,000 in the week of April 10. This week U.S. Federal Reserve Board Chairman Ben S. Bernanke said that the labor market would be slow to recoup the losses it sustained since the recession began in December 2007.

U.S. and global corporate news

On Friday the Securities and Exchange Commission charged Goldman Sachs & Co. with defrauding investors by misstating and omitting key facts about a financial product tied to subprime mortgages. The charge is one of the biggest moves by authorities in response to the financial crisis of 2007 to 2008. Goldman Sachs' stock price fell sharply after the announcement.


Volcanic eruption in Iceland disrupts flights across Europe
A volcanic explosion in Iceland forced authorities to impose one of the most extensive bans on commercial flights since World War II. Fears that volcanic particles could choke aircraft engines prompted the grounding of flights across Europe. After the eruption on Wednesday of the Eyjafjallajokull, the volcano spat a plume of ash that spread southeast across the continent. Many airline stocks have slid on the news because service will be disrupted into the weekend.


Tech industry shows signs of recovery
The technology industry showed more signs of recovery this week as tech spending by companies and consumers picked up. Evidence of the rebound was seen as Google's profit rose 37% after a 23% jump in revenue. The gains suggest a recovery in online advertising. AMD reported a 34% increase in revenue to record levels, and Intel announced a quarterly profit that nearly quadrupled on a 44% jump in sales. Intel's  profit and revenue surge kicked off an upbeat earnings season for the tech companies as demand continues to improve for laptops and server systems.


Bank of America posted its first profit in three quarters; although its income fell about 10% from where it was a year ago. Profit gains in the first three months of the year were helped by a surge in investment banking revenue. Overall revenue for the quarter dropped 11%.

Charles Schwab's first-quarter profits fell by nearly one-half their levels of a year ago, as low interest rates and a trading revenue decline of nearly one-fifth affected its results.

The New Jersey Transit board of directors agreed on a 25% fare increase for trains and New York City-bound buses to help the nation's third-largest transit system close a $300 million deficit.
CSX reported that profits climbed 24% as freight volume rose 5% overall.

Global economic news

Greece requests meeting to discuss aid
Greek Prime Minister George Papandreou asked for a meeting next week in Athens with the European Union, the International Monetary Fund, and the European Central Bank. Talks will begin among the groups, which agreed to back a 45 billion euro loan package. The request came this week after Greek 10-year yields rose to 7.255%, near where the rate stood before the 45 billion euro rescue package was unveiled on April 11.


China's economy grows 11.9%
China's economy expanded 11.9% in the first quarter from a year earlier. This was the biggest gain since the second quarter of 2007. Also this week, China announced plans to cool its real-estate market amid concern that an asset bubble may have been created. The announcement is thought to reflect a policy shift aimed at significantly tightening the supply of credit for home purchases.


Stay focused and diversified
In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your financial advisor, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon, and tolerance for risk. Diversification does not guarantee a profit or protect against loss.

The views expressed here are those of MFS^®and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any MFS investment product. Individual securities mentioned are for illustrative purposes only and may not be relied upon as investment advice or as an indication of trading intent on behalf of any MFS product.

Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual, or quarterly report.

Past performance is no guarantee of future results.

Sources: MFS research; The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; Financial Times; boston.com.

--see disclaimer below--

Market Week: April 12, 2010

The Markets

Touch and go: The Dow played now-you-see-it, now-you-don't with the 11,000 mark late on Friday. Along with the S&P 500 and the Nasdaq, it trudged upward for the eighth time in the last nine weeks, while small caps resumed their leadership of the equities markets. After a brief foray above 4% Monday, the yield on 10-year Treasuries retreated a bit by week's end.

Market/Index	2009 Close	Prior Week	As of 4/9	Week Change	YTD Change
DJIA	10428.05	10927.07	10997.35	.64%	5.46%
NASDAQ	2269.15	2402.58	2454.05	2.14%	8.15%
S&P 500	1115.10	1178.10	1194.37	1.38%	7.11%
Russell 2000	625.39	683.98	702.95	2.77%	12.4%
Global Dow	1984.48	2039.58	2054.70	.74%	3.54%
Fed. Funds	.25%	.25%	.25%	0 bps	0 bps
10-year Treasuries	3.85%	3.96%	3.90%	-6 bps	5 bps

Last Week's Headlines

• Pending home sales rose in February by 8.2%, and are up 17.3% from a year ago. The National Association of Realtors® said the figure may represent contracts signed in time to qualify for the April 30 deadline for the homebuyer tax credit.
• Service businesses followed U.S. manufacturing in demonstrating higher growth in March. The Institute for Supply Management (ISM) reported that its index of service businesses rose from 53% in February to 55.4%, the strongest growth since 2005. Only two of the sixteen industries surveyed--real estate rental/leasing and educational services--reported declines.
• The SEC proposed regulations that would require companies that issue asset-backed securities, such as mortgage-backed debt instruments, to hold at least 5% of the underlying debt. The regulations also would require greater disclosure about those underlying loans, such as data about delinquencies/defaults and income verification. The new regulations are intended to reduce reliance on credit ratings and force financial institutions to share in the risks of such securities.
• Financial heavyweights, including CEOs and former Fed Chairman Alan Greenspan, told a investigative panel that when 2008's credit crisis hit, they were shocked--shocked!--to learn that gambling had been going on with the mortgage-backed securities that helped precipitate the problems.
• Treasury auctions saw healthy demand. Reassured by the Fed's disinclination to raise either the discount or target fed funds rate, buyers turned out for everything from Treasury Inflation-Protected Securities (TIPS) to 30-year bonds.
• An auction of Greek sovereign debt resulted in a yield over 7% and a weaker euro before other eurozone countries agree over the weekend to set up a $40 billion lending facility to help the troubled country.

Eye on the Week Ahead

It's the debut of earnings season for the first quarter, with closely watched financial and tech companies on deck this week. Investors who have been buying the rumor in anticipation of another quarter of easy comparisons with 2009 will be faced with deciding whether to continue or sell the news. Greece will hold yet another bond auction, while options expire at week's end.

Key data releases: U.S. budget deficit (4/12); international trade (4/13); consumer inflation, retail sales (4/14); industrial production, international capital flows (4/15); housing starts (4/16).

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.

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.

Health-Care Reform: A Timeline of Benefits and Provisions

If you have been confused about the provisions and benefits of the recent health care reform, the video presentation will hopefully be of some help.

Health-Care Reform:  A Timeline of Benefits and Provisions View the Flash Client Alert > --SEE DISCLAIMER BELOW--

Week in Review: Markets stabilize as Greece rescue looks likely

U.S. economic news

Consumer spending shows signs of rebound
Retailers reported faster-than-expected sales growth. According to Retail Metrics, same store sales climbed more than forecast. The International Council of Shopping Centers added to the upbeat retail news, reporting that chain store sales surged 9.0% in March, in line with the group's expectations of 8% to 10% growth. It was the fourth consecutive monthly gain, the largest since March 1999. The gain was boosted by an earlier Easter holiday, which accounted for about half the increase. The March increase was broad based, as most retailers met or topped estimates.

Recovery in service sector gains steam
The Institute for Supply Management reported that its index of nonmanufacturing activity rose to 55.4 in March, from 53 in February. A jump in new orders drove the gain. Anything over 50 represents expansion. The ISM also said 14 of its 18 sectors reported that business expanded in March.


Job losses rose last week, but trend still lower
Last week, initial jobless applications increased by a more-than-expected 18,000 to 460,000. The jump may be in part reflective of the difficulty in analyzing data ahead of the Easter holiday. Continuing claims in the prior week fell by the most this year, down 131,000 to 4.55 million, the fewest since December 2008, while the insured jobless rate ticked down 0.1 point to 3.5%, the lowest rate since January 2009. The four-week averages also continued to decline.

U.S. and global corporate news

Apple wages ad war; GM hit by 2H loss; Tiger appears in Nike ad; junk bond sales rise
Apple began a battle with Google this week by adding its own advertising system, the iAd network for the iPhone. The move challenges Google's core business model and its plans to expand into mobile devices.
General Motors incurred a $4.3 billion loss in the second half of 2009 as the company was hit by weak U.S. sales and began to repay government loans. These are the first official results posted by GM and come as the automaker disclosed the first official accounting of its balance sheets since the company emerged from bankruptcy protection in July.


Tiger Woods is appearing in a new Nike ad, the first new TV spot for the golfer since revelations of his multiple affairs emerged last year.


According to data compiled by Bloomberg, junk bonds are making up the biggest share of corporate debt sales on record as investors bet on an economic rebound. Global high-yield bond sales hit $91 billion this year, or 12% of total issuance, almost double last year's share.

Global economic news

Greece crisis sends yields higher
On Friday, French President Nicolas Sarkozy's assurances that European leaders had agreed on a plan to support Greece calmed financial markets. Earlier in the week, as worries grew about the country's ability to finance its heavy debt load, stocks sold off and Greek bond yields skyrocketed. On Thursday, the premium for Greek debt over German debt rose to its highest level since the euro's debut in 1999. Also on Thursday, news that Greece's four largest banks were tapping the $37 million of remaining government aid added to the jitters and sparked a new round of speculation on sovereign defaults.


European Central Bank (ECB) President Jean-Claude Trichet stemmed Thursday's global equity slide when he said he did not expect Greece to default. However, the higher rates will make it more difficult for the Greek government to fund the sale of 11.6 billion euros of debt by the end of next month. The country will put investors' willingness to the test on Tuesday when it offers a combined 1.2 billion euros of 26-week and 52-week U.S. Treasury bills.


ECB and BOE leave rates steady
The ECB opted to leave interest rates unchanged at a record low of 1% as the Greek fiscal crisis complicated its planned withdrawal of emergency stimulus measures. The Bank of England also left rates unchanged this week, given continued uncertainty about the outlook for the British economy.


Manufacturing rises globally
JPMorgan's All Industry Output Index, which is a proxy for global growth, rose strongly in March to 56.6 from 53.8 in February. This is the highest level of PMI output index since July 2007, when the global economy was still growing at a robust pace.

Stay focused and diversified
In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your financial advisor, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon, and tolerance for risk. Diversification does not guarantee a profit or protect against loss.

The views expressed here are those of MFS^®and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any MFS investment product. Individual securities mentioned are for illustrative purposes only and may not be relied upon as investment advice or as an indication of trading intent on behalf of any MFS product.

Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual, or quarterly report.

Past performance is no guarantee of future results.


Sources: MFS research; The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; Financial Times; boston.com.

--see disclaimer below--

Market Week Summary: April 5, 2010

The Markets

So far, so good: The new quarter got off to an optimistic start. The domestic equities indexes were up across the board for the holiday-shortened week. For the third week in a row, blue chips continued to get some love and hold their own with the small caps, while the Nasdaq fell to the rear for a change. The U.S. Treasury 10-year yield saw its third weekly increase; during Friday's half-day of trading, it jumped seven basis points to end just under the closely watched four percent mark.

Market/Index	2009 Close	Prior Week	As of 4/1*	Week Change	YTD Change
DJIA	10428.05	10850.36	10927.07	.71%	4.79%
NASDAQ	2269.15	2395.13	2402.58	.31%	5.88%
S&P 500	1115.10	1166.59	1178.10	.99%	5.65%
Russell 2000	625.39	678.97	683.98	.74%	9.37%
Global Dow	1984.48	2010.28	2039.58	1.46%	2.78%
Fed. Funds	.25%	.25%	.25%	0 bps	0 bps
10-year Treasuries	3.85%	3.86%	3.96%	10 bps	11 bps

Last Week's Headlines

• March was the fifth straight month of either improvement or stabilization in the employment picture. Though the unemployment rate remained at 9.7%, nonfarm payrolls added 162,000 jobs. Even without the 48,000 temporary jobs created to help with the 2010 census, it's the largest increase in jobs since 2007. However, roughly 44% of unemployed workers have been out of work for at least 27 weeks, a new high. And including people who have given up on their job search or who work part-time because they can't find full-time work puts the un/underemployment figure at 17.5%.
• Consumers spent more and saved less in February, according to the Commerce Department. Consumer spending was up 0.3%, while savings slowed to 3.1% of income (compared to 3.4% in January and 4% in December). However, personal income was basically flat, increasing less than 0.1%.
• Home prices in the 20 metropolitan areas measured by the S&P/Case-Shiller Price Index rose slightly in January compared to the previous month, but were down 0.7% from a year earlier.
• Factory orders rose 0.6% in February as companies continued to replenish inventories, according to the Commerce Department. Also, U.S. manufacturing expanded in March for the eighth month in a row. The Institute for Supply Management said the 3.1% increase represented the fastest rate of growth since July 2004.
• As scheduled, the Federal Reserve Board ended its program of buying mortgage-backed securities, designed to help keep mortgage rates affordable during the credit crisis.

Eye on the Week Ahead

With the Dow nearing 11,000, Friday's unemployment numbers will likely drive trading early in the week. The bond markets face yet another wave of Treasury auctions, including TIPS and 30-year bonds, and will watch to see if the Fed increases the discount rate for banks again. It's also the last week before first-quarter earnings announcements kick off with Alcoa on April 12.

Key data releases: Pending home sales, ISM services sector (4/5); FOMC minutes (4/6); consumer credit (4/7).

*Treasury bond data as of 4/2

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.

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--

Hiring Incentives to Restore Employment (HIRE) Act - Multimedia Presentation

On March 29th we posted information about the HIRE Act which was signed into law on March 18th. We are providing this video flash presentation as another means of keeping our clients and consumers up to date on the latest information about this new law. We hope that you find it informative.

Hiring Incentives to  Restore Employment (HIRE) Act View the Flash Client Alert > --see disclaimer below--

Week in Review: Stocks complete best first quarter since 1999

Week in Review is being posted on Thursday this week because stock markets in the United States and many other countries are closed for Good Friday. The U.S. bond market closes at noon on Friday. Have a wonderful weekend - Randy

U.S. economic news

Consumer confidence recovers from February’s sharp decline
The Conference Board’s gauge of consumer confidence rose to 52.5 in March from 46.4 in February. The confidence index, which regained about half of the 11 points it had lost in February, has been recovering slowly since reaching a record low of 25.3 in February 2009. While consumers’ outlook on their present situation and expectations for the future both showed improvement, March’s number is still a long way from a reading of 90, which is considered healthy.


Private sector sheds 23,000 jobs last month
ADP Employer Services reported that private-sector employers unexpectedly cut 23,000 jobs in March, compared with a 50,000 gain forecast by economists in a Dow Jones Newswires survey. The ADP report comes two days ahead of the U.S. Department of Labor’s monthly nonfarm payroll data, which is projected to show the largest job growth in three years. The hiring of workers for the 2010 census is expected to boost federal government payrolls, at least temporarily.


Consumer spending rises for fifth month in a row
The U.S. Department of Commerce reported that consumers boosted their spending by 0.3% in February, the fifth-straight monthly gain. The increase, which occurred despite incomes remaining flat for the month, was slightly below the 0.4% recorded in January and the smallest increase since September 2009.


Home prices inch upward
The Standard & Poor’s/Case-Shiller Home Price Indices reflecting home prices in 20 major metropolitan areas increased 0.3% in January from a month earlier. The 20-city index dropped 0.7% in January from a year earlier, while prices in a 10-city subset were flat. The housing report showed that much of the price improvement has been in the nation’s most battered markets where home sales and prices had fallen the most.

U.S. and global corporate news

Washington Mutual filed a Chapter 11 reorganization plan, just two weeks after resolving a $4 billion dispute with JPMorgan Chase and the Federal Deposit Insurance Corporation (FDIC). The plan, which still needs to be approved by a judge, would set up a $7 billion trust fund to pay creditors, including the $4 billion in deposit accounts that JPMorgan had claimed for itself.

Swiss Life Holding AG reported that its full-year net profit decreased 21% to 278 million Swiss francs ($261.7 million USD) in 2009 from 350 million francs ($329.4 million USD) in 2008. The Zurich-based insurer is currently in the middle of a restructuring program and expects to save up to 400 million francs per year beginning in 2012.

Cosco Pacific, a 51%-owned unit of state-controlled shipping giant China Cosco Holdings, reported a net profit of $172.5 million in 2009, down 37% from $274.7 million the previous year. The world’s fifth-largest container-port operator cited a sharp decline in container-handling volume as the global financial crisis hurt international trade.

Global economic news

Turkish economy grows in fourth quarter
Turkey’s gross domestic product unexpectedly grew by 6% in the fourth quarter. Still, analysts cautioned against reading too much into the state of the country’s overall economic health, given that Turkey is experiencing a widening trade gap, continued high unemployment, and increased government spending.


Ireland announces massive aid program for banks
Ireland’s government unveiled an aggressive plan aimed at helping the nation’s banks raise nearly 22 billion euros ($30 billion USD) to meet new capital requirements that are part of a program to resolve the nation’s banking crisis. Finance Minister Brian Lenihan also announced terms for the first pool of transfers of bad loans to the National Asset Management Agency. Bank of Ireland and Allied Irish Bank are both due to report their 2009 earnings this week.

Eurozone jobless rate climbs
The unemployment rate in the 16 countries that make up the eurozone rose to 10% in February, from 9.9% in the previous three months. The rate is the highest since August 1998, according to the European Union statistics agency Eurostat.

End of existing iron ore pricing system may impact steel prices
Some analysts predict that global steel prices will jump by up to one-third in the wake of an agreement between miners and steelmakers on a dramatic change in the pricing system for iron ore. The agreement by Vale of Brazil and Anglo-Austrian BHP Billiton with Japanese and Chinese mills marks the end of the 40-year-old benchmark system of annual contracts and lengthy price negotiations. Other analysts believe, however, that the new pricing system will actually bring contract prices more in line with those in the existing spot and futures market and could even result in lower prices in the coming year.

Stay focused and diversified
In any market environment, we strongly believe that investors should stay diversified across a variety of asset classes. By working closely with your financial advisor, you can help ensure that your portfolio is properly diversified and that your financial plan supports your long-term goals, time horizon, and tolerance for risk. Diversification does not guarantee a profit or protect against loss.

The views expressed here are those of MFS^®and are subject to change at any time. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading intent on behalf of any MFS investment product. Individual securities mentioned are for illustrative purposes only and may not be relied upon as investment advice or as an indication of trading intent on behalf of any MFS product.

Securities discussed may or may not be holdings in any of the MFS funds. For a complete list of holdings for any MFS portfolio, please see the most recent annual, semiannual, or quarterly report.

Past performance is no guarantee of future results.


Sources: MFS research; The Wall Street Journal; The Wall Street Journal Online; Bloomberg News; Financial Times; boston.com.

--see disclaimer below--