Week in Review: Global markets anxious over too much Chinese growth - For the week ended January 21, 2011

Global economic news 

U.S. manufacturing bellwether expands for fourth month
Manufacturing activity in the Philadelphia region expanded for a fourth consecutive month, according to the Federal Reserve Bank of Philadelphia's Business Outlook Survey. However, the gauge edged down slightly to 19.3 in January from a revised December reading of 20.8. Although the survey pertains to the Philadelphia region, it is seen as a bellwether for broader trends in manufacturing.


U.S. home resales increase 12%
Sales of previously owned homes rose 12% in December, reported the National Association of Realtors. The sales growth easily surpasses the average estimate of 4.7% that was projected by economists surveyed by Dow Jones Newswires. However, the 2010 total of 4.9 million homes sold was the weakest annual total since 1977 and is down 4.8% from 2009.


Initial jobless claims drop in the United States
The number of Americans who filed claims for jobless benefits fell by 37,000 to 404,000 in the week ended January 15, according to the U.S. Department of Labor. The weekly figure beat analysts' expectations of 420,000 new claims.


Conference Board's leading indicator up 1%
The Conference Board's Leading Economic Index rose 1.0% in December to 112.4 after gaining 1.1% in November. As with the latest home resale and initial jobless claims numbers, this economic indicator was more favorable than anticipated, surpassing the 0.6% mark forecast by economists.


China's economy grows 9.8%; inflation rises 4.6%
China's robust economy continued to expand, which could be seen as good news or bad news. Its fourth-quarter gross domestic product (GDP) grew by 9.8% from a year earlier. For all of 2010, the country's economy grew 10.3%. Meanwhile, China's consumer price index rose 4.6% in the fourth quarter from a year earlier, well above Beijing's target of 3%. Economists expect China to raise interest rates several times in 2011. In 2010, China raised interest rates twice and increased its reserve requirement ratio for state-controlled banks seven times. Observers fear that more serious measures to curb growth and control inflation could dampen global demand for commodities. 


German economic expectations up sharply
Germany's economic expectations rose considerably in January, according to the Centre for European Economic Recovery. Its ZEW Indicator of Economic Sentiment for Germany rose for the third consecutive month - climbing to 15.4 points from 4.3 points in December. German business confidence hit an all-time high in January, reported Ifo, a German research institute. Its business-climate index reached 110.3 from 109.8 in December. Germany's GDP rose 3.6% in 2010, its strongest increase since 1992.

Global corporate news

Bank of America absorbs huge losses
Bank of America, the United States' largest bank by assets, posted a $1.24 billion fourth-quarter loss because of write-downs and charges related to the weak housing market. The bank took a $4.1-billion provision to cover the repurchase of troubled loans from Fannie Mae and Freddie Mac. In addition, it took a $2 billion charge to reflect a write-down of the value of its mortgage operations.


General Electric lights up its earnings
General Electric's fourth-quarter profit rose 51% on increased revenue, reduced costs, and a lower-than-expected tax rate. Equipment orders grew and its sales increased for the first time since September 2008.


Morgan Stanley profits rise 35%; Goldman Sachs earnings plummet
Morgan Stanley posted a 35% increase in fourth-quarter profit on strength in its investment banking, wealth, and asset-management businesses. The firm's trading activity declined, reflecting an industry slowdown. Net revenue rose 14%. In contrast, rival investment banking firm Goldman Sachs, posted a significant drop in fourth-quarter earnings, 53% less than its year-earlier period. Goldman's fixed-income, currency, and commodities trading business performed below expectations. Overall, its revenue fell 10% from a year earlier.


Freeport-McMoran profit jumps 50%
Freeport-McMoran Copper & Gold, the world's second-largest copper producer, posted a fourth-quarter profit that was 60% higher than a year ago. The increase reflected higher prices for commodities. Copper prices rose 31% in the quarter while gold prices were 25% higher. In addition, both copper and gold production rose. The company's revenue increased 22% from a year earlier.


Southwest Airlines profit rises
Southwest Airlines, the largest U.S. airline by passenger numbers, posted a 13% gain in earnings. The travel and tourism industry experienced a rebound in demand. Excluding hedging, charges related to acquisitions and other factors, earnings were up 50% while revenue rose 15%.


Google has easy search for new CEO
Google co-founder Larry Page will take over as chief executive officer in April when Eric Schmidt steps down from a very successful decade as head of the world's most-used search engine. Google's fourth-quarter profit beat analysts' estimates, benefiting from a boost in online advertising. Its net income rose 29% from a year earlier.


Boeing cuts work force while Rockwell Collins expands
Boeing announced that it plans to cut about 1,100 jobs in the next two years as it trims production of a line of military cargo aircraft. Meanwhile, aerospace group Rockwell Collins said it plans to grow its work force by about 4%, or 800 employees, including 550 engineers, in 2011.

The week ahead 

• McDonald's earnings report due Monday, January 24
• Johnson & Johnson earnings report due Tuesday, January 25
• U.S. consumer confidence figures released Tuesday, January 25
• UK GDP released Tuesday, January 25
• U.S. initial jobless claims figures released Thursday, January 27
• Germany's CPI figures due Thursday, January 27
• Microsoft earnings report released Thursday, January 27
• Initial U.S. fourth-quarter GDP released Friday, January 28

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 information included above as well as individual companies and/or securities mentioned should not be construed as investment advice, a recommendation to buy or sell, or 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. Full holdings are also available on the individual Fund Profile tab in the Products and Performance section of mfs.com.

Past performance is no guarantee of future results.

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


--see disclaimer below--

Global economic news

U.S. retail sales rise again
Retail sales rose in December for the sixth consecutive month. Sales rose by 0.6% from November after climbing 0.8% from October, the U.S. Department of Commerce reported. Online sales were particularly strong, with U.S. Internet sales up 15.4% in December, according to MasterCard SpendingPulse.


Core inflation remains tame in the United States
The latest Consumer Price Index (CPI) and Producer Price Index (PPI) both indicated that U.S. core inflation remains benign. However, both indices reflected rising energy costs. The seasonally adjusted CPI rose 0.5% in December from November, the U.S. Department of Labor reported. However, the monthly core CPI - excluding food and energy costs - was up just 0.1%. For all of 2010, the overall CPI rose 1.5% while core inflation was up just 0.8%, well below the Fed's target of 1.7% to 2.0%. The PPI rose a seasonally adjusted 1.1% in December from November and 4.0% for 2010 overall. However, the core PPI, excluding food and energy costs, rose only 0.2% last month and 1.3% for the year.


U.S. trade deficit narrows
The U.S. trade deficit narrowed unexpectedly in November, the Department of Commerce reported. It was the third consecutive month of a narrowing gap between U.S. exports and imports. The value of U.S. imports exceeded its exports by $38.31 billion, down from a difference of $38.42 billion the previous month. However, the country's trade deficit with China grew slightly.


Agencies warn on U.S. credit rating
Two prominent credit rating agencies cautioned the United States on its credit rating. Moody's Investors Service said the United States will have to reverse an upward trend in its debt ratios to maintain its "AAA" rating. The federal debt-to-revenue ratio is projected to average four times the U.S. gross domestic product for the next decade. The ratio of interest payments to revenue is forecast to rise to 17.6% by 2020 from 8.6% in 2010. Standard & Poor's also raised concerns about the worsening U.S. fiscal situation. Both companies have issued previous warnings that have been generally ignored by the financial markets.


U.S. jobless claims rise
For the second consecutive week, more Americans filed initial unemployment claims, after the weekly number had dropped below 400,000 at the end of 2010. Initial claims for unemployment benefits rose by 35,000 to 445,000 in the week ended January 8.


Eurozone industrial output grows
Industrial production in the eurozone rose at a faster-than-expected pace in November, according to Eurostat, the European Union statistics agency. Production was up 1.2% in November from October. Annual figures showed a 7.4% increase from a year earlier, surpassing a projected rise of 5.8%. The European industrial sector is offsetting current weakness in consumer spending.


German economy hits record growth
Economic activity in Germany grew faster last year than in any year since the country's reunification in 1992, the country's Federal Statistics Office reported. In price-adjusted terms, Germany's GDP rose 3.6% in 2010 after declining 4.7% in 2009.

Global corporate news

Intel posts best-ever results
Microprocessor maker Intel reported its best quarterly and annual results on robust sales as strong corporate demand offset weak consumer sales. Much of Intel's 8.4% increase in fourth-quarter revenue came from sales of server systems to companies trying to keep up with the Internet's growth. Intel's quarterly profit soared 48%. Its annual revenue grew 24%.


JPMorgan Chase profit up 47%
The fourth-quarter profit picture bodes well for big banks as JPMorgan Chase, the first of the major banks to report results, posted a 47% jump in quarterly profit on rising revenue and sharply reduced loan-loss reserves.


SAP revenue rises
Germany's SAP, a leading software and related service vendor, posted a 27% increase in fourth-quarter revenue from software and software-related service. SAP did not provide an earnings number as it still is assessing the impact of a copyright infringement lawsuit it lost to rival Oracle.


Cargill profit triples
Commodity processing and trading giant Cargill more than tripled its sales in the quarter ended November 30 from a year earlier, benefiting greatly from rising commodity prices and surging global demand. Year-over-year profit rose in four of Cargill's five business units.


Homebuilders' profits down
Quarterly earnings at two large homebuilding firms fell, indicating the housing recovery has a long way to go. KB Home reported an 83% decline in its fourth-quarter profit, while Lennar Corp's profit fell 10%. The residential housing market remains affected by continued erosion of housing values and by tepid demand amid high unemployment.


Airbus lands large plane order from India
France's Airbus has signed a preliminary agreement with an Indian budget airline firm, IndiGo, for 180 A320 airliners, worth $15.6 billion. Airbus said the order is the largest ever in terms of number of planes and one of the largest by value. The contract is expected to be finalized within a few weeks.

The week ahead

• Citigroup and Goldman Sachs earnings due Tuesday, January 18
• Germany's ZEW Survey results released Tuesday, January 18
• U.S. housing starts figures released Wednesday, January 19
• UK industrial trends survey results released Thursday, January 20
• Sony Ericsson earnings report due Thursday, January 20
• U.S. initial jobless claims figures released Thursday, January 20
• General Electric earnings due Friday, January 21

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


--see disclaimer below--

Week in Review: Stocks, economic indicators mostly positive to ring in New Year

Global economic news

U.S. construction spending up slightly in November
The United States spent $810.23 billion on construction projects in November, up from $806.69 billion in October and $791.46 billion in August, a 10-year low. Private-sector construction spending appears to be recovering more quickly than public-sector spending, which will most likely continue to be negatively impacted by tight state and local budgets throughout 2011.


Pace of U.S. private-sector hiring picks up; unemployment rate drops
Payroll firm Automatic Data Processing reported that American companies added 297,000 jobs in December. The increase in private-sector hiring, the largest in ADP's 10-year history, could be an encouraging sign for the jobs market and overall health of the U.S. economy. The ADP report was so positive that it led analysts to raise their predictions for this week's U.S. Department of Labor jobs report, which also includes federal, state, and local government employment. The Labor Department's report tallied just 103,000 jobs added in December, somewhat disappointing given the earlier ADP estimates. Still, the nation's unemployment rate fell to 9.4%, the lowest level since May 2009.


Initial jobless claims back above 400,000 in latest week
The number of Americans filing initial unemployment claims rose 18,000 to 409,000 in the week ended January 1. While the increase follows a drop below 400,000 new claims the previous week, most analysts cautioned about reading too much into the increase because federal holidays during both weeks, weather issues, and other seasonal factors may have resulted in a distortion of data.


Northeast blizzard dampens strong U.S. retail sales projections
A blizzard that disrupted post-holiday shopping throughout the Northeast was partially blamed for many U.S. retailers falling short of analysts' December sales projections. According to sales tracker Thomson Reuters, 55% of the 11 chains that had reported December numbers missed their estimates. According to Retail Metrics Inc., Target, the second-largest U.S. discount chain, reported a sales increase of 0.9%, below the 3.9% average increase indicated by estimates, while sales at stores open more than a year at Gap dropped 3%, compared with the 2.4% average increase projected. Still, the holiday season ended with the strongest retail revenue growth since 2006.


Services in U.S. expand at fastest pace in nearly five years
The Institute for Supply Management's non-manufacturing index rose to 55.7 in December from 55 in November, indicating that service industries in the United States grew at the fastest pace since May 2006.


Greek Prime Minister confident his country can repay bailout funds "in full"
During a speech Thursday at the Economy Ministry in Paris, Greece's Prime Minister George Papandreou assured colleagues that his country will be able to repay private holders of its bonds. Some of the reasons for Papandreou's confidence include debt reduction programs and structural reforms being established by Greece, and financial support received from the European Union and the International Monetary Fund.


Eurozone inflation moves above ECB's target level
According to the European Union's statistics office, the annual rate of inflation across the eurozone was 2.2% in December, up from a 1.9% pace in November. This is the first time in more than two years that the pace of inflation has surpassed the European Central Bank's target level. The ECB's mandate is to keep the rate of inflation below 2% over the medium term.


German manufacturing orders rise sharply
German manufacturing orders rose a seasonally adjusted 5.2% in November, easily exceeding the 1% increase projected by analysts. The surge in orders was largely the result of an 8.2% increase in foreign orders from customers outside the eurozone.


Singapore economy rebounds in fourth quarter
Singapore's trade-dependent economy, considered a bellwether for Southeast Asia, grew 6.9% in the fourth quarter. The growth rate fell below analysts' projections but was a significant turnaround from an 18.9% contraction in the country's economy in the third quarter. For all of 2010, the island nation's gross domestic product expanded 14.7%, the fastest pace of growth in Singapore's 45-year history.


Global food prices surge to record high
The United Nations Food and Agriculture Organization's monthly food price index, a leading measure of international food prices, jumped 4.3% last month. December's reading, 214.7, is a record high for the FAO's index, according to data going as far back as 1990. November's reading was 206. The previous record of 213.5 was reached in June 2008, when rising food prices resulted in widespread violence in many developing countries.

Global corporate news

Qualcomm confirms plans to purchase Atheros
Just as the battle among chip makers is becoming increasingly competitive, semiconductor maker Qualcomm announced that it is spending $3.1 billion to purchase Atheros Communications, a fast-growing Silicon Valley company that specializes in making chips used in wireless devices. The two companies, who have been partners for years, expect the all-cash deal to close in the first half of 2011 and modestly add to Qualcomm's earnings in fiscal 2012.


Family Dollar reports profit, traffic increase
Family Dollar Stores fiscal first-quarter earnings increased 9.9% as the discount retailer continued to see increased customer traffic and sales. For the quarter ended November 27, the company reported a profit of $74.3 million, up from $67.6 million a year earlier.


Monsanto posts profit on growth in seed unit
For its fiscal first-quarter ended November 30, Monsanto recorded a profit of $6 million, compared with a prior-year loss of $19 million. The agricultural giant cited sales growth of 13% in its seed and genomics business as a reason for its turnaround from last year's results.

The week ahead

• Alcoa earnings released Monday, January 10
• France's industrial production figures released, Monday, January 10
• Australia's Labour Force Survey results released Wednesday, January 12
• U.S. initial jobless claims figures released Wednesday, January 12
• Intel earnings released Thursday, January 13
• Italy's CPI released Friday, January 14
• JPMorgan Chase earnings released Friday, January 14
• China's Producer and Import Price Index released Friday, January 14 

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 information included above as well as individual companies and/or securities mentioned should not be construed as investment advice, a recommendation to buy or sell, or 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. Full holdings are also available on the individual Fund Profile tab in the Products and Performance section of mfs.com.

Past performance is no guarantee of future results.

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

--see disclaimer below--

Week in Review: 2010 ends quietly as investors hope stocks continue bullish ways in 2011

Global economic news

Confidence of American consumers drops slightly in December
The Conference Board's Consumer Confidence Index unexpectedly fell to 52.5 in December from a revised 54.3 in November. The New York-based research group said lackluster economic growth and a pessimistic jobs outlook are largely to blame for the drop. The median forecast for U.S. consumer confidence, based on a survey of 61 economists, had projected confidence would rise to 56.3.


Italian business confidence hits 34-month high
The Isae institute's manufacturing-sentiment index, which measures Italian business confidence, climbed to 103 in December, from a revised 101.7 in November. The latest figure, the highest level for the index in almost three years, indicates increasing optimism about economic recovery in the region.


Initial U.S. jobless claims at lowest level since July 2008
The U.S. Department of Labor reported that the number of initial jobless claims filed fell to 388,000 in the week ended December 25, down 34,000 from an upwardly revised 422,000 claims the previous week. It is the first time in over two years that the number of Americans filing new unemployment claims fell below the 400,000 level.


Pace of German inflation accelerates in December
The inflation rate in Germany increased to 1.9% in December from 1.6% in November, according to the Federal Statistics Office in Wiesbaden. That is the highest rate since October 2008 and higher than the rate expected by economists who had projected an unchanged reading. Consumer prices jumped 1.2% from November, the biggest monthly gain since December 2002.


U.S. home prices tumble in October, third straight month-over-month drop
The Standard & Poor's/Case-Shiller Home Price Indices, a broad gauge of U.S. home prices, fell 1.3% in October from a month earlier. The October drop in prices represents an annualized decline of 15%. Prices in 20 major U.S. metropolitan areas were down 0.8% from October 2009, the biggest year-over-year decline since December 2009. Many economists project that the declines will continue into at least next spring.


French economy expands; pace of growth slows from previous quarter
The Paris-based statistics office Insee reported that France's gross domestic product rose 0.3% in the third quarter, down from a 0.6% gain in the second quarter.


European retail sales grow at fastest pace since May 2008
A gauge of European retail sales increased to 52.9 in December from 51.3 in November, London-based Markit Economics reported on its Web site. The index, which is at its highest level since May 2008, is based on a survey of more than 1,000 executives. A reading above 50 indicates expansion.

Global corporate news

Cal-Maine Foods reported that its profit for the fiscal second quarter ended November 27 was $15.2 million, down from $16.1 million a year earlier. This represents a 5.6% drop in earnings for the largest U.S. producer and distributor of fresh-shell eggs. The company cited higher feed costs for the earnings decline.


BJ's Wholesale Club reportedly hired investment bank Morgan Stanley to conduct an auction of the chain after receiving an unsolicited bid from Leonard Green & Partners LP earlier this year. But if the retailer does not move forward with the auction soon, Leonard Green, the Los Angeles private equity firm that bought 9.5% of the chain last summer, could launch a hostile takeover bid. Some analysts have estimated that BJ's could sell for as much as $3 billion at auction.


Groupon, the Chicago online discount coupon site that earlier this month turned down a $6 billion takeover bid from Google, has filed to raise up to $950 million from the sale of preferred stock. Andrew Mason, Groupon's chief executive, is raising money as he considers an initial public offering in 2011. This would be the biggest round of equity financing since Pixar sought approximately $500 million in 1995.

The week ahead

• Estonia joins eurozone, France assumes presidency of the G-8 and G-20, and Hungary assumes the EU presidency effective Saturday, January 1
• U.S. construction spending report released Monday, January 3
• Biglari Holdings, Lennar earnings released Monday, January 3
• U.S. factory orders report released Tuesday, January 4
• ISM Non-Manufacturing Index released Wednesday, January 5
• Novartis, Ruby Tuesday earnings released Wednesday, January 5
• Monsanto, Penfold earnings released Thursday, January 6
• U.S. consumer credit report released Friday, January 7 

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 information included above as well as individual companies and/or securities mentioned should not be construed as investment advice, a recommendation to buy or sell, or 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. Full holdings are also available on the individual Fund Profile tab in the Products and Performance section of mfs.com.

Past performance is no guarantee of future results.


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

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

On December 17, 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was signed into law. In addition to providing a 13-month extension of benefits for the long-term unemployed, the legislation includes a long-anticipated extension of the "Bush tax cuts" that were scheduled to expire on January 1, 2011. Other significant provisions include a new alternative minimum tax (AMT) "patch," a major modification of the estate tax, and a new 1-year 2% employee Social Security payroll tax reduction.

Income tax rates

The Act extends existing federal income tax rates for 2 additional years. As in 2010, the federal tax bracket rates for 2011 and 2012 will be 10%, 15%, 25%, 28%, 33%, and 35%. (Without this legislation, federal income tax rates would have increased beginning in 2011--the current 10% federal income tax bracket would have disappeared, and the five remaining tax brackets would have been 15%, 28%, 31%, 36%, and 39.6%.)

Tax rates for long-term capital gain and qualifying dividends

Existing tax rates for long-term capital gains and qualifying dividends are also extended through 2012. As a result, long-term capital gain and qualifying dividends will continue to be taxed at a maximum rate of 15%. For individuals in the 10% or 15% marginal income tax bracket, a special 0% rate will generally continue to apply.

Alternative minimum tax (AMT)

The Act includes another temporary "patch" for the AMT--this one good for 2010 and 2011. AMT exemption amounts are slightly increased, and personal nonrefundable tax credits will be allowed to offset AMT liability through 2011.

AMT exemption amounts	2010	2011
Married filing jointly	$72,450	$74,450
Single or head of household	$47,450	$48,450
Married filing separately	$36,225	$37,225

Estate tax

The Act makes several major-- though temporary-- changes to the federal estate tax, including:

• For 2011 and 2012, the estate tax exemption amount (the applicable exclusion amount) will be $5 million per person (the $5 million will be indexed for inflation in 2012); the top estate and gift tax rate for these years will be 35%
• The $5 million exemption amount and 35% top estate tax rate will apply retroactively to 2010 as well, but for individuals who died in 2010, an election can be made to choose the estate tax provisions effective prior to this legislation (i.e., no estate tax, but modified carryover basis rules); an extended due date is provided for individuals who died on or after January 1, 2010, but before December 17, 2010.
• Beginning in 2011, the gift tax (reunified with the estate tax) will have a $5 million dollar exemption amount; the generation-skipping transfer tax, with a $5 million exemption effective January 1, 2010, will have a 0% tax rate for 2010, and a 35% rate for 2011 and 2012
• For 2011 and 2012, when one spouse dies, any unused portion of that spouse's estate tax exemption amount may be transferred to the surviving spouse

One-year reduction in employee payroll tax

For the 2011 year, the employee portion of the Social Security retirement component of FICA employment tax is reduced by 2%. Normally equal to 6.2% of covered wages up to the taxable wage base ($106,800 in 2011), for 2011 this rate will be reduced to 4.2%. Self-employed individuals, who normally pay 12.4% for the Social Security portion of their self-employment taxes, will also benefit from a 2% reduction, paying the tax at a rate of 10.4% for 2011.

"Bonus" depreciation

The Economic Stimulus Act of 2008 and the American Recovery and Reinvestment Act of 2009 allowed an additional 50% depreciation deduction for qualifying property placed in service during 2008 and 2009. This additional depreciation deduction was allowed for purposes of the alternative minimum tax (AMT) calculation, as well as regular tax. The Small Business Jobs Act extended the 50% additional first-year depreciation deduction for one year to apply to qualified property acquired and placed in service during 2010.

This Act increases the bonus depreciation percentage to 100% for property acquired and placed in service after September 8, 2010 and before January 1, 2012. The Act extends bonus depreciation at the 50% level through 2012 (50% bonus depreciation will apply for property placed in service after December 31, 2011, and before January 1, 2013).

IRC Section 179 expense limits

Section 179 of the Internal Revenue Code allows businesses to elect to deduct the cost of depreciable tangible personal property acquired for use in the business in the year of purchase, rather than through depreciation deductions. Since 2003, several pieces of legislation have temporarily expanded the limits that apply to Section 179.

Most recently, the Economic Stimulus Act of 2008 and the American Recovery and Reinvestment Act of 2009 increased the maximum amount that can be expensed to $250,000 for tax years beginning in 2008 and 2009. This amount was reduced by the amount by which the cost of qualifying property placed in service during the year exceeded $800,000. For tax years 2010 and 2011, the Small Business Jobs Act increased the maximum amount that may be expensed under Section 179 to $500,000 and increased the phase-out threshold amount to $2 million.

For 2012, the dollar limit amount and phase-out threshold level were scheduled to drop to $25,000 and $200,000, respectively. This Act sets the IRC Section 179 expense limit for 2012 at its 2007 level--$125,000, with a phase-out threshold of $500,000--indexed for inflation.

Small business stock exclusion

Noncorporate investors may generally exclude 50% of any capital gain from the sale or exchange of qualified small business stock (generally, stock issued by domestic C corporations whose assets do not exceed $50 million) issued after August 10, 1993 (if a five-year holding period requirement and other requirements are met). The Small Business Jobs Act temporarily increased the exclusion percentage for qualified small business stock acquired during 2010 to 100%, and does not treat the excluded gain as an alternative minimum tax preference. Therefore, no regular tax or alternative minimum tax is imposed on the sale of qualified small business stock issued and acquired after September 27, 2010, and before January 1, 2011, and held at least five years.

This Act extends the 100% exclusion for one year--to qualifying stock acquired before January 1, 2012, and held for more than five years.

Education provisions

• The Act extends the American Opportunity tax credit (known as the Hope tax credit before being significantly-- though temporarily--modified by the American Recovery and Reinvestment Act of 2009). The American Opportunity Tax Credit's higher maximum credit amount, increased income limits, expanded applicability to the first four years of college, and potential refundability, available in 2009 and 2010, are extended through 2012.
• The current rules that apply to Coverdell Education Savings Accounts (e.g., $2,000 annual contribution limit, education expenses expanded to include elementary and secondary school expenses) are also extended through 2012. Without this change, the annual contribution limit would have dropped to $500 beginning January 1, 2011.
• For the student loan interest deduction, increased income limits and the suspension of the 60-month rule, which would have expired at the end of 2010, are extended for 2 years (the deduction was, prior to 2001, limited to interest paid in the first 60 months of repayment).
• The deduction for qualified higher education expenses, which expired at the end of 2009, is retroactively reinstated for 2010, and extended through 2011.

Other provisions--individuals

Provisions extended through 2012 include:

• Itemized deductions and personal and dependency exemptions will not be reduced for higher-income individuals
• "Marriage penalty" relief in the form of an expanded 15% tax bracket and an increased standard deduction amount for married individuals filing jointly
• Exclusion of up to $5,250 in employer-provided education assistance for undergraduate and graduate education
• Increased earned income tax credit (EITC) for families with 3 or more children, and increased EITC income limits for married couples filing jointly
• Increased child tax credit amount with expanded refundability (15% of earnings above $3,000)
• Expanded credit for child and dependent care expenses (increased limit on eligible expenses and maximum credit percentage)
• An increased adoption tax credit and employer-paid adoption assistance exclusion amount; the credit also remains refundable

Provisions retroactively reinstated for 2010 and extended through 2011 include:

• The deduction for state and local sales tax in lieu of state and local income tax on Schedule A
• The $250 above-the-line deduction for elementary school and secondary schoolteacher classroom expenses
• Increased contribution limits and carryforward period for contributions of capital gain property for conservation purposes
• Tax-free distributions to charitable organizations from IRAs by individuals age 70 1/2 or older (up to $100,000 per year); a special provision in the Act allows qualifying individuals to treat a distribution made from an IRA to a charity in January, 2011, as if it were made in 2010

Provisions extended for one year (through 2011):

• Increased monthly exclusion amount for employer-provided transit and vanpool benefits
• Mortgage insurance premiums deductible as qualified residence interest, subject to an adjusted gross income (AGI) limitation

The Act also reinstates the tax credit for energy-efficient improvements to existing homes for 2011, but as it applied prior to the American Recovery and Reinvestment Act of 2009 (e.g., a 10% credit rate generally applies).

Other provisions--businesses

Provisions extended through 2011 include:

• Research and development credit
• Indian employment credit
• New Markets tax credit
• Employer wage credit for activated military reservists
• Enhanced charitable deductions for contributions of food inventory, book inventories, and computer equipment
• Work opportunity tax credit

--see disclaimer below--

Week in Review: Market activity light as investors prepare for holidays and set sights on 2011

Global economic news

U.S. economy sees uptick as GDP revised slightly higher
The U.S. gross domestic product (GDP) grew at an annual pace of 2.6% in the third quarter, according to the U.S. Department of Commerce. GDP, the value of all goods and services produced, is the broadest measure of a country's economic activity. While the revised third-quarter GDP figure is slightly higher than the initial reading of 2.5%, it falls below the 2.7% level projected by many economists. The economy grew at a 1.7% annual rate in the second quarter.


Wave of credit downgrades threaten eurozone
The European sovereign debt crisis was on the minds of investors and market watchers around the world as Moody's Investors Service warned that it may lower Portugal's credit rating by as much as two notches. The warning came less than a week after the agency said it may downgrade its rating on Spanish and Greek government debt. On December 17, Moody's slashed Ireland's credit rating five levels to "Baa1" from "Aa2," leaving the country just above speculative grade or junk status. France is also at risk of losing its top "AAA" rating, and Belgium is facing a possible cut. Further credit rating downgrades could make it more costly for eurozone periphery nations to borrow in capital markets.


Existing home sales edge 5.6% higher in November
The National Association of Realtors said that sales of previously occupied homes in the United States increased to a 4.68 million annual rate in November, up 5.6% from October's 4.43 million. It was the third increase in sales of existing U.S. homes in the past four months.


Gas, oil prices up
Increased demand for petroleum has resulted in a 4% jump in gasoline prices since last month while crude oil prices rose above $90 per barrel for the first time since October 2008.


ECB to lend European banks $197 billion
The European Central Bank agreed to meet the liquidity needs of eurozone banks by lending them 149.5 billion euros ($196.8 billion USD) over a period of three months. While the central bank decided against giving 6- and 12-month loans, President Jean-Claude Trichet said that it will keep offering banks as much cash as needed through the first quarter of 2011 to help restore lending in the region.


U.S. initial jobless claims drop again
The U.S. Department of Labor reported that the number of Americans filing new unemployment claims decreased to 420,000 in the week ended December 18. The latest number of filings represents 3,000 fewer claims than the previous week's total.


Americans using less of their income to pay down debt
U.S. household financial obligations as a share of after-tax income fell to 16.78% in the third quarter from 16.97% the previous quarter. The drop indicates that Americans are allocating a smaller portion of their paychecks to paying off personal debt.


Airlines set to record biggest profits in over 10 years
The U.S. Department of Transportation reported that operating profits for airlines in the United States surpassed $7.1 billion in the first nine months of 2010. The figure exceeds the industry's full-year profit figures going back to at least 1999 when airlines reported profits of $6.89 billion for a full 12 months. This year's strong results are due in part to airfares, which are 13% higher than last year. New fees, including baggage fees, have also led to higher profits for the industry. According to the Bureau of Transportation Statistics, the industry collected $2.1 billion in fees during the third quarter alone. The airline industry lost more than $5.5 billion in 2008 at the height of the global recession.

Global corporate news

Global M&A activity jumps 16% in 2010
Deals in emerging markets helped spur a 16% increase in global mergers and acquisitions activity this year. According to preliminary data from Mergermarket, firms in developing countries closed 2,570 transactions worth a total $502.6 billion in the year to date. This figure represents a 42.9% increase over last year's $351.8 billion.

The year's two biggest deals were America Movil's $28.1 billion takeover of Carso Global Telecom and GDF Suez Energy International's $27.3 billion union with International Power. As more companies are seeking ways to spend their significant cash piles outside of their home markets, many industry analysts expect to see a continued upswing in M&A activity in emerging markets in 2011.


Other mergers and acquisitions news
Russian potash fertilizer producers OAO Uralkali and OAO Silvinit announced a long-anticipated merger earlier in the week. Uralkali reported that it is buying a 20% stake in Silvinit for $1.4 billion. The union will create a company with a market capitalization of nearly $24 billion.

Canada's Toronto-Dominion Bank agreed to purchase Chrysler Financial, the auto lender owned by private equity firm Cerberus Capital Management, for $6.3 billion. As part of the deal, Cerberus will retain about $1 billion of non-auto assets. The deal will place TD Bank in the top-five North American auto lenders. Chrysler Financial is no longer affiliated with the automaker whose name it bears.


Earnings update


ConAgra Foods reported a drop in profit for its fiscal second quarter ended November 28. Profit fell 16%, dropping to $200.9 million from $239.7 million a year ago. Net sales increased 2% to $3.16 billion, exceeding analysts' projections.


Adobe recorded a profit of $268.9 million for its fiscal fourth quarter ended December 3, up from a year-earlier loss of $32 million. The maker of Photoshop and Illustrator design software cited strong product sales and subscription revenue as reasons for its strong performance.


Walgreens said its profit for the quarter ended November 30 was $580 million, up 19% from the $489 million profit the drugstore chain reported a year earlier.


Dillard's appears to be on the verge of a comeback following a strong third quarter. The department store chain posted net income of $14.4 million, up from $8 million a year ago. Dillard's, after nearly three years of financial troubles, seems to have turned things around by shuttering stores that did not report strong sales numbers, doing a better job tracking inventory, and buying higher quality products.

The week ahead

• Japan's CPI, industrial production figures, and unemployment rate released Monday, December 27
• S&P/Case-Shiller Home Price Indices for 20 U.S. cities released Tuesday, December 28
• France's GDP released Tuesday, December 28
• U.S Conference Board's Consumer Confidence Index released Tuesday, December 28
• Initial jobless claims figures for U.S. released Thursday, December 30
• Chicago Purchasing Managers Index released Thursday, December 30
• Italy's ISAE Manufacturing and Mining Survey released Thursday, December 30
• Cal-Maine Foods, Redbook earnings released

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 information included above as well as individual companies and/or securities mentioned should not be construed as investment advice, a recommendation to buy or sell, or 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. Full holdings are also available on the individual Fund Profile tab in the Products and Performance section of mfs.com.
.
Past performance is no guarantee of future results.

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

Week in Review: Markets trend slightly upward on signs of growth

U.S. economic news

U.S. Congress passes $800 billion tax cut
After much negotiation, Congress approved an $858 billion bill, with $801 billion in tax cuts and $57 billion for extended unemployment insurance. The bill had bipartisan support as both Democratic and Republican lawmakers sought to prevent the across-the-board tax increase that would have occurred with the expiration of Bush administration tax cuts set for December 31.

Fed reaffirms plan to buy bonds
The Fed restated its intention to buy $600 billion in government securities in the next half year in an ongoing effort to stimulate the U.S. economy, bring down high unemployment, and avert deflation.


U.S. retail sales rise again; economic growth revised upward
Retail sales rose for the fifth-straight month in the United States, according to the U.S. Department of Commerce, matching their highest level since November 2007, before the recession began. Retail sales increased by 0.8% in November, and the October sales figure was bumped up to 1.7% growth from a previously estimated 1.2% increase. The stronger-than-expected retail sales prompted Macroeconomic Advisers to boost its tracking forecast for fourth-quarter gross domestic product to 3.1% from 2.7%.

Eurozone's weakest economies struggle
Despite signals of eurozone optimism this week, negative developments focused on the struggling economies of Spain, Greece, and Ireland. Moody's Investors Service downgraded Ireland's debt by five levels, to Baa1 from Aa2, a drop that reflected that the country's staggering banking losses and vulnerability to further economic weakness. Moody's also announced that it would put Spain's Aa1 government bond ratings on review for a possible downgrade. Meanwhile, Greek workers staged a nationwide general strike in protest against government austerity measures. Transportation was almost brought to a standstill. Hundreds of flights were cancelled and ferry and rail services suspended. Government offices, courts, hospitals, and schools were also affected.

EU summit produces accord
At an economic summit, European Union leaders agreed to create a mechanism that would contain future debt crises through cross-border guarantees between member states. The agreement led to strengthening of the euro against 15 of its most-traded counterparts.

German business confidence soars
German business confidence rose to its highest level since 1991, with the Munich-based Ifo institute's business climate index hitting 109.9 in December, up from 109.3 in November. Germany's unemployment rate fell for the seventeenth straight month in November, reaching its lowest rate - 7.5% - since April 1992.

German investor confidence also rose in December, with the German ZEW expectations survey climbing for the second month in a row, supported by increasingly broad-based economic growth. Expectations in the survey rose to 4.3 from 1.8 in November.


European economic growth uneven
Industrial production across the 16-country Eurozone grew 0.7% in October, the most recent month reported, and 6.9% annually, according to Eurostat, the European Commission's economic statistics agency. Also, while employment contracted 0.7% in both Greece and Spain during the third quarter, it grew 0.3% in Germany and 0.2% in France over the same period.

India, China forge stronger ties
A high-profile visit to India by Chinese Premier Wen Jiabao and 400 business executives set the stage for $20 billion in announced business deals between China and India. The countries set a $100 billion target for bilateral trade by 2015. India-China trade is expected to exceed $60 billion this fiscal year, up from $42 billion for the last fiscal year.

Inflation high in both India and China
India's annual inflation rate eased in November but remained elevated at 7.48%, down from 8.58% the previous month. Meanwhile, China's consumer price index increased 5.1% in November from a year earlier. China's government said it would raise its inflation target for 2011 to 4% from 3% this year. Observers noted that this could be a sign of greater tolerance for inflation, which could mean less aggressive tightening going forward.


U.S. jobless claims down
The number of U.S. workers filing initial claims for unemployment insurance fell by 3,000 to 420,000 in the week ended December 11, the U.S. Department of Labor reported. The four-week average confirmed the positive trend, declining by 5,250 to 422,750, its lowest level since August 2, 2008.


U.S. inflation tame
The U.S. Consumer Price Index increased 0.1% in November from October. The core CPI, excluding food and energy costs, also rose 0.1%. For the 12 months ended in November, prices rose 1.1% overall and 0.8% for the core CPI. This indicates inflation is not an immediate concern for the Fed, which frees it to pursue more stimulative action.

Global economic news

FedEx raises earnings outlook, is optimistic about global economy
Despite an 18% decline in quarterly profit, FedEx raised its annual earnings forecast on optimism about global economic trends. The courier, the world's largest international package-shipping firm, is viewed as an economic bellwether. Its quarterly results were brought down by legal charges and restructuring costs, but its international air freight business had improved demand and pricing.

Oracle posts robust profits
Oracle's second-quarter earnings rose 28% on strength in the business-software giant's traditional software business and its new hardware line. The company attributed the robust results to strong revenue growth and disciplined business management.


National Semiconductor earnings soar
Sharply higher sales and improved profit margins led National Semiconductor to a 78% jump in second-quarter profit. However, the chip maker issued a lukewarm revenue outlook.


RIM's profit soars on Blackberry sales
Canadian Blackberry maker Research in Motion's quarterly earnings leapt 45% as the sales volume of the company's popular smart phones rose 40% from a year earlier in the most recent quarter. However, the company faces tough competition from Apple's iPhone and Google's Android platform.


Bank of Montreal, Canada's fourth-largest bank, said it will acquire Marshall & Isley, a Milwaukee, Wisconsin-based bank, in a $4.1 billion share swap that will double BMO's presence in the U.S.

The week ahead

• Third quarter U.S. GDP estimate released Wednesday, December 22
• Final figures for third quarter UK GDP released Wednesday, December 22
• U.S. durable goods orders for November due out Thursday, December 23
• University of Michigan Consumer Sentiment Index released Thursday, December 23
• Nike, Carnival, and Walgreen's earnings reports due

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 information included above as well as individual companies and/or securities mentioned should not be construed as investment advice, a recommendation to buy or sell, or 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. Full holdings are also available on the individual Fund Profile tab in the Products and Performance section of mfs.com.


Past performance is no guarantee of future results.

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

Week in Review: Bond prices slump; stocks wobble amid U.S. tax deal squabbling

U.S. economic news

Democrats push back against tax compromise plan
Democrats in the U.S. House of Representatives withheld support for President Obama's tax package on Thursday by agreeing not to vote on the newly negotiated tax package in its current form. A leading Republican said the deal, highlighted by extensions of Bush-era tax cuts for two years and long-term jobless benefits, is flawed because it fails to address fiscal austerity measures that will be needed to help reduce the mounting federal deficit. Despite the Democrats' nonbinding resolution, the tax measure moved closer to passage in the Senate.


Consumer credit jumps in October
The U.S. Federal Reserve Board reported that the level of consumer borrowing in the United States rose to $2.4 trillion in October, an increase of $3.4 billion from September. The increase, the most in more than two years, was largely the result of a $9 billion increase in nonrevolving credit, which includes categories such as car loans, to $1.6 trillion. Revolving credit, almost entirely credit card debt, dropped 8.4% for the month, meaning that credit card use has fallen for a record 26th straight month.


Jobless claims drop
The U.S. Department of Labor said that the number of Americans filing initial unemployment claims fell to 421,000 in the week ended December 4. The figure is a decrease of 17,000 from a revised 438,000 claims filed the previous week.

U.S. and global corporate news

Three retailers head into holiday season with strong earnings
Talbots reported that its profit for the fiscal third quarter ended October 30 increased to $17 million from $14.6 million on higher margins. Still, the retailer lowered its earnings forecast for the year, raising concerns about its turnaround plan. Despite cutting debt, buying out its largest shareholder, and revamping its clothing line, revenue in stores open at least one year fell 7.1% for the same period.


Neiman Marcus Group, operator of its namesake store and Bergdorf Goodman, said its profit rose to $25.7 million for the quarter ended October 30. The latest figure, more than triple the $8.5 million profit the company reported a year ago, could be an indication that sales of luxury goods are on the rebound.


Costco posted a profit of $312 million for its first quarter ended November 21, up 18% from $266 million a year earlier. Revenue increased 11% to $19.24 billion, while sales increased 11% to $18.82 billion.

Global economic news

Eurozone officials disagree over size of bailout fund
Eurozone finance ministers met this week to discuss a number of issues, including the rescue package for Ireland, the creation of a temporary bailout fund for other struggling economies, and the possible establishment of a debt agency to issue "e-bonds" in lieu of national debt. Officials are split on the need to increase the size of any bailout fund as German Chancellor Angela Merkel rejected calls from Belgium and central bankers to boost the European Union's 750 billion euro emergency fund or begin joint bond sales to save countries such as Portugal and Spain.


Ireland's credit rating cut three levels
Ireland's credit rating was lowered to "BBB+" from "A+" by Fitch Ratings. It is the second downgrade of the country by Fitch in two months. Ireland agreed to an 85 billion euro bailout from European governments and the International Monetary Fund on November 28.


RBA, BOE hold rates steady
Australia's central bank voted this week to keep its benchmark interest rate unchanged at 4.75%. The Reserve Bank of Australia (RBA) said it expects inflation to remain contained over the "next few quarters." The Bank of England's Monetary Policy Committee also left its key interest rate unchanged at its all-time low rate of 0.5%.

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 information included above as well as individual companies and/or securities mentioned should not be construed as investment advice, a recommendation to buy or sell, or 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. Full holdings are also available on the individual Fund Profile tab in the Products and Performance section of mfs.com.

Past performance is no guarantee of future results.


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


--see disclaimer below--

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--