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Week Ended January 20, 2012

Stocks rose for the week and reached toward levels last seen in the summer as investors continued to take encouragement from economic data and proved generally satisfied with early fourth-quarter earnings reports. On Tuesday, the first day of trading after the holiday weekend, the Federal Reserve Bank of New York reported that its regional manufacturing index had reached its best level in nine months. Data released later in the week generally confirmed a nationwide pickup in factory activity. A rise in a gauge of homebuilder confidence, together with a good pace of existing home sales in December, helped brighten the outlook for the housing sector. On Thursday, the Labor Department reported that weekly jobless claims had plunged by 50,000 to 352,000, near a four-year low. Overseas economic developments were also generally supportive, even as the World Bank lowered its global growth forecast for the coming year. Greece appeared to be making progress in reaching a deal with creditors to lower the face value of its debt by half a "haircut" that many view as necessary for Greece to avoid default on its sovereign debt. The International Monetary Fund also announced plans to bolster its lending resources by $500 billion. Earnings reports were mixed during the week. In the financials sector, disappointing earnings from Citigroup appeared to confirm weakness among banks, but better-than-expected results from other financial giants later in the week eased concerns. Similarly, in the technology sector, robust but below-expectations earnings from Google appeared to be offset by a strong outlook from IBM.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	12720.48	298.42	4.12%
S&P 500	1315.38	26.29	4.59%
NASDAQ Composite	2786.70	76.03	6.97%
S&P MidCap 400	930.64	24.04	5.82%
Russell 2000	784.70	20.49	5.93%

This chart is for illustrative purposes only and does not represent the performance of any specific security. Past performance cannot guarantee future results.

¹Source of data Reuters, obtained through Yahoo! Finance Closing data as of 4 p.m. ET.

²The Dow Jones Industrial Average and the Standard & Poor's 500 Stock Index of blue chip stocks, the Standard & Poor's MidCap 400 Index, and the Russell 2000 Index are unmanaged indexes representing various segments by market capitalization of the U.S. equity markets. The Nasdaq Composite is an unmanaged index representing the companies traded on the Nasdaq stock market and the National Market System.

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U.S. Bond Market

Week Ended January 20, 2012

December housing starts fell 4.1% from November into December, but the numbers are somewhat deceiving. The weakness occurred primarily in the volatile multifamily sector, which should begin to expand as rental vacancies decline. A more telling figure for housing overall is single-family housing starts, which rose 4.4%, indicating that a gradual recovery in this area is under way. Single-family housing construction has been increasing since fall 2011 and, if the trend continues, could contribute 0.3 percentage points to real gross domestic product growth in 2012, according to T. Rowe Price estimates. In the labor market, initial jobless claims declined by 50,000 to 352,000 during the week ended January 14. Other data released during the week show that consumer core inflation remains moderate, which allows the Fed to continue its low interest rate policy in its effort to foster economic growth. Treasury yields rose during the week, against the backdrop of slow but steady progress on the economy.

U.S. Treasury Yields¹
Maturity	January 20, 2012	January 13, 2012
2-Year	0.24%	0.22%
10-Year	2.03%	1.87%
30-Year	3.10%	2.91%

This table is for illustrative purposes only. Past performance cannot guarantee future results.

¹Source of data: Bloomberg.com, as of 4 p.m. ET Friday, January 20, 2012.

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International Market

Week Ended January 13, 2012

International Stocks

Foreign stock markets closed higher for the week ending January 13, 2012 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 0.62%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	0.62%	0.21%
Europe ex-U.K.	0.81%	-0.84%
Denmark	-0.41%	-0.32%
France	1.55%	-1.25%
Germany	1.17%	1.89%
Italy	1.84%	-2.63%
Netherlands	-0.22%	-3.54%
Spain	2.23%	-3.35%
Sweden	-0.16%	0.26%
Switzerland	0.03%	-1.09%
United Kingdom	-1.08%	-0.55%
Japan	0.84%	0.70%
AC Far East ex-Japan	3.05%	3.63%
Hong Kong	2.13%	2.49%
Korea	2.99%	2.94%
Malaysia	1.25%	1.38%
Singapore	3.55%	6.11%
Taiwan	2.21%	3.28%
Thailand	0.45%	0.04%
EM Latin America	2.79%	5.29%
Brazil	3.89%	7.04%
Mexico	-0.09%	0.52%
Argentina	0.85%	11.76%
EM (Emerging Markets)	2.80%	4.03%
Hungary	9.99%	1.76%
India	4.71%	8.43%
Israel	1.04%	6.94%
Russia	1.88%	5.62%
Turkey	4.08%	2.64%

International Bond Markets

International bond markets in developed countries were higher this week, with the J.P. Morgan Global Government Bond Less U.S. Index gaining 0.58%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	0.58%	-0.94%
Europe
Denmark	-0.20%	-2.75%
France	1.59%	-2.83%
Germany	0.23%	-1.98%
Italy	1.74%	-1.11%
Spain	2.19%	-2.61%
Sweden	-0.25%	-2.01%
United Kingdom	-0.24%	-1.54%
Japan	0.29%	0.06%
Emerging Markets	-0.41%	-0.80%
Argentina	0.25%	3.55%
Brazil	-0.68%	-0.97%
Bulgaria	0.15%	0.27%
Russia	0.54%	0.77%

International Currency Markets

On the currency front, the U.S. dollar was stronger against the major currencies for the week.


Currency	Close (January 13, 2012)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	76.980	-0.18%	0.05%
Euro	1.2667¹	0.37%	2.43%
British pound	1.5285¹	0.80%	1.65%

¹U.S. dollars per national currency unit.

Sources: Foreign stock markets and currency sections are from Rimes Technologies, using MSCI data. International bond markets are from J.P. Morgan.

Note: All returns are in U.S. dollars. All bond indices are J.P. Morgan. All stock indices are Morgan Stanley Capital International (MSCI).

Equity Indices
EAFE:	MSCI Europe, Australasia, and Far East Index
Europe Ex-U.K.:	MSCI Europe ex-U.K. Index
Far East Ex-Japan:	MSCI AC Far East ex-Japan Index
Latin America:	MSCI Emerging Markets Latin America Index
Emerging Markets:	MSCI Emerging Markets Index

Bond Indices
Developed Markets:	J.P. Morgan Global Government Bond Less U.S. Index
Emerging Markets:	J.P. Morgan Emerging Markets Bond Index Plus

All charts are for illustrative purposes only and do not represent the performance of any specific security. Past performance cannot guarantee future results.