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Week Ended February 10, 2012

Stocks ended modestly lower for the week as worries about the European debt crisis returned to the fore. Throughout the week, investors kept a close eye on negotiations between Greek officials and other European leaders. Through Thursday, talks seemed to be making progress, as Greek politicians agreed to adopt new austerity measures required for the country to receive additional bailout funds and avoid defaulting on its debt. European markets led U.S. stocks sharply lower on Friday, however, as a new round of protests erupted in Greece, and eurozone finance ministers demanded that austerity measures first be approved in the Greek parliament. In another sign of Europe's troubles, Standard & Poor's announced Friday afternoon that it was downgrading a number of Italian banks. U.S. markets seemed to take the news in stride, however. The week's economic calendar was light overall, although investors may have reacted negatively to news that the Thomson Reuters/University of Michigan index of consumer sentiment had declined a bit in February. Weekly jobless claims declined more than many had expected, however, and businesses continued to build inventories in anticipation of future demand.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	12801.23	-61.00	4.78%
S&P 500	1342.64	-2.26	6.76%
NASDAQ Composite	2903.88	-1.78	11.47%
S&P MidCap 400	964.40	-6.78	9.66%
Russell 2000	813.56	-17.18	9.83%

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 February 10, 2012

Two major financial developments dominated the economic news during the week. On the domestic front, the government announced a $25 billion settlement with banks over foreclosure abuses that will provide relief for an estimated one million borrowers at risk of losing their homes. In international markets, Greece agreed to a series of budget, wage, and pension cuts to prevent a massive default on the country's debt obligations—although a final resolution on the bailout measures remained in doubt at the end of the week. In other news, initial claims for unemployment benefits continued to fall as the pace of U.S. job growth improved, and the U.S. trade deficit widened in December for the second straight month, reflecting higher oil prices and stronger demand for foreign cars. Short- and intermediate-term Treasury yields ended the week higher, while the 30-year yield declined slightly.

U.S. Treasury Yields¹
Maturity	February 10, 2012	February 3, 2012
2-Year	0.27%	0.23%
10-Year	1.97%	1.93%
30-Year	3.12%	3.13%

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, February 10, 2012.

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International Market

Week Ended February 3, 2012

International Stocks

Foreign stock markets closed higher for the week ending February 03, 2012 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 2.27%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	2.27%	8.38%
Europe ex-U.K.	3.18%	9.83%
Denmark	7.32%	11.24%
France	3.20%	9.86%
Germany	3.86%	16.19%
Italy	3.02%	10.30%
Netherlands	2.68%	6.37%
Spain	2.42%	5.90%
Sweden	4.70%	11.78%
Switzerland	1.96%	5.76%
United Kingdom	3.76%	7.61%
Japan	0.08%	4.83%
AC Far East ex-Japan	2.00%	11.67%
Hong Kong	0.35%	10.74%
Korea	0.34%	11.57%
Malaysia	2.23%	6.69%
Singapore	1.56%	16.21%
Taiwan	7.09%	10.97%
Thailand	3.44%	10.14%
EM Latin America	3.88%	16.93%
Brazil	3.64%	19.50%
Mexico	4.45%	12.20%
Argentina	-9.33%	9.89%
EM (Emerging Markets)	3.17%	14.54%
Hungary	3.29%	29.45%
India	3.91%	25.96%
Israel	1.22%	11.74%
Russia	4.51%	19.37%
Turkey	6.37%	26.03%

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 0.41%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	0.41%	1.69%
Europe
Denmark	-0.21%	-1.11%
France	0.95%	1.95%
Germany	-0.22%	0.56%
Italy	2.00%	9.18%
Spain	-0.15%	3.85%
Sweden	0.20%	0.36%
United Kingdom	-0.14%	-0.04%
Japan	0.29%	0.67%
Emerging Markets	1.09%	2.33%
Argentina	0.30%	11.39%
Brazil	0.43%	0.70%
Bulgaria	0.36%	1.89%
Russia	-0.04%	2.53%

International Currency Markets

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


Currency	Close (February 3, 2012)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	76.585	-0.20%	-0.46%
Euro	1.3122¹	0.08%	-1.08%
British pound	1.58¹	-0.85%	-1.67%

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.