Week Ended February 11, 2011

Stocks gained for the week. The large-cap S&P 500 Index moved within a few points of doubling off its bear market low (666.79) reached in March 2009—a threshold already crossed by the Nasdaq and smaller-cap indexes. Healthy gains in Europe and news of more merger and acquisition activity helped stocks move higher on Monday. On Tuesday, a strong January sales report from McDonalds helped lift consumer stocks and helped counteract market jitters about the Chinese central bank's decision to increase interest rates to head off inflation. News on Friday that Egypt's President Mubarak would accede to protestors' demands and resign appeared to help drive a modest rise in stock prices to end the week. Investors appeared to take the week's economic data in stride. Weekly jobless claims fell sharply to a three-year low, although Federal Reserve Chairman Ben Bernanke warned in testimony before Congress that despite recent improvement in the labor market "it will be several years before the unemployment rate has returned to a more normal level."

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	12273.26	181.11	6.01%
S&P 500	1329.15	18.28	5.69%
NASDAQ Composite	2809.44	40.14	5.90%
S&P MidCap 400	969.50	24.55	6.86%
Russell 2000	820.78	20.66	4.52%

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 4:10 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 11, 2011

A glimmer of sunshine finally appeared in the housing market with news that well-heeled buyers have been paying cash for distressed properties in some of the hardest-hit areas of the country. More than half of the homes purchased in the Miami-Fort Lauderdale area were all-cash deals in 2010, according to real estate portal Zillow.com. The story was similar in Phoenix, Arizona, where 42% of the transactions were cash, triple the rate of two years earlier. In Las Vegas the figure was about 46%, up from only 10% in 2006. Nationally, 28% of real estate sales were all-cash, up from 14% in 2008, based on a survey by the National Association of Realtors. The news was particularly welcome since even qualified buyers are experiencing long delays in closing on mortgages in a tight underwriting environment. Some analysts speculated that housing prices may be at or near a bottom, which would bode well for a firming economic recovery. Treasury yields were mixed on the week; long-term bond yields fell slightly while the yields on shorter-term notes rose.

U.S. Treasury Yields¹
Maturity	February 11, 2011	February 4, 2011
2-Year	0.83%	0.75%
10-Year	3.63%	3.64%
30-Year	4.70%	4.74%

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 11, 2011.

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International Market

Week Ended February 4, 2011

International Stocks

Foreign stock markets closed higher for the week ending February 04, 2011 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 1.72%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	1.72%	4.04%
Europe ex-U.K.	0.47%	5.09%
Denmark	-1.81%	0.59%
France	0.61%	6.97%
Germany	0.94%	5.13%
Italy	2.29%	12.79%
Netherlands	1.40%	5.35%
Spain	0.37%	12.83%
Sweden	-1.18%	1.68%
Switzerland	-0.71%	-0.52%
United Kingdom	3.48%	4.70%
Japan	2.06%	2.84%
AC Far East ex-Japan	0.12%	1.83%
Hong Kong	0.67%	3.67%
Korea	-1.73%	3.46%
Malaysia	1.05%	2.30%
Singapore	0.13%	1.29%
Taiwan	-0.07%	3.22%
Thailand	1.70%	-5.87%
EM Latin America	-0.36%	-5.04%
Brazil	-1.28%	-5.77%
Mexico	2.57%	-0.50%
Argentina	-1.28%	-3.29%
EM (Emerging Markets)	0.36%	-1.73%
Hungary	3.04%	14.99%
India	-1.69%	-14.06%
Israel	-2.55%	-2.43%
Russia	4.02%	8.96%
Turkey	5.29%	-5.58%

International Bond Markets

International bond markets in developed countries were lower this week, with the J.P. Morgan Global Government Bond Less U.S. Index losing -0.05%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	-0.05%	-0.79%
Europe
Denmark	-1.22%	-0.88%
France	-0.95%	-0.63%
Germany	-1.07%	-1.03%
Italy	0.67%	2.51%
Spain	1.16%	3.43%
Sweden	-0.23%	2.52%
United Kingdom	0.37%	-0.41%
Japan	0.02%	-2.00%
Emerging Markets	0.50%	-0.39%
Argentina	1.34%	-3.14%
Brazil	-0.06%	0.08%
Bulgaria	-0.08%	-0.60%
Russia	0.59%	0.14%

International Currency Markets

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


Currency	Close (February 4, 2011)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	81.980	-0.38%	1.07%
Euro	1.3554¹	0.52%	-1.03%
British pound	1.6059¹	-1.35%	-2.57%

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.