Week Ended February 25, 2011

Stocks declined for the holiday-shortened week. After returning to work on Tuesday, investors sent the major indexes to their worst daily declines since last August. A disappointing report on U.S. sales from retailing giant Wal-Mart accounted for part of the decline, but investors reacted primarily to a sharp rise in oil prices. The price of crude reached its highest level since the fall of 2008 due to turmoil in Libya, one of the largest oil producers in Africa and a major source of the world's proven oil reserves. The rise in oil prices boosted the stocks of energy producers but weighed on the rest of the market as investors worried about the impact of a potential oil shock on a still-fragile global economic recovery. Oil prices and stocks continued to head in opposite directions on Wednesday, but the market put the brakes on its decline Thursday afternoon, as traders appeared to take comfort in assurances from the International Energy Agency that emergency stockpiles would be deployed to cover temporary production losses in Libya. The major indexes won back a portion of their losses to end the week, as oil futures stabilized and investors welcomed news that a gauge of consumer sentiment had reached a three-year high.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	12130.45	-260.80	4.78%
S&P 500	1319.88	-23.13	4.95%
NASDAQ Composite	2781.05	-52.90	4.83%
S&P MidCap 400	964.21	-17.96	6.28%
Russell 2000	820.68	-13.36	4.51%

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 25, 2011

Violent uprisings in Libya and other countries in the region rocked global financial markets during the week. The price of oil soared above $100 per barrel at one point and drove gasoline at the pump to well over $3.00 a gallon in most areas of the U.S. Gold climbed to more than $1,400 an ounce as investors sought refuge in precious metals and other hard assets. Treasury bonds benefited from the flight to quality, with prices rising and yields slipping by the end of the week. (Bond prices and yields move counter to each other.) On the economic front, new home sales were down 12.6% in January, following the worst year in almost 50 years—the fifth year in a row that new home sales declined. Despite an unexpected increase in existing home sales, prices of previously owned homes tumbled to their lowest level in almost nine years. The only region of the country to see a gain was Washington, D.C. The other 19 cities tracked by Standard & Poor's/Case-Shiller index were weak. Coastal cities in California and the Northeast fared somewhat better than those in the Midwest and Southeast. One ray of sunshine in housing was the news that well-heeled buyers have been paying cash for distressed properties in some of the hardest-hit areas of the country. The government estimated that the U.S. economy grew at an annualized rate of 2.8% in the fourth quarter of 2010, off significantly from the original estimate of 3.2%.

U.S. Treasury Yields¹
Maturity	February 25, 2011	February 18, 2011
2-Year	0.71%	0.75%
10-Year	3.42%	3.58%
30-Year	4.50%	4.69%

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 25, 2011.

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International Market

Week Ended February 18, 2011

International Stocks

Foreign stock markets closed higher for the week ending February 18, 2011 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 2.06%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	2.06%	6.28%
Europe ex-U.K.	1.82%	7.72%
Denmark	2.34%	4.43%
France	1.87%	10.33%
Germany	1.35%	8.92%
Italy	1.86%	15.42%
Netherlands	1.89%	8.77%
Spain	3.35%	15.81%
Sweden	-1.18%	1.01%
Switzerland	2.97%	2.04%
United Kingdom	1.66%	7.51%
Japan	2.98%	5.41%
AC Far East ex-Japan	3.28%	-0.76%
Hong Kong	1.67%	-0.65%
Korea	3.87%	1.14%
Malaysia	2.32%	1.56%
Singapore	0.89%	-2.54%
Taiwan	2.19%	-2.16%
Thailand	8.06%	-4.19%
EM Latin America	2.53%	-2.44%
Brazil	3.47%	-1.49%
Mexico	1.88%	-0.33%
Argentina	0.90%	-6.09%
EM (Emerging Markets)	2.84%	-2.36%
Hungary	1.78%	11.80%
India	3.87%	-12.63%
Israel	2.71%	-1.66%
Russia	-1.80%	4.43%
Turkey	3.16%	-3.88%

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 0.53%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	0.53%	-1.34%
Europe
Denmark	0.83%	-0.31%
France	0.83%	0.07%
Germany	0.83%	-0.22%
Italy	0.70%	2.21%
Spain	0.81%	3.12%
Sweden	1.43%	4.40%
United Kingdom	1.61%	0.89%
Japan	0.04%	-3.79%
Emerging Markets	0.38%	-0.97%
Argentina	1.03%	-3.54%
Brazil	0.73%	-0.66%
Bulgaria	0.63%	-0.27%
Russia	0.25%	0.41%

International Currency Markets

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


Currency	Close (February 18, 2011)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	83.350	-0.05%	2.69%
Euro	1.3637¹	-0.63%	-1.65%
British pound	1.6209¹	-1.30%	-3.53%

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.