Week Ended March 11, 2011

Stocks ended lower for the week, due mostly to a steep sell-off on Thursday. Signs of weakness in the semiconductor market led the technology-oriented Nasdaq to fall more sharply than the broader indexes. Investors remained preoccupied with turmoil overseas and its affect on the U.S. economy, particularly in the form of higher energy prices. Libya's oil production remained curtailed as intense fighting continued between rebel and government forces. Worries that political unrest might spread to Saudi Arabia may have played a role in the steep downturn on Thursday, although a "Day of Rage" scheduled for Friday appeared to pass without serious incident. Investors were also discouraged by news of a surprising monthly trade deficit in China, a ratings downgrade for Spain's debt, and a surprisingly large jump in weekly jobless claims in the U.S. News of the catastrophic earthquake in Japan on Friday weighed on European exchanges, but U.S. markets were able to end the week on a positive note as investors appeared to focus on favorable retail sales in the U.S.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	12043.94	-125.94	4.03%
S&P 500	1304.28	-16.87	3.71%
NASDAQ Composite	2715.61	-69.06	2.36%
S&P MidCap 400	952.94	-15.61	5.04%
Russell 2000	805.20	-19.47	2.54%

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 March 11, 2011

A devastating earthquake struck Japan, killing hundreds and roiling global financial markets. The 8.9 magnitude quake was the largest to hit Japan in more than 100 years and was one of the largest ever recorded. U.S. Treasuries benefited from the flight to safety following the destruction as investors drove up prices and pushed yields lower for the week (bond prices and yields move counter to each other). The U.S. dollar also rose against the euro and other foreign currencies. Earlier in the week, news that the U.S federal budget deficit had soared to an all-time monthly high of $222.5 billion in February and was on track for an annual shortfall of $1.5 trillion troubled investors. In addition, China reported that it suffered a rare trade deficit in February and Moody's announced that it was lowering Spain's sovereign debt rating. All in all, there was little to cheer investors looking for signs that the global economy was firmly on the path of a sustained upturn.

U.S. Treasury Yields¹
Maturity	March 11, 2011	March 4, 2011
2-Year	0.62%	0.67%
10-Year	3.39%	3.48%
30-Year	4.54%	4.60%

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, March 11, 2011.

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International Market

Week Ended March 4, 2011

International Stocks

Foreign stock markets closed higher for the week ending March 4, 2011 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 0.92%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	0.92%	5.67%
Europe ex-U.K.	1.01%	7.51%
Denmark	1.91%	7.70%
France	0.69%	9.85%
Germany	1.65%	7.95%
Italy	1.05%	14.14%
Netherlands	2.16%	9.62%
Spain	-1.71%	11.99%
Sweden	1.48%	1.82%
Switzerland	0.95%	3.28%
United Kingdom	1.08%	6.39%
Japan	0.63%	4.66%
AC Far East ex-Japan	3.56%	-0.46%
Hong Kong	2.08%	-0.66%
Korea	3.70%	1.05%
Malaysia	2.92%	1.67%
Singapore	0.95%	-3.56%
Taiwan	3.87%	-2.21%
Thailand	1.91%	-2.58%
EM Latin America	2.52%	-1.04%
Brazil	2.73%	0.45%
Mexico	1.07%	-1.65%
Argentina	0.54%	-8.90%
EM (Emerging Markets)	3.57%	-0.89%
Hungary	1.61%	15.72%
India	5.22%	-10.76%
Israel	1.00%	-5.28%
Russia	3.78%	12.93%
Turkey	-1.47%	-12.88%

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 0.16%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	0.16%	0.40%
Europe
Denmark	0.80%	2.09%
France	0.94%	2.48%
Germany	0.87%	2.11%
Italy	1.49%	4.17%
Spain	1.92%	5.84%
Sweden	1.05%	5.51%
United Kingdom	1.22%	2.51%
Japan	-0.97%	-2.46%
Emerging Markets	0.78%	0.13%
Argentina	1.10%	-4.61%
Brazil	0.35%	0.53%
Bulgaria	0.88%	0.95%
Russia	1.28%	2.04%

International Currency Markets

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


Currency	Close (March 4, 2011)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	82.375	0.78%	1.54%
Euro	1.399¹	-1.76%	-4.28%
British pound	1.6265¹	-1.20%	-3.89%

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.