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Week Ended June 18, 2010

Stocks rose for the second consecutive week, bringing the broad indexes into positive territory for the year to date. Investors appeared to regain confidence in the durability of the global economic recovery, even as the week's economic data proved mixed. Share prices registered sharp gains on Tuesday, seemingly in reaction to some strength in the euro and news of healthy demand at debt auctions in Spain and Belgium. A rise in an index of manufacturing activity in the New York region, which is often viewed as an advance indicator of national data, may have also boosted sentiment. The market managed to hold onto its gains for the rest of the week despite the release of some less encouraging economic data. On Thursday, the Labor Department reported a rise in weekly jobless claims, and a gauge of factory trends in the Philadelphia region fell sharply. A favorable report on machine sales in Asia from equipment giant Caterpillar helped the market end the week on a modestly positive note.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	10450.64	239.57	0.22%
S&P 500	1117.51	25.91	0.22%
NASDAQ Composite	2309.80	66.20	1.79%
S&P MidCap 400	774.27	15.70	6.55%
Russell 2000	667.20	19.37	5.22%

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 June 18, 2010

The May consumer price index fell 0.2%, following a decline of 0.1% in April. At the moment, inflation is not a concern as the economy struggles to gain traction in the face of persistently high unemployment and a sluggish housing market. In this environment, the Federal Reserve is unlikely to start raising short-term interest rates until a sustained economic upturn becomes more evident. The price of gold continues to reach historic new highs as investors seek a safe haven amid global economic uncertainty. Even foreign central banks have joined the gold rush and have been net buyers of the precious metal for the first time since 1997, with India, China, and Russia among the leading buyers. Unlike paper currencies, gold has a tangible value that is independent of any country's economic policies. With budget deficits mounting in the U.S. and Europe, governments have been grappling with measures to rein in their spending. Treasury yields were stable throughout the week, closing at or near their levels of the previous week.

U.S. Treasury Yields¹
Maturity	June 18, 2010	June 11, 2010
2-Year	0.71%	0.73%
10-Year	3.22%	3.23%
30-Year	4.15%	4.15%

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, June 18, 2010.

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International Market

Week Ended June 11, 2010

International Stocks

Foreign stock markets closed higher for the week ending June 11, 2010 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 1.26%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	1.26%	-12.06%
Europe ex-U.K.	3.39%	-16.72%
Denmark	1.52%	5.11%
France	3.38%	-20.18%
Germany	2.39%	-14.27%
Italy	5.22%	-26.76%
Netherlands	2.18%	-12.76%
Spain	8.30%	-31.81%
Sweden	3.27%	0.01%
Switzerland	2.87%	-9.14%
United Kingdom	0.69%	-12.42%
Japan	-2.53%	-3.01%
AC Far East ex-Japan	-0.86%	-6.40%
Hong Kong	0.94%	-5.33%
Korea	-3.02%	-6.06%
Malaysia	-0.25%	5.89%
Singapore	0.05%	-3.96%
Taiwan	-1.31%	-13.35%
Thailand	-0.22%	9.24%
EM Latin America	4.29%	-6.45%
Brazil	4.21%	-10.89%
Mexico	4.64%	2.94%
Argentina	4.39%	1.36%
EM (Emerging Markets)	0.44%	-6.26%
Hungary	2.94%	-20.37%
India	-0.09%	-2.25%
Israel	-2.71%	-9.74%
Russia	-0.76%	-7.71%
Turkey	2.66%	0.49%

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 0.72%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	0.72%	-4.63%
Europe
Denmark	0.51%	-7.92%
France	0.62%	-10.81%
Germany	0.71%	-9.65%
Italy	1.81%	-14.74%
Spain	1.15%	-17.57%
Sweden	0.79%	-4.50%
United Kingdom	0.51%	-5.21%
Japan	0.41%	2.89%
Emerging Markets	0.23%	3.39%
Argentina	-0.55%	-5.25%
Brazil	0.23%	3.68%
Bulgaria	-1.59%	-1.59%
Russia	0.18%	1.79%

International Currency Markets

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


Currency	Close (June 11, 2010)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	91.670	-0.27%	-1.55%
Euro	1.2094¹	-0.48%	15.71%
British pound	1.4552¹	0.04%	9.89%

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.