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Week Ended June 24, 2011

Large-cap stocks lost early momentum and closed modestly lower for the week, but the technology-oriented Nasdaq and smaller-cap indexes registered gains. The major indexes managed gains on Monday and Tuesday, seemingly in response in part to increasing optimism that Greek Prime Minister Papandreou would survive a no-confidence vote—which he did on Tuesday evening. Greece's leader has been struggling to push through widely unpopular tax increases and spending cuts as part of the austerity program required by the country's lenders. Investors' focus returned to domestic matters on Wednesday. Federal Reserve Chairman Bernanke held a press conference following the central bank's policy committee meeting and appeared to rattle markets by acknowledging that even as the Fed was lowering its growth forecast for the year, he and fellow officials did not "have a precise read on why this slower pace of growth is persisting." A rise in weekly jobless claims reported on Thursday provided confirmation of the slower pace of growth and further weighed on share prices. On Friday, the government reported a surprise rise in May durable goods orders and slightly increased its estimate of economic growth in the first quarter, from an annualized rate of 1.8% to 1.9%. The better economic news appeared to be outweighed by new worries about the health of Italian banks, however, as well as disappointing results from two prominent technology firms.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	11934.58	-69.70	3.08%
S&P 500	1268.44	-3.06	0.86%
NASDAQ Composite	2652.89	36.41	0.00%
S&P MidCap 400	946.00	13.25	4.27%
Russell 2000	796.13	14.25	1.38%

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 24, 2011

If there were any lingering doubts that the U.S. economy had hit a soft patch, they were dispelled during the week. First-quarter economic growth was estimated at an annualized rate of 1.9%, up from an earlier estimate of 1.8%, but still anemic. Existing home sales declined 3.8% in May from the previous month, marking the second consecutive month of falling sales. Home re-sales are now at their lowest level since November 2010. New home sales also fell sharply. The only bright note in the report was that the percentage of distressed sales also fell, indicating that the housing market could be bottoming after a long period of weakness. The median sales price actually rose 3.3%, although that is not unusual during the spring sales season. Federal Reserve Chairman Ben Bernanke acknowledged that the U.S. economy is recovering "somewhat more slowly" than the Fed had expected. Consequently, monetary policy is likely to remain accommodative for an "extended period," with continuing low interest rates as the central bank completes its purchase of $600 billion in Treasury securities by the end of June. Not surprisingly, Treasury yields fell a bit further in the face of the sluggish economic data.

U.S. Treasury Yields¹
Maturity	June 24, 2011	June 17, 2011
2-Year	0.33%	0.37%
10-Year	2.87%	2.93%
30-Year	4.18%	4.19%

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 24, 2011.

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International Market

Week Ended June 17, 2011

International Stocks

Foreign stock markets closed lower for the week ending June 17, 2011 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), losing -0.96%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	-0.96%	1.50%
Europe ex-U.K.	-0.42%	7.62%
Denmark	-4.01%	-0.37%
France	0.03%	10.33%
Germany	0.82%	10.17%
Italy	-0.54%	9.08%
Netherlands	-0.41%	3.14%
Spain	1.82%	12.38%
Sweden	-2.32%	1.36%
Switzerland	-1.49%	7.90%
United Kingdom	-1.25%	2.17%
Japan	-1.34%	-8.71%
AC Far East ex-Japan	-2.43%	-1.42%
Hong Kong	-3.02%	-4.59%
Korea	-1.55%	3.23%
Malaysia	-0.06%	5.98%
Singapore	-2.99%	-3.16%
Taiwan	-3.47%	-4.19%
Thailand	-0.82%	-0.89%
EM Latin America	-1.66%	-6.36%
Brazil	-1.85%	-6.30%
Mexico	0.16%	-5.78%
Argentina	3.21%	-13.04%
EM (Emerging Markets)	-2.15%	-2.85%
Hungary	-2.56%	19.22%
India	-2.74%	-13.08%
Israel	-0.12%	-7.13%
Russia	-3.15%	7.70%
Turkey	-3.97%	-9.51%

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 -0.1%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	-0.10%	4.70%
Europe
Denmark	-0.58%	6.91%
France	-0.60%	7.06%
Germany	-0.36%	7.04%
Italy	-0.39%	8.68%
Spain	-0.77%	8.48%
Sweden	-1.35%	8.46%
United Kingdom	-0.27%	6.25%
Japan	0.25%	1.82%
Emerging Markets	-0.40%	3.88%
Argentina	-3.64%	-3.63%
Brazil	0.02%	5.19%
Bulgaria	-0.18%	3.60%
Russia	-0.39%	4.74%

International Currency Markets

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


Currency	Close (June 17, 2011)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	80.080	-0.14%	-1.28%
Euro	1.4308¹	0.36%	-6.65%
British pound	1.6165¹	0.39%	-3.25%

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.