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Week Ended July 1, 2011

The S&P 500 recorded its best weekly gain in nearly two years as investors took heart in better U.S. economic data and news of progress in addressing Greece's debt crisis. Markets got off to a good start to the week as confidence grew that the Greek parliament would approve a new round of austerity measures seen as necessary for the country to receive additional economic aid. On Wednesday, the Greek parliament approved the plans by a narrow margin. Investors were also encouraged by an $8.5 billion settlement between Bank of America and institutions that had purchased mortgage-backed securities from Countrywide, which Bank of America absorbed in 2008. Stocks took another leg upward later in the week, following indications of renewed momentum in the manufacturing sector. On Thursday, investors were pleasantly surprised by a rise in the Chicago Purchasing Managers Index. The sector's strength was borne out a national level on Friday, with the release of the Institute for Supply Management's manufacturing index. A bounce in the June index following its May decline appeared to indicate that manufacturers were beginning to recover from dislocations caused by the Japan earthquake and tsunami in March.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	12582.77	648.19	8.68%
S&P 500	1339.67	71.23	6.52%
NASDAQ Composite	2816.03	163.14	6.15%
S&P MidCap 400	995.05	49.05	9.68%
Russell 2000	840.10	43.97	6.98%

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 July 1, 2011

Reassuring news about Greece's debt situation and better economic data in the U.S. encouraged a dramatic reversal in investor sentiment over the week. On Wednesday, the Greek parliament approved a new round of austerity measures seen as necessary for the country to receive additional bailout funds. U.S. economic data also proved reassuring, as gauges of manufacturing activity indicated that the sector was rebounding following disruptions caused by the Japanese earthquake and tsunami in March. A renewed willingness to own riskier assets led investors to shun government bonds and was partially responsible for a sharp rise in Treasury yields over the week, but anemic auction demand had a more direct effect. On Monday, an auction of two-year notes received the lowest demand in more than two years, by one measure, and an auction of seven-year notes on Tuesday was met with little enthusiasm as well. Treasury securities were also in the spotlight due to the apparent deadlock in congressional negotiations over raising the federal debt limit. The government could default on its obligations within weeks unless an agreement is reached, although most observers appear to expect a last-minute compromise.

U.S. Treasury Yields¹
Maturity	July 1, 2011	June 24, 2011
2-Year	0.49%	0.33%
10-Year	3.20%	2.87%
30-Year	4.40%	4.18%

This table is for illustrative purposes only. Past performance cannot guarantee future results.

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International Market

Week Ended June 24, 2011

International Stocks

Foreign stock markets closed lower for the week ending June 24, 2011 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), losing -0.76%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	-0.76%	0.73%
Europe ex-U.K.	-2.39%	5.04%
Denmark	-2.82%	-3.18%
France	-1.94%	8.19%
Germany	-1.45%	8.58%
Italy	-4.87%	3.77%
Netherlands	-2.61%	0.46%
Spain	-4.41%	7.42%
Sweden	-3.88%	-2.57%
Switzerland	-1.33%	6.47%
United Kingdom	-1.48%	0.66%
Japan	2.86%	-6.10%
AC Far East ex-Japan	2.24%	0.80%
Hong Kong	1.76%	-2.91%
Korea	3.73%	7.09%
Malaysia	0.01%	6.00%
Singapore	2.15%	-1.08%
Taiwan	-0.83%	-4.99%
Thailand	0.31%	-0.58%
EM Latin America	0.71%	-5.69%
Brazil	0.45%	-5.88%
Mexico	1.23%	-4.62%
Argentina	-0.20%	-13.22%
EM (Emerging Markets)	1.11%	-1.77%
Hungary	-3.43%	15.12%
India	1.37%	-11.88%
Israel	-2.34%	-9.31%
Russia	-1.07%	6.55%
Turkey	-1.56%	-10.92%

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 -0.61%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	-0.61%	4.06%
Europe
Denmark	-0.38%	6.50%
France	-0.54%	6.48%
Germany	-0.32%	6.70%
Italy	-2.06%	6.44%
Spain	-1.50%	6.85%
Sweden	-0.94%	7.44%
United Kingdom	-0.88%	5.31%
Japan	-0.24%	1.58%
Emerging Markets	0.27%	4.16%
Argentina	0.12%	-3.51%
Brazil	0.94%	6.18%
Bulgaria	-0.80%	2.78%
Russia	-0.38%	4.35%

International Currency Markets

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


Currency	Close (June 24, 2011)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	80.430	0.44%	-0.84%
Euro	1.4165¹	1.00%	-5.59%
British pound	1.5968¹	1.22%	-1.99%

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.