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Week Ended July 8, 2011

Stocks built on their strong gains of the previous week, although a sharp decline on Friday reversed much of the advance. The major indexes barely budged at the start of the week, as investors appeared to wait for the arrival of the first-quarter earnings reports the following Monday. Investors took in stride a small rise in durable goods for May, a modest decline in a gauge of service sector activity in June, and news that China had raised interest rates again in an effort to cool inflationary pressures. Markets bounded higher on Thursday, however, in response to a report from payroll processing firm ADP, which showed that private employers had added 157,000 jobs in June, well above expectations. Investors were also encouraged by another drop in weekly jobless claims. Hopes for a rebound in the labor market were dashed by the more authoritative Labor Department figures on Friday, however. The official count showed a gain of only 18,000 jobs in June, with cutbacks in government jobs weighing on a meager rise in private payrolls of only 57,000. The unemployment rate moved higher for the second month, to 9.2%. The underlying data provided little comfort as well, with flat hourly earnings and a modest decrease in the workweek confirming the weakness in the headline number.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	12657.20	74.43	9.33%
S&P 500	1343.80	4.13	6.85%
NASDAQ Composite	2859.81	43.78	7.80%
S&P MidCap 400	1004.98	9.93	10.77%
Russell 2000	852.95	12.85	8.62%

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 8, 2011

Friday's widely anticipated jobs report left investors with little if anything to cheer about. A statistically meaningless 18,000 new jobs were added to the U.S. economy in June, with the services, mining, and leisure and hospitality sectors putting 54,000 new hires on their payrolls, while the government continued to slash public workers. Most analysts believe the economy needs to add several hundred thousand jobs a month for the unemployment rate to fall. As it is, the unemployment rate ticked up to 9.2% in June from 9.1% the month before. The numbers remain a problem for our consumer-based economy, which depends on faster jobs growth to stimulate greater demand. The report sent Treasury yields lower at week-end, with yields across the maturity spectrum closing below their levels of the previous week.

U.S. Treasury Yields¹
Maturity	July 8, 2011	July 1, 2011
2-Year	0.39%	0.49%
10-Year	3.01%	3.20%
30-Year	4.28%	4.40%

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, July 8, 2011.

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International Market

Week Ended July 1, 2011

International Stocks

Foreign stock markets closed higher for the week ending July 01, 2011 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 5.1%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	5.10%	5.87%
Europe ex-U.K.	6.88%	12.27%
Denmark	7.09%	3.68%
France	8.12%	16.97%
Germany	6.47%	15.61%
Italy	9.11%	13.22%
Netherlands	6.39%	6.87%
Spain	9.64%	17.78%
Sweden	9.80%	6.97%
Switzerland	2.74%	9.38%
United Kingdom	5.62%	6.31%
Japan	1.93%	-4.28%
AC Far East ex-Japan	2.40%	3.22%
Hong Kong	1.59%	-1.37%
Korea	2.86%	10.15%
Malaysia	2.47%	8.62%
Singapore	3.19%	2.07%
Taiwan	3.45%	-1.70%
Thailand	2.80%	2.21%
EM Latin America	5.94%	-0.09%
Brazil	6.45%	0.20%
Mexico	6.27%	1.35%
Argentina	7.61%	-6.62%
EM (Emerging Markets)	3.80%	1.97%
Hungary	7.36%	23.60%
India	3.95%	-8.40%
Israel	2.38%	-7.15%
Russia	4.92%	11.80%
Turkey	3.18%	-8.09%

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 0.48%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	0.48%	4.56%
Europe
Denmark	0.77%	7.32%
France	1.40%	7.97%
Germany	0.98%	7.75%
Italy	3.12%	9.76%
Spain	4.08%	11.21%
Sweden	2.77%	10.41%
United Kingdom	-1.05%	4.21%
Japan	-0.70%	0.86%
Emerging Markets	0.91%	5.11%
Argentina	4.90%	1.22%
Brazil	-0.37%	5.79%
Bulgaria	0.36%	3.15%
Russia	0.57%	4.95%

International Currency Markets

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


Currency	Close (July 1, 2011)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	80.890	0.57%	-0.27%
Euro	1.4483¹	-2.24%	-7.95%
British pound	1.6046¹	-0.49%	-2.49%

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.