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Week Ended July 22, 2011

Stocks roughly reversed the previous week's losses as generally positive earnings reports and progress in addressing the Greek credit crisis lifted investors' mood. The week began on a down note, due in part to an emerging consensus that "stress tests" conducted on European banks the previous week were not stringent enough and underestimated banks' potential losses on holdings of Greek debt. The market recaptured momentum on Tuesday, thanks to a slew of positive earnings reports. Investors were also encouraged by a stronger-than-expected rise in June housing starts. An apparent lack in progress in Washington on talks to raise the federal government's debt ceiling weighed on sentiment at midweek. Investors appeared to take more seriously the implications of a deal not being reached, including a downgrade of the nation's credit rating. On Thursday, signs emerged that the White House and Congressional Republicans were nearing a deal, which appeared to boost markets. Investors were also encouraged by agreement on a new aid package for Greece, although the deal among euro zone leaders was contingent on the approval of a bond exchange program by Greece's creditors.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	12681.16	201.43	9.53%
S&P 500	1345.02	28.88	6.95%
NASDAQ Composite	2858.83	69.03	7.76%
S&P MidCap 400	991.79	15.68	9.32%
Russell 2000	841.79	13.54	7.20%

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 22, 2011

The European sovereign debt crisis and the ongoing debate in Washington over raising the U.S. debt ceiling and trimming the budget deficit continued to dominate the financial news. The lack of resolve in the U.S. put pressure on the dollar, which faded against the euro after gaining a bit of strength a week earlier. The weakness of the U.S. economic recovery further dampened the spirits of investors. Unemployment remains high, and the U.S. housing market suffered another blow when sales of existing homes fell 0.8% in June to a seven-month low. Many potential buyers backed out of their contracts when appraisals came in lower than the offering prices on the homes. Treasury yields rose a bit on the news, as threats of credit downgrades of U.S. Treasury bonds by the major rating agencies depressed the value of the securities (prices and yields move counter to each other).

U.S. Treasury Yields¹
Maturity	July 22, 2011	July 15, 2011
2-Year	0.39%	0.35%
10-Year	2.97%	2.91%
30-Year	4.26%	4.25%

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 22, 2011.

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International Market

Week Ended July 15, 2011

International Stocks

Foreign stock markets closed lower for the week ending July 15, 2011 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), losing -2.7%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	-2.70%	2.50%
Europe ex-U.K.	-3.90%	4.89%
Denmark	-2.14%	0.31%
France	-5.51%	6.56%
Germany	-3.32%	10.02%
Italy	-3.95%	-0.26%
Netherlands	-5.30%	-0.95%
Spain	-4.94%	4.45%
Sweden	-5.44%	-0.41%
Switzerland	-1.00%	8.14%
United Kingdom	-2.08%	4.17%
Japan	0.06%	-1.60%
AC Far East ex-Japan	-2.61%	2.71%
Hong Kong	-3.48%	-3.13%
Korea	-2.68%	11.23%
Malaysia	-1.67%	8.23%
Singapore	-1.75%	1.43%
Taiwan	-2.05%	-3.26%
Thailand	-0.90%	7.50%
EM Latin America	-2.77%	-5.17%
Brazil	-3.62%	-6.55%
Mexico	-1.44%	-0.68%
Argentina	-4.07%	-9.94%
EM (Emerging Markets)	-2.36%	0.27%
Hungary	-4.53%	12.93%
India	-1.81%	-9.10%
Israel	-0.98%	-6.10%
Russia	-1.16%	11.05%
Turkey	-2.83%	-11.25%

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 0.73%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	0.73%	4.81%
Europe
Denmark	-0.15%	7.18%
France	-0.56%	6.91%
Germany	-0.03%	7.60%
Italy	-3.60%	1.79%
Spain	-2.80%	4.95%
Sweden	-0.86%	8.22%
United Kingdom	1.11%	6.77%
Japan	2.58%	3.46%
Emerging Markets	-0.14%	5.21%
Argentina	-2.42%	-2.38%
Brazil	-0.07%	6.07%
Bulgaria	-0.38%	3.09%
Russia	-0.02%	5.27%

International Currency Markets

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


Currency	Close (July 15, 2011)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	79.060	-2.03%	-2.59%
Euro	1.4124¹	0.95%	-5.28%
British pound	1.6119¹	-0.42%	-2.95%

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.