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Week Ended September 10, 2010

The large-cap stock indexes moved modestly higher for the holiday-shortened week, while the smaller-cap indexes declined. Trading started off on a sour note as investors appeared to be discouraged by an article in The Wall Street Journal that questioned the rigor of stress tests conducted on European banks earlier in the summer. A successful auction of Portuguese sovereign debt on Wednesday helped assuage some of the fears about the European financial system and led to a modest rebound in stock prices. The positive momentum continued on Thursday, when investors welcomed a Labor Department report showing an unexpectedly steep drop in weekly jobless claims. News of a narrowing in the nation's trade deficit in July also helped calm fears that the recent slowdown in the recovery might presage a "double dip" recession. A rally in energy stocks helped lead the market to end the week with further gains on Friday.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	10462.77	14.84	0.33%
S&P 500	1109.56	5.05	-0.50%
NASDAQ Composite	2242.48	8.73	-1.18%
S&P MidCap 400	763.79	-2.73	5.11%
Russell 2000	636.80	-6.44	0.43%

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 September 10, 2010

The recovery is taking place unevenly throughout the country, according to a Federal Reserve survey of economic conditions. Regions dependent on manufacturing and farming are progressing slowly, while those dependent on housing continue to struggle. The Fed divides the country into 12 districts and said that seven of them are growing at a modest pace, while five—including New York and Atlanta—are experiencing "mixed conditions or a deceleration in overall economic activity." The news was not all negative, however. Nationally, the jobs market has improved slightly, with first-time unemployment claims falling last week. In addition, the U.S. trade deficit narrowed significantly in July thanks to higher exports and declining imports. Investors concentrated more on the positive developments, pushing Treasury yields higher for all maturities by the end of the week.

U.S. Treasury Yields¹
Maturity	September 10, 2010	September 3, 2010
2-Year	0.57%	0.51%
10-Year	2.80%	2.71%
30-Year	3.87%	3.79%

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, September 10, 2010.

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International Market

Week Ended September 3, 2010

International Stocks

Foreign stock markets closed higher for the week ending September 03, 2010 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 4.05%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	4.05%	-3.76%
Europe ex-U.K.	5.19%	-7.42%
Denmark	4.57%	13.42%
France	5.96%	-11.81%
Germany	4.40%	-7.55%
Italy	5.25%	-16.97%
Netherlands	4.81%	-6.89%
Spain	5.79%	-17.89%
Sweden	5.11%	12.10%
Switzerland	4.60%	2.70%
United Kingdom	4.11%	-1.76%
Japan	1.38%	0.52%
AC Far East ex-Japan	3.02%	3.82%
Hong Kong	1.95%	5.18%
Korea	4.14%	4.61%
Malaysia	3.00%	24.96%
Singapore	3.43%	8.72%
Taiwan	1.60%	-2.97%
Thailand	5.50%	32.88%
EM Latin America	3.82%	2.17%
Brazil	3.72%	-2.78%
Mexico	3.53%	3.21%
Argentina	3.32%	24.23%
EM (Emerging Markets)	3.52%	3.41%
Hungary	5.89%	-10.94%
India	2.14%	4.41%
Israel	2.93%	-7.07%
Russia	3.66%	0.32%
Turkey	4.14%	17.62%

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 0.14%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	0.14%	4.27%
Europe
Denmark	-0.22%	0.06%
France	0.17%	-2.44%
Germany	-0.01%	-2.40%
Italy	1.16%	-6.60%
Spain	1.20%	-8.36%
Sweden	0.37%	5.40%
United Kingdom	-1.42%	3.86%
Japan	0.04%	12.93%
Emerging Markets	0.26%	12.72%
Argentina	6.65%	17.02%
Brazil	0.02%	11.72%
Bulgaria	0.58%	5.56%
Russia	0.58%	9.74%

International Currency Markets

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


Currency	Close (September 03, 2010)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	84.345	-0.75%	-10.37%
Euro	1.2863¹	-1.13%	10.35%
British pound	1.5439¹	0.22%	4.39%

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.