Week Ended November 5, 2010

U.S. stocks rose for the week, helping the major indexes reach two-year highs. The large-cap indexes have now experienced gains over nine of the past 10 weeks. Stocks rose modestly on Tuesday, as investors awaited election results and appeared to anticipate news of additional stimulus from the Federal Reserve's policy meeting. That news arrived Wednesday afternoon, when the Federal Reserve announced that it would engage in another round of "quantitative easing" by purchasing an additional $600 billion of long-term Treasury securities over the coming months. Investors did not drive the market higher until Thursday, however, when the Dow and S&P 500 indexes rallied nearly 2%. The Wall Street Journal and others noted that a general sense was emerging that the Fed was determined to inflate the prices of stocks and other assets, leaving some investors to conclude that they should "not fight the Fed." Good October sales results at some retailers and the prospect of higher bank dividends may also have boosted sentiment. Friday brought news of a larger-than-expected increase in October payrolls. According to preliminary data, the economy added 151,000 jobs in October, the most since May but not enough to bring down the unemployment level from 9.6%. A rising dollar, which hurts U.S. exporters, appeared to offset the good jobs news and leave stocks flat to end the trading week.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	11444.08	325.59	9.74%
S&P 500	1225.85	42.59	9.93%
NASDAQ Composite	2578.98	71.57	13.65%
S&P MidCap 400	861.09	31.96	18.50%
Russell 2000	736.17	32.30	16.10%

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 November 5, 2010

The U.S. economy added 151,000 new jobs in October, about double what was expected, but the jobs gain was not enough to trim the unemployment rate, which held steady at 9.6%. Government officials have been concerned about the sluggish pace of the economic recovery. The Federal Reserve stepped in during the week and announced an aggressive new plan to stimulate the economy by buying $600 billion worth of Treasury bonds through mid-2011. This is in addition to the estimated $250 billion to $300 billion previously announced as the Fed reinvests proceeds from its mortgage portfolio into Treasury securities. The programs are designed to lower consumer loan rates, including mortgage rates, in an effort to entice consumers to reenter the housing market. The risk is that the infusion of so much money into the economic system could result in escalating inflation down the road. The price of gold has been soaring lately, partly as a result of the steep decline of the U.S. dollar versus other currencies. Treasuries were mixed as a result, with the two-year yield rising slightly, the 10-year yield falling, and the 30-year yield climbing by the end of the week.

U.S. Treasury Yields¹
Maturity	November 5, 2010	October 29, 2010
2-Year	0.37%	0.34%
10-Year	2.54%	2.60%
30-Year	4.12%	3.99%

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, November 5, 2010.

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International Market

Week Ended October 29, 2010

International Stocks

Foreign stock markets closed lower for the week ending October 29, 2010 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), losing -0.43%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	-0.43%	5.13%
Europe ex-U.K.	-1.06%	3.16%
Denmark	0.12%	26.61%
France	-1.11%	-0.19%
Germany	-0.26%	7.63%
Italy	-0.56%	-6.44%
Netherlands	-1.62%	1.99%
Spain	-1.40%	-9.78%
Sweden	-2.79%	26.09%
Switzerland	-0.80%	7.37%
United Kingdom	0.94%	6.64%
Japan	-0.57%	5.19%
AC Far East ex-Japan	-0.58%	14.73%
Hong Kong	-2.15%	20.18%
Korea	-1.39%	14.42%
Malaysia	1.13%	33.36%
Singapore	-0.81%	18.22%
Taiwan	2.53%	7.43%
Thailand	-1.14%	50.34%
EM Latin America	1.54%	11.81%
Brazil	1.47%	4.65%
Mexico	1.48%	18.35%
Argentina	7.33%	62.93%
EM (Emerging Markets)	0.06%	14.26%
Hungary	0.63%	4.72%
India	-0.50%	20.26%
Israel	-1.24%	-0.17%
Russia	-1.30%	7.55%
Turkey	-3.55%	38.92%

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 0.31%


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	0.31%	10.42%
Europe
Denmark	-0.38%	7.06%
France	-0.37%	4.36%
Germany	-0.40%	4.61%
Italy	-0.76%	0.50%
Spain	-0.76%	-1.46%
Sweden	-1.39%	11.94%
United Kingdom	1.21%	7.25%
Japan	0.87%	19.02%
Emerging Markets	0.60%	16.54%
Argentina	7.28%	37.63%
Brazil	0.42%	15.88%
Bulgaria	-0.09%	8.01%
Russia	-0.35%	11.45%

International Currency Markets

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


Currency	Close (October 29, 2010)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	80.550	-1.08%	-15.57%
Euro	1.3899¹	0.18%	3.13%
British pound	1.5988¹	-2.03%	0.99%

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.