U.S. Stock Market

Week Ended December 30, 2011

U.S. stocks declined in a holiday-shortened week of relatively quiet trading. On Tuesday, major stock indexes were little changed. On Wednesday, equities slumped on the heels of developments in Europe-namely the euro falling to a 14-month low versus the dollar and concerns about potentially weak demand at a 10-year Italian bond auction on Thursday. Shares rallied on Thursday as investors were encouraged by U.S. employment and housing data and by a successful Italian bond auction. The major indexes sagged on Friday, finishing a volatile year fairly close to where they started.

U.S. Stocks^1
Index^2	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	12217.56	-76.44	5.53%
S&P 500	1257.60	-7.73	0.00%
NASDAQ Composite	2605.15	-13.49	-1.80%
S&P MidCap 400	879.45	-5.46	-3.06%
Russell 2000	740.74	-7.24	-5.48%

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 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 December 30, 2011

Treasury yields fell from the prior week on Friday, the last trading day of 2011, as the unresolved European debt crisis spurred demand for the relative safety of U.S. government debt. Treasury prices rose for four straight days during the holiday-shortened week, which capped the best year for the asset class since 2008, according to Bloomberg. Economic data released this week indicated that the U.S. recovery continues to gain momentum. The Institute for Supply Management-Chicago, a regional manufacturing group, said its index of business activity was little changed at 62.5 in December from a seven-month high of 62.6 in November. Separately, the average number of Americans filing for jobless benefits over the past month fell to a three-year low, the Labor Department reported Thursday. Although applications for jobless benefits unexpectedly rose for the week ended December 24, weekly claims figures have recently been declining, offering hope that the labor market will improve into 2012. Finally, the National Association of Realtors reported that a measure of pending home sales rose 7.3% in November, after jumping 10.4% the prior month. Taken together, the week's reports show that the U.S. economy may be strengthening enough to counter the damage from the turmoil in Europe, which many economists believe has slipped into recession.

U.S. Treasury Yields^1
Maturity	December 30, 2011	December 23, 2011
2-Year	0.24%	0.28%
10-Year	1.88%	2.02%
30-Year	2.89%	3.06%

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

¹Source of data: Bloomberg.com, as of 2 p.m. ET Friday, December 30, 2011.

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International Market

Week Ended December 23, 2011

• International Stocks
• International Bond Markets
• International Currency Markets

International Stocks

Foreign stock markets closed higher for the week ending December 23, 2011 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 2.28%.

Region/Country	Week's Return	% Change Year-to-Date
EAFE	2.28%	-12.45%
Europe ex-U.K.	3.69%	-15.16%
Denmark	2.15%	-16.99%
France	4.48%	-17.15%
Germany	3.14%	-17.32%
Italy	3.46%	-22.18%
Netherlands	4.93%	-12.70%
Spain	4.14%	-11.23%
Sweden	5.06%	-16.06%
Switzerland	2.49%	-7.06%
United Kingdom	3.02%	-3.00%
Japan	-0.61%	-16.19%
AC Far East ex-Japan	2.70%	-13.55%
Hong Kong	2.02%	-15.99%
Korea	2.59%	-9.72%
Malaysia	2.77%	-1.61%
Singapore	1.61%	-16.64%
Taiwan	5.58%	-19.70%
Thailand	0.21%	-1.34%
EM Latin America	2.65%	-18.01%
Brazil	2.75%	-20.32%
Mexico	2.87%	-11.35%
Argentina	2.15%	-38.10%
EM (Emerging Markets)	2.62%	-17.18%
Hungary	2.15%	-29.39%
India	0.45%	-35.74%
Israel	0.08%	-25.13%
Russia	2.27%	-18.12%
Turkey	-0.42%	-34.72%

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 -0.1%.

Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	-0.10%	5.02%
Europe
Denmark	-0.26%	9.45%
France	-0.37%	1.61%
Germany	-0.44%	6.07%
Italy	1.05%	-8.36%
Spain	-0.27%	2.17%
Sweden	-0.22%	9.94%
United Kingdom	0.69%	15.86%
Japan	-0.45%	6.14%
Emerging Markets	0.42%	8.90%
Argentina	1.95%	-13.17%
Brazil	0.24%	13.62%
Bulgaria	0.16%	2.22%
Russia	0.64%	5.84%

International Currency Markets

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

Currency	Close (December 23, 2011)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	78.100	0.50%	-3.85%
Euro	1.3039^1	0.06%	2.81%
British pound	1.5641^1	-0.73%	0.10%

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.