Week Ended June 4, 2010

Stocks moved lower in a holiday-shortened week. The major indexes stumbled to begin the week as investors appeared to react to disappointment in BP's failure to "top kill" the massive oil leak in the Gulf over the Memorial Day weekend. BP and other companies involved in the failed Deepwater Horizon drilling operation fell sharply and dragged down energy shares. Renewed tensions in the Middle East following Israel's boarding of a flotilla headed to Gaza may have also weakened sentiment. On Wednesday, markets rallied as investors appeared to reconsider the sell-off in energy shares and celebrated good reports on May sales by Detroit automakers. News of a surprisingly strong rise in pending home sales in April also helped lift Wall Street's mood, although most acknowledged that the coming end of a tax credit for home purchases helped drive the increase. Good feelings about the economy evaporated on Friday, however, leading to a steep sell-off to end the week. The Labor Department reported that the economy added 431,000 jobs in May, but the vast majority of them were short-term Census positions. Private sector job gains fell sharply from April, leading some to worry that the labor market recovery might be short circuited.

U.S. Stocks^1
Index^2	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	9931.22	-205.41	-4.76%
S&P 500	1064.88	-24.53	-4.50%
NASDAQ Composite	2219.17	-37.87	-2.20%
S&P MidCap 400	736.27	-26.49	1.32%
Russell 2000	633.77	-31.41	-0.05%

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.