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Week Ended May 28, 2010

The Dow Jones Industrial Average ended the week slightly lower while the broader stock market indices posted gains, and the market ended a volatile month that saw the worst monthly performance in over a year. Small- and mid-cap stocks outperformed large-caps for the week. Investors resumed the previous week's sell-off on Monday, apparently due to continuing concerns about the debt situation in Europe as well as worries about the implications of financial reform legislation nearing final Congressional approval. Worries about Europe's finances continued to hamper the market through midweek. Rumors that China was considering selling its euro zone bond holdings prompted a major sell-off on Wednesday. Chinese officials denied those rumors on Thursday, sparking a large rally that wiped out several days' losses. Markets then gave back some of those gains on the final trading day before the holiday weekend after the Fitch rating agency became the second major credit rating organization to downgrade Spain's debt. The week's economic data were somewhat mixed. Two separate gauges of consumer confidence rose, as did new home sales for April. On the other hand, the Commerce Department revised down its earlier estimate of growth in gross domestic product in the first quarter from 3.2% to 3.0%, surprising analysts who expected an upward revision. Weekly jobless claims declined following the previous week's sharp increase, but many had hoped for a larger drop.

U.S. Stocks¹
Index²	Friday's Close	Week's Change	% Change Year-to-Date
DJIA	10136.63	-56.76	-2.79%
S&P 500	1089.41	1.72	-2.30%
NASDAQ Composite	2257.04	28.00	-0.53%
S&P MidCap 400	762.76	12.79	4.97%
Russell 2000	665.18	18.15	4.91%

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 May 28, 2010

Consumer spending stagnated in April, posting its weakest showing in seven months. At the same time, personal incomes rose only 0.4%, below expectations. The data indicate that the economic recovery could be slowing as consumers hold on to their money. Concerns about ongoing debt problems in Europe added to the jitters, despite reassurances from China that it has no plans to sell the euro-based bonds it holds. Developed countries across the globe, including the U.S., are cutting budgets to rein in mounting deficits, which could also serve to dampen economic growth. Treasury yields rose for all maturities after tumbling the week before when investors rushed into the relative safety of U.S. government-backed securities (bond prices and yields move in opposite directions).

U.S. Treasury Yields¹
Maturity	May 28, 2010	May 21, 2010
2-Year	0.77%	0.74%
10-Year	3.28%	3.20%
30-Year	4.20%	4.07%

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, May 28, 2010.

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Week Ended May 21, 2010

International Stocks

Foreign stock markets closed lower for the week ending May 21, 2010 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), losing -4.31%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	-4.31%	-12.79%
Europe ex-U.K.	-2.65%	-17.49%
Denmark	-5.89%	1.89%
France	-2.02%	-20.64%
Germany	-2.96%	-14.42%
Italy	-0.13%	-25.92%
Netherlands	-2.94%	-13.46%
Spain	2.81%	-30.22%
Sweden	-4.25%	-4.69%
Switzerland	-5.14%	-12.15%
United Kingdom	-4.43%	-15.03%
Japan	-3.80%	0.62%
AC Far East ex-Japan	-6.93%	-8.25%
Hong Kong	-3.22%	-7.21%
Korea	-10.75%	-6.69%
Malaysia	-7.71%	4.01%
Singapore	-6.51%	-6.79%
Taiwan	-8.05%	-13.13%
Thailand	-0.64%	9.77%
EM Latin America	-7.91%	-13.70%
Brazil	-8.92%	-18.01%
Mexico	-6.90%	-4.61%
Argentina	-5.57%	-7.39%
EM (Emerging Markets)	-7.53%	-9.56%
Hungary	-7.08%	-12.17%
India	-7.42%	-6.25%
Israel	-4.37%	-4.43%
Russia	-8.87%	-10.94%
Turkey	-4.91%	-2.42%

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 1.97%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	1.97%	-2.39%
Europe
Denmark	3.45%	-5.28%
France	2.40%	-7.14%
Germany	2.30%	-6.86%
Italy	1.01%	-10.83%
Spain	0.78%	-12.01%
Sweden	-0.49%	-3.35%
United Kingdom	1.09%	-6.19%
Japan	2.75%	4.66%
Emerging Markets	-1.74%	2.11%
Argentina	-8.25%	-6.45%
Brazil	-0.58%	3.36%
Bulgaria	-1.15%	-0.91%
Russia	-2.44%	0.42%

International Currency Markets

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


Currency	Close (May 21, 2010)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	89.890	-2.35%	-3.57%
Euro	1.2557¹	-1.06%	12.48%
British pound	1.4439¹	0.80%	10.59%

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.