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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. Stocks¹
Index²	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.

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U.S. Bond Market

Week Ended June 4, 2010

Economic signals were mixed during the week. New claims for unemployment benefits fell for the second week in a row, and private-sector employers added to their payrolls in May, although at a pace below expectations. Worker productivity also increased in the first quarter, though not as much as had previously been reported. In addition, both factory orders and the Institute for Supply Management’s service-sector index went up but by lesser amounts than analysts had forecasted. So, while the economic picture seems to be improving, the rebound is still sluggish enough to instill caution in many investors. Treasury yields reversed course and declined for all maturities.

U.S. Treasury Yields¹
Maturity	June 4, 2010	May 28, 2010
2-Year	0.71%	0.77%
10-Year	3.19%	3.28%
30-Year	4.12%	4.20%

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, June 4, 2010.

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International Market

Week Ended May 28, 2010

International Stocks

Foreign stock markets closed higher for the week ending May 28, 2010 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 1.04%.


Region/Country	Week's Return	% Change Year-to-Date
EAFE	1.04%	-11.89%
Europe ex-U.K.	0.62%	-16.98%
Denmark	1.35%	3.26%
France	0.99%	-19.86%
Germany	0.32%	-14.14%
Italy	0.03%	-25.90%
Netherlands	0.67%	-12.87%
Spain	-1.94%	-31.58%
Sweden	2.29%	-2.51%
Switzerland	1.10%	-11.19%
United Kingdom	2.59%	-12.83%
Japan	-1.21%	-0.60%
AC Far East ex-Japan	2.04%	-6.38%
Hong Kong	0.94%	-6.34%
Korea	1.76%	-5.05%
Malaysia	-0.75%	3.23%
Singapore	1.42%	-5.47%
Taiwan	1.26%	-12.03%
Thailand	-5.40%	3.84%
EM Latin America	4.83%	-9.53%
Brazil	5.00%	-13.90%
Mexico	4.11%	-0.68%
Argentina	1.81%	-5.71%
EM (Emerging Markets)	3.56%	-6.34%
Hungary	-0.58%	-12.68%
India	4.48%	-2.05%
Israel	-2.06%	-6.40%
Russia	4.79%	-6.67%
Turkey	3.24%	0.74%

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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 -1.45%.


Region/Country	Week's Return	% Change Year-to-Date
Developed Markets	-1.45%	-3.80%
Europe
Denmark	-1.50%	-6.70%
France	-1.85%	-8.86%
Germany	-1.82%	-8.56%
Italy	-2.84%	-13.37%
Spain	-2.97%	-14.62%
Sweden	-0.75%	-4.07%
United Kingdom	-0.45%	-6.61%
Japan	-1.19%	3.42%
Emerging Markets	0.88%	3.01%
Argentina	2.42%	-4.18%
Brazil	0.12%	3.48%
Bulgaria	0.36%	-0.56%
Russia	1.04%	1.46%

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International Currency Markets

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


Currency	Close (May 28, 2010)	Week's Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	90.940	1.15%	-2.37%
Euro	1.2332¹	1.80%	14.05%
British pound	1.4459¹	-0.14%	10.47%

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.