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Week Ended March 12, 2010

Stocks moved modestly higher during the week, helping the S&P 500 regain its highs for the year on Thursday. The smaller-cap indexes and the technology-oriented Nasdaq fared somewhat better for the second consecutive week. Though the calendar of economic and profit news was relatively light, stocks got a modest boost at midweek from good news on the financials sector. Investors were particularly encouraged by banking giant Citigroup, which conducted a successful sale of preferred securities and offered a positive outlook for the rest of the year. Friday brought conflicting reports on the consumer. Consumer spending rose by 0.3% in February, a stronger showing than many expected given the month's heavy snowstorms. A consumer sentiment gauge indicated that Americans grew more discouraged in March, however, perhaps in response to the stubbornly weak labor market.

U.S. Stocks¹
Index²	Friday’s Close	Week’s Change	% Change Year-to-Date
DJIA	10624.69	58.49	1.89%
S&P 500	1149.99	11.30	3.13%
NASDAQ Composite	2367.66	41.31	4.34%
S&P MidCap 400	783.88	13.41	7.87%
Russell 2000	675.78	10.17	6.58%

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 March 12, 2010

Retail sales were unexpectedly strong in February, reinforcing hopes that the economic recovery is gaining momentum. The Commerce Department reported that sales were up 0.3%, surprising analysts who had been anticipating a decline of 0.2% because of severe winter weather across the country. Consumer spending is vital to a rebound since it accounts for roughly two-thirds of economic activity. Some analysts have already raised their estimates of first-quarter growth based on the retail sales data. Despite the pickup in sales, the consumer sentiment index fell in early March to 72.5 from 73.6 at the end of February, reflecting Americans' pessimism about the outlook for jobs. The mixed news kept Treasury yields in a tight range during the week, with short-term yields rising and longer-term yields remaining close to their levels of the week before.

U.S. Treasury Yields¹
Maturity	March 12, 2010	March 5, 2010
2-Year	0.96%	0.89%
10-Year	3.70%	3.69%
30-Year	4.63%	4.64%

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, March 12, 2010.

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Week Ended March 5, 2010

International Stocks

Foreign stock markets closed higher for the week ending March 5, 2010 with the broad international measure, the MSCI EAFE Index (Europe, Australasia, and Far East), gaining 3.33%.


Region/Country	Week’s Return	% Change Year-to-Date
EAFE	3.33%	-1.88%
Europe ex-U.K.	4.75%	-4.16%
Denmark	4.03%	5.19%
France	4.97%	-5.01%
Germany	4.74%	-6.43%
Italy	5.24%	-9.05%
Netherlands	6.46%	-1.98%
Spain	6.41%	-12.85%
Sweden	5.19%	5.52%
Switzerland	3.14%	1.57%
United Kingdom	3.75%	-2.67%
Japan	-0.03%	3.01%
AC Far East ex-Japan	2.87%	-3.01%
Hong Kong	1.84%	-1.15%
Korea	4.55%	-0.53%
Malaysia	3.48%	3.47%
Singapore	1.35%	-3.97%
Taiwan	3.48%	-6.78%
Thailand	2.76%	1.53%
EM Latin America	4.67%	-0.61%
Brazil	5.30%	-1.95%
Mexico	3.79%	1.46%
Argentina	5.26%	-2.91%
EM (Emerging Markets)	4.20%	-1.22%
Hungary	6.77%	2.09%
India	4.77%	0.56%
Israel	3.25%	5.82%
Russia	7.23%	4.04%
Turkey	5.57%	-5.42%

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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 losing -0.95%.


Region/Country	Week’s Return	% Change Year-to-Date
Developed Markets	-0.95%	-0.68%
Europe
Denmark	-0.48%	-2.67%
France	-0.57%	-3.24%
Germany	-0.59%	-3.09%
Italy	-0.12%	-3.86%
Spain	-0.21%	-3.78%
Sweden	0.06%	2.14%
United Kingdom	-1.01%	-6.44%
Japan	-1.76%	2.99%
Emerging Markets	1.01%	2.49%
Argentina	4.57%	-5.12%
Brazil	1.37%	2.57%
Bulgaria	1.00%	0.82%
Russia	0.66%	2.69%

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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 (March 5, 2010)	Week’s Return (U.S. $)	% Change Year-to-Date (U.S. $)
Japanese yen	90.560	1.87%	-2.80%
Euro	1.3608¹	0.29%	5.15%
British pound	1.51¹	0.81%	6.49%

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.