Weekly Market News for the Week of September 14, 2009

Presented by Mark Lund, The Investor Coach.

Quote of the week. “The greatest obstacle to discovery is not ignorance – it is the illusion of knowledge.” – Daniel Boorstin

Consumer mood brightens. The preliminary September Reuters/University of Michigan consumer sentiment survey came in at 70.2 Friday, above the 68.0 expected by economists and much improved from the August reading of 65.7. The measure of current conditions (i.e., consumer feeling about personal financial situations) went up to 71.8 from 66.6 in August. The consumer expectations reading (will things be better or worse six months from now?) rose to 69.2 from 65.0.¹

Beige Book shows improvement. The Federal Reserve’s roundup of nationwide economic conditions showed 11 of 12 Fed regions enjoying either growth or stability (the St. Louis region was the exception). The Beige Book noted that businesses in most Fed regions were taking a “cautiously positive” view of the economy.²

Inventories continue to shrink. Wholesalers reduced them by 1.4% in July to the lowest level in three years. July 2009 was the best month for wholesale sales since June 2008: they rose by 0.5%.³

Gold’s record close: $1,006.40. Gold futures closed at a new all-time high on the NYMEX Friday. Meanwhile, the U.S. Dollar Index touched a 2009 low on Friday and lost roughly 2% last week as interest picked up for riskier assets. As for oil, crude futures fell down to $69.29 per barrel at Friday’s close (a 3.68% week-ending drop) on concerns over reduced demand and worries about inventory buildup.^4,5

The rally resumes. Slight Friday losses didn’t erase much of last week’s Monday-Thursday gains. The S&P 500 advanced 2.59% for the week to 1,042.73. The Dow finished at 9,605.41 Friday. The NASDAQ wrapped up the week at 2,080.90.⁶

(Source: CNNMoney.com, ustreas.gov, bls.gov, 9/11/09)^7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

Riddle of the week. Name three words in everyday English that begin with the letters “dw”.

Contact my office or see next week’s Update for the answer.

Last week’s riddle: Can you name two perennial vegetables? (That is, vegetables that don’t need to be replanted and that can live on to produce in a future growing season?)

Last week’s riddle answer: Rhubarb and asparagus.

Citations.

1 thestreet.com/story/10597444/1/recovery-watch-consumer-sentiment-pops.html?cm_ven=GOOGLEN [9/11/09]
2 philly.com/inquirer/business/20090910_Fed_reports_point_upward.html [9/10/09]
3 forbes.com/feeds/afx/2009/09/11/afx6875161.html01 [9/11/09]
4 markets.usatoday.com/custom/usatoday-com/html-commodities.asp [9/11/09]
5 marketwatch.com/story/dollar-sets-new-lows-as-china-cheers-risk-appetite-2009-09-11 [9/11/09]
6 cnbc.com/id/32800950 [9/11/09]
7 money.cnn.com/data/markets/dow/ [9/11/09]
7 money.cnn.com/data/markets/nasdaq/ [9/11/09]
7 money.cnn.com/data/markets/sandp/? [9/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=9%2F11%2F08&mode=add&symb=DJIA [9/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=9%2F10%2F04&mode=add&symb=DJIA [9/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=9%2F10%2F99&mode=add&symb=DJIA [9/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=9%2F11%2F08&mode=add&symb=COMP [9/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=9%2F10%2F04&mode=add&symb=COMP [9/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=9%2F10%2F99&mode=add&symb=COMP [9/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=9%2F11%2F08&mode=add&symb=SPX [9/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=9%2F10%2F04&mode=add&symb=SPX [9/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=9%2F10%2F99&mode=add&symb=SPX [9/11/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [9/11/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [9/11/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/yield_historical_1999.shtml [9/11/09]
9 bls.gov/news.release/history/cpi_10191999.txt [10/19/99]

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.