Weekly Market News for the Week of October 26, 2009

Presented by Mark Lund, The Investor Coach

Quote of the week. “Character is much easier kept than recovered.”– Thomas Paine

Fewer “For Sale” signs. Existing home sales set a record in September – they rose by 9.4%, spurred by the federal credit for first-time buyers. (That $8,000 credit is valid through November 30.) September’s sales pace was the hottest in two years and the median sales price fell at the slowest pace in a year, according to the National Association of Realtors.¹

Leading indicators rise notably. The Conference Board’s Leading Economic Index went north 1.0% in September, marking the sixth straight monthly increase. The LEI monitors developments in categories such as jobless claims, housing permits, interest-rate spreads and consumer confidence.²

PPI drops. In September, inflation was not a factor at factories. Producer prices dropped 0.6% (core PPI fell 0.1%). PPI has seesawed positive and negative across the last three months of data.³

Housing starts rise. However, the 0.5% September increase announced by the Commerce Department was less than economists anticipated. Housing permits decreased in September for the second time in three months.³

Gold, copper, oil all advance. Gold prices gained $4.90 last week to finish at $1,055.60 an ounce Friday. Prices have risen 15.72% across the last three weeks. Copper had its best week since mid-July, posting a 6.57% gain last week. Oil prices advanced $1.48 per barrel last week to settle at $80.50 Friday.⁴

Slight losses for stocks. The S&P 500 lost 0.7% last week, while the NASDAQ ended down 0.1% for the same time span. The DJIA retreated 0.2% last week to close at 9,972.18 Friday.⁵

(Source: CNNMoney.com, ustreas.gov, bls.gov, 10/23/09)^6,7,8

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. The names of two U.S. state capital cities rhyme but share no vowels. Name the two cities.

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

Last week’s riddle: What is the timepiece with the most moving parts? (It’s been around for centuries.)

Last week’s riddle answer: The hourglass.

Citations.
1 bloomberg.com/apps/news?pid=20601103&sid=a4.DIzmpog2A [10/23/09]
2 npr.org/blogs/thetwo-way/2009/10/leading_indicators_up_again.html [10/22/09]
3 bloomberg.com/apps/news?pid=20601087&sid=aDFJnk7txix0 [10/20/09]
4 blogs.wsj.com/marketbeat/2009/10/23/data-points-energy-metals-150/ [10/23/09]
5 cnbc.com/id/33452868 [10/23/09]
6 money.cnn.com/data/markets/dow/ [10/23/09]
6 money.cnn.com/data/markets/nasdaq/ [10/23/09]
6 money.cnn.com/data/markets/sandp/? [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F23%2F08&mode=add&symb=DJIA [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F04&mode=add&symb=DJIA [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F99&mode=add&symb=DJIA [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F23%2F08&mode=add&symb=COMP [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F04&mode=add&symb=COMP [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F99&mode=add&symb=COMP [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F23%2F08&mode=add&symb=SPX [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F04&mode=add&symb=SPX [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F99&mode=add&symb=SPX [10/23/09]
7 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [10/23/09]
7 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [10/23/09]
8 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

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.