Weekly Market News for the Week of September 28, 2009

Presented by Mark Lund, The Investor Coach

Quote of the week. “The possible’s slow fuse is lit by the imagination.”– Emily Dickinson

Big jump in consumer spending. The C.A.R.S. program drove a 1.3% increase in personal spending for August – the biggest monthly leap north in this category since August 2001. Personal wages went up 0.2% for the second straight month.¹

Consumer worries persist. The jobless rate hit 9.8% for September, as employers cut 263,000 positions from payrolls. (The healthcare sector added 19,000 jobs last month.)² The Conference Board Consumer Confidence Index came in at 53.1 for September, down from 54.5 for August.³

Manufacturing sector expands. The Institute for Supply Management’s manufacturing index indicated growth in that sector for the second straight month, with a reading of 52.6. However, economists polled by Reuters had expected a 54.0 reading in September, up from last month’s 52.9.⁴

Home prices rise, mortgage rates fall. The latest S&P Case-Shiller indexes showed home prices rising for the third month in a row in July (+1.6%). Freddie Mac’s October 1 survey had interest rates for 30-year FRMs averaging 4.94% nationally.^3,5

Oil starts the month impressively. Oil futures gained 5.95% last week; diesel and gasoline futures respectively gained 5.34% and 6.41%. (Retail pump prices averaged $2.47 per gallon of unleaded last week, compared to $3.60 per gallon a year ago.) In metals, gold and silver posted small weekly advances – gold rising 1.28% on the week, silver up 1.06%. In crops, sugar prices shot up 11.72% last week.⁶

Industry & jobs data impact stocks. The DJIA and S&P 500 both lost 1.84% last week; the NASDAQ slipped 2.05%. The economic calendar is light this coming week, with the ISM services index the most notable report.⁶

(Source: CNNMoney.com, ustreas.gov, bls.gov, 9/25/09)^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. What animal could become extinct worldwide, yet reappear about a year later?

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

Last week’s riddle: It has keys that open no locks. Yet it lets you enter and create spaces. What is it?

Last week’s riddle answer: A keyboard.

Citations.
1 bloomberg.com/apps/news?pid=20601068&sid=aSbaO.gu.aps [10/1/09]
2 latimes.com/business/la-fi-jobs3-2009oct03,0,2971924.story [10/2/09]
3 online.wsj.com/article/SB125422914801649093.html?mod=WSJ_hpp_sections_realestate [9/30/09]
4 forbes.com/feeds/afx/2009/10/01/afx6955121.html [10/1/09]
5 freddiemac.com/pmms/ [10/2/09]
6 cnbc.com/id/33145027 [10/2/09]
7 money.cnn.com/data/markets/dow/ [10/2/09]
7 money.cnn.com/data/markets/nasdaq/ [10/2/09]
7 money.cnn.com/data/markets/sandp/? [10/2/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F2%2F08&mode=add&symb=DJIA [10/2/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F1%2F04&mode=add&symb=DJIA [10/2/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F1%2F99&mode=add&symb=DJIA [10/2/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F2%2F08&mode=add&symb=COMP [10/2/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F1%2F04&mode=add&symb=COMP [10/2/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F1%2F99&mode=add&symb=COMP [10/2/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F2%2F08&mode=add&symb=SPX [10/2/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F1%2F04&mode=add&symb=SPX [10/2/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F1%2F99&mode=add&symb=SPX [10/2/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [10/2/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [10/2/09]
9 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.