Weekly Market News for the Week of November 16, 2009

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Service is the rent we pay to be living. It is the very purpose of life and not something you do in your spare time.”– Marion Wright Edelman

Unemployment weighs on sentiment. American consumer sentiment unexpectedly dipped this month, at least according to the findings of the latest Reuters/University of Michigan survey. The respected index hit 66.0 last week, a three-month low and down from 70.6 for October. With a 10.2% jobless rate in the headlines, it is understandable.1

Gold futures advance, oil futures dip. A weak dollar aided gold prices last week, while the weakness in consumer sentiment hurt oil futures. Gold prices rose nearly 2% last week, settling at $1,116.70 per ounce on the NYMEX. Oil slipped 1.4% last week; prices fell to $76.34 per barrel at Friday’s close.2,3

Initial claims lowest since 1/09. New claims for state unemployment benefits dropped to their lowest level in ten months in the week ending November 7, the Labor Department noted Thursday. At the end of October, continued claims dropped to the lowest level since March.4

Trade deficit widens 18.2% in September. Even as U.S. exports gained for the fifth month in a row, imports rose by 5.2% from August levels, including a 20.1% rise in oil shipments. However, economists expect global demand for U.S. exports to keep rising as the dollar is about 12% below where it was last spring against other major world currencies.5

Dow hits 13-month high. With earnings reports from major retailers and media giants topping expectations, a 73-point push sent the DJIA to a close of 10,270.47 Friday, its highest finish since October 2008. The S&P 500 ended the week at 1,093.48 and the NASDAQ wrapped up at 2,167.88 Friday.6 

% Change  Y-T-D  1-Yr Chg   5-Yr Avg  10-Yr Avg 
DJIA  +17.02  +16.24  -0.51  -0.46 
NASDAQ  +37.47  +35.77  +0.79  -3.27 
S&P 500  +21.06  +19.99  -1.53  -2.17 
Real Yield  11/13  1 Yr Ago  5 Yrs Ago  10 Yrs Ago 
10YrTIPS  1.31%  2.95%  1.71%  4.14% 

(Source: CNNMoney.com, ustreas.gov, bls.gov, 11/13/09)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. Only one bachelor has served as President of the United States. Additionally, only one President has entered office having been legally divorced. Who were these two Presidents?

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

Last week’s riddle: Determine the numeral between 1 and 100 which is also nine times the sum of its digits.

Last week’s riddle answer: 81. 8 + 1 = 9, 9 x 9 = 81.

1 bloomberg.com/apps/news?pid=20601087&sid=aVNepSupYx_8&pos=2 [11/13/09]
2 marketwatch.com/story/gold-futures-rise-as-dollar-slips-2009-11-13 [11/13/09]
3 marketwatch.com/story/crude-oil-futures-end-week-down-14-2009-11-13 [11/13/09]
4 reuters.com/article/businessNews/idUSN0243717320091112?feedType=RSS&feedName=businessNews [11/12/09]
5 oogle.com/hostednews/ap/article/ALeqM5gNiyJ905Ho0Ur96V2TQhsBX19lGwD9BUNGF80 [11/13/09]
6 cnbc.com/id/33914689 [11/13/09]
7money.cnn.com/data/markets/dow/ [11/13/09]
7 money.cnn.com/data/markets/nasdaq/ [11/13/09]
7 money.cnn.com/data/markets/sandp/? [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F13%2F08&mode=add&symb=DJIA [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F04&mode=add&symb=DJIA [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F99&mode=add&symb=DJIA [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F13%2F08&mode=add&symb=COMP [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F04&mode=add&symb=COMP [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F99&mode=add&symb=COMP [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F13%2F08&mode=add&symb=SPX [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F04&mode=add&symb=SPX [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F99&mode=add&symb=SPX [11/13/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [11/13/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [11/13/09]
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.