Weekly Market News for the Week of November 23, 2009

Presented by Mark Lund, The Investor Coach.

Quote of the week. “The longer I live, the more I realize the impact of attitude on life.”– Mark Twain

Consumer prices rise 0.3%. October Labor Department data shows CPI up 0.3% and core CPI up 0.2%. Overall consumer prices are down 0.2% across the past 12 months of data, but core CPI (minus food and energy prices) has gone up 1.7% in that stretch.1

Producer prices follow suit. PPI rose 0.3% in October, while core PPI (factoring out food and fuel) dropped 0.6%. Core PPI only rose 0.7% in the last 12 months, the smallest gain since March 2003-2004.2

Leading indicators keep climbing. The 0.3% October gain in the Conference Board index marks the seventh straight monthly advance. Six of ten indicators were positive, including jobless claims, interest rate spread and consumer goods orders.3

Retail sales & inventories fall. In September, inventories shrank by 0.4% … but sales slipped by 0.3% as well. Commerce Department estimates did show auto dealers replenishing inventories.4

So do housing starts & permits. Construction starts dropped 10.6% last month, and permits 4.0% (maybe attributable to the presumed-expiring tax credit for buyers). The Mortgage Bankers Association reports that 14.41% of home loans were 30 days past due or in foreclosure at the end of 3Q 2009.5,6

DJIA rides 3-week winning streak. Last week, it advanced 0.46%, closing Friday at 10,318.16. The NASDAQ lost a little ground on the week (-1.01% to 2,146.04), as did the S&P 500 (-0.19% to 1,091.38). Oil futures ended the week at $76.72 a barrel, and gold futures settled at $1,146.40 per ounce Friday.7

% Change

Y-T-D

1-Yr Chg

5-Yr Avg

10-Yr Avg

DJIA

+17.57

+36.62

-0.27

-0.62

NASDAQ

+36.08

+63.06

+0.73

-3.63

S&P 500

+20.83

+45.05

-1.35

-2.33

Real Yield

11/20

1 Yr Ago

5 Yrs Ago

10 Yrs Ago

10YrTIPS

1.21%

3.06%

1.67%

4.14%


(Source: CNNMoney.com, ustreas.gov, bls.gov, 11/20/09)8,9,10

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. A mall parking lot has 1,000 parking spaces, and 40% of them are for compact cars. This morning, there are 200 compact cars and some standard-size cars in the lot, which is 75% full. How many standard-size cars are in the lot?

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

Last week’s riddle: 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?

Last week’s riddle answer: James Buchanan was a bachelor, and Ronald Reagan had been divorced.

Citations.
1 marketwatch.com/story/consumer-prices-up-03-led-by-energy-cars-2009-11-18 [11/18/09]
2 bloomberg.com/apps/news?pid=20601087&sid=a_DFcB_WJQEM&pos=2 [11/17/09]
3 marketwatch.com/story/leading-indicators-rise-for-7th-straight-month-2009-11-19 [11/19/09]
4 marketwatch.com/story/inventory-clearance-stalls-in-september-2009-11-16 [11/16/09]
5 businessweek.com/bwdaily/dnflash/content/nov2009/db20091118_201644.htm [11/18/09]
6 latimes.com/business/la-fi-mortgage-defaults20-2009nov20,0,1052221.story [11/20/09]
7 cnbc.com/id/34067975 [11/20/09]
8money.cnn.com/data/markets/dow/ [11/20/09]
8 money.cnn.com/data/markets/nasdaq/ [11/20/09]
8 money.cnn.com/data/markets/sandp/? [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F20%2F08&mode=add&symb=DJIA [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F04&mode=add&symb=DJIA [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F99&mode=add&symb=DJIA [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F20%2F08&mode=add&symb=COMP [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F04&mode=add&symb=COMP [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F99&mode=add&symb=COMP [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F20%2F08&mode=add&symb=SPX [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F04&mode=add&symb=SPX [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F99&mode=add&symb=SPX [11/20/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [11/20/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [11/20/09]
10 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.

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