Weekly Market News for the Week of November 30, 2009

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Learn to express rather than impress.”– Jim Rohn

Did “Black Friday” beat expectations? The National Retail Foundation expects a 1.0% decline in holiday purchases for 2009 (after a 3.4% dip in 2008). Yet it also forecast 134 million shoppers in stores for Thanksgiving weekend, up from 128 million last year. Consumer spending did increase by 0.7% in October, the Commerce Department noted last week, with wages rising 0.2%.^1,2

Did you buy a home for the holidays? Existing home sales soared 10.1% in October, the National Association of Realtors noted last week. New home sales rose 6.2% last month to the highest annual pace since September 2008. Tax credits and first-time buyers were undoubtedly key factors.^3,4

Lowest mortgage rates since April. Freddie Mac had the national average rate for 30-year FRMs at 4.78% last week, compared to 5.97% a year ago. Rates for 15-year FRMs averaged 4.29% last week; a year prior, the average was 5.74%.⁵

Short line for big-ticket items. Durable goods orders fell by 0.6% in October. Most of the decline was attributed to reduced defense industry orders.²

Gold hits new peak. The precious metal hit a new all-time high close last Wednesday on the NYMEX: $1,188.60 an ounce. India’s central bank bought 200 metric tons of gold in October and reportedly wants to buy more. The U.S. Dollar Index fell to lows not seen since August 2008 on Wednesday.⁶

Minor market movement. Very minor, if you take the S&P 500 – it advanced 0.01% last week. The Dow posted a small weekly loss (-0.08%) and the NASDAQ retreated -0.35% for the week.⁷

(Source: CNNMoney.com, ustreas.gov, bls.gov, 11/27/09)^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. Is there a way that you can make the number seven even?

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

Last week’s riddle: 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?

Last week’s riddle answer: 750 – 200 = 550 standard-size cars.

Citations.
1 money.cnn.com/2009/11/27/news/economy/black_friday_2009/ [11/27/09]
2 latimes.com/business/la-fi-economy26-2009nov26,0,2715680.story [11/26/09]
3 reuters.com/article/ousivMolt/idUSTRE5AM34G20091123 [11/23/09]
4 bloomberg.com/apps/news?pid=20601068&sid=aEd91lkIePdg [11/25/09]
5 suntimes.com/business/1905553,CST-FIN-Mort26web.article [11/26/09]
6 bloomberg.com/apps/news?pid=20601081&sid=aLrknf1puOXI [11/25/09]
7 cnbc.com/id/34173738 [11/27/09]
8 money.cnn.com/data/markets/dow/ [11/27/09]
8 money.cnn.com/data/markets/nasdaq/ [11/27/09]
8 money.cnn.com/data/markets/sandp/? [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F27%2F08&mode=add&symb=DJIA [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F04&mode=add&symb=DJIA [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F99&mode=add&symb=DJIA [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F27%2F08&mode=add&symb=COMP [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F04&mode=add&symb=COMP [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F99&mode=add&symb=COMP [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F27%2F08&mode=add&symb=SPX [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F04&mode=add&symb=SPX [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F99&mode=add&symb=SPX [11/27/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [11/27/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [11/27/09]
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.