Weekly Market News for the Week of November 9, 2009

Presented by Mark Lund, The Investor Coach

Quote of the week. “Amusement to an observing mind is study.”– Benjamin Disraeli

Jobless rate lags behind recovery. America’s unemployment rate reached 10.2% in October, higher than the 9.9% analysts at Briefing.com had forecast. One silver lining to the highest jobless rate in 26 years: net October layoffs were at 190,000 compared to 219,000 in September.¹

More help for jobless + homebuyers. President Obama signed H.R. 3548 into law Friday, extending unemployment benefits an extra 14-20 weeks for roughly 2 million Americans. Additionally, the first-time homebuyer credit of up to $8,000 will be available through next June as long as a buyer signs a binding contract by the end of April. Move-up buyers may be eligible for a $6,500 variation of this credit.²

Could a wave of hiring start soon? Maybe. New  Labor Department figures show that employee productivity increased by a whopping 9.5% in 3Q 2009. Also, labor costs fell by 5.2% in 3Q 2009, resulting in the largest four-quarter drop since 1948.³

Service sector growth continues. The Institute for Supply Management’s September service sector index topped 50 again – 50.6, a bit down from 50.9 in August but still showing expansion. The real attention-getter: a 1.4% jump north in new orders and a 2.0% increase in the backlog of new orders.⁴

Gold tops $1,100. Gold futures did that twice last week, finally settling at $1,095.70 on the NYMEX Friday; prices rose 5% last week. Oil prices gained $0.43 last week to close at $77.43 a barrel Friday.^5,6

Stocks make big gains. The Federal Reserve left interest rates alone, and the good news from the ISM, the Labor Department and various earnings reports outweighed the jobless data. The Dow and S&P 500 both rose 3.20% last week; the Dow closed Friday at 10,023.42. The NASDAQ climbed 3.29% last week.⁷

(Source: CNNMoney.com, ustreas.gov, bls.gov, 11/6/09)^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. Determine the numeral between 1 and 100 which is also nine times the sum of its digits.

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

Last week’s riddle: What is the only planet within our solar system that rotates clockwise?

Last week’s riddle answer: Venus.

Citations.
1 money.cnn.com/2009/11/06/news/economy/jobs_october/index.htm?postversion=2009110611 [11/6/09]
² money.cnn.com/2009/11/05/news/economy/Extending_unemployment_benefits/index.htm?postversion=2009110612 [11/5/09]
3 bloomberg.com/apps/news?pid=20601087&sid=a5NmIOAgsKkc&pos=5 [11/5/09]
4 bloomberg.com/apps/news?pid=20601087&sid=axF0x1MhqUGY&pos=1 [11/4/09]
5 money.cnn.com/2009/11/06/markets/gold/index.htm?postversion=2009110614 [11/6/09]
6 money.cnn.com/2009/11/06/markets/oil.reut/index.htm?postversion=2009110615 [11/6/09]
7 cnbc.com/id/33727378 [11/6/09]
8 money.cnn.com/data/markets/dow/ [11/6/09]
8 money.cnn.com/data/markets/nasdaq/ [11/6/09]
8 money.cnn.com/data/markets/sandp/? [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F6%2F08&mode=add&symb=DJIA [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F04&mode=add&symb=DJIA [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F99&mode=add&symb=DJIA [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F6%2F08&mode=add&symb=COMP [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F04&mode=add&symb=COMP [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F99&mode=add&symb=COMP [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F6%2F08&mode=add&symb=SPX [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F04&mode=add&symb=SPX [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F99&mode=add&symb=SPX [11/6/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [11/6/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [11/6/09]
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.