Weekly Market News for the Week of December 7, 2009

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Imagination is the eye of the soul.”– Joseph Joubert

Joblessness at 10.0%. This November figure is improved from October’s 10.2% mark. Another bright spot: payrolls slimmed by just 11,000 jobs last month. (Analysts expected a reduction of around 125,000.) Are we on the verge of adding jobs to the economy? The number of employed people rose by 227,000 last month, the first increase since April.¹

ISM indexes retreat a bit. The Institute for Supply Management’s services sector index went from 50.6 in October to 48.7 in November (read: contraction). While ISM’s manufacturing index went from 55.7 to 53.6 for November, a number above 50 means growth.²

House says no to 0% estate taxes. By a vote of 225-200, the House of Representatives voted to sustain current estate tax levels into 2010. With the other house of Congress challenged for time and focused on healthcare reform legislation, Senate aides told the Washington Post that the Senate may simply pass a one-year extension of present estate tax law.³

Pending home sales up again. They rose 3.7% in October, as buyers raced to qualify for federal credits. This is the ninth straight monthly increase.⁴

Factory orders increase 0.6%. The Commerce Department reported a healthy October gain, the sixth advance in seven months. Economists expected orders to stay flat.⁵

Stocks advance. The unexpectedly mild jobless numbers from the Labor Department helped the NASDAQ, DJIA and S&P 500 gain more ground Friday. On the week, the S&P 500 gained 1.32% to 1,105.89, the NASDAQ 2.61% to 2,194.35, and the Dow 0.76% to 10,388.90.⁶

(Source: CNNMoney.com, ustreas.gov, bls.gov, 12/4/09)^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. How many 9s are in the range of numbers from 1 to 100? (Remember, the number 99 has two 9s in it.)

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

Last week’s riddle: Is there a way that you can make the number seven even?

Last week’s riddle answer: Yes, remove the s at the start and “seven” becomes “even”.

Citations.
1 news.briefing.com/GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?ArticleId=NS20091204092343HeadlineHits [12/4/09]
2 biz.yahoo.com/c/e.html [12/4/09]
3 washingtonpost.com/wp-dyn/content/article/2009/12/03/AR2009120304433.html?hpid=topnews [12/3/09]
4 bloomberg.com/apps/news?pid=20601087&sid=aCpsPN33fa1E&pos=3 [12/1/09]
5 cnbc.com/id/34273280/ [12/4/09]
6 cnbc.com/id/34279490 [12/4/09]
7 money.cnn.com/data/markets/dow/ [12/4/09]
7 money.cnn.com/data/markets/nasdaq/ [12/4/09]
7 money.cnn.com/data/markets/sandp/? [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F4%2F08&mode=add&symb=DJIA [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F04&mode=add&symb=DJIA [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F99&mode=add&symb=DJIA [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F4%2F08&mode=add&symb=COMP [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F04&mode=add&symb=COMP [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F99&mode=add&symb=COMP [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F4%2F08&mode=add&symb=SPX [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F04&mode=add&symb=SPX [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F99&mode=add&symb=SPX [12/4/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [12/4/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/4/09]
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.