Weekly Market News for the Week of January 11, 2010

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Wisdom is found only in truth.”– Johann Wolfgang Von Goethe

Jobless rate stays at 10.0%. Hopes were high on Wall Street that unemployment would fall back to single digits, but at least things stayed flat for December. The positives: the 10.0% figure was better than the 10.1% reading economists polled by Dow Jones Newswires expected, and revised November figures showed the economy actually added 4,000 jobs two months ago.1

Service sector expands. The Institute for Supply Management’s services index came in at 50.1 for December, meaning marginal growth – and a rise from November’s 48.7 mark. ISM’s service sector employment index improved to 44.0 in December from 41.6 a month earlier.2

Interpreting pending home sales. They fell 16.0% in November, but consider some factors. A wave of buyers raced to exploit tax credits in October, so we were primed for a fall – and winter isn’t a prime time to buy or sell. In the big picture, the National Association of Realtors noted that pending home sales for November 2009 were 15.5% above levels of a year before.3

More orders, bigger stockpiles. According to the Census Bureau, factory orders went north 1.1% in November; analysts had expected about half that gain. Wholesale inventories rose 1.5% last month (best month since October 2004) and wholesale sales rose 3.3% (strongest month since January 2008).4,5

2.68% gain to start 2010. Yes, that was how much the S&P 500 rose in the first trading week of the year. A January effect sent the NASDAQ 2.12% higher and the Dow 1.82% higher as well. Friday morning, the CBOE VIX hit its lowest level in 19 months.6,7

% Change


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S&P 500





Real Yield


1 Yr Ago

5 Yrs Ago

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(Source: CNNMoney.com, ustreas.gov, bls.gov, 1/8/10)6,8,9,10
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. There is a kind of sweet bean that never grows in a garden. What is it?

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

Last week’s riddle: A man jumped out of a small plane without a parachute. When he hit the ground, he wasn’t injured at all. Why?

Last week’s riddle answer: The plane was parked on the ground.

1 online.wsj.com/article/SB126295679510421517.html?mod=rss_Today%27s_Most_Popular [1/8/10]
2 marketwatch.com/story/us-dec-ism-services-index-rebounds-to-501-2010-01-06?reflink=MW_news_stmp [1/6/10]
3 usnews.com/money/blogs/the-home-front/2010/01/05/housing-market-gets-tax-credit-payback [1/5/10]
4 blogs.barrons.com/stockstowatchtoday/2010/01/05/us-factory-orders-beat-expectations/ [1/5/10]
5 bloomberg.com/apps/news?pid=20601087&sid=a89gE4gDzVao&pos=4 [1/8/10]
6 cnbc.com/id/34771264 [1/8/10]
7 cnbc.com/id/34766998 [1/10/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F8%2F09&mode=add&symb=DJIA [1/8/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F05&mode=add&symb=DJIA [1/8/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F00&mode=add&symb=DJIA [1/8/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F8%2F09&mode=add&symb=COMP [1/8/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F05&mode=add&symb=COMP [1/8/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F00&mode=add&symb=COMP [1/8/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F8%2F09&mode=add&symb=SPX [1/8/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F05&mode=add&symb=SPX [1/8/10]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F00&mode=add&symb=SPX [1/8/10]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [1/8/10]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [1/8/10]
10 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

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.