Weekly Market News for the Week of February 15, 2010

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Live out of your imagination, not your history.”– Dr. Stephen Covey

Retail sales increase. Friday, the Census Bureau estimated retail sales up 0.5% for January, with a 4.7% year-over-year gain from January 2009. The half-percent gain topped the +0.3% forecast of economists polled by Briefing.com.^1,2

How are things off the sales floor? According to the Commerce Department, wholesale inventories shrank by 0.8% in December. Factory inventories were reduced by 0.1%, and retail stockpiles stayed flat (so to speak). U.S. companies had 1.26 months supply of goods on hand, the lowest figure since June 2008. You can hear factories humming.³

Consumer sentiment declines a bit. February’s preliminary Reuters/University of Michigan index of sentiment came in at 73.7. Late last month, the index was at 74.4. On the other hand, it was down at 56.3 one year ago. The gauge of current economic conditions hit 84.1, the highest mark in 23 months.⁴

A quick check on gold, copper & oil. They all advanced last week. Gold gained $37.30 over five days to close Friday at $1,089.50 an ounce (a 3.54% weekly gain). Copper rose 7.88% across its best week since July. Crude oil futures finished at $74.13 per barrel on the NYMEX Friday after a 4.13% weekly gain.⁵

NASDAQ gains 2%. That index outperformed the DJIA and S&P 500, rising 1.98% across a choppy yet winning week for all three major U.S. indices. The NASDAQ closed Friday at 2,183.53. The S&P 500 and DJIA both ascended 0.87% last week to finish respectively at 1,075.51 and 10,099.14 Friday. The U.S. stock markets will be closed February 15 for the Presidents’ Day holiday.⁶

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 2/12/10)^6,7,8,9
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. A supermarket sign says you can buy energy bars at $12 a dozen. At that price, how much would it cost you to buy 100 energy bars?

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

Last week’s riddle: A family has a mother, father and four daughters. Each daughter has one brother. How many people are in the family?

Last week’s riddle answer: Seven people. Each of the daughters have one brother, there is not one brother for each daughter.

Citations.
1 census.gov/retail/marts/www/marts_current.html [2/12/10]
2 blogs.barrons.com/stockstowatchtoday/2010/02/12/january-retail-sales-beat-sp-futures-down/ [2/12/10]
3 businessweek.com/news/2010-02-12/inventories-at-u-s-companies-unexpectedly-fall-as-sales-rise.html [2/12/10]
4 reuters.com/article/idUSTRE61B2XI20100212 [2/12/10]
5 blogs.wsj.com/marketbeat/2010/02/12/data-points-energy-metals-222/? [2/12/10]
6 cnbc.com/id/35371644 [2/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F12%2F09&mode=add&symb=DJIA [2/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F05&mode=add&symb=DJIA [2/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F00&mode=add&symb=DJIA [2/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F12%2F09&mode=add&symb=COMP [2/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F05&mode=add&symb=COMP [2/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F00&mode=add&symb=COMP [2/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F12%2F09&mode=add&symb=SPX [2/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F05&mode=add&symb=SPX [2/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F11%2F00&mode=add&symb=SPX [2/12/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [2/12/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [2/12/10]
9 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.