Free Market News for the Week of May 10, 2010

Presented by Mark Lund, The Investor Coach.

Quote of the week. “You’re born an original. Don’t die a copy.”– John Mason

More jobs, more jobseekers. While U.S. firms added 290,000 jobs in April – the most in 49 months – the unemployment rate climbed to 9.9% last month. That reflected more Americans looking for work. Revised Labor Department figures show the economy adding an average of 143,000 jobs per month so far in 2010.¹

Consumer spending leaps 0.6%. Great news: March saw the biggest gain in that category in five months. The Bureau of Economic Analysis also reported a 0.3% gain in wages.²

ISM indices show strength. The Institute for Supply Management’s manufacturing index rose to 60.4 in April from 59.6 in March, and its service sector index stayed at 55.4 in April. Both numbers signal growing sectors. Additionally, factory orders increased by 1.3% last month (this category has shown a gain in 11 out of the last 12 months).^3,4

Pending home sales up again. That makes it two months in a row of gains in this category: the National Association of Realtors said the number of sales contracts increased by 5.3% in March, more than the 5.0% gain that analysts had envisioned.⁴

Stocks battle volatility, technology. Trading snafus and worries about debt in Europe aggravated the market last week. The Dow was down 5.71% for the week, the NASDAQ 7.95% and the S&P 500 6.39%. On the NYMEX, oil prices fell $11.04 last week to $75.11 per barrel. Gold gained $29.90 last week to settle at exactly $1,210.00 an ounce Friday.^5,6

(Source: CNBC.com, BigCharts.com, ustreas.gov, bls.gov, 5/7/10)^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. At a class reunion, everyone shakes hands exactly once with every person present. That results in a total of 28 handshakes. In total, how many people are at the reunion?

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

Last week’s riddle: I have keys that will open no locks. I have a space and a lock that’s a key. You can enter but you can’t leave, and yet – you can escape. What am I?

Last week’s riddle answer: A computer keyboard. The lock that’s a key is the Caps Lock, Num Lock or Scroll Lock.

Citations.
1 – online.wsj.com/article/SB10001424052748703338004575229932760855258.html [5/7/10]
2 –businessweek.com/news/2010-05-03/consumer-spending-in-u-s-rose-by-most-in-five-months-update3-.html [5/3/10]
3 – caps.fool.com/Blogs/ViewPost.aspx?bpid=386656&t=01005302436808413080 [5/6/10]
4 – fxstreet.com/fundamental/analysis-reports/kbc-news-picks/2010-05-05.html [5/5/10]
5 – cnbc.com/id/37025023 [5/7/10]
6 – blogs.wsj.com/marketbeat/2010/05/07/data-points-energy-metals-276/ [5/7/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=5%2F7%2F09&x=0&y=0 [5/7/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=5%2F7%2F09&x=0&y=0 [5/7/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=5%2F7%2F09&x=0&y=0 [5/7/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=5%2F6%2F05&x=0&y=0 [5/7/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=5%2F6%2F05&x=0&y=0 [5/7/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=5%2F6%2F05&x=0&y=0 [5/7/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=5%2F8%2F00&x=0&y=0 [5/7/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=5%2F8%2F00&x=0&y=0 [5/7/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=5%2F8%2F00&x=0&y=0 [5/7/10]
8 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [5/7/10]
8 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [5/7/10]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of the presenting Representative or the Representative’s Broker/Dealer. This information 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. 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.