Weekly Economic Update for the Week of December 28, 2009

Another strong consumer spending gain. The Commerce Department announced consumer spending rose 0.5% in November, following a 0.6% increase in October. Personal incomes rose in November by the most in six months.¹

Hashing out the home sales data. New home sales fell 11.3% last month, undoubtedly affected by the perception that the first-time buyer credit would expire. Existing home sales soared by 7.4% as buyers scrambled to meet the possible deadline. The median price for an existing home was $172,600 last month compared to $217,400 for a new one – that certainly also helped residential resales.^2,3

Health care reform clears Senate. On Christmas Eve, Senate Democrats got the 60 votes needed to pass that chamber’s version of a historic health care reform bill. The House and Senate will work to reconcile their respective bills next month.⁴

Mortgage rates edge above 5%. Freddie Mac has average rates on 30-year FRMs at 5.05% in its latest survey. Over the weekend, its deputy chief economist Amy Crews Cutts told the Washington Post that “anything we get at or below 5% is a gift at this point.” She thinks rates will hit 6% by the end of 2010.⁵

Catching up with gold & oil. Last Thursday, gold posted a gain of $10.80 to reach $1,104.80 per ounce. With the dollar strengthening, gold prices fell about $123 during December 3-24. Oil prices ended the week at $78.05, rising about 5% in 3.5 market days.⁶

Lower volumes, higher stocks. Santa Claus dropped by Wall Street – the Dow ascended almost 2% to end a relatively quiet week at 10,520.10. The NASDAQ closed at 2,285.69 Thursday; the S&P 500 closed at 1,126.48.⁷

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+19.87	+24.23	-0.57	-0.78
NASDAQ	+44.94	+49.89	+1.16	-4.24
S&P 500	+24.71	+29.76	-1.38	-2.28
Real Yield	12/24	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.50%	2.07%	1.62%	4.14%

(Source: CNNMoney.com, ustreas.gov, bls.gov, 12/24/09)^8,9,10

Indices are unmanaged, do not incur fees or expenses, and cannot be

invested into directly. These returns do not include dividends.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, 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.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations.
1 abcnews.go.com/Business/wireStory?id=9408799 [12/23/09]
2 marketwatch.com/story/new-home-sales-crater-as-subsidy-ends-2009-12-23 [12/23/09]
3 blogs.wsj.com/developments/2009/12/23/why-us-home-sales-are-both-up-and-down/ [12/23/09]
4 cbsnews.com/stories/2009/12/24/politics/main6017779.shtml [12/24/09]
5 washingtonpost.com/wp-dyn/content/article/2009/12/26/AR2009122600031.html [12/26/09]
6 abcnews.go.com/Business/wireStory?id=9419535 [12/24/09]
7 cnbc.com/id/34584961 [12/24/09]
8 money.cnn.com/data/markets/dow/ [12/24/09]
8 money.cnn.com/data/markets/nasdaq/ [12/24/09]
8 money.cnn.com/data/markets/sandp/? [12/24/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F24%2F08&mode=add&symb=DJIA [12/24/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F24%2F04&mode=add&symb=DJIA [12/24/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F24%2F99&mode=add&symb=DJIA [12/24/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F18%2F08&mode=add&symb=COMP [12/24/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F24%2F04&mode=add&symb=COMP [12/24/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F24%2F99&mode=add&symb=COMP [12/24/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F24%2F08&mode=add&symb=SPX [12/24/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F24%2F04&mode=add&symb=SPX [12/24/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F24%2F99&mode=add&symb=SPX [12/24/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [12/24/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/24/09]
10 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

Weekly Economic Update for the Week of December 21, 2009

Interesting inflation figures. November data shows a 1.8% year-over-year gain in the Consumer Price Index. That’s the first positive 12-month change since February 2009. Core CPI was flat last month; it had risen for 10 straight months. The overall CPI rose 0.4% in November. Wholesale inflation (PPI) jumped by 1.8% last month, with core PPI rising 0.5%.¹

Housing starts rebound. They hit a 6-month low in October, so November’s 8.9% increase was especially welcome. Building permits also increased by 6.0% from October levels.²

Fed sees no reason to raise rates. Last week, TIME’s Person of the Year and his colleagues voted 10-0 to leave the benchmark interest rate alone at between 0% and 0.25%. The Federal Open Market Committee said that the key rate would remain at record lows for “an extended period” as “economic activity is likely to remain weak for a time.”³

Citi, Wells Fargo will pay back Uncle Sam. The two banks will respectively repay $20 million and $25 million to the Treasury. With the Wells Fargo notice, America’s largest banks have all now pledged to exit TARP. The Obama administration claims the final TARP price tag will be under $140 billion.⁴

Leading indicators up 0.9%. For the eighth month in a row, the Conference Board’s index of leading indicators chalked up an advance. Economists polled by Bloomberg News had predicted a 0.7% rise.⁵

Tech stocks do well in mixed week. The NASDAQ rose 0.98% last week, pushing its YTD gain over 40%. The S&P 500 slipped 0.35% last week, while the DJIA fell 1.33%.⁶

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+17.69	+20.03	-0.60	-0.82
NASDAQ	+40.24	+42.47	+0.72	-4.11
S&P 500	+22.06	+24.53	-1.54	-2.24
Real Yield	12/18	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.31%	1.85%	1.64%	4.14%

(Source: CNNMoney.com, ustreas.gov, bls.gov, 12/18/09)^7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be

invested into directly. These returns do not include dividends.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, 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.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations.
1 marketwatch.com/story/us-consumer-prices-rise-04-in-november-2009-12-16-83900 [12/16/09]
2 money.cnn.com/2009/12/16/real_estate/housing_starts_November/ [12/16/09]
3 chicagotribune.com/business/chi-tc-biz-fed-1216-1217-dec17,0,3451436.story [12/17/09]
4 bloomberg.com/apps/news?pid=20601103&sid=aPQBGLJzpoMw [12/15/09]
5 bloomberg.com/apps/news?pid=20601087&sid=akvvvBaeSYYs&pos=1 [12/17/09]
6 cnbc.com/id/34382988 [12/18/09]
7 money.cnn.com/data/markets/dow/ [12/18/09]
7 money.cnn.com/data/markets/nasdaq/ [12/18/09]
7 money.cnn.com/data/markets/sandp/? [12/18/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F18%2F08&mode=add&symb=DJIA [12/18/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F17%2F04&mode=add&symb=DJIA [12/18/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F17%2F99&mode=add&symb=DJIA [12/18/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F18%2F08&mode=add&symb=COMP [12/18/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F17%2F04&mode=add&symb=COMP [12/18/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F17%2F99&mode=add&symb=COMP [12/18/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F18%2F08&mode=add&symb=SPX [12/18/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F17%2F04&mode=add&symb=SPX [12/18/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F17%2F99&mode=add&symb=SPX [12/18/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [12/18/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/18/09]
9 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

Weekly Economic Update for the Week of December 14, 2009

We’re buying more. Retail sales rose 1.3% in November, and that is the third increase that the Commerce Department has measured in that category in the last four months of data. The gain was more than twice as large as that predicted by the consensus forecast of economists.^1,2

Confidence is increasing. At least lately it is – the newest Reuters/University of Michigan consumer sentiment survey shot north to 73.4 from the previous 67.4 reading. Economists polled by Briefing.com thought it would come in at 69.0.^2,3

The inventory story. Wholesale inventories increased in October. The 0.3% gain marked the first in 13 m0nths. Manufacturing inventories expanded by 0.4% for October, and business inventories grew by 0.2% (retail inventories were flat).⁴

TARP cheaper than thought? President Obama now claims that the TARP program will cost taxpayers $200 billion less than expected. Funds previously directed to TARP may now go to small business loans and FHA programs, and efforts to pay down the $1.4 trillion U.S. deficit. TARP was extended until October 2010 last week.⁵

Pumped-up buck doesn’t hurt Dow. Last week, the dollar hit a two-month high against the euro, gold slid below $1,120 an ounce and oil fell below $70 per barrel, and the DJIA managed a nice gain (0.80% across five trading days) to settle Friday at 10,471.50. As for the S&P 500 and the NASDAQ, things were pretty flat: the NASDAQ lost 0.18% during the week and the S&P 500 gained 0.04%.⁶

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+19.31	+22.26	-0.14	-0.67
NASDAQ	+38.89	+45.26	+0.58	-3.95
S&P 500	+22.49	+26.65	-1.37	-2.19
Real Yield	12/11	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.41%	2.35%	1.66%	4.14%

(Source: CNNMoney.com, ustreas.gov, bls.gov, 12/11/09)^7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be

invested into directly. These returns do not include dividends

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, 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.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations.
1 marketwatch.com/story/retail-sales-sparkle-in-november-2009-12-11 [12/11/09]
2 briefing.com/Investor/Public/Calendars/EconomicCalendar.htm [12/11/09]
3 marketwatch.com/story/consumer-sentiment-soars-in-early-dec-2009-12-11 [12/11/09]
4 thestreet.com/story/10644022/1/business-inventories-turn-up-in-october.html?cm_ven=GOOGLEN [12/11/09]
5 abcnews.go.com/print?id=9289977 [12/9/09]
6 cnbc.com/id/34382988 [12/11/09]
7 money.cnn.com/data/markets/dow/ [12/11/09]
7 money.cnn.com/data/markets/nasdaq/ [12/11/09]
7 money.cnn.com/data/markets/sandp/? [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F11%2F08&mode=add&symb=DJIA [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F04&mode=add&symb=DJIA [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F99&mode=add&symb=DJIA [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F11%2F08&mode=add&symb=COMP [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F04&mode=add&symb=COMP [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F99&mode=add&symb=COMP [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F11%2F08&mode=add&symb=SPX [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F04&mode=add&symb=SPX [12/11/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F10%2F99&mode=add&symb=SPX [12/11/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [12/11/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/11/09]
9 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

Weekly Economic Update for the Week of December 7, 2009

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

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+18.37	+24.03	-0.38	-0.80
NASDAQ	+39.14	+51.80	+0.43	-3.77
S&P 500	+22.44	+30.85	-1.43	-2.28
Real Yield	12/4	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.34%	1.98%	1.73%	4.14%

(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.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, 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.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

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]

Weekly Economic Update for the Week of November 30, 2009

Did “Black Friday” beat expectations? The National Retail Foundation expects a 1.0% decline in holiday purchases for 2009 (after a 3.4% dip in 2008). Yet it also forecast 134 million shoppers in stores for Thanksgiving weekend, up from 128 million last year. Consumer spending did increase by 0.7% in October, the Commerce Department noted last week, with wages rising 0.2%.^1,2

Did you buy a home for the holidays? Existing home sales soared 10.1% in October, the National Association of Realtors noted last week. New home sales rose 6.2% last month to the highest annual pace since September 2008. Tax credits and first-time buyers were undoubtedly key factors.^3,4

Lowest mortgage rates since April. Freddie Mac had the national average rate for 30-year FRMs at 4.78% last week, compared to 5.97% a year ago. Rates for 15-year FRMs averaged 4.29% last week; a year prior, the average was 5.74%.⁵

Short line for big-ticket items. Durable goods orders fell by 0.6% in October. Most of the decline was attributed to reduced defense industry orders.²

Gold hits new peak. The precious metal hit a new all-time high close last Wednesday on the NYMEX: $1,188.60 an ounce. India’s central bank bought 200 metric tons of gold in October and reportedly wants to buy more. The U.S. Dollar Index fell to lows not seen since August 2008 on Wednesday.⁶

Minor market movement. Very minor, if you take the S&P 500 – it advanced 0.01% last week. The Dow posted a small weekly loss (-0.08%) and the NASDAQ retreated -0.35% for the week.⁷

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+17.47	+18.14	-0.40	-0.62
NASDAQ	+35.60	+39.58	+0.35	-3.80
S&P 500	+20.84	+22.96	-1.54	-2.30
Real Yield	11/27	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.15%	2.38%	1.75%	4.14%

(Source: CNNMoney.com, ustreas.gov, bls.gov, 11/27/09)^8,9,10

Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, 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.

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Citations

1 money.cnn.com/2009/11/27/news/economy/black_friday_2009/ [11/27/09]
2 latimes.com/business/la-fi-economy26-2009nov26,0,2715680.story [11/26/09]
3 reuters.com/article/ousivMolt/idUSTRE5AM34G20091123 [11/23/09]
4 bloomberg.com/apps/news?pid=20601068&sid=aEd91lkIePdg [11/25/09]
5 suntimes.com/business/1905553,CST-FIN-Mort26web.article [11/26/09]
6 bloomberg.com/apps/news?pid=20601081&sid=aLrknf1puOXI [11/25/09]
7 cnbc.com/id/34173738 [11/27/09]
8 money.cnn.com/data/markets/dow/ [11/27/09]
8 money.cnn.com/data/markets/nasdaq/ [11/27/09]
8 money.cnn.com/data/markets/sandp/? [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F27%2F08&mode=add&symb=DJIA [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F04&mode=add&symb=DJIA [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F99&mode=add&symb=DJIA [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F27%2F08&mode=add&symb=COMP [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F04&mode=add&symb=COMP [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F99&mode=add&symb=COMP [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F27%2F08&mode=add&symb=SPX [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F04&mode=add&symb=SPX [11/27/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F26%2F99&mode=add&symb=SPX [11/27/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [11/27/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [11/27/09]
10 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]