Weekly Economic Update, January 31, 2011

4Q GDP: +3.2%
The preliminary estimate from the Bureau of Economic Analysis certainly beats the +2.6% mark from 3Q 2010. A deeper look into the BEA report reveals both personal consumption and nonresidential fixed investment improving by a healthy 4.4% last quarter; inventory accumulation slowed as well.¹

HUGE JUMP IN NEW HOME SALES
The pace of new home sales improved by 17.5% last month, according to the Census Bureau. In year-over-year terms, sales were down 7.6% while sale prices were 9.1% better. For the record, fewer new homes were built in 2010 than in any year since the government started keeping records in 1963. In other housing news, the National Association of Realtors reported that pending home sales were up for the fifth time in the last six months in December (+2.0%), and Freddie Mac reported that the average interest rate on a 30-year conventional mortgage has risen to 4.80%.^2,3

DISSIMILAR FINDINGS FROM CONFIDENCE POLLS
While the Conference Board’s January poll showed U.S. consumer confidence at an 8-month peak (60.6), the final January Reuters/University of Michigan survey showed a slight decline to 74.2 from 74.5 in December.^4,5

DURABLE GOODS ORDERS DOWN 2.5%
There was a silver lining in the Commerce Department’s December report: with aircraft orders factored out, durable goods orders were up 0.5% last month.⁶

FEARS, EARNINGS REPORTS STAGGER STOCKS
Unrest in Egypt (and subpar 4Q results from Ford, Amazon and Microsoft) led to a lot of selling Friday and took the DJIA, S&P 500 and NASDAQ lower for the week. The Dow’s eight-week winning streak was snapped; it did top 12,000 in intraday trading Friday. Weekly performances were as follows: DJIA, -0.41% to 11,823.70; S&P 500, -0.55% to 1,276.34; NASDAQ, -0.10% to 2,686.89. The CBOE VIX gained 8.50% last week.⁷

THIS WEEK: Monday brings a new consumer spending report and earnings from ExxonMobil and Chrysler. Tuesday, we have the January ISM manufacturing report and earnings from BP, Pfizer, UPS and Broadcom. Wednesday we get 4Q results from Yum Brands, Visa and Mattel. Thursday brings new initial and continuing claims data, a new ISM service sector report, December factory orders data, and 4Q results from Merck, Sony and Unilever and Ben Bernanke speaking to the National Press Club. Friday, we have the January jobs report and Aetna’s 4Q earnings.

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+2.13	+16.83	+1.68	+1.05
NASDAQ	+1.28	+23.31	+3.32	-0.53
S&P 500	+1.49	+17.69	-0.11	-0.64
REAL YIELD	1/28 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	1.09%	1.35%	2.02%	3.52%

Source: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 1/28/11^7,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

 

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views Statler Financial Services, Inc. This information should not be construed as investment, tax or legal 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. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. 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 assistance is needed, the reader is advised to engage the services of a competent professional.

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 – blogs.forbes.com/afontevecchia/2011/01/28/inflation-wary-consumers-help-economy-grow-3-2-in-q4/ [1/28/11]
2 – latimes.com/business/realestate/la-fi-home-sales-20110127,0,3555076.story [1/27/11]
3 – usatoday.com/money/economy/housing/2011-01-27-pending-home-sales_N.htm [1/27/11]
4 – latimesblogs.latimes.com/money_co/2011/01/consumer-confidence-index-rises-job-market-outlook.html [1/25/11]
5 – marketwatch.com/story/us-consumers-sentiment-dips-in-january-2011-01-28 [1/28/11]
6 – abcnews.go.com/Business/wireStory?id=12779327 [1/27/11]
7 – cnbc.com/id/41317519 [1/28/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=1%2F28%2F10&x=0&y=0 [1/28/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=1%2F28%2F10&x=0&y=0 [1/28/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=1%2F28%2F10&x=0&y=0 [1/28/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=1%2F27%2F06&x=0&y=0 [1/28/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=1%2F27%2F06&x=0&y=0 [1/28/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=1%2F27%2F06&x=0&y=0 [1/28/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=1%2F7%29F01&x=0&y=0 [1/28/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=1%2F7%29F01&x=0&y=0 [1/28/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=1%2F7%29F01&x=0&y=0 [1/28/11]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [1/28/11]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [1/28/11]
10 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm11001.pdf [1/10/01]
11 – montoyaregistry.com/Financial-Market.aspx?financial-market=an-introduction-to-the-stock-market&category=29 [1/29/11]

The Weekly Economic Update, August 2, 2010

HOME SALES & HOME PRICES IMPROVE
The Commerce Department said new home purchases surged by 23.6% for June, bouncing back nicely from May’s historic retreat. The supply of new homes for sale diminished to 7.6 months worth, much improved from the 9.6 months worth of inventory estimated in May and much closer to the 6-month level of a healthy housing market. New home prices dropped only 0.6% from June 2009 to June 2010, the smallest year-over-year decrease since November 1987. Separately, the Standard & Poor’s/Case-Shiller home price index of 20 U.S. cities showed prices of existing homes rising 1.3% for May. Prices were also 4.6% higher than a year ago.^1,2

CONSUMER CONFIDENCE LAGS
The economic recovery is taking time – too much time for many Americans, according to the final July University of Michigan consumer sentiment survey and the July Conference Board poll. The Reuters/University of Michigan index came in at 67.8, way down from the final 76.0 of June. That is the lowest reading since November. The Conference Board’s survey also slipped to 50.4 in July from June’s 54.3 mark.³

ECONOMY GROWS 2.4% IN SECOND QUARTER
The preliminary GDP reading from the Commerce Department was received tepidly on Wall Street. Analysts surveyed by Reuters were predicting 2.5% 2Q growth, and the federal government had earlier estimated 1Q 2010 expansion at 2.7%. Still, the recovery is continuing. One interesting note: business expenditures on equipment and software increased by 29.1% last quarter – the biggest jump since 3Q 1997.^4,5

DURABLE GOODS ORDERS DOWN 1.0%
Economists polled by MarketWatch had forecast a 1.1% gain for June. Instead, the category posted its worst performance in 10 months. With transportation orders factored out, the decrease was only 0.6%.⁶

A GREAT JULY ON WALL STREET
While last week saw stocks retreat slightly, the Dow climbed 7.08% in July for its best month in a year. As of Friday’s close, about two-thirds of companies in the S&P 500 had issued earnings reports with about 75% surpassing expectations. The DJIA ended the week at 10,465.94, while the NASDAQ and S&P 500 respectively settled at 2,254.70 and 1,101.60 Friday. In commodities, oil logged its best month since March, with prices rising 4.39% to $78.95 a barrel at the July 30 NYMEX close. Gold had its poorest month since December, with futures falling 5.12% in July and ending the month at $1,181.70 per ounce on the COMEX.^5,7

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DIJA	+0.36	+14.33	-0.33	-0.05
NASDAQ	-0.64	+13.63	+0.64	-4.01
S&P 500	-1.21	+11.64	-2.15	-2.30
REAL YIELD	7/30 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	1.14%	1.78%	1.92%	4.0

Source: cnbc.com, bigcharts.com, ustreas.gov, bls.gov – 7/30/10^5,8,9,10

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

These returns do not include dividends.

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views of Statler Financial Services, Inc. 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. http://www.montoyaregistry.com http://www.petermontoya.com

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 – reuters.com/article/idUSTRE65M2WK20100716 [7/26/10]

2 – articles.latimes.com/2010/jul/28/business/la-fi-home-prices-20100728 [7/28/10]

3 – thestreet.com/story/10822616/1/consumer-sentiment-hits-9-month-low.html [7/30/10]

4 – cnbc.com/id/38483372/ [7/30/10]

5 – cnbc.com/id/38487832 [7/30/10]

6 – marketwatch.com/story/surprise-drop-in-june-us-durable-goods-orders-2010-07-28?dist=beforebell [7/28/10]

7 – blogs.wsj.com/marketbeat/2010/07/30/data-points-energy-metals-330/ [7/30/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=7%2F30%2F09&x=0&y=0 [7/30/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=7%2F30%2F09&x=0&y=0 [7/30/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=7%2F30%2F09&x=0&y=0 [7/30/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=7%2F29%2F05&x=0&y=0 [7/30/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=7%2F29%2F05&x=0&y=0 [7/30/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=7%2F29%2F05&x=0&y=0 [7/30/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=7%2F31%2F00&x=0&y=0 [7/30/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=7%2F31%2F00&x=0&y=0 [7/30/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=7%2F31%2F00&x=0&y=0 [7/30/10]

9 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [7/30/10]

9 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [7/30/10]

10 – treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [7/12/00]

The Weekly Economic Update, June 28, 2010

Highest consumer confidence since January 2008

That is what the final University of Michigan/Reuters survey for June reveals. The index came in at 76.0, an improvement from the final 73.6 reading for May. (For the record, the survey has averaged 84.5 across the past ten years.) The poll’s index of consumer expectations (the “better or worse six months from now?” question) improved 1.0 points to 69.8.¹

Home sales swoon in May

New and existing home sales plunged dramatically last month as federal homebuying credits left the picture. Economists expected new home sales numbers would dip, but the 32.7% decline announced by the Commerce Department surprised Wall Street and the real estate industry. The National Association of Realtors stated that existing home sales were down 2.2% last month.²

Durable goods orders fall, but corporate profits revised north

The Commerce Department noted an overall 1.1% decline in durable goods orders for May; minus transportation orders, there was actually a 0.9% gain in the category. It put 1Q GDP slightly lower at +2.7% in its final 1Q snapshot, but it also revised 1Q corporate profits north to +8.0%. Corporate earnings were 34.0% better than a year before – the largest year-over-year climb in 26 years, and a signal that both hiring and business investment are due to accelerate. The consensus 2Q forecast of a Wall Street Journal survey estimates second-quarter GDP will come in at +3.6%.^1,3,4

BP, financial reform concerns weigh on Wall Street

The DJIA wrapped up Friday at 10,143.81, ending a rough week. The S&P 500 closed at 1,076.76 Friday, while the NASDAQ closed at 2,223.48. All three indices wound up in the red for 2010 as of Friday’s close, but the Russell 2000 remained positive (+3.15% YTD).⁵

% Change	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	-2.73	+19.73	-0.30	-0.38
NASDAQ	-2.01	+21.53	+1.66	-4.32
S&P 500	-3.44	+17.01	-1.93	-2.60
Real Yield	6/25	1 YR AGO	5 YRS AGO	10 YRS AGO
10YrTIPS	1.21%	1.82%	1.65%	4.34%
(Source: usatoday.com, bigcharts.com, ustreas.gov, bls.gov, 6/25/10)5,6,7,8 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views of Statler Financial Services, Inc. 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. http://www.montoyaregistry.com http://www.petermontoya.com

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 – bloomberg.com/news/2010-06-25/consumer-confidence-in-u-s-increases-to-76-from-73-6-in-michigan-index.html [6/25/10]

2 – dailyfinance.com/story/real-estate/may-new-home-sales-plunge-32-7/19527532/ [6/23/10]

3 – online.wsj.com/article/BT-CO-20100624-706095.html [6/24/10]

4 – online.wsj.com/article/SB10001424052748703615104575328493487718962.html [6/25/10]

5 – cnbc.com/id/37927853 [6/25/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F25%2F09&x=0&y=0 [6/25/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F25%2F09&x=0&y=0 [6/25/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F25%2F09&x=0&y=0 [6/25/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F24%2F05&x=0&y=0 [6/25/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F24%2F05&x=0&y=0 [6/25/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F24%2F05&x=0&y=0 [6/25/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F26%2F00&x=0&y=0 [6/25/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F26%2F00&x=0&y=0 [6/25/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F26%2F00&x=0&y=0 [6/25/10]

7 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [6/25/10]

7 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [6/25/10]

8 – treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

Weekly Economic Update for the Week of June 14, 2010

Retail sales down 1.2% in May. What happened? Perhaps consumers took a break after spending notably in March and April. Auto sales slipped 1.7%; hardware store sales fell 9.3%, possibly influenced by the expiration of homebuyer tax credits.¹

Consumer sentiment rises. Consumers may have bought less recently, but according to the University of Michigan/Reuters consumer sentiment poll, their confidence has increased. June’s preliminary reading was 75.5 – a rise from the final 73.6 May mark. The barometer of current economic conditions reached 82.9; it hasn’t been this high since March 2008.²

Wholesale, business inventories increase. The Commerce Department reported 0.4% gains in both categories for April. Business inventories hit their highest level since last June; wholesale inventories were up for a fourth consecutive month.^2,3

Gold touches $1,250 level. The precious metal hit a new intraday peak last week ($1,254.50) and settled at $1,230.20 per ounce Friday. Gold gained 1.03% last week, and other metals did better: silver futures rose 5.39% and palladium futures were up 4.07%. Copper also advanced 3.00% for the week.⁴

S&P 500 gains 2.51%. Welcome news: from Monday to Friday, the index had its best week since early March. The NASDAQ gained 1.10% and the DJIA gained 2.81% last week, with the Dow settling at 10,211.07.⁵

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	-2.08	+16.42	-0.57	-0.33
NASDAQ	-1.13	+20.47	+1.75	-4.05
S&P 500	-2.11	+15.53	-1.78	-2.45
Real Yield	6/11	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.29%	1.89%	1.74%	4.34%

(Source: CNBC.com, BigCharts.com, ustreas.gov, bls.gov, 6/11/10)^5,6,7,8

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

invested into directly. These returns do not include dividends.

___________________________________________________________________

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of Statler Financial Services, Inc.. 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. http://www.montoyaregistry.com http://www.petermontoya.com

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 – cbsnews.com/stories/2010/06/11/business/main6571608.shtml [6/11/10]

2 – cnbc.com/id/37636961/ [6/1/10]

3 – businessweek.com/news/2010-06-09/wholesale-inventories-in-u-s-rose-0-4-in-april-update1-.html [6/9/10]

4 – cnbc.com/id/37648767/page/2/ [6/11/10]

5 – cnbc.com/id/37648767 [6/11/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F11%2F09&x=0&y=0 [6/11/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F11%2F09&x=0&y=0 [6/11/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F11%2F09&x=0&y=0 [6/11/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F10%2F05&x=0&y=0 [6/11/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F10%2F05&x=0&y=0 [6/11/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F10%2F05&x=0&y=0 [6/11/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F12%2F00&x=0&y=0 [6/11/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F12%2F00&x=0&y=0 [6/11/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F12%2F00&x=0&y=0 [6/11/10]

7 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [6/11/10]

7 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [6/11/10]

8 – treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

Weekly Economic Update for the Week of May 17, 2010

Gold soars, euro slips, rumors plague EU. Wall Street watched Europe closely last week; investors initially loved the almost-trillion-dollar debt rescue plan from the International Monetary Fund and the European Union, but then wondered if its austerity measures would slow growth. The euro hit an 18-month low Friday as rumors floated that certain EU nations might ditch the currency. Gold, meanwhile, settled at $1,227.80 an ounce Friday – prices are up about 16% since early February.^1,2

Retail sales up 0.4% in April. This marks seven consecutive months of gains. Additionally, the Census Bureau said April 2010 retail sales figures were 8.8% improved from April 2009.³

Reuters: a gain in consumer sentiment. In May’s preliminary Reuters/University of Michigan poll, the index read 73.3, better than April’s 72.2. The survey’s one-year inflation expectations index read 3.1%, the highest mark in 11 months.⁴

Industrial output on the rise. On Friday, the Federal Reserve noted a 0.8% gain in industrial production for April. This follows up a 0.2% advance recorded in March.³

Up, down … up, down … and finally, up. Big swings ruled the market last week – but make no mistake, it was a winning week for equities. At the Friday close, the Dow stood at 10,620.16 after a 2.31% advance across five trading days. Last week, the NASDAQ rose 3.58% while the S&P 500 gained 2.23%. The Russell 2000 gained 6.28% last week.⁵

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+1.84	+27.47	+0.95	-0.17
NASDAQ	+3.42	+38.93	+3.74	-3.49
S&P 500	+1.85	+27.17	-0.32	-2.18
Real Yield	5/14	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.26%	1.68%	1.66%	4.34%

(Source: CNBC.com, BigCharts.com, ustreas.gov, bls.gov, 5/14/10)^5,6,7,8

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

invested into directly. These returns do not include dividends.

___________________________________________________________________

This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of Statler Financial Services, Inc. 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. http://www.montoyaregistry.com http://www.petermontoya.com

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 – nytimes.com/2010/05/15/business/15markets.html?src=me [5/14/10]

2 – online.wsj.com/article/BT-CO-20100514-713372.html?mod=WSJ_latestheadlines [5/14/10]

3 – npr.org/blogs/thetwo-way/2010/05/retail_sales_rose_04_last_mont.html [5/14/10]

4 – cnbc.com/id/37148851/ [5/14/10]

5 – cnbc.com/id/37155847 [5/14/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=5%2F14%2F09&x=0&y=0 [5/14/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=5%2F14%2F09&x=0&y=0 [5/14/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=5%2F14%2F09&x=0&y=0 [5/14/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=5%2F13%2F05&x=0&y=0 [5/14/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=5%2F13%2F05&x=0&y=0 [5/14/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=5%2F13%2F05&x=0&y=0 [5/14/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=5%2F15%2F00&x=0&y=0 [5/14/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=5%2F15%2F00&x=0&y=0 [5/14/10]

6 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=5%2F15%2F00&x=0&y=0 [5/14/10]

7 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [5/14/10]

7 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [5/14/10]

8 – treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

Weekly Economic Update for the Week of March 15, 2010

Good news at the cash register. Commerce Department data showed retail purchases up by 0.3% in February despite all the snow, sleet and rain, and 3.9% above where they were a year earlier. Most retail sales sectors had month-over-month increases.1

Signs of rising demand. Business sales increased by 0.6% in January (business inventories were flat). January 2010 business sales were 6.8% better than a year before. Other Commerce Department data shows wholesale sales jumping by 1.3% in January and wholesale stockpiles decreasing by 0.2%.2,3

Consumer confidence wavers. The preliminary Reuters/University of Michigan consumer sentiment survey is in for March. The index reads 72.5, down from a final 73.6 in February. However, things have improved notably from March 2009 when the gauge stood at 57.3.4

Gold & oil retreat. Gold had its poorest week since mid-January as prices dipped 2.93% last week to settle at $1,101.50 Friday on the COMEX. Oil fared better, losing just 0.32% across five days. Oil futures were $81.24 a barrel at Friday’s NYMEX close.5

Nice gains on Wall Street. Stocks pulled off weekly gains during a stretch of five trading days with only mild volatility. The DJIA advanced 0.55% last week, while the S&P 500 rose 0.99% and the NASDAQ gained 1.78%. The S&P 500 closed Friday at a 17-month high: 1,149.98.6

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+1.89	+48.18	-0.28	+0.68
NASDAQ	+4.34	+66.02	+3.19	-5.18
S&P 500	+3.13	+53.18	-0.83	-1.69
Real Yield	3/12	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.45%	1.88%	1.82%	4.34%

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 3/12/10)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.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, Inc. 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-shake-off-the-snows-of-feb-2010-03-12 [3/12/10]
2 dailyfinance.com/story/business-inventories-flat-in-january/19396378/ [3/12/10]
3 businessweek.com/news/2010-03-10/wholesale-inventories-in-u-s-fell-0-2-in-january-update1-.html [3/10/10]
4 abcnews.go.com/Business/wireStory?id=10083589 [3/12/10]
5 blogs.wsj.com/marketbeat/2010/03/12/data-points-energy-metals-239/ [3/12/10]
6 cnbc.com/id/35840993 [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F12%2F09&mode=add&symb=DJIA [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F11%2F05&mode=add&symb=DJIA [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F13%2F00&mode=add&symb=DJIA [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F12%2F09&mode=add&symb=COMP [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F11%2F05&mode=add&symb=COMP [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F13%2F00&mode=add&symb=COMP [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F12%2F09&mode=add&symb=SPX [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F11%2F05&mode=add&symb=SPX [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F13%2F00&mode=add&symb=SPX [3/12/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [3/12/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [3/12/10]
9 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

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]