Weekly Economic Update, May 31, 2011

CONSUMER SPENDING SLOWS IN APRIL
Personal spending and personal incomes both increased by 0.4% last month – but the inflation-adjusted gains were minimal or non-existent. With inflation factored in, personal spending rose by 0.1% in April while personal incomes were flat. These latest numbers out of the Commerce Department aren’t very inspiring, especially since April’s small gains can be attributed to higher gas and food prices. However, many economists believe things will pick up in coming months, assuming gas prices moderate and more jobs appear.¹

EXPECTATIONS IMPROVE IN KEY CONFIDENCE POLL
The final May consumer sentiment survey is in from the University of Michigan. At 74.3, it shows a nice rebound from the final 69.8 mark for April. It also surpassed the 72.5 reading forecast by economists polled by MarketWatch. The 2011 high for the survey – 77.5 – was recorded in February before gas prices soared.²

MIXED NEWS FROM THE REAL ESTATE SECTOR
The Census Bureau said that new home sales improved by 7.3% in April. (Sales were 23.1% below the tax credit-influenced levels of a year ago.) The National Association of Realtors noted a dip in pending home sales: they fell 11.6% in April.^3,4

DEMAND LESSENS FOR HARD GOODS
Durable goods orders fell 3.6% in April, much more than the 2.5% slip anticipated by economists surveyed by Bloomberg News. Minus the volatile transportation category, hard goods orders still decreased by 1.5%.⁵

INVESTORS LEFT COLD BY TEPID INDICATORS
The latest economic reports suggest that the economy is going through a soft patch. They didn’t exactly trigger a wave of buying on Wall Street. Stocks pulled back for the fourth straight week, as follows: DJIA, -0.56% to 12,441.58; S&P 500, -0.16% to 1,331.11; NASDAQ, -0.23% to 2,796.86. One bright spot to note: the CBOE VIX retreated 8.15% for the week.⁶

THIS WEEK: Monday was Memorial Day, so U.S. financial markets were closed. Tuesday offers the latest edition of the S&P/Case-Shiller home price index and the Conference Board’s May snapshot of consumer confidence. June begins Wednesday, when we have the ISM May manufacturing index and a report on April construction spending. Thursday brings the latest initial claims figures and data on April factory orders. Friday is big – the April unemployment numbers are released and the ISM service sector index for May arrives.

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 5/27/11^6,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

---

This material was prepared by MarketingLibrary.Net Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. 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 – cnbc.com/id/43196816 [5/27/11]
2 – marketwatch.com/story/consumer-sentiment-rises-in-may-2011-05-27 [5/27/11]
3 – census.gov/const/newressales.pdf [5/24/11]
4 – seattlepi.com/realestate/article/Home-sales-deals-fall-in-nation-Seattle-area-1398967.php [5/27/11]
5 – dailyfx.com/forex/market_alert/2011/05/25/052411_US_Durable_Goods_Fall_Most_in_Six_Months.html [5/25/11]
6 – cnbc.com/id/43198036 [5/27/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F27%2F10&x=0&y=0 [5/27/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F27%2F10&x=10&y=18 [5/27/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F27%2F10&x=0&y=0 [5/27/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F26%2F06&x=0&y=0 [5/27/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F26%2F06&x=0&y=0 [5/27/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F26%2F06&x=0&y=0 [5/27/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=5%2F25%2F01&x=0&y=0 [5/27/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=5%2F25%2F01&x=0&y=0 [5/27/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=5%2F25%2F01&x=0&y=0 [5/27/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [5/27/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [5/27/11]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm11001.pdf [1/10/01]
10 – montoyaregistry.com/Financial-Market.aspx?financial-market=401k-companies&category=2 [5/30/11]

Weekly Economic Update, March 28, 2011

4Q GDP REVISED UPWARD
The Commerce Department’s final estimate of 4Q 2010 GDP is +3.1%, an improvement from the previous estimate of +2.8%. The revision reflects increased consumer spending, exports and business investment during the quarter – and with this alteration, the Bureau of Economic Analysis now puts U.S. GDP at +2.9% for 2010. Compare that to the -2.6% economic output of 2009.¹

WHEN DOES THE REAL ESTATE RECOVERY BEGIN? >
By the looks of February’s home sales figures, recovery may not begin for a while. New home sales slipped 16.9% last month according to the Census Bureau, and were 28.0% under year-ago levels. The National Association of Realtors said existing home sales fell by 9.6% last month; the median sales price for a single-family home was $157,000 (-5.2% from a year ago) with distressed homes making up 39% of the market (up 4% from a year ago). While monthly home sales figures are often later readjusted and have a sizable margin of error, the numbers are still troubling; for example, existing home sales were up for each of the preceding three months.^2,3

GLOBAL UNCERTAINTY WEIGHS ON CONSUMERS
High gas prices and the unresolved nuclear power plant crisis in Japan likely impacted the University of Michigan’s final March consumer sentiment survey. The final March number was 67.5, the poorest reading the index has registered since November 2009.⁴

HARD GOODS ORDERS SLIP IN FEBRUARY
Durable goods orders confounded the forecasts of economists, diminishing last month by 0.9%. Minus transportation orders, the decline was 0.6%.⁵

STOCKS PROVE RESILIENT
While the three major Wall Street indexes are still negative for March, they all posted gains last week: DJIA, +3.05% to 12,220.59; S&P 500, +2.70% to 1,313.80; NASDAQ, +3.76% to 2,743.06. The Russell 2000 was up 3.67% last week and the “fear index”, the CBOE VIX, fell 26.72%.⁶

THIS WEEK: February consumer spending and January pending home sales reports arrive Monday. The Conference Board’s March consumer confidence index and the January Case-Shiller home price index come out Tuesday, plus earnings from Lennar. Thursday, we have initial and continuing claims and a report on February factory orders. Both the March unemployment report and the March ISM manufacturing report will be released on Friday.

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+5.55	+12.72	+1.67	+2.61
NASDAQ	+3.40	+14.42	+3.72	+4.30
S&P 500	+4.47	+12.70	+0.17	+1.40
REAL YIELD	3/25 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	1.02%	1.65%	2.20%	3.52%

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 3/25/11^6,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. 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 – latimesblogs.latimes.com/money_co/2011/03/economic-growth-gdp-fourth-quarter-commerce-department-.html [3/25/11]
2 – census.gov/const/newressales.pdf [3/23/11]
3 – realtor.org/press_room/news_releases/2011/03/feb_decline [3/21/11]
4 – economy.kansascity.com/?q=node/10253 [3/25/11]
5 – community.nasdaq.com/News/2011-03/us-durable-good-orders-decline-in-feb.aspx [3/24/11]
6 – cnbc.com/id/42273638
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F25%2F10&x=0&y=0 [3/25/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F25%2F10&x=10&y=18 [3/25/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F25%2F10&x=0&y=0 [3/25/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F24%2F06&x=0&y=0 [3/25/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F24%2F06&x=0&y=0 [3/25/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F24%2F06&x=0&y=0 [3/25/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F26%2F01&x=0&y=0 [3/25/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F26%2F01&x=0&y=0 [3/25/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F26%2F01&x=0&y=0 [3/25/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/25/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/25/11]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm11001.pdf [1/10/01]
10 – http://montoyaregistry.com/Financial-Market.aspx?financial-market=an-introduction-to-the-stock-market&category=29 [3/27/11]

Weekly Economic Update, February 28, 2011

STRIKING IMPROVEMENT IN CONSUMER SENTIMENT
Consumer sentiment is really rebounding – at least by the measure of the country’s two most respected polls. The final February Thomson Reuters/University of Michigan consumer sentiment survey came in at 77.5, leaping north from January’s 74.2 mark to the highest reading in 37 months. The Conference Board’s consumer confidence index climbed all the way to 70.4 this month (it was at 64.8 in January) and its gauge of future expectations hit its most optimistic level since December 2006.^1,2

REAL ESTATE MARKET WEATHERS CHILLY JANUARY
According to the Census Bureau, new home sales slipped 12.6% last month. Yet the National Association of Realtors reported that residential resales improved by 2.7% in January, the fifth increase in the past six months. Existing homes have apparently become a bit less expensive: the December Case-Shiller home price index came out last week and showed prices slipping 1.0% from November across 20 metro areas.^2,3

DURABLE GOODS ORDERS UP 2.7%
Aircraft orders drove the overall increase in the category for January. Economists polled by Dow Jones Newswires had forecast a 2.0% gain. Yet when you factor out transportation orders, durable goods orders actually fell 3.6% in January.⁴

CRUDE SETTLES NEAR $98, GAS PRICES SPIKE NORTH
By Friday afternoon, oil prices had retreated from Thursday’s $103 intraday peak. On the NYMEX, crude for April delivery settled at $97.88 a barrel Friday, capping a 9.11% weekly advance. Retail gasoline prices rose 5.9 cents overnight; the average price for a gallon of regular unleaded was $3.29 on Friday.^5,6

UNREST HAMPERS STOCKS
February 21-25 amounted to the worst trading week for the S&P 500 and Dow since November. Statistically, this is what happened last week: DJIA, -2.10% to 12,130.45; NASDAQ, -1.87% to 2,781.05; S&P 500, -1.72% to 1,319.88.⁷

THIS WEEK: Reports on January consumer spending and December pending home sales arrive Monday. Tuesday, we get the latest ISM manufacturing index and Federal Reserve chairman Ben Bernanke speaks to Congress on monetary policy. Wednesday, we have a new Beige Book from the Fed and 4Q results from Staples and Costco. Thursday, we have the February ISM service-sector index, new initial and continuing claims figures and 4Q earnings from Kroger and Heinz. Friday, we get the February unemployment figures and the January report on factory orders.

 

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+4.78	+17.53	+1.93	+1.40
NASDAQ	+4.83	+24.48	+4.32	+2.05
S&P 500	+4.95	+19.67	+0.39	+0.41
REAL YIELD	2/25 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	1.02%	1.51%	2.03%	3.52%

Source: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 2/25/11^7,8,9,10
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 of 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 – marketwatch.com/story/consumer-sentiment-rises-in-february-2011-02-25 [2/25/11]
2 – blogs.barrons.com/stockstowatchtoday/2011/02/22/consumer-confidence-up-home-prices-down/ [2/22/11]
3 – marketwatch.com/story/new-home-sales-fall-126-in-january-2011-02-24 [2/24/11]
4 – blogs.barrons.com/stockstowatchtoday/2011/02/24/jobless-claims-fall-durable-goods-orders-gain/ [2/24/11]
5 – blogs.wsj.com/marketbeat/2011/02/25/data-points-energy-metals-464/ [2/25/11]
6 – money.cnn.com/2011/02/25/news/economy/gasoline_prices/index.htm [2/25/11]
7 – cnbc.com/id/41785394 [2/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=2%2F25%2F10&x=0&y=0 [2/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=2%2F25%2F10&x=0&y=0 [2/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=2%2F25%2F10&x=0&y=0 [2/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=2%2F24%2F06&x=0&y=0 [2/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=2%2F24%2F06&x=0&y=0 [2/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=2%2F24%2F06&x=0&y=0 [2/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=2%2F26%2F01&x=0&y=0 [2/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=2%2F26%2F01&x=0&y=0 [2/25/11]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=2%2F26%2F01&x=0&y=0 [2/25/11]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [2/25/11]
9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [2/25/11]
10 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm11001.pdf [1/10/01]
11 -montoyaregistry.com/Financial-Market.aspx?financial-market=why-choose-an-independent-financial-advisor&category=5 [2/27/11]

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 April 26, 2010

New home sales up … 26.9%? Yes. The stampede was on in March as buyers raced to qualify for expiring tax credits, leading to the greatest month-over-month jump in new home purchases since 1963. According to the Census Bureau, new home prices averaged $258,600, almost unchanged from 12 months ago.¹

Existing home sales also jump. National Association of Realtors data had residential resales up 6.8% for March. In year-over-year terms, sales were 16.1% improved.²

Notable gain in PPI. In March, wholesale inflation increased by 0.7%, above the 0.4% forecast by economists. Labor Department figures showed core PPI (minus energy and food costs) up by 0.1%.³

Durable goods orders down. They slipped by 1.3% last month according to the Commerce Department. The silver lining? With transportation orders taken out, the category was +2.8% in March.⁴

(Further) indications of improvement. The Conference Board’s index of leading indicators went up 1.4% in March, the twelfth straight monthly gain. February’s gain was revised upward to 0.4%.⁵

8 straight for the Dow. Eight consecutive winning weeks, that is – on Friday, the Dow closed at 11,204.28 after rising 1.68% across five trading days. Even with fresh concerns over the debt of Greece, the NASDAQ gained 1.97% last week and the S&P 500 advanced 2.11%.⁶

(Source: CNBC.com, BigCharts.com, ustreas.gov, bls.gov, 4/23/10)^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. 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 money.cnn.com/2010/04/23/news/economy/new_home_sales/index.htm [4/23/10]
2 npr.org/blogs/thetwo-way/2010/04/home_sales_rise_68.html [4/23/10]
3 smartmoney.com/Investing/ETFs/Late-Rally-Boosts-ETFs-and-Stocks/ [4/22/10]
4 online.wsj.com/article/SB10001424052748703709804575201793952864632.html [4/23/10]
5 marketwatch.com/story/march-leading-indicators-rise-recovery-continuing-2010-04-19 [4/19/10]
6 cnbc.com/id/36738472 [4/23/10]
7 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=4%2F23%2F09&x=0&y=0 [4/23/10]
7 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=4%2F23%2F09&x=0&y=0 [4/23/10]
7 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=4%2F23%2F09&x=0&y=0 [4/23/10]
7 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=4%2F22%2F05&x=0&y=0 [4/23/10]
7 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=4%2F22%2F05&x=0&y=0 [4/23/10]
7 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=4%2F22%2F05&x=0&y=0 [4/23/10]
7 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=4%2F24%2F00&x=0&y=0 [4/23/10]
7 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=4%2F24%2F00&x=0&y=0 [4/23/10]
7 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=4%2F24%2F00&x=0&y=0 [4/23/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [4/23/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [4/23/10]
9 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

Weekly Economic Update for the Week of March 1, 2010

Stocks log best month since November. The S&P 500 rose 2.85% last month even with worries over Greece, China and the U.S. housing and job markets. The S&P had its best February in 12 years.^1,2

4Q GDP revised to 5.9%. That tops the initial 5.7% estimate from the Commerce Department. It means 4Q 2009 was the strongest quarter since 3Q 2003.³

Home sales in deep freeze. The January numbers were very poor: -7.2% for residential resales, -11.2% for new homes. However, existing home sales were 11.5% above where they had been a year before.⁴

Case-Shiller index: home prices rising. The widely watched 20-city home price index posted its seventh straight monthly gain in December. Prices increased in 15 of the index’s 20 metro areas.⁵

Durable goods orders up 3.0%. The January figure from the Commerce Department was hugely positive. Yet with transportation orders factored out, durable goods orders were down 0.6%.⁵

Less confidence last month? The February Conference Board index of consumer confidence fell to 46.0 from 55.9 in January. The index’s assessment of current conditions was the lowest since 1983.⁶

Soft week but strong month. The major U.S. indexes lost from 0.25% (NASDAQ) to 0.74% (Dow) last week. Monthly gains were quite strong: DJIA, +2.56%; NASDAQ, +4.23%; S&P 500, +2.85%.¹

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	-0.99	+43.76	-0.95	+0.47
NASDAQ	-1.36	+60.86	+1.67	-5.12
S&P 500	-0.95	+46.71	-1.76	-1.72
Real Yield	2/26	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.48%	2.02%	1.64%	4.34%

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 2/26/10)^1,7,8,9

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 cnbc.com/id/35601889 [2/26/10]
2 cnbc.com/id/35607823 [2/26/10]
3 online.wsj.com/article/SB10001424052748704625004575089030822996718.html?mod=WSJ_hpp_LEFTWhatsNewsCollection [2/26/10]
4 latimesblogs.latimes.com/money_co/2010/02/sales-of-existing-homes-fall-72-in-january.html [2/26/10]
5 sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/02/23/financial/f112032S90.DTL [2/23/10]
6 smartmoney.com/investing/economy/the-other-consumer-confidence-index/ [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F26%2F09&mode=add&symb=DJIA [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F05&mode=add&symb=DJIA [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F00&mode=add&symb=DJIA [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F26%2F09&mode=add&symb=COMP [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F05&mode=add&symb=COMP [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F00&mode=add&symb=COMP [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F26%2F09&mode=add&symb=SPX [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F05&mode=add&symb=SPX [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F00&mode=add&symb=SPX [2/26/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [2/26/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [2/26/10]
9 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]