Weekly Economic Update for the Week of May 3, 2010

Good solid growth. On Friday, the Commerce Department estimated 1Q GDP at +3.2%, marking the third positive quarter in a row. What drove the gain? Consumer spending was up 3.6% in the quarter, and business spending on equipment and software increased by 13.4%.¹

Year-over-year gain in home prices. That’s what the February S&P/Case-Shiller Home Price Index revealed. Across 20 cities, prices rose 0.6% from February 2009 levels. This is the first yearly advance recorded by the index since December 2006, though prices were down 0.9% from January.²

The latest consumer barometers. One went north, another south: the final Reuters/University of Michigan consumer sentiment index for April dipped to 72.2, down from 73.6 in March but above the 71.0 forecast by analysts polled by Bloomberg News. The Conference Board’s April survey rose to 57.9 from March’s 52.3 – this is the best mark since September 2008.^3,4

Gold’s major gain. Across last week, gold prices climbed $27.00 to settle at $1,180.10 per ounce Friday. April was gold’s best month since November. Oil futures advanced $1.03 last week, ending Friday at $86.15 a barrel on the NYMEX.⁵

A trying week for stocks. Last week, Standard & Poor’s downgraded the debt ratings of Spain, Portugal and Greece; federal prosecutors also moved to investigate Goldman Sachs. The Dow lost 1.8% on the week to end at 11,008.61 Friday. The NASDAQ and S&P 500 also had down weeks. However, the monthly numbers for April were as follows: DJIA, +1.40%; NASDAQ, +2.64%; S&P 500, +1.48%.^6,7

(Source: CNBC.com, BigCharts.com, ustreas.gov, bls.gov, 4/30/10)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 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 – thestreet.com/story/10741829/1/gdp-rises-at-32-pace-in-first-quarter.html [4/30/10]
2 – marketwatch.com/story/home-prices-show-year-over-year-gain-sp-2010-04-27 [4/27/10]
3 – dailyfinance.com/story/consumer-sentiment/19460171/ [4/30/10]
4 – investmentadvisor.com/News/2010/4/Pages/Consumers-Investors-and-Advisors-Show-Different-Confidence-Levels.aspx [4/27/10]
5 – blogs.wsj.com/marketbeat/2010/04/30/data-points-energy-metals-271/ [4/30/10]
6 – dealbook.blogs.nytimes.com/2010/04/28/spains-debt-rating-cut-as-finance-officials-meet/4/28/10]
7 – cnbc.com/id/36738472 [4/30/10]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=4%2F30%2F09&x=0&y=0 [4/30/10]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=4%2F30%2F09&x=0&y=0 [4/30/10]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=4%2F30%2F09&x=0&y=0 [4/30/10]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=4%2F29%2F05&x=0&y=0 [4/30/10]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=4%2F29%2F05&x=0&y=0 [4/30/10]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=4%2F29%2F05&x=0&y=0 [4/30/10]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=5%2F1%2F00&x=0&y=0 [4/30/10]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=5%2F1%2F00&x=0&y=0 [4/30/10]
8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=5%2F1%2F00&x=0&y=0 [4/30/10]
9 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [4/30/10]
9 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [4/30/10]
10 – 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]