Weekly Economic Update November 7, 2011

WEEKLY QUOTE “Experience is a dear teacher, but fools will learn at no other.” – Ben Franklin WEEKLY TIP Starting a small business? A written plan is handy for forecasting, risk management and raising capital. A written plan is far preferable to one you keep in your head. WEEKLY RIDDLE What can run but never walks, has a mouth but never eats, has a head but never thinks, and has a bed but never sleeps? Last week’s riddle: A man brings a silver antique wrapped up in a towel to an appraiser, claiming it is a trophy engraved “To General Stonewall Jackson, presented after the first Battle of Bull Run, 1861.” The appraiser knows it is a fake without even looking at it. Why? Last week’s answer: People in 1861 wouldn’t have known it was the first Battle of Bull Run (the second occurred in 1862). Also, Stonewall Jackson fought for the Confederacy, which referred to the battle First Manassas.	November 7, 2011JOBLESS RATE DECREASES TO 9.0% Economists surveyed by Bloomberg News had expected unemployment to stay at 9.1% in October, so this was a nice development. Still, this latest jobs report had something in common with its predecessors: underwhelming job growth. Non-farm payrolls expanded by 80,000 positions last month, but that fell short of the 95,000 new jobs envisioned in the consensus Bloomberg forecast. On the bright side, the percentage of underemployed Americans fell from 16.5% to 16.2% and the long-term unemployed (those out of work for at least 27 weeks) shrank to 42.4% of the jobless population, the lowest percentage since November 2010. BOTH ISM INDICES MOVE LOWER The Institute for Supply Management’s purchasing manager indexes were both above 50 in October, but not quite where they were at a month before. The ISM manufacturing index slipped from 51.6 to 50.8; its service sector index ticked down to 52.9 from the preceding 53.0. The service sector employment gauge improved by 4.6% and moved from 48.7 in September (contraction) to 53.3 (expansion).2 GOLD & OIL POST WEEKLY GAINS Oil futures advanced 1.01% last week to settle at $94.26 per barrel on the NYMEX Friday. Prices have jumped 19.02% over the past five weeks of trading. Gold logged a 0.52% gain last week, closing at $1,755.30 an ounce on the COMEX Friday.3 GREEK THEATRE PREOCCUPIES WALL STREET The whims of Greek Prime Minister George Papandreou affected stocks more than anything last week: first he announced a public vote on the latest austerity cuts for the nation, reconsidered it, and then prepared to step down Friday amid concerns that he might change his mind. As these weekly performance numbers show, bears were roaming last week: DJIA, -2.03% to 11,983.24; S&P 500, -2.48% to 1,253.23; NASDAQ, -1.86% to 2,686.15.4,5,6 THIS WEEK: No major economic releases are slated for Monday; we do have results from Priceline and SYSCO. Eurozone finance ministers conclude their meeting in Brussels on Tuesday, and Toyota presents earnings. Wednesday, Ben Bernanke speaks at a Federal Reserve conference on small business; earnings come in from GM, Anheuser Busch, HSBC, Cisco, Green Mountain, Ralph Lauren, Macy’s and Wendy’s. Thursday we have earnings from Viacom, Kohl’s, Disney and Nordstrom; Ben Bernanke speaks at an El Paso town hall. Friday is Veterans Day: banks are closed, markets are open, and the initial October University of Michigan consumer sentiment survey arrives plus earnings from D.R. Horton. % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA +3.50 +4.80 -0.000047 +2.69 NASDAQ +1.25 +4.22 +3.05 +4.98 S&P 500 -0.35 +2.63 -1.63 +1.36 REAL YIELD 11/4 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS -0.08% 0.44% 2.40% 3.50% Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 11/4/116,7,8,9Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.These returns do not include dividends.
Please feel free to forward this article to family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address.We will contact them first and request their permission to add them to our list.
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.Citations.1 – http://www.bloomberg.com/news/2011-11-04/u-s-payrolls-increased-by-80-000-in-october-as-jobless-rate-falls-to-9-.html [11/4/11]2 – http://www.ism.ws/ISMReport/NonMfgROB.cfm [11/3/11]3 – blogs.wsj.com/marketbeat/2011/11/04/data-points-energy-metals-529/ [11/4/11]4 – montoyaregistry.com/Financial-Market.aspx?financial-market=financial-planning-and-wealth-management&category=4 [11/4/11]5 – http://www.cnbc.com/id/45166675 [11/4/11] 6 – http://www.cnbc.com/id/45163231 [11/4/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F4%2F10&x=0&y=0 [11/4/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F4F2%2F10&x=10&y=18 [11/4/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F4%2F10&x=0&y=0 [11/4/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F3%2F06&x=0&y=0 [11/4/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F3%2F06&x=0&y=0 [11/4/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F3%2F06&x=0&y=0 [11/4/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=11%2F5%2F01&x=0&y=0 [11/4/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=11%2F5%2F01&x=0&y=0 [11/4/11] 7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=11%2F5%2F01&x=0&y=0 [11/4/11] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [11/4/11] 8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [11/4/11] 9 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

Weekly Economic Update September 5, 2011

Phillip Statler  Presents:
WEEKLY ECONOMIC UPDATE
WEEKLY QUOTE “Friendship either finds or makes equals.” – Publilius Syrus     WEEKLY TIP If you are divorcing and will have joint custody of your children, clarify who will claim them as dependents on a federal return. If you both claim the same dependents, it might be a red flag for the IRS.   WEEKLY RIDDLE It weighs nothing, but when you put it into any container it makes the container lighter. What is it?   Last week’s riddle: In a drawer are 6 pairs of red socks, 4 pairs of white socks and 5 pairs of blue socks. In total darkness, how many socks would you have to grab to be certain you had a matching pair?   Last week’s answer: You would have to grab 4 socks – 4 is the maximum number you’d need to pull to insure you had at least 2 socks that matched. (Don’t believe it? Give it a try!)	September 5, 2011   NO JOB GAINS IN AUGUST In August, nonfarm payroll employment totaled 131.1 million – as it did in July. The Labor Department measured no job growth in the economy for the first time since September 2010. Additionally, employers reduced the average work week slightly to 34.2 hours. The unemployment rate remained at 9.1% last month.1 CONSUMER SPENDING IMPROVES BY 0.8% This hugely encouraging July figure from the Commerce Department trounced forecasts and represented the best month for the statistic since February. Personal incomes improved by 0.3% in July; the personal savings rate hit a four-month low.2 PENDING HOME SALES DOWN, HOME PRICeS UP The National Association of Realtors announced pending home sales had declined by 1.3% in July following three months of gains. The number of sales contracts was still 14.4% better than a year before. July’s Case-Shiller Home Price Index was notable for indicating a 3.6% 2Q gain in home prices, though the index was still down 5.9% year-over-year.2,3,4 MANUFACTURERS SIGNAL MINOR EXPANSION The Institute for Supply Management’s August purchasing manufacturers index ticked down to 50.6 from July’s 50.9 mark. So the sector is growing, but not by much (50 is the line between expansion and contraction). The new orders sub-index improved 0.4% to 49.6.5 STOCKS GIVE BACK SOME GAINS While the NASDAQ managed a 0.02% advance last week to settle at 2,480.33 on Friday, the S&P 500 and Dow had minor weekly losses. The DJIA retreated 0.39% to a Friday close of 11,240.26, and the S&P pulled back 0.24% to settle Friday at 1,173.97. Gold futures gained 4.43% on the week – prices jumped $47.70 on Friday alone.6,7 THIS WEEK: U.S. markets are closed for Labor Day. On Tuesday, ISM releases its August service sector index and Pep Boys issues earnings. Wednesday, the Fed puts out a new Beige Book and we have an earnings report from Hovnanian. Thursday promises to be interesting: the Bank of England and European Central Bank will each conclude policy meetings, Fed chief Ben Bernanke speaks in Minneapolis, President Obama addresses the nation on jobs and the economy, and of course new initial claims figures come out. Friday, we have earnings from Kroger. % CHANGE Y-T-D 1-YR CHG 5-YR AVG 10-YR AVG DJIA -2.91 +8.92 -0.39 +1.24 NASDAQ -6.50 +12.74 +2.62 +4.01 S&P 500 -6.65 +7.69 -2.09 +0.36 REAL YIELD 9/2 RATE 1 YR AGO 5 YRS AGO 10 YRS AGO 10 YR TIPS 0.00% 1.05% 2.25% 3.50% Sources: cnbc.com, usatoday.com, bigcharts.com, treasury.gov, treasurydirect.gov – 9/2/116,8,9,10 Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends.
Please feel free to forward this article to family, friends or colleagues. If you would like us to add them to our distribution list, please reply with their address. We will contact them first and request their permission to add them to our list.
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.Citations. 1 – latimes.com/business/la-fiw-jobs-20110903,0,2844276.story [9/2/11] 2 – nj.com/business/index.ssf/2011/08/consumer_spending_climbs_more.html [8/29/11] 3 – realtor.org/press_room/news_releases/2011/08/phs_july [8/29/11] 4 – blogs.wsj.com/economics/2011/08/30/vital-signs-home-prices-remain-low/ [8/30/11] 5 – ism.ws/ISMReport/MfgROB.cfm [9/1/11] 6 – blogs.wsj.com/marketbeat/2011/09/02/data-points-u-s-markets-47/ [9/2/11] 7 – blogs.wsj.com/marketbeat/2011/09/02/data-points-energy-metals-518/ [9/2/11] 8 – usatoday.com/money/index [9/2/11] 9 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F2%2F10&x=0&y=0 [9/2/11] 9 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F2%2F10&x=10&y=18 [9/2/11] 9 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F2%2F10&x=0&y=0 [9/2/11] 9 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F1%2F06&x=0&y=0 [9/2/11] 9 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F1%2F06&x=0&y=0 [9/2/11] 9 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F1%2F06&x=0&y=0 [9/2/11] 9 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=9%2F4%2F01&x=0&y=0 [9/2/11] 9 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=9%2F4%2F01&x=0&y=0 [9/2/11] 9 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=9%2F4%2F01&x=0&y=0 [9/2/11] 10 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [9/2/11] 10 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [9/2/11] 11 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm71101.pdf [7/11/01]

Weekly Economic Update, April 4, 2011

JOBLESS RATE DOWN 1% SINCE NOVEMBER
In March, the nation’s jobless rate declined to 8.8%. That is the lowest level of unemployment since April 2009 and represents a 1.0% reduction in unemployment in the last four months. The Labor Department said the economy added 216,000 jobs in March, 78,000 in the category of professional and business services.^1,2

CONSUMER SPENDING UP 0.7%
Personal spending increased for the eighth month in a row in February, but Commerce Department data showed that much of the gain went to pay for higher food and energy costs. The Personal Consumption Index (PCE) advanced 0.4% for the month. So the inflation-adjusted gain in personal spending was 0.3%. Wages rose by 0.3% in February.³

ISM: MANUFACTURING GROWTH MODERATES
The March PMI index from the Institute for Supply Management showed a slight reduction in the pace of the sector’s growth: it came in at 61.2 versus February’s 61.4 mark. However, the index has recorded 20 straight months of sector expansion.⁴

IN REAL ESTATE, SOME MIXED NEWS
The National Association of Realtors said that pending home sales rose 2.1% in February. The number of contracts for existing home purchases was still down 8.2% from a year ago. In January, the S&P/Case-Shiller home price index fell 1.0% from its December level; if it slips another 1.2%, it will fall below its April 2009 trough, which would signal the dreaded “double dip”.^5,6

STOCKS ADVANCE FOR THE WEEK & QUARTER
How did the big indices do last week? DJIA, +1.28% to 12,376.72; S&P 500, +1.42% to 1,332.41; NASDAQ, +1.70% to 2,789.60. In the first quarter, the DJIA gained 6.41%, the NASDAQ 4.83% and the S&P 500 5.42%.^7,8

THIS WEEK: Monday, Federal Reserve chairman Ben Bernanke speaks at the Atlanta Fed. On Tuesday, the most recent FOMC minutes will be released, plus the ISM service sector report for March; we also get an earnings report from KB Home. Wednesday brings earnings from Monsanto and Bed, Bath & Beyond. Thursday we have announcements from the European Central Bank and Bank of England along with initial and continuing claims and earnings from Rite-Aid. No major economic releases are scheduled for Friday.

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+6.90	+13.27	+2.28	+2.66
NASDAQ	+5.15	+16.11	+3.84	+5.65
S&P 500	+5.95	+13.10	+0.58	+1.40
REAL YIELD	4/1 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.94%	1.61%	2.35%	3.52%

Sources: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 4/1/11^7,8,9,10
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 the 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 – bls.gov/news.release/pdf/empsit.pdf [4/1/11]
2 – miamiherald.com/2011/04/01/2145890/jobless-rate-drops-to-2-year-low.html [4/1/11]
3 – reuters.com/article/2011/03/28/us-economy-consumer-idUSTRE72R2OI20110328 [4/1/11]
4 – ism.ws/ISMReport/MfgROB.cfm [4/1/11]
5 – kansascity.com/2011/03/28/2758961/pending-home-sales-rise-in-february.html [3/28/11]
6 – blogs.barrons.com/stockstowatchtoday/2011/03/29/home-prices-consumer-confidence-fall/ [3/29/11]
7 – cnbc.com/id/42381611 [4/1/11]
8- blogs.wsj.com/marketbeat/2011/03/31/data-points-u-s-markets-11/ [3/31/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F1%2F10&x=0&y=0 [4/1/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F1%2F10&x=10&y=18 [4/1/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F1%2F10&x=0&y=0 [4/1/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F31%2F06&x=0&y=0 [4/1/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F31%2F06&x=0&y=0 [4/1/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F31%2F06&x=0&y=0 [4/1/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=4%2F2%2F01&x=0&y=0 [4/1/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=4%2F2%2F01&x=0&y=0 [4/1/11]
9 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=4%2F2%2F01&x=0&y=0 [4/1/11]
10 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [4/1/11]
10 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [4/1/11]
11 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm11001.pdf [1/10/01]
12 – montoyaregistry.com/Financial-Market.aspx?financial-market=wealth-management-for-executives&category=4 [4/3/11]

Weekly Economic Update, March 7, 2011

JOBS REPORT (NEARLY) LIVES UP TO EXPECTATIONS
Wall Street had high hopes for the February unemployment report. Would it show that more than 200,000 new jobs had been created? Well, it came close – the data revealed 192,000 net new jobs, the best increase in nearly a year. The jobless rate ticked down to 8.9% last month, and the number of underemployed Americans (those either without work or working part-time) dropped to 15.9% from 16.1% in January. On the downside, the Labor Department data showed that just 64.2% of the working-age population was either employed or seeking employment last month. You have to go back to 1985 to find a labor force participation rate that low.¹

WAGES UP 1.0% IN JANUARY
The payroll tax holiday promoted a dramatic increase in personal incomes last month. Additionally, the Commerce Department said that the personal savings rate improved by 0.4% in January to 5.8%. Yet personal spending increased by only 0.2% in January and actually slipped 0.1% in inflation-adjusted terms.²

SERVICE & MANUFACTURING SECTORS KEEP GROWING
According to new Institute for Supply Management surveys, the expansion of both sectors continued in February: the service sector reading improved by 0.3% to 59.7 and the manufacturing sector reading went up 0.6% to 61.4.³

OIL, GOLD & SILVER PRICES LEAP NORTH AGAIN
Gold cracked a new ceiling last Wednesday, hitting an intraday high of $1,440.10 per ounce. Friday, U.S. gold futures settled at $1,428.60 an ounce. Gold prices have climbed 6.53% over the last five weeks. Silver hit yet another 31-year high on Friday, with futures hitting $35.32 per ounce. Oil prices rose 6.68% last week alone, settling Friday at $104.42 a barrel; oil futures are up 14.27% YTD on the NYMEX.^4,5

A WINNING WEEK (BELIEVE IT OR NOT)
After five rather volatile trading days, the DJIA, S&P 500 and NASDAQ had all managed weekly advances. Their performances for the week: DJIA, +0.33% to 12,169.88; NASDAQ, +0.13% to 2,784.67; S&P 500, +0.10% to 1,321.15.⁶

THIS WEEK: No major economic releases on Monday or Tuesday. Wednesday brings a report on January wholesale inventories plus 4Q earnings from H&R Block. Thursday offers new initial and continuing claims data. Friday brings the initial March survey on consumer sentiment from the University of Michigan, Census Bureau data on retail sales in February, and a report on January business inventories. (In tech news, the iPad 2 is scheduled to ship Friday.)

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+5.12	+16.52	+2.08	+1.52
NASDAQ	+5.05	+21.48	+4.19	+2.99
S&P 500	+4.97	+17.65	+0.53	+0.64
REAL YIELD	3/4 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	1.00%	1.44%	2.07%	3.52%

Source: cnbc.com, bigcharts.com, treasury.gov, treasurydirect.gov – 3/4/11^6,7,8,9
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 – nytimes.com/2011/03/05/business/economy/05jobs.html [3/4/11]
2 – marketwatch.com/story/income-of-workers-climbs-10-in-january-2011-02-28 [2/28/11]
3 – ism.ws/ISMReport/NonMfgROB.cfm [3/3/11]
4 – cnbc.com/id/41897407 [3/4/11]
5 – blogs.wsj.com/marketbeat/2011/03/04/data-points-energy-metals-466/ [3/4/11]
6 – cnbc.com/id/41907885 [3/4/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F04%2F10&x=0&y=0 [3/4/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F04%2F10&x=10&y=18 [3/4/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F04%2F10&x=0&y=0 [3/4/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F03%2F06&x=0&y=0 [3/4/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F03%2F06&x=0&y=0 [3/4/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F03%2F06&x=0&y=0 [3/4/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F05%2F01&x=0&y=0 [3/4/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F05%2F01&x=0&y=0 [3/4/11]
7 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F05%2F01&x=0&y=0 [3/4/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [3/4/11]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [3/4/11]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2001/ofm11001.pdf [1/10/01]
10 – Financial-Market.aspx?financial-market=financial-planning-where-do-you-begin&category=5 [3/6/11]

The 2% Opportunity

The 2011 payroll tax holiday may give you a chance to boost your 401(k).

What would you do with an extra $1,000 or $2,000? The Tax Relief Act of 2010 will give many of us the equivalent of a 2% raise in 2011. Employee payroll taxes have been cut from 6.2% to 4.2% this year.¹ So if you pay into Social Security, you are looking at a rise in your take-home pay.

What are your plans for that extra money?

How about directing it into your 401(k) or IRA? That 2% “raise” will show up in your paychecks throughout the course of the year – it will come to you incrementally rather than as a lump sum. Still, 2% is nothing to scoff at – if you make $50,000 in 2011, you’re looking at $1,000 of found money.

What could $1,000 do for you over 20 or 30 years? Well, let’s see. If you invest $1,000 today and simply let it sit there for two decades with a 6% annual return, you end up with $3,207.14 in principal and interest. If the initial grand just sits there for 30 years at 6% interest, it turns into $5,743.49. (That’s using annual compounding – if you plug in 30 years of daily compounding, it becomes $6,048.75.)²

Let’s say you take this one step further and direct an extra $1,000 into your 401(k) for 30 straight years beginning in 2011. Let’s be reasonably optimistic and assume an 8% annual rate of return across that time. Under those conditions, your $30,000 aggregate contribution would turn into about $125,000 with compounding – and that’s not even considering the possibility of an employer match to your 401(k) during some or all of those years.³

The money is significant for a couple. If you and your spouse each make $70,000, that’s an extra $2,800 coming to the two of you in 2011 (assuming you and your spouse don’t work for the government, the railroads or in some capacity where you don’t pay into Social Security). Everyone wants a little more retirement income, and directing 2% into your retirement plan for one year or multiple years could help.

While we’re on the subject of retirement income, the White House says that the payroll tax cut will have no effect on a worker’s future Social Security benefits.⁴

Other options for the 2% tax break. Most Americans will simply spend the money resulting from this tax break. That’s not exactly a negative: the Obama administration visualized this as a way to pump up consumer spending.

Yet if you don’t devote the money to your 401(k), you have a number of alternatives besides spending it.

• You could open a Roth IRA with the money.
• You could create a rainy-day fund. Set up an auto-transfer of the money from your checking account to your savings account. Let that $800 or $1,000 or $1,600 or whatever accumulate during the course of the year.
• If you have a rainy-day fund, you could put the money auto-transferred to your savings account across 2011 into a CD at the start of 2012 (when interest rates just might be higher).
• You could use the found money to pay off credit card debt or other consumer debts.
• You could even make an extra home loan payment at the end of 2011 (should it make financial sense to do so).

This tax holiday could even be prolonged. In recent decades, we have seen some “temporary” tax cuts stick around. If the jobless rate stays above 8% through 2011 (and it might), voices in Congress might push to extend the payroll tax cut for another year. It could happen, provided the federal government finds a way to direct more money into Social Security.

 

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. Statler Financial Services, Inc., is not engaged in rendering legal, accounting or other professional services. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. If assistance or further information 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 – content.usatoday.com/communities/theoval/post/2011/01/obama-team-touts-payroll-tax-cuts/1 [1/14/11]
2 – ehow.com/how_5936795_manage-finances_-earned-interest.html [2/4/11]
3 – money.cnn.com/retirement/guide/investing_basics.moneymag/index.htm [2/4/11]
4 – whitehouse.gov/sites/default/files/social_security_payroll_taxes.pdf [12/10/10]
5 – http://montoyaregistry.com/Financial-Market.aspx?financial-market=why-arent-you-maxing-out-your-401k&category=2 [2/6/11]

The Weekly Economic Update, July 5, 2010

Jobless rate drops to 9.5%

The Labor Department said 83,000 new jobs were created in the private sector in June, yet non-farm payrolls shrank by 125,000 positions (an effect of temporary U.S. Census workers being laid off). Still, the 0.2% drop in unemployment was considerably better than the 0.1% increase anticipated on Wall Street.¹

Gains in personal spending, personal income & personal savings

Consumer spending rose by 0.2% as incomes climbed 0.4% in May, the Commerce Department stated last week. The personal savings rate reached 4.0% in May, a high unseen since September 2009. So consumers are aiding the recovery, albeit cautiously.²

$8K homebuyer tax credit is back

The real estate market got some relief Friday morning as President Obama signed an extension of the federal homebuyer tax credit ($8,000 for first-time home purchasers and $6,500 for existing homeowners who move). The credit is now extended until September 30.³

Cheapest fixed-rate mortgages in decades

Right now, conventional home loans are almost as cheap as they were in the 1950s. The national average interest rate on 30-year FRMs fell to 4.58% last week, according to Freddie Mac’s final June estimate. This is the lowest rate Freddie Mac has recorded since the start of its Primary Mortgage Market Survey.⁴

Surprise drop in factory orders, but ISM index shows further growth

Factory orders fell 1.4% in May. Economists surveyed by Bloomberg had forecast a 0.5% slip. Minus transportation orders, the category was down 0.6% for the month. The Institute for Supply Management’s June manufacturing index slipped to 56.2 from 59.7 in May, but that still means growth.^5,6

Wall Street in sell mode

It seemed like every market day started with a descent last week. The S&P 500 ended the week at 1,022.58, the Dow at 9,686.48, and the NASDAQ at 2,091.79. It was rough going – on the week, the marquee U.S. indices lost between 4.5%-5.9%. On June 30, the yield on the 10-year Treasury note fell to 2.95%, which was the first time it went below 3% since April 2009.^4,7

% Change	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	-7.11	+16.98	-1.20	-0.83
NASDAQ	-7.82	+16.44	+0.33	-4.76
S&P 500	-8.30	+14.07	-2.88	-3.04
Real Yield	7/2	1 YR AGO	5 YRS AGO	10 YRS AGO
10YrTIPS	1.27%	1.87%	1.75%	4.34%
(Source: usatoday.com, bigcharts.com, ustreas.gov, bls.gov, 7/2/10)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 – forbes.com/2010/07/02/labor-markets-bumpy-road-markets-economy-jobs-unemployment.html [7/2/10]

2 – voices.washingtonpost.com/economy-watch/2010/06/may_income_spending_and_person.html [6/28/10]

3 – marketwatch.com/story/home-buyers-win-more-time-to-claim-tax-credit-2010-07-02 [7/2/10]

4 – cnbc.com/id/38037896 [7/1/10]

5 – dailyfinance.com/story/May-factory-orders-fall-economic-slowdown/19539948/ [7/2/10]

6 – bloomberg.com/news/2010-07-01/u-s-manufacturing-grows-at-slower-pace-than-forecast-in-ism-s-june-index.html [7/1/10]

7 – cnbc.com/id/38064102 [7/2/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=7%2F2%2F09&x=0&y=0 [7/2/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=7%2F2%2F09&x=0&y=0 [7/2/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=7%2F2%2F09&x=0&y=0 [7/2/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=7%2F1%2F05&x=0&y=0 [7/2/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=7%2F1%2F05&x=0&y=0 [7/2/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=7%2F1%2F05&x=0&y=0 [7/2/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=7%2F3%2F00&x=0&y=0 [7/2/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=7%2F3%2F00&x=0&y=0 [7/2/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=7%2F3%2F00&x=0&y=0 [7/2/10]

9 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [7/2/10]

9 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [7/2/10]

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

Weekly Economic Update for the Week of June 7, 2010

Jobless rate ticks down 0.2%. The news didn’t impress Wall Street: while May’s unemployment rate fell to 9.7% and the economy added 431,000 jobs, 390,000 of them represented temporary U.S. Census Bureau hires. Still, the number was better than the 9.8% reading economists expected.¹

ISM: continuing expansion in key sectors. For the tenth straight month, the Institute for Supply Management’s manufacturing index showed growth, though May’s 59.7 reading came under April’s 60.4 mark. The Institute’s non-manufacturing index read 55.4 again for May; it has shown the service sector expanding for the last five months.^2,3

April sees rise in pending home sales. Spurred by the federal tax credit deadline, more buyers rushed to sign contracts. The National Association of Realtors reported its pending home sales index at 110.9 for April, a 6.0% gain from March and the highest reading since October.⁴

Factory orders up 1.2%. The April increase reported by the Commerce Department was actually below the 1.8% gain forecast in a Reuters poll of economists; March’s gain was revised up to 1.7%.⁵

Stocks fight for stability. The Dow closed below 10,000 Friday as Wall Street dissected the May jobless report and glimpsed new headlines about Hungary facing a potential debt crisis. It was a volatile week and ultimately a losing week, with the Dow ending at 9,931.22, the NASDAQ at 2,219.17 and the S&P 500 at 1,064.88.⁶

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	-4.76	+13.50	-1.01	-0.82
NASDAQ	-2.20	+19.95	+1.43	-4.19
S&P 500	-4.50	+12.99	-2.19	-2.74
Real Yield	6/4	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.26%	1.83%	1.61%	4.34%

(Source: CNBC.com, BigCharts.com, ustreas.gov, bls.gov, 6/4/10)^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.

___________________________________________________________________

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 – blogs.barrons.com/stockstowatchtoday/2010/06/04/dow-sp-futures-sink-on-disappointing-jobs-number/ [6/4/10]

2 – ism.ws/ismreport/mfgrob.cfm [6/1/10]

3 – ism.ws/ISMReport/NonMfgROB.cfm [6/3/10]

4 – abcnews.go.com/Business/wireStory?id=10805353 [6/2/10]

5 – reuters.com/article/idUSN0219014320100603?type=marketsNews [6/3/10]

6 – cnbc.com/id/37508601 [6/4/10]

7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F4%2F09&x=0&y=0 [6/4/10]

7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F4%2F09&x=0&y=0 [6/4/10]

7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F4%2F09&x=0&y=0 [6/4/10]

7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F3%2F05&x=0&y=0 [6/4/10]

7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F3%2F05&x=0&y=0 [6/4/10]

7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F3%2F05&x=0&y=0 [6/4/10]

7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=6%2F5%2F00&x=0&y=0 [6/4/10]

7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=6%2F5%2F00&x=0&y=0 [6/4/10]

7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=6%2F5%2F00&x=0&y=0 [6/4/10]

8 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [6/4/10]

8 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [6/4/10]

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

Weekly Economic Update for the Week of February 8, 2010

Jobless rate falls to 9.7%. The January statistic from the Labor Department was encouraging – a 0.3% drop from December. Bizarrely, there was no job growth even with that sizable decline – payrolls slimmed by about 20,000 positions last month. Revised federal figures showed a gain of 64,000 jobs for November and a loss of 150,000 in December.1

ISM index hits 5½-year high. The Institute for Supply Management’s manufacturing index rose to 58.4 in January, a peak unseen since August 2004. Economists surveyed by Reuters thought it would come in at 55.5. As for ISM’s service sector gauge, it read 50.5 for January, showing growth.2,3

Spending, wages & savings rate rise. The Bureau of Economic Analysis said that consumer spending went up 0.2% in December. Wages rose 0.4% (the sixth straight monthly increase) and the personal savings rate went north to 4.8%.4

Factory orders up 1.0%. So indicates December data from the Commerce Department. This was the eighth monthly gain in the last nine. Economists polled by Reuters had forecast an 0.5% adavance.5

Wild week takes stocks a bit lower. After two triple-digit rallies and a major Thursday selloff triggered by sovereign debt concerns, the Dow pulled out of a descent and pulled off a 10-point gain on Friday, ending the week above 10,000. The S&P 500 closed Friday at 1,066.19, and was down 0.79% for the week. The NASDAQ wrapped up Friday at 2,141.12, down 0.29% last week. The Dow’s weekly loss was 0.55%, leaving it at 10,012.23.6

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 2/5/10)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, 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 kansascity.com/444/story/1729270.html [2/5/10]
2 abcnews.go.com/Business/wireStory?id=9717254 [2/1/10]
3 marketwatch.com/story/us-jan-ism-services-index-rebounds-to-505-2010-02-03?reflink=MW_news_stmp [2/3/10]
4 latimesblogs.latimes.com/money_co/2010/02/personal-income-spending-climb.html [2/1/10]
5 businessweek.com/ap/financialnews/D9DLECSO0.htm [2/4/10]
6 cnbc.com/id/35259652 [2/5/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F5%2F09&mode=add&symb=DJIA [2/5/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F05&mode=add&symb=DJIA [2/5/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F00&mode=add&symb=DJIA [2/5/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F5%2F09&mode=add&symb=COMP [2/5/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F05&mode=add&symb=COMP [2/5/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F00&mode=add&symb=COMP [2/5/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F5%2F09&mode=add&symb=SPX [2/5/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F05&mode=add&symb=SPX [2/5/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F00&mode=add&symb=SPX [2/5/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [2/5/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [2/5/10]
9 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

Weekly Economic Update for the Week of December 7, 2009

Joblessness at 10.0%. This November figure is improved from October’s 10.2% mark. Another bright spot: payrolls slimmed by just 11,000 jobs last month. (Analysts expected a reduction of around 125,000.) Are we on the verge of adding jobs to the economy? The number of employed people rose by 227,000 last month, the first increase since April.¹

ISM indexes retreat a bit. The Institute for Supply Management’s services sector index went from 50.6 in October to 48.7 in November (read: contraction). While ISM’s manufacturing index went from 55.7 to 53.6 for November, a number above 50 means growth.²

House says no to 0% estate taxes. By a vote of 225-200, the House of Representatives voted to sustain current estate tax levels into 2010. With the other house of Congress challenged for time and focused on healthcare reform legislation, Senate aides told the Washington Post that the Senate may simply pass a one-year extension of present estate tax law.³

Pending home sales up again. They rose 3.7% in October, as buyers raced to qualify for federal credits. This is the ninth straight monthly increase.⁴

Factory orders increase 0.6%. The Commerce Department reported a healthy October gain, the sixth advance in seven months. Economists expected orders to stay flat.⁵

Stocks advance. The unexpectedly mild jobless numbers from the Labor Department helped the NASDAQ, DJIA and S&P 500 gain more ground Friday. On the week, the S&P 500 gained 1.32% to 1,105.89, the NASDAQ 2.61% to 2,194.35, and the Dow 0.76% to 10,388.90.⁶

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

(Source: CNNMoney.com, ustreas.gov, bls.gov, 12/4/09)^7,8,9

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

invested into directly. These returns do not include dividends.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

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

Citations.
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