Presented by Mark Lund, The Investor Coach.

Quote of the week. “Wise men make more opportunities than they find.”– Sir Francis Bacon

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

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

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

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

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

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

(Source: CNNMoney.com, ustreas.gov, bls.gov, 12/24/09)^8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.

Riddle of the week. What number should be next in this series: 9, 16, 25, 36?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: Nancy was born in summer, yet she was born in January. How is this possible?

Last week’s riddle answer: She was born in the southern hemisphere, which experiences summer during our winter.

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

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, 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.

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Friendship marks a life even more deeply than love.”– Elie Wiesel

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

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

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

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

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

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

(Source: CNNMoney.com, ustreas.gov, bls.gov, 12/18/09)^7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.

Riddle of the week. Nancy was born in summer, yet she was born in January. How is this possible?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: You spend 20% of the money in your wallet. Then you spend 20% of what remains in your wallet after that. You spend $72.00 total. How much money did you originally have in your wallet?

Last week’s riddle answer: $200. $200 – $40 = $160, then $160 – $32 = $128.

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

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, 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.

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Live in such a way that you would not be ashamed to sell your parrot to the town gossip.”– Will Rogers

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

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

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

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

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

(Source: CNNMoney.com, ustreas.gov, bls.gov, 12/11/09)^7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.

Riddle of the week. You spend 20% of the money in your wallet. Then you spend 20% of what remains in your wallet after that. You spend $72.00 total. How much money did you originally have in your wallet?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: How many 9s are in the range of numbers from 1 to 100? (Remember, the number 99 has two 9s in it.)

Last week’s riddle answer: 20, as follows: 9, 19,29, 39, 49, 59, 69, 79, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98 and 99 (note two 9s in that last numeral).

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

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, 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.

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Imagination is the eye of the soul.”– Joseph Joubert

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

(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.

Riddle of the week. How many 9s are in the range of numbers from 1 to 100? (Remember, the number 99 has two 9s in it.)

Contact my office or see next week’s Update for the answer.

Last week’s riddle: Is there a way that you can make the number seven even?

Last week’s riddle answer: Yes, remove the s at the start and “seven” becomes “even”.

Citations.
1 news.briefing.com/GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?ArticleId=NS20091204092343HeadlineHits [12/4/09]
2 biz.yahoo.com/c/e.html [12/4/09]
3 washingtonpost.com/wp-dyn/content/article/2009/12/03/AR2009120304433.html?hpid=topnews [12/3/09]
4 bloomberg.com/apps/news?pid=20601087&sid=aCpsPN33fa1E&pos=3 [12/1/09]
5 cnbc.com/id/34273280/ [12/4/09]
6 cnbc.com/id/34279490 [12/4/09]
7 money.cnn.com/data/markets/dow/ [12/4/09]
7 money.cnn.com/data/markets/nasdaq/ [12/4/09]
7 money.cnn.com/data/markets/sandp/? [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F4%2F08&mode=add&symb=DJIA [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F04&mode=add&symb=DJIA [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F99&mode=add&symb=DJIA [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F4%2F08&mode=add&symb=COMP [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F04&mode=add&symb=COMP [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F99&mode=add&symb=COMP [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F4%2F08&mode=add&symb=SPX [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F04&mode=add&symb=SPX [12/4/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F3%2F99&mode=add&symb=SPX [12/4/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [12/4/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/4/09]
9 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, 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.

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Learn to express rather than impress.”– Jim Rohn

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

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

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

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

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

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

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

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

Riddle of the week. Is there a way that you can make the number seven even?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: A mall parking lot has 1,000 parking spaces, and 40% of them are for compact cars. This morning, there are 200 compact cars and some standard-size cars in the lot, which is 75% full. How many standard-size cars are in the lot?

Last week’s riddle answer: 750 – 200 = 550 standard-size cars.

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

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, 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.

Presented by Mark Lund, The Investor Coach.

Quote of the week. “The longer I live, the more I realize the impact of attitude on life.”– Mark Twain

Consumer prices rise 0.3%. October Labor Department data shows CPI up 0.3% and core CPI up 0.2%. Overall consumer prices are down 0.2% across the past 12 months of data, but core CPI (minus food and energy prices) has gone up 1.7% in that stretch.¹

Producer prices follow suit. PPI rose 0.3% in October, while core PPI (factoring out food and fuel) dropped 0.6%. Core PPI only rose 0.7% in the last 12 months, the smallest gain since March 2003-2004.²

Leading indicators keep climbing. The 0.3% October gain in the Conference Board index marks the seventh straight monthly advance. Six of ten indicators were positive, including jobless claims, interest rate spread and consumer goods orders.³

Retail sales & inventories fall. In September, inventories shrank by 0.4% … but sales slipped by 0.3% as well. Commerce Department estimates did show auto dealers replenishing inventories.⁴

So do housing starts & permits. Construction starts dropped 10.6% last month, and permits 4.0% (maybe attributable to the presumed-expiring tax credit for buyers). The Mortgage Bankers Association reports that 14.41% of home loans were 30 days past due or in foreclosure at the end of 3Q 2009.^5,6

DJIA rides 3-week winning streak. Last week, it advanced 0.46%, closing Friday at 10,318.16. The NASDAQ lost a little ground on the week (-1.01% to 2,146.04), as did the S&P 500 (-0.19% to 1,091.38). Oil futures ended the week at $76.72 a barrel, and gold futures settled at $1,146.40 per ounce Friday.⁷

(Source: CNNMoney.com, ustreas.gov, bls.gov, 11/20/09)^8,9,10

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

Riddle of the week. A mall parking lot has 1,000 parking spaces, and 40% of them are for compact cars. This morning, there are 200 compact cars and some standard-size cars in the lot, which is 75% full. How many standard-size cars are in the lot?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: Only one bachelor has served as President of the United States. Additionally, only one President has entered office having been legally divorced. Who were these two Presidents?

Last week’s riddle answer: James Buchanan was a bachelor, and Ronald Reagan had been divorced.

Citations.
1 marketwatch.com/story/consumer-prices-up-03-led-by-energy-cars-2009-11-18 [11/18/09]
2 bloomberg.com/apps/news?pid=20601087&sid=a_DFcB_WJQEM&pos=2 [11/17/09]
3 marketwatch.com/story/leading-indicators-rise-for-7th-straight-month-2009-11-19 [11/19/09]
4 marketwatch.com/story/inventory-clearance-stalls-in-september-2009-11-16 [11/16/09]
5 businessweek.com/bwdaily/dnflash/content/nov2009/db20091118_201644.htm [11/18/09]
6 latimes.com/business/la-fi-mortgage-defaults20-2009nov20,0,1052221.story [11/20/09]
7 cnbc.com/id/34067975 [11/20/09]
8money.cnn.com/data/markets/dow/ [11/20/09]
8 money.cnn.com/data/markets/nasdaq/ [11/20/09]
8 money.cnn.com/data/markets/sandp/? [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F20%2F08&mode=add&symb=DJIA [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F04&mode=add&symb=DJIA [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F99&mode=add&symb=DJIA [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F20%2F08&mode=add&symb=COMP [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F04&mode=add&symb=COMP [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F99&mode=add&symb=COMP [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F20%2F08&mode=add&symb=SPX [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F04&mode=add&symb=SPX [11/20/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F19%2F99&mode=add&symb=SPX [11/20/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [11/20/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [11/20/09]
10 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, 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.

Presented by Mark Lund, The Investor Coach.

Quote of the week. “Service is the rent we pay to be living. It is the very purpose of life and not something you do in your spare time.”– Marion Wright Edelman

Unemployment weighs on sentiment. American consumer sentiment unexpectedly dipped this month, at least according to the findings of the latest Reuters/University of Michigan survey. The respected index hit 66.0 last week, a three-month low and down from 70.6 for October. With a 10.2% jobless rate in the headlines, it is understandable.¹

Gold futures advance, oil futures dip. A weak dollar aided gold prices last week, while the weakness in consumer sentiment hurt oil futures. Gold prices rose nearly 2% last week, settling at $1,116.70 per ounce on the NYMEX. Oil slipped 1.4% last week; prices fell to $76.34 per barrel at Friday’s close.^2,3

Initial claims lowest since 1/09. New claims for state unemployment benefits dropped to their lowest level in ten months in the week ending November 7, the Labor Department noted Thursday. At the end of October, continued claims dropped to the lowest level since March.⁴

Trade deficit widens 18.2% in September. Even as U.S. exports gained for the fifth month in a row, imports rose by 5.2% from August levels, including a 20.1% rise in oil shipments. However, economists expect global demand for U.S. exports to keep rising as the dollar is about 12% below where it was last spring against other major world currencies.⁵

Dow hits 13-month high. With earnings reports from major retailers and media giants topping expectations, a 73-point push sent the DJIA to a close of 10,270.47 Friday, its highest finish since October 2008. The S&P 500 ended the week at 1,093.48 and the NASDAQ wrapped up at 2,167.88 Friday.⁶ 

(Source: CNNMoney.com, ustreas.gov, bls.gov, 11/13/09)^7,8,9

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

Riddle of the week. Only one bachelor has served as President of the United States. Additionally, only one President has entered office having been legally divorced. Who were these two Presidents?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: Determine the numeral between 1 and 100 which is also nine times the sum of its digits.

Last week’s riddle answer: 81. 8 + 1 = 9, 9 x 9 = 81.

Citations.
1 bloomberg.com/apps/news?pid=20601087&sid=aVNepSupYx_8&pos=2 [11/13/09]
2 marketwatch.com/story/gold-futures-rise-as-dollar-slips-2009-11-13 [11/13/09]
3 marketwatch.com/story/crude-oil-futures-end-week-down-14-2009-11-13 [11/13/09]
4 reuters.com/article/businessNews/idUSN0243717320091112?feedType=RSS&feedName=businessNews [11/12/09]
5 oogle.com/hostednews/ap/article/ALeqM5gNiyJ905Ho0Ur96V2TQhsBX19lGwD9BUNGF80 [11/13/09]
6 cnbc.com/id/33914689 [11/13/09]
7money.cnn.com/data/markets/dow/ [11/13/09]
7 money.cnn.com/data/markets/nasdaq/ [11/13/09]
7 money.cnn.com/data/markets/sandp/? [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F13%2F08&mode=add&symb=DJIA [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F04&mode=add&symb=DJIA [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F99&mode=add&symb=DJIA [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F13%2F08&mode=add&symb=COMP [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F04&mode=add&symb=COMP [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F99&mode=add&symb=COMP [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F13%2F08&mode=add&symb=SPX [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F04&mode=add&symb=SPX [11/13/09]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F12%2F99&mode=add&symb=SPX [11/13/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [11/13/09]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [11/13/09]
9 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, 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.

Presented by Mark Lund, The Investor Coach

Quote of the week. “Amusement to an observing mind is study.”– Benjamin Disraeli

Jobless rate lags behind recovery. America’s unemployment rate reached 10.2% in October, higher than the 9.9% analysts at Briefing.com had forecast. One silver lining to the highest jobless rate in 26 years: net October layoffs were at 190,000 compared to 219,000 in September.¹

More help for jobless + homebuyers. President Obama signed H.R. 3548 into law Friday, extending unemployment benefits an extra 14-20 weeks for roughly 2 million Americans. Additionally, the first-time homebuyer credit of up to $8,000 will be available through next June as long as a buyer signs a binding contract by the end of April. Move-up buyers may be eligible for a $6,500 variation of this credit.²

Could a wave of hiring start soon? Maybe. New  Labor Department figures show that employee productivity increased by a whopping 9.5% in 3Q 2009. Also, labor costs fell by 5.2% in 3Q 2009, resulting in the largest four-quarter drop since 1948.³

Service sector growth continues. The Institute for Supply Management’s September service sector index topped 50 again – 50.6, a bit down from 50.9 in August but still showing expansion. The real attention-getter: a 1.4% jump north in new orders and a 2.0% increase in the backlog of new orders.⁴

Gold tops $1,100. Gold futures did that twice last week, finally settling at $1,095.70 on the NYMEX Friday; prices rose 5% last week. Oil prices gained $0.43 last week to close at $77.43 a barrel Friday.^5,6

Stocks make big gains. The Federal Reserve left interest rates alone, and the good news from the ISM, the Labor Department and various earnings reports outweighed the jobless data. The Dow and S&P 500 both rose 3.20% last week; the Dow closed Friday at 10,023.42. The NASDAQ climbed 3.29% last week.⁷

(Source: CNNMoney.com, ustreas.gov, bls.gov, 11/6/09)^8,9,10

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

Riddle of the week. Determine the numeral between 1 and 100 which is also nine times the sum of its digits.

Contact my office or see next week’s Update for the answer.

Last week’s riddle: What is the only planet within our solar system that rotates clockwise?

Last week’s riddle answer: Venus.

Citations.
1 money.cnn.com/2009/11/06/news/economy/jobs_october/index.htm?postversion=2009110611 [11/6/09]
² money.cnn.com/2009/11/05/news/economy/Extending_unemployment_benefits/index.htm?postversion=2009110612 [11/5/09]
3 bloomberg.com/apps/news?pid=20601087&sid=a5NmIOAgsKkc&pos=5 [11/5/09]
4 bloomberg.com/apps/news?pid=20601087&sid=axF0x1MhqUGY&pos=1 [11/4/09]
5 money.cnn.com/2009/11/06/markets/gold/index.htm?postversion=2009110614 [11/6/09]
6 money.cnn.com/2009/11/06/markets/oil.reut/index.htm?postversion=2009110615 [11/6/09]
7 cnbc.com/id/33727378 [11/6/09]
8 money.cnn.com/data/markets/dow/ [11/6/09]
8 money.cnn.com/data/markets/nasdaq/ [11/6/09]
8 money.cnn.com/data/markets/sandp/? [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F6%2F08&mode=add&symb=DJIA [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F04&mode=add&symb=DJIA [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F99&mode=add&symb=DJIA [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F6%2F08&mode=add&symb=COMP [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F04&mode=add&symb=COMP [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F99&mode=add&symb=COMP [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F6%2F08&mode=add&symb=SPX [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F04&mode=add&symb=SPX [11/6/09]
8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=11%2F5%2F99&mode=add&symb=SPX [11/6/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [11/6/09]
9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [11/6/09]
10 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, 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.

Presented by Mark Lund, The Investor Coach

Quote of the week. “We do not quit playing because we grow old, we grow old because we quit playing.”– Oliver Wendell Holmes

3Q GDP: +3.5%. The longest economic contraction in America since 1947 ended in the third quarter as federal credits and stimuli encouraged robust growth. (Automobile output represented 1.6% of that growth, according to the Commerce Department.) This was the best quarterly GDP since 3Q 2007.¹

Consumer spending dips 0.6%. September’s slip appears partly a result of the end of the C.A.R.S. program. “Real” disposable income (after-tax income) fell 0.1% in September. However, durable goods orders rose 1.0% in that month.^2,3

Slight rise in consumer sentiment. Last week, the Reuters/University of Michigan index improved from 69.4 to 70.6 for October. Yet that still meant a drop from the 73.5 reading for September.⁴

New home sales down 3.6%. Why the drop? Here’s a hint: most sales contracts signed in September will likely close after the end of November (and the expiration of the federal $8,000 first-time buyer credit). A Congressional vote to extend that credit could occur early this week.^5,6

Strong month for some hard assets. Despite losses last week, gold prices rose 3.14% in October – an ounce went for $1,039.70 at Friday’s NYMEX close. Copper gained 4.93% last month (it hasn’t had a down month in 2009). Oil prices ended October at precisely $77.00 a barrel – up 9.05% for the month.⁷

Week ends with profit-taking. Concerns over personal spending, commercial real estate and a spike in the dollar index weighed heavily on stocks at October’s end. While the S&P 500 and NASDAQ had their toughest months since February, the DJIA managed a flat month (+0.005%, to be precise).⁸

(Source: CNNMoney.com, ustreas.gov, bls.gov, 10/30/09)^9,10,11

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

Riddle of the week. What is the only planet within our solar system that rotates clockwise?

Contact my office or see next week’s Update for the answer.

Last week’s riddle: The names of two U.S. state capital cities rhyme but share no vowels. Name the two cities.

Last week’s riddle answer: Austin and Boston.

Citations.

1 thestreet.com/story/10618752/1/gdp-stunner-35-growth-in-third-quarter.html?cm_ven=GOOGLEN [10/29/09]
2 marketwatch.com/story/consumer-spending-retreats-after-clunkers-ends-2009-10-30 [11/2/09]
3 latimes.com/business/la-fi-briefs29-2009oct29,0,456350.story [10/29/09]
4 marketwatch.com/story/consumer-sentiment-improves-in-late-oct-umich-2009-10-30 [10/30/09]
5 bloomberg.com/apps/news?pid=20601068&sid=aPXIvh4rYY60 [10/28/09]
6 bloomberg.com/apps/news?pid=20601103&sid=aPL7V1Mv60mU [10/30/09]
7 blogs.wsj.com/marketbeat/2009/10/30/data-points-energy-metals-155/ [10/30/09]
8 blogs.wsj.com/marketbeat/2009/10/30/data-points-us-markets-138/tab/print/ [10/30/09]
9 money.cnn.com/data/markets/dow/ [10/30/09]
9 money.cnn.com/data/markets/nasdaq/ [10/30/09]
9 money.cnn.com/data/markets/sandp/? [10/30/09]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F30%2F08&mode=add&symb=DJIA [10/30/09]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F29%2F04&mode=add&symb=DJIA [10/30/09]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F29%2F99&mode=add&symb=DJIA [10/30/09]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F30%2F08&mode=add&symb=COMP [10/30/09]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F29%2F04&mode=add&symb=COMP [10/30/09]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F29%2F99&mode=add&symb=COMP [10/30/09]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F30%2F08&mode=add&symb=SPX [10/30/09]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F29%2F04&mode=add&symb=SPX [10/30/09]
9 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F29%2F99&mode=add&symb=SPX [10/30/09]
10 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [10/30/09]
10 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [10/30/09]
11 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, 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.

Presented by Mark Lund, The Investor Coach

Quote of the week. “Character is much easier kept than recovered.”– Thomas Paine

Fewer “For Sale” signs. Existing home sales set a record in September – they rose by 9.4%, spurred by the federal credit for first-time buyers. (That $8,000 credit is valid through November 30.) September’s sales pace was the hottest in two years and the median sales price fell at the slowest pace in a year, according to the National Association of Realtors.¹

Leading indicators rise notably. The Conference Board’s Leading Economic Index went north 1.0% in September, marking the sixth straight monthly increase. The LEI monitors developments in categories such as jobless claims, housing permits, interest-rate spreads and consumer confidence.²

PPI drops. In September, inflation was not a factor at factories. Producer prices dropped 0.6% (core PPI fell 0.1%). PPI has seesawed positive and negative across the last three months of data.³

Housing starts rise. However, the 0.5% September increase announced by the Commerce Department was less than economists anticipated. Housing permits decreased in September for the second time in three months.³

Gold, copper, oil all advance. Gold prices gained $4.90 last week to finish at $1,055.60 an ounce Friday. Prices have risen 15.72% across the last three weeks. Copper had its best week since mid-July, posting a 6.57% gain last week. Oil prices advanced $1.48 per barrel last week to settle at $80.50 Friday.⁴

Slight losses for stocks. The S&P 500 lost 0.7% last week, while the NASDAQ ended down 0.1% for the same time span. The DJIA retreated 0.2% last week to close at 9,972.18 Friday.⁵

(Source: CNNMoney.com, ustreas.gov, bls.gov, 10/23/09)^6,7,8

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

Riddle of the week. The names of two U.S. state capital cities rhyme but share no vowels. Name the two cities.

Contact my office or see next week’s Update for the answer.

Last week’s riddle: What is the timepiece with the most moving parts? (It’s been around for centuries.)

Last week’s riddle answer: The hourglass.

Citations.
1 bloomberg.com/apps/news?pid=20601103&sid=a4.DIzmpog2A [10/23/09]
2 npr.org/blogs/thetwo-way/2009/10/leading_indicators_up_again.html [10/22/09]
3 bloomberg.com/apps/news?pid=20601087&sid=aDFJnk7txix0 [10/20/09]
4 blogs.wsj.com/marketbeat/2009/10/23/data-points-energy-metals-150/ [10/23/09]
5 cnbc.com/id/33452868 [10/23/09]
6 money.cnn.com/data/markets/dow/ [10/23/09]
6 money.cnn.com/data/markets/nasdaq/ [10/23/09]
6 money.cnn.com/data/markets/sandp/? [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F23%2F08&mode=add&symb=DJIA [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F04&mode=add&symb=DJIA [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F99&mode=add&symb=DJIA [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F23%2F08&mode=add&symb=COMP [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F04&mode=add&symb=COMP [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F99&mode=add&symb=COMP [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F23%2F08&mode=add&symb=SPX [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F04&mode=add&symb=SPX [10/23/09]
6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=10%2F22%2F99&mode=add&symb=SPX [10/23/09]
7 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [10/23/09]
7 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [10/23/09]
8 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

These views are those of Peter Montoya Inc., and not the presenting Representative or the Representative’s Broker/Dealer, 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.