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.