Debbie Whitlock Presents

Weekly Economic Update for the Week of February 8, 2010

Quote of the week. “Simplicity is the ultimate sophistication.”– Leonardo da Vinci

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

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

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

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

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

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 2/5/10)^6,7,8,9

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

 invested into directly. These returns do not include dividends.

Riddle of the week. A family has a mother, father and four daughters. Each daughter has one brother. How many people are in the family?

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

Last week’s riddle: A plastic bottle filled with cola weighs one liter. What do you need to add to it to make it weigh less than two ounces?

Last week’s riddle answer: If you add a hole to the bottle, the cola will drain out and the liter bottle will weigh less than two ounces. (Actually, a liter is a measure of volume, not weight – but for the purposes of this riddle it is neither here nor there.)

Please feel free to forward this article to family, friends or colleagues.

If you would like us to add them to our list, please reply with their address
and we will contact them and ask for their permission to be added.

Securities offered through Woodbury Financial Services, Inc.  Member FINRA, SIPC P.O. Box 64284 St. Paul, MN  55164 800.800.2638

Sound Financial Partners and Woodbury Financial Services are not affiliated entities.

Content provided by Peter Montoya, Inc. These are the views of Peter Montoya, Inc., not the named representative or Woodbury Financial Services, Inc., and should not be considered investment advice. Neither the representative or Woodbury Financial offer tax or legal advice. All information is believed to be from reliable sources; however, the publisher makes no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting, or other professional services. If expert assistance is needed, the reader is advised to work with a competent professional. Consult your representative for further information.

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.

Citations.

1 kansascity.com/444/story/1729270.html [2/5/10]

2 abcnews.go.com/Business/wireStory?id=9717254 [2/1/10]

3 marketwatch.com/story/us-jan-ism-services-index-rebounds-to-505-2010-02-03?reflink=MW_news_stmp [2/3/10]

4 latimesblogs.latimes.com/money_co/2010/02/personal-income-spending-climb.html [2/1/10]

5 businessweek.com/ap/financialnews/D9DLECSO0.htm [2/4/10]

6 cnbc.com/id/35259652 [2/5/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F5%2F09&mode=add&symb=DJIA [2/5/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F05&mode=add&symb=DJIA [2/5/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F00&mode=add&symb=DJIA [2/5/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F5%2F09&mode=add&symb=COMP [2/5/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F05&mode=add&symb=COMP [2/5/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F00&mode=add&symb=COMP [2/5/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F5%2F09&mode=add&symb=SPX [2/5/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F05&mode=add&symb=SPX [2/5/10]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F4%2F00&mode=add&symb=SPX [2/5/10]

8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [2/5/10]

8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [2/5/10]

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

Debbie Whitlock Presents

Weekly Economic Update for the Week of February 1, 2010

Quote of the week. “Reputation is what other people know about you. Honor is what you know about yourself.”– Lois McMaster Bujold

4Q GDP: 5.7%: That is the preliminary reading from the Commerce Department, and that is the best reading since 3Q 2003. Economists pointed out that much of the increase reflected companies rebuilding their inventories rather than personal spending.¹

Consumers think positive. The final University of Michigan/Reuters consumer sentiment index for January improved 1.6 points to 74.4. Economists polled by Briefing.com felt it would come in at 73.0.²

New concerns about home sales. Both new and existing home sales retreated markedly in December with the threat of federal tax credits being pulled. Existing home sales fell by 16.7% in that month while new home sales slipped 7.6%. In annual terms, residential resales for 2009 were about 5% higher than 2008 totals. Just 373,000 new single-family homes were sold in 2009, the fewest since the government began tracking sales stats in 1963.^3,4

A $5K hiring rebate? Last week, President Obama pitched the idea of giving companies of all sizes a $5,000 credit to offset payroll taxes for each new worker, up to a $500,000 ceiling. Net new hires (increasing employee hours) and salary increases could also make companies eligible. A proposal to enact the plan is now in the Senate.⁵

Dollar hits highest level since August. The buck went on an intraday climb to 90.92 yen and the euro traded below $1.39. The new GDP report helped.⁶

So long to a subpar month. Stocks retreated in the last week of January, with the Dow ending the month at 10,067.33, the NASDAQ at 2,147.35 and the S&P 500 at 1,073.87.⁷

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 1/29/10)^7,8,9,10

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

 invested into directly. These returns do not include dividends.

Riddle of the week. A plastic bottle filled with cola weighs one liter. What do you need to add to it to make it weigh less than two ounces?

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

Last week’s riddle: A glass of water has an ice cube in it. If the ice cube fully melts, will the water level increase, decrease or remain the same?

Last week’s riddle answer: The water level will stay the same as the ice cube just displaces its weight.

Please feel free to forward this article to family, friends or colleagues.

If you would like us to add them to our list, please reply with their address
and we will contact them and ask for their permission to be added.

Securities offered through Woodbury Financial Services, Inc.  Member FINRA, SIPC P.O. Box 64284 St. Paul, MN  55164 800.800.2638

Sound Financial Partners and Woodbury Financial Services are not affiliated entities.

Content provided by Peter Montoya, Inc.

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.

Citations.

1 pbs.org/newshour/rundown/2010/01/us-economy-expands-at-fastest-rate-in-six-years.html [1/29/10]

2 money.cnn.com/2010/01/29/markets/markets_newyork/ [1/29/10]

3 money.cnn.com/2010/01/27/real_estate/new_home_sales/ [1/27/10]

4 nytimes.com/2010/01/30/business/economy/30charts.html [1/29/10]

5 time.com/time/business/article/0,8599,1957663,00.html?xid=rss-topstories [1/29/10]

6 cnbc.com/id/35136215/ [1/29/10]

7 cnbc.com/id/35017549 [1/29/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F29%2F09&mode=add&symb=DJIA [1/29/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F28%2F05&mode=add&symb=DJIA [1/29/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F28%2F00&mode=add&symb=DJIA [1/29/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F29%2F09&mode=add&symb=COMP [1/29/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F28%2F05&mode=add&symb=COMP [1/29/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F28%2F00&mode=add&symb=COMP [1/29/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F29%2F09&mode=add&symb=SPX [1/29/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F28%2F05&mode=add&symb=SPX [1/29/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F28%2F00&mode=add&symb=SPX [1/29/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [1/29/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [1/29/10]

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

Debbie Whitlock Presents

Weekly Economic Update for the Week of January 25, 2010

 Quote of the week. “Popularity: it is glory’s small change.”– Victor Hugo

“Volcker rule” worries Wall Street. Investors frowned last week as the President talked of rules that would bar banks and bank holding firms from getting involved in hedge funds or conducting proprietary trading operations. Crafted with input from former Federal Reserve chairman Paul Volcker and past SEC head William Donaldson, the new regulatory proposal is likely to face stiff opposition from Senate Republicans.^1,2

Big gain in leading indicators. The Conference Board’s index of leading indicators rose 1.1% in December, with November’s gain revised to 1.0% from 0.7%. The index, a forecast of future economic activity, rose 5.2% across the second half of 2009.³

PPI up 0.2% for December. That gain was much smaller than November’s 1.8% jump. Core producer prices (minus food and energy) were flat last month.⁴

Encouraging housing news. While new home construction decreased by 4.0% in December, housing starts were up 0.2% from a year before, marking the first year-over-year gain since March 2006. Building permits were up 10.9% in December.⁵

30-year loans back under 5%. For the third consecutive week, Freddie Mac measured a decline in average rates on 30-year FRMs: they were at 4.99% last week, down from 5.06% a week prior. 15-year FRMs averaged 4.40%. Rates on 5-year and 1-year ARMs respectively averaged 4.27% and 4.32%.⁶

 A quick pullback. Besides the envisioned limits on bank risk, investors got news of China’s instruction to its banks to raise capital ratios. These factors took stocks south: the Dow closed Friday at 10,172.98, the NASDAQ at 2,205.29, and the S&P 500 at 1,091.76.⁷

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 1/22/10)^7,8,9,10

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

 invested into directly. These returns do not include dividends.

Riddle of the week. A glass of water has an ice cube in it. If the ice cube fully melts, will the water level increase, decrease or remain the same?

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

Last week’s riddle: If it were two hours later than right now, it would be half as long until midnight as it would be if it were an hour later than right now. What time is it?

Last week’s riddle answer: 9:00 p.m.

___________________________________________________________________

 Please feel free to forward this article to family, friends or colleagues.

If you would like us to add them to our list, please reply with their address
and we will contact them and ask for their permission to be added.

___________________________________________________________________

 Content provided by Peter Montoya, Inc.

 Securities offered through Woodbury Financial Services, Inc.  Member FINRA, SIPC P.O. Box 64284 St. Paul, MN  55164 800.800.2638

Sound Financial Partners and Woodbury Financial Services are not affiliated entities.

 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.

 Citations.

1 curiouscapitalist.blogs.time.com/2010/01/21/a-question-about-the-volcker-steagall-act/?xid=rss-topstories [1/21/10]

2 online.wsj.com/article/SB10001424052748703699204575017300364900036.html?mod=WSJ-Markets-LeadStory [1/21/10]

3 abcnews.go.com/Business/wireStory?id=9622837 [1/21/10]

4 money.cnn.com/2010/01/20/markets/markets_newyork/ [1/20/10]

5 money.cnn.com/2010/01/20/real_estate/housing_starts_building_permits/?postversion=2010012012 [1/20/10]

6 washingtonpost.com/wp-dyn/content/article/2010/01/21/AR2010012105404.html [1/23/10]

7 cnbc.com/id/35017549 [1/22/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F22%2F09&mode=add&symb=DJIA  [1/22/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F21%2F05&mode=add&symb=DJIA  [1/22/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F21%2F00&mode=add&symb=DJIA  [1/22/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F22%2F09&mode=add&symb=COMP  [1/22/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F21%2F05&mode=add&symb=COMP  [1/22/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F21%2F00&mode=add&symb=COMP  [1/22/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F22%2F09&mode=add&symb=SPX  [1/22/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F21%2F05&mode=add&symb=SPX  [1/22/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F21%2F00&mode=add&symb=SPX  [1/22/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml  [1/22/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml  [1/22/10]

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

Debbie Whitlock Presents

Weekly Economic Update for the Week of January 18, 2010

Quote of the week. “Laughter is by definition healthy.”– Doris Lessing

How about a too-big-to-fail tax? Last week, President Obama proposed a Financial Crisis Responsibility Fee – a tax on the largest U.S. banks to help repay $117 billion in TARP losses. Would banks respond to this populist move with higher lending fees for customers? Or would executives and shareholders effectively bear the cost? One certainty: designated banks would have to pay the fee for 10 years or longer.¹

CPI slightly up, retail sales slip down. The Consumer Price Index inched north 0.1% in December. That puts it up 2.7% over the last 12 months, with core CPI up 1.8% in that span. Retail sales fell 0.3% last month, with the decline ranging across many sectors; economists polled by MarketWatch had expected a gain of 0.5%.^2,3

Cool consumer sentiment. The preliminary January Reuters/University of Michigan survey came in at 72.8. That was less than the 75.0 economists had hoped for, yet higher than the 72.5 December mark.⁴

Industrial output up again. The Federal Reserve noted a 0.6% advance in December, with utilities behind most of that gain. Industrial production has risen for six straight months.⁵

Oil back under $80 a barrel. Crude futures slipped more than 5% for the week on reduced demand projections with warmer weather. Oil prices fell 1.8% Friday to close at $78.00 per barrel on the NYMEX.⁶

 Fears of fees affect the market. The second full trading week of the year was not as great as the first. The Dow lost 0.08%; the S&P 500 retreated 0.78%. Even with these losses, the Dow and S&P wrapped up their best 2-week stretches since mid-November.⁷

(Source: CNNMoney.com, ustreas.gov, bls.gov, 1/8/10)^6,8,9,10

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. If it were two hours later than right now, it would be half as long until midnight as it would be if it were an hour later than right now. What time is it?

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

Last week’s riddle: There is a kind of sweet bean that never grows in a garden. What is it?

Last week’s riddle answer: The jelly bean.

Please feel free to forward this article to family, friends or colleagues.

If you would like us to add them to our list, please reply with their address
and we will contact them and ask for their permission to be added.

Securities offered through Woodbury Financial Services, Inc.  Member FINRA, SIPC P.O. Box 64284 St. Paul, MN  55164 800.800.2638

Sound Financial Partners and Woodbury Financial Services are not affiliated entities.

Content provided by Peter Montoya, Inc.

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 Professional for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

Citations.

1 csmonitor.com/USA/Politics/2010/0114/Bailout-aftermath-Obama-proposes-fee-on-big-banks [1/14/10]

2 money.cnn.com/2010/01/15/news/economy/consumer_prices_december/ [1/15/10]

3 marketwatch.com/story/retail-sales-drop-03-on-widespread-declines-2010-01-14?dist=beforebell [1/14/10]

4 smartmoney.com/investing/short-term-investing/market-update-friday-jan-15-2010-20844/ [1/15/10]

5 marketwatch.com/story/industrial-output-leans-on-a-cold-shoulder-2010-01-15 [1/15/10]

6 money.cnn.com/2010/01/15/markets/oil/ [1/15/10]

7 cnbc.com/id/34880099 [1/15/10]

8 money.cnn.com/data/markets/dow/ [1/15/10]

8 money.cnn.com/data/markets/nasdaq/ [1/15/10]

8 money.cnn.com/data/markets/sandp/ [1/15/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F15%2F09&mode=add&symb=DJIA [1/15/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F14%2F05&mode=add&symb=DJIA [1/15/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F14%2F00&mode=add&symb=DJIA [1/15/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F15%2F09&mode=add&symb=COMP [1/15/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F14%2F05&mode=add&symb=COMP [1/15/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F14%2F00&mode=add&symb=COMP [1/15/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F15%2F09&mode=add&symb=SPX [1/15/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F14%2F05&mode=add&symb=SPX [1/15/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F14%2F00&mode=add&symb=SPX [1/15/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [1/15/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [1/15/10]

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

Debbie Whitlock Presents

Weekly Economic Update for the Week of January 11, 2010

Quote of the week. “Wisdom is found only in truth.”– Johann Wolfgang Von Goethe

Jobless rate stays at 10.0%. Hopes were high on Wall Street that unemployment would fall back to single digits, but at least things stayed flat for December. The positives: the 10.0% figure was better than the 10.1% reading economists polled by Dow Jones Newswires expected, and revised November figures showed the economy actually added 4,000 jobs two months ago.¹

Service sector expands. The Institute for Supply Management’s services index came in at 50.1 for December, meaning marginal growth – and a rise from November’s 48.7 mark. ISM’s service sector employment index improved to 44.0 in December from 41.6 a month earlier.²

Interpreting pending home sales. They fell 16.0% in November, but consider some factors. A wave of buyers raced to exploit tax credits in October, so we were primed for a fall – and winter isn’t a prime time to buy or sell. In the big picture, the National Association of Realtors noted that pending home sales for November 2009 were 15.5% above levels of a year before.³

More orders, bigger stockpiles. According to the Census Bureau, factory orders went north 1.1% in November; analysts had expected about half that gain. Wholesale inventories rose 1.5% last month (best month since October 2004) and wholesale sales rose 3.3% (strongest month since January 2008).^4,5

2.68% gain to start 2010. Yes, that was how much the S&P 500 rose in the first trading week of the year. A January effect sent the NASDAQ 2.12% higher and the Dow 1.82% higher as well. Friday morning, the CBOE VIX hit its lowest level in 19 months.^6,7

(Source: CNNMoney.com, ustreas.gov, bls.gov, 1/8/10)^6,8,9,10

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. There is a kind of sweet bean that never grows in a garden. What is it?

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

Last week’s riddle: A man jumped out of a small plane without a parachute. When he hit the ground, he wasn’t injured at all. Why?

Last week’s riddle answer: The plane was parked on the ground.

Please feel free to forward this article to family, friends or colleagues.

If you would like us to add them to our list, please reply with their address
and we will contact them and ask for their permission to be added.

___________________________________________________________________

Securities offered through Woodbury Financial Services, Inc.  Member FINRA, SIPC P.O. Box 64284 St. Paul, MN  55164 800.800.2638

Sound Financial Partners and Woodbury Financial Services are not affiliated entities.

Content provided by Peter Montoya, Inc.

 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.

Citations.

1 online.wsj.com/article/SB126295679510421517.html?mod=rss_Today%27s_Most_Popular [1/8/10]

2 marketwatch.com/story/us-dec-ism-services-index-rebounds-to-501-2010-01-06?reflink=MW_news_stmp [1/6/10]

3 usnews.com/money/blogs/the-home-front/2010/01/05/housing-market-gets-tax-credit-payback [1/5/10]

4 blogs.barrons.com/stockstowatchtoday/2010/01/05/us-factory-orders-beat-expectations/ [1/5/10]

5 bloomberg.com/apps/news?pid=20601087&sid=a89gE4gDzVao&pos=4 [1/8/10]

6 cnbc.com/id/34771264 [1/8/10]

7 cnbc.com/id/34766998 [1/10/09]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F8%2F09&mode=add&symb=DJIA [1/8/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F05&mode=add&symb=DJIA [1/8/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F00&mode=add&symb=DJIA [1/8/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F8%2F09&mode=add&symb=COMP [1/8/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F05&mode=add&symb=COMP [1/8/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F00&mode=add&symb=COMP [1/8/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F8%2F09&mode=add&symb=SPX [1/8/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F05&mode=add&symb=SPX [1/8/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=1%2F7%2F00&mode=add&symb=SPX [1/8/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [1/8/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [1/8/10]

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

Debbie Whitlock Presents

Monthly Economic Update for January, 2010

_______________________________________________________________________________

Quote of the month. “It is a rough road that leads to the heights of greatness.” – Seneca

The month in brief. Many things went north last month: stocks, retail sales figures, mortgage interest rates, the U.S. Dollar Index, and the prices of many commodities. Some things went south – most notably the jobless rate and gold and silver prices. The positive mood on Wall Street sustained itself through the holidays, with the S&P 500 ending the year up 23.45% and improving 64.83% from its March 9 close.¹

Domestic economic health. How fast was the economy improving? Slowly but surely, the evidence suggested. Consumer spending had increased by0.6% in November, with personal incomes enjoying their biggest gain in six months.² The Commerce Department said retail sales rose by 1.3% in November, a gain twice as large as economists had predicted.³ Consumer confidence was up, too: the Conference Board’s December survey featured a rise from 50.6 to 52.9, and the month’s final Reuters/University of Michigan survey showed improvement from November’s 67.4 to 72.5.^4,5 We also learned that unemployment fell slightly to 10.0% in November.⁶

On the business side, the latest data on the manufacturing and service sectors was mixed. The November Institute for Supply Management manufacturing survey showed growth, but also a slip from October’s 55.7 to 53.6. ISM’s service sector index showed contraction in November, moving from 50.6 to 48.7.⁷

And inflation? Well, the Consumer Price Index was up 0.4% for November, with core CPI flat after 10 straight monthly advances. Analysts noted a 1.8% year-over-year gain in CPI, the first positive 12-month change since February. Wholesale inflation (PPI) rose by 1.8% in November, with core PPI up 0.5%.⁸

Groundbreaking health care reform legislation passed in both houses of Congress. January will see both the Senate and House try to reconcile their separate bills. What didn’t happen in the 1990s seems ready to happen now.

Global economic health. The manufacturing outlook seemed to be improving in important economies. China’s key purchasing managers’ index rose again, and a report had manufacturing expanding in December at the fastest rate in 20 months. PMIs also rose in December in India, Taiwan and South Korea. A survey of Eurozone purchasing managers showed a third straight month of growth in European manufacturing. Also, an index of U.K. manufacturing hit its highest mark in December since November 2007.^9,10

 Looking ahead, the International Monetary Fund’s World Economic Outlook sees global output growing by 3.1% in 2010 after a 1.1% dip in world GDP for 2009. This follows the Organization for Economic Cooperation and Development estimating 2010 growth for its 30 member countries (the U.S., Japan, Germany and England among them) to 1.9%, up from 0.7% in June.¹¹

World financial markets. Many foreign indices outpaced ours during a very robust month for stocks. The Nikkei 225 climbed 12.85% in December to put it up 19.04% for the year. The Hang Seng and Shanghai Composite respectively gained +0.23% and 2.56% in December, capping off terrific years – the Hang Seng rose 52.02% and the Shanghai Composite rose 79.98% across 2009. South Korea’s KOSPI advanced 8.4% last month. Germany’s DAX rose 5.9% and the DJ Stoxx 600 climbed 5.85%; those indices respectively gained 23.85% and 28.57% for 2009. France’s CAC 40 rose 4.2% on the month, and ended the year at +22.32%. Canada’s TSX Composite advanced 0.3% for December for a 28.02% annual gain. As for the MSCI World Index and MSCI Emerging Markets Index, they too posted gains: the World went north by 3.59% last month, and the EM rose 4.04%. For 2009, the World rose +22.82% while the EM soared +58.65%.^12,13,14,15

Commodities markets. It was not the greatest month for gold; however, it was a strong month for most hard assets. Gold and silver prices respectively fell 7.19% and 8.92% across December, but market conditions were better for copper (+6.29%), platinum (+0.74%) and especially palladium (+12.46%). Energy futures? Well, crude oil rose 2.69% on the month, and heating oil prices went north by 3.46%; natural gas prices naturally took off in December, rising 14.93%. Sugar topped all commodities during the month with a 19.04% gain. The hottest three commodities of 2009 were copper (+137.34%), sugar (+128.20%) and palladium (+116.67%). Lastly, the dollar rebounded – the U.S. Dollar Index rose 4.1%.¹⁶

Housing & interest rates. The latest home sales numbers were warped by the presumption of expiring federal tax breaks: new home sales were down 11.3% for November, while residential resales rose by 7.4% for the month.¹⁷ Housing starts, which had dropped more than 10% in October, rebounded nicely by rising 8.9% for November.¹⁸

Mortgage rates were definitely rising, and one of Freddie Mac’s economists went on record with the opinion that rates on 30-year FRMs would get to 6% a year from now. The last Freddie Mac survey of 2009 had rates on 30-year FRMs at 5.14%, rates on 15-year FRMs at 4.54%, rates on 5-year hybrid ARMs averaging 4.44%, and rates on 1-year ARMs averaging 4.33%.^19,20

Major indexes. When the final bell sounded on New Year’s Eve, the DJIA, S&P 500 and NASDAQ had notched another month of gains.

(Source: CNBC.com, ustreas.gov, 12/31/09)^1,21,22

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

January outlook. Many analysts think January will be a very positive month for equities, setting the tone for a nice year. The Dow opened with a triple-digit rally on the first market day of 2009, buoyed by the December reading on the ISM manufacturing index: 55.9, the highest reading since April 2006.²³ Key questions in the minds of investors: Can the recovery continue as the federal stimulus is withdrawn? When will the Fed tighten? How much inflation will we see, and how long will the dollar remain weak? As we wait for clues, there is much evidence that a global economic recovery is taking hold – and that is certainly good news for a stock market investor.

The key economic releases for the rest of January: November factory orders and pending home sales (1/5), the December ISM service sector index (1/6), December unemployment and wholesale inventories (1/8), December retail sales and November business inventories (1/14), the University of Michigan’s January consumer sentiment poll, December CPI and December industrial production (1/15), December PPI, housing starts and building permits (1/20), the Conference Board’s leading indicators (1/21), December existing home sales (1/25), January consumer confidence as measured by the Conference Board (1/26), December new home sales and durable goods orders (1/27), and advance 4Q GDP (1/29). We will learn about December consumer spending on February 1.

Riddle of the month. If an electric train is going south and the wind is blowing north, what direction is the smoke going?

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

Last month’s riddle. What do the following six words have in common: fast, away, water, through, down, neck?

Last month’s riddle answer: You can put the word “break” in front of all of them and form new English-language words.

________________________

 Please feel free to forward this article to family, friends or colleagues. If you would like us to add them to our list, please reply with their address and we will contact them and ask for their permission to be added.

_________________________

 Securities offered through Woodbury Financial Services, Inc.  Member FINRA, SIPC P.O. Box 64284 St. Paul, MN  55164 800.800.2638

Sound Financial Partners and Woodbury Financial Services are not affiliated entities.

Content provided by Peter Montoya, Inc.

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. Nikkei 225 (Ticker: ^N225) is a stock market index for the Tokyo Stock Exchange (TSE). The Nikkei average is the most watched index of Asian stocks. The Hang Seng Index is a free-float capitalization-weighted index of selection of companies from the Stock Exchange of Hong Kong. The Shanghai Stock Exchange Composite Index is a capitalization-weighted index that tracks the daily price performance of all A-shares and B-shares listed on the Shanghai Stock Exchange. The Korea Composite Stock Price Index or KOSPI is the index of all common stocks traded on the Stock Market Division of the Korea Exchange. The DAX 30 is a Blue Chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. The Dow Jones STOXX (Price) Index is a broad based capitalization-weighted index of European stocks. The FTSE 100 Index is a share index of the 100 most highly capitalized companies listed on the London Stock Exchange. The CAC-40 Index is a narrow-based, modified capitalization-weighted index of 40 companies listed on the Paris Bourse. The Toronto Stock Exchange (TSX), a subsidiary of the TMX Group Inc., is the largest stock exchange in Canada. The MSCI World Index is a free-float weighted equity index that includes developed world markets, and does not include emerging markets. The MSCI Emerging Markets Index is a float-adjusted market capitalization index consisting of indices in more than 25 emerging economies. Neither the named Representative nor Broker/Dealer gives tax or legal advice. 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 Professional for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

Citations.

1 cnbc.com/id/34645043 [12/31/09]

2 abcnews.go.com/Business/wireStory?id=9408799 [12/23/09]

3 marketwatch.com/story/retail-sales-sparkle-in-november-2009-12-11 [12/11/09]

4 conference-board.org/economics/consumerConfidence.cfm [12/29/09]

5 reuters.com/article/idUSTRE5BM2AT20091223 [12/23/09]

6 news.briefing.com/GeneralContent/Investor/Active/ArticlePopup/ArticlePopup.aspx?ArticleId=NS20091204092343HeadlineHits [12/4/09]

7 biz.yahoo.com/c/e.html [12/4/09]

8 marketwatch.com/story/us-consumer-prices-rise-04-in-november-2009-12-16-83900 [12/16/09]

9 businessweek.com/news/2010-01-04/european-shares-gain-on-economy-bhp-billion-nestle-advance.html [1/4/10]

10 ft.com/cms/s/0/7530f484-f8da-11de-beb8-00144feab49a.html/ [1/4/10]

11 etaiwannews.com/etn/news_content.php?id=1132755&lang=eng_news&cate_img=35.jpg&cate_rss=news_Business# [12/14/09]

12 blogs.wsj.com/marketbeat/2009/12/31/data-points-asia-europe-182/ [12/31/09]

13 emerginvest.com/WorldStockMarkets/Countries.html [12/31/09]

14 cnbc.com/id/34643111 [12/31/09]

15 mscibarra.com/products/indices/international_equity_indices/gimi/stdindex/performance.html [12/31/09]

16 cnbc.com/id/34645043/page/2/ [12/31/09]

17 marketwatch.com/story/new-home-sales-crater-as-subsidy-ends-2009-12-23 [12/23/09]

18 bloomberg.com/apps/news?pid=20601068&sid=a4U0dmaiV44A [12/16/09]

19 washingtonpost.com/wp-dyn/content/article/2009/12/26/AR2009122600031.html [12/26/09]

20 freddiemac.com/pmms/ [12/31/09]

21 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/31/09]

22 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/31/09]

23 reuters.com/article/idUSN0423748820100104 [1/4/10]

Debbie Whitlock Presents

Weekly Economic Update for week of January 4, 2010

______________________________________________________________________________

 Quote of the week. “Cheers to a new year and another chance for us to get it right.”– Oprah Winfrey

Consumers think positive. The latest index of consumer attitudes from the Conference Board came in at 52.9 last week, surpassing the 52.5 forecast in a Reuters poll of analysts and the 50.6 mark recorded in November. The expectations index (the “how do you feel about the next 6 months” gauge) hit 75.6, the best reading since December 2007.¹

Initial claims suggest happier 2010. They fell again in the Labor Department’s December 26 report, down to 432,000 – the lowest figure since July 2008. Analysts polled by Briefing.com thought they would rise to 460,000. Initial jobless claims have trended downward since late March.²

Mortgage rates & home prices rise. Checking the newly released October Case-Shiller home price index, we see that residential prices rose by 0.4% nationally with gains in 11 of 20 metro areas. The latest index has prices up 3.5% nationally since May. Rates on 30-year FRMs increased for the fourth straight week to 5.14% in Freddie Mac’s last national survey of 2009.^3,4

A very good year for gold and oil. Gold gained 23.96% in 2009, ending the year at $1,096.20 an ounce. Crude oil rose 77.94% in 2009 (and 1.68% last week) to finish the year at $79.36 a barrel. From the end of 1999 to the end of 2009, gold prices rose 278.52% and oil prices gained 210.00%.⁵

And finally … At the close of the final market day of 2009, the DJIA stood at 10,428.05, the NASDAQ at 2,269.15, and the S&P 500 at 1,115.10. All three of the indices posted weekly losses, but Wall Street was savoring the big picture: the great 2009 gains and the 64.83% advance of the S&P 500 since its March 9 close.⁶

(Source: CNNMoney.com, ustreas.gov, bls.gov, 12/31/09)^6,7,8,9

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

 invested into directly. These returns do not include dividends.

Riddle of the week. A man jumped out of a small plane without a parachute. When he hit the ground, he wasn’t injured at all. Why?

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

 Last week’s riddle: What number should be next in this series: 9, 16, 25, 36?

Last week’s riddle answer: The next number is 49. 3² = 9, 4² = 16, 5² = 25, 6² = 36, and so on.

___________________________________________________________________

 Please feel free to forward this article to family, friends or colleagues.

If you would like us to add them to our list, please reply with their address
and we will contact them and ask for their permission to be added.

___________________________________________________________________

 Securities offered through Woodbury Financial Services, Inc.  Member FINRA, SIPC P.O. Box 64284 St. Paul, MN  55164 800.800.2638

Sound Financial Partners and Woodbury Financial Services are not affiliated entities.

Content provided by Peter Montoya, Inc.

 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.

Citations.

1 abcnews.go.com/Business/wireStory?id=9440802 [12/29/09]

2 money.cnn.com/2009/12/31/news/economy/initial_claims/ [12/31/09]

3 blog.seattlepi.com/realestatenews/archives/189450.asp [12/29/09]

4 abcnews.go.com/Business/wireStory?id=9455376 [12/31/09]

5 cnbc.com/id/34645043/page/2/ [12/31/09]

6 cnbc.com/id/34645043 [12/31/09]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F24%2F08&mode=add&symb=DJIA [12/31/09]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F31%2F04&mode=add&symb=DJIA [12/31/09]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F31%2F99&mode=add&symb=DJIA [12/31/09]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F31%2F08&mode=add&symb=COMP [12/31/09]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F31%2F04&mode=add&symb=COMP [12/31/09]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F31%2F99&mode=add&symb=COMP [12/31/09]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F9%2F09&mode=add&symb=SPX [12/31/09]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F31%2F08&mode=add&symb=SPX [12/31/09]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F31%2F04&mode=add&symb=SPX [12/31/09]

7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=12%2F31%2F99&mode=add&symb=SPX [12/31/09]

8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [12/31/09]

8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/31/09]

9 treasurydirect.gov/instit/annceresult/press/preanre/1999/ofn100699.pdf [10/6/99]

Debbie Whitlock Presents

Weekly Economic Update for the Week of December 28, 2009

_____________________________________________________

 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.

___________________________________________________________________

 Please feel free to forward this article to family, friends or colleagues.

If you would like us to add them to our list, please reply with their address
and we will contact them and ask for their permission to be added.

___________________________________________________________________

Securities offered through Woodbury Financial Services, Inc.  Member FINRA, SIPC P.O. Box 64284 St. Paul, MN  55164 800.800.2638

Sound Financial Partners and Woodbury Financial Services are not affiliated entities.

 Content provided by Peter Montoya, Inc.

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.

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]

Debbie Whitlock Presents

Weekly Economic Update for the Week of December 21, 2009 

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.

___________________________________________________________________

 Please feel free to forward this article to family, friends or colleagues.

If you would like us to add them to our list, please reply with their address
and we will contact them and ask for their permission to be added.

___________________________________________________________________

 Securities offered through Woodbury Financial Services, Inc.  Member FINRA, SIPC P.O. Box 64284 St. Paul, MN  55164 800.800.2638

Sound Financial Partners and Woodbury Financial Services are not affiliated entities.

Content provided by Peter Montoya, Inc.

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 Professional for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

 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]

Debbie Whitlock Presents

Weekly Economic Update for the Week of December 14, 2009

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).

___________________________________________________________________

 Please feel free to forward this article to family, friends or colleagues.

If you would like us to add them to our list, please reply with their address
and we will contact them and ask for their permission to be added.

________________________________________________________________

 Securities offered through Woodbury Financial Services, Inc.  Member FINRA, SIPC P.O. Box 64284 St. Paul, MN  55164 800.800.2638

Sound Financial Partners and Woodbury Financial Services are not affiliated entities.

 Content provided by Peter Montoya, Inc.

 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.

 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]