Despite international uncertainty, US data improving by Ken Mahoney

Despite a plague of turbulent international events, the bulls managed to triumph over uncertainty last week. U.S. stocks climbed for a third straight day Friday, erasing the past week’s losses from Japan’s nuclear crisis. In fact, all three measures ended two-week losing streaks as the S&P 500 added 2.7%, the Nasdaq climbed 2.8%, and the Dow rose 3.1% to its best week since July 9, 2010.

While several reasons could be cited for last week’s performance, the primary piece of good news was that fourth quarter GDP outperformed previous estimates as businesses maintained spending and demand. U.S. GDP increased at a 3.1% annualized rate, revised up from the 2.8% reported one month ago, and pleasantly surprised analysts.

Investor’s hopes have also boosted in anticipation of next Friday’s jobs report from the Labor Department. Payrolls increased by 195,000 workers this month, the most since May 2010 according to a preliminary survey by Bloomberg News. Manufacturing grew at its fastest pace in seven years, while record exports and consumer spending are prompting many companies to boost hiring. In light of these positive reports, Libya, the series of events in Japan and new changes in the Eurozone – circumstances which previously shook investor’s confidence – appear to have left markets unfazed last week.

As we have seen in times past, it is impossible to pinpoint exactly when markets will persevere or turn bearish. Last week’s reversal thus illustrates that the markets do not always behave rationally.

ECONOMIC CALENDAR: Monday – Personal Income & Outlays, Pending Home Sales Index Tuesday – S&P Case-Shiller HPI, Consumer Confidence Wednesday – ADP Employment Report, EIA Petroleum Status Report
Thursday – Jobless Claims, Chicago PMI, Factory Orders
Friday – Motor Vehicle Sales, Employment Situation, ISM Mfg Index, Construction Spending Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.

HEADLINES:

The U.S. Postal Service announced plans to shutter seven district offices (located in Columbus, South East Michigan, Northern Illinois, South East New England, South Georgia, Big Sky and Albuquerque) eliminating 7,500 jobs. When fully implemented, the Postal Service estimates the cuts will lead to about $750 million in annual savings. The agency also plans to close as many as 2,000 post offices over the next year and hopes to end Saturday delivery service.

On the heels of Portuguese Prime Minister Jose Socrates’ resignation over austerity measures, an EU Summit was held last week to negotiate the details of the European Stability Mechanism. In 2013, the ESM will have a lending capacity of 500 billion euros. Standard & Poor's downgraded Portugal's long-term credit, bringing the country's credit standing closer to junk status. A bailout may wait till June as the country needs to first figure out its political situation.

Japanese engineers struggled to pump radioactive water from a crippled nuclear power station after radiation levels soared in seawater near the plant. Prolonged efforts to prevent a meltdown at the 40-year-old plant have also intensified concern around the world about nuclear power. The crisis at the plant, 150 miles north of Tokyo, has overshadowed a big relief and recovery effort from the magnitude 9.0 quake and the huge tsunami it triggered on March 11 that left more than 27,100 people dead or missing in northeast Japan.




Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named 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. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

March Madness continues for US markets … By Ken Mahoney

The markets bounced back on Monday as investors embraced ‘Monday Merger Mania’. AT&T announced a 39 Billion Dollar deal to buy competitor T-Mobile. Investors are also hoping that the crisis in Japan is stabilizing ‘a bit’, while the Libya conflict will be measured in ‘days’.

Between situations in Japan and Libya, stocks faced some serious headwinds last week. The Dow declined 1.5%, the S&P 500 fell 1.9% and the Nasdaq dropped 2.7%. The Libyan cease-fire announcement temporarily calmed concerns about developments in the Middle East on Thursday and Friday, but ongoing uncertainty eventually caused the rally to slow and it wasn’t enough to recover from Wednesday’s thrashing.

Recent events, including the nuclear disaster in Japan, international forces b
ombing in Libya, and the possibility of more currency market intervention will likely keep investors reacting to headlines in the weeks ahead. We are currently facing an extremely media-driven market that responds quickly to what is visible in the news. At times like this, it is more important than ever to avoid trading based on emotion rather than facts or fundamentals. Even when things are uncertain, there are often many promising opportunities to be found.
Consider one example:
Some people see huge opportunities in Japan. Since experts are optimistic that the earthquake's impact will have a relatively mild long-term effect on Japan’s economy, a cross-section of investors are watching the Japanese market with the intent to invest – viewing the Nikkei’s sharp drop as the best time to get in. In fact, a whopping $956 million flowed into Japanese equities in the week ending March 16 alone, according to data from Thomson Reuters Lipper service. While we are not necessarily advocating this strategy for you, it does highlight the importance of seeking out opportunities even when things look grim.

Despite the complicated and unpredictable elements at play, these events remind us of the nature of the markets: ups and downs are to be expected. Although we've quoted him before, now is a good time to recall the words of billionaire investor Warren Buffet who said, “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”. And always remember, we’re monitoring the situation closely.

ECONOMIC CALENDAR: Monday – Existing Home Sales Tuesday – Redbook Wednesday – New Home Sales, EIA Petroleum Status Report
Thursday – Durable Goods Orders, Jobless Claims Friday – GDP, Consumer Sentiment



.

HEADLINES:
America’s top military commander says a United Nations-authorized no-fly zone over Libya has effectively been achieved. The Chairman of the U.S. Joint Chiefs of Staff, Admiral Mike Mullen, is calling the initial phase of a multi-national effort to take control of Libyan airspace a success. Mullen says Libyan command-and-control centers and air defense installations have been struck, and that leader Moammar Gadhafi’s forces effectively are grounded.

The U.S. cost of living hit a record high (127.4) in February, according to the Chained Consumer Price Index. The previous high of 126.9 was reached in July 2008, before economic markers like unemployment and stock prices were affected. Simultaneously, states will be cutting back services this year at the same time they increase taxes in order to close enormous budget deficits.

Japanese government officials say food and milk contaminated with radiation is being detected in a wider than expected area. Some shipments are now being stopped, although authorities stress that ingesting the items will not immediately harm people.

Nissan Motor Co. said Sunday that it will start parts production and vehicle assembly operations this week in Japan, becoming the first car maker to restart its entire auto production process after a devastating quake brought the country's auto industry to a standstill.



Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
The Nikkei is an Index of 225 leading stocks traded on the Tokyo Stock Exchange.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named 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. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

Japan’s earthquake sends shock waves around the Globe Ken Mahoney

On Friday, an 8.9 earthquake rocked Japan and generated a 30-foot-high tsunami that devastated the northeastern coast. In consideration of the widespread destruction, human suffering is the issue of primary concern at this time. Simultaneously though, it is crucial to consider the economic impact of this natural disaster. What affects are we already experiencing?

Though Japan’s recession-burdened stock markets dropped, the expected scope of the rebuilding effort sent U.S. stocks climbing on expectations for increased demand for materials. Interestingly, we also saw a $3 a barrel drop in oil prices inspired by anticipation of decreased Japanese demand. At the same time, some speculate that the probable increase in Japan’s spending has the potential to propel their already strong currency, the yen, higher as Japanese money invested abroad is applied to rebuilding. How long and to what extent such factors will influence the world economy remains to be seen.

The earthquake also took a heavy toll on the nation’s industries, forcing Toyota, Honda and Nissan to halt operations at most of their domestic plants. These shutdowns come at a time of strong recovery in global consumption (U.S. auto sales clocked their strongest pace in 18 months in February ). Also suspending operations are Panasonic, Sony, and Toshiba. A bigger impact will likely come in the weeks ahead as the disruptions make their way through the global supply chain.

In today’s world, we exist as part of a connected, global community. And although it is fitting to discuss how international situations can have an impact domestically, we should also remember that such analysis cannot diminish Japan’s catastrophic losses. While the weeks and months ahead will gradually reveal the extent of the disaster, it will also give us a chance to demonstrate our humanity and generosity.

SPECIAL NOTE: While we do not want to discourage you from donating toward relief efforts in Japan, we urge you to exercise caution. Whenever a natural disaster strikes, there are always unscrupulous individuals who will attempt to take advantage of the generosity of those who wish to give. Many reputable sources warn donors to be cautious when making contributions to relief agencies and charities. Please visit the Better Business Bureau’s Wise Giving Alliance for more information about how to donate safely. See www.bbb.org/charity.

ECONOMIC CALENDAR: Tuesday – Empire State Mfg Survey, Import and Export Prices, Treasury International Capital, Housing Market Index, FOMC Meeting Announcement Wednesday – Housing Starts, Producer Price Index, EIA Petroleum Status Report
Thursday – Consumer Price Index, BOE Announcement, International Trade, Jobless Claims, Industrial Production, Leading Indicators, Philadelphia Fed Survey

HEADLINES:
Professional-football players disbanded their union and filed a lawsuit against the NFL and team owners on Friday. The collapse of the talks makes it likely that NFL owners will bar their players from turning up to work and withholding their paychecks. The players filed suit for the right to be allowed to work.

U.S. consumer sentiment fell to its lowest level since October 2010 as gasoline prices rose. The preliminary March reading on the overall index on consumer sentiment came in at 68.2, down from 77.5 in February. The numbers were in contrast to the retail sales report earlier Friday, which showed sales posted their largest gain in four months in February.

House Republicans are preparing another stopgap-spending bill that would cut $6 billion from current levels and keep the government running for three more weeks. The stopgap-spending bill would buy lawmakers more time after existing funding authority expires on March 18 to agree on final spending levels for the 2011 fiscal year, which ends September 30. The Senate would have to approve it as well before it could be sent to President Obama to sign into law.

Forbes 2011 Billionaires List breaks two records: total number of listees (1,210) and combined wealth ($4.5 trillion). Mexico's Carlos Slim Helu, added $20.5 billion to his fortune, and is now worth $74 billion. Bill Gates (#2) and Warren Buffett (#3) both added a more modest $3 billion to their piles and are now worth $56 billion and $50 billion, respectively.

Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named 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. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

What did Fed Chair Bernanke say about rising oil and our US economy? Ken Mahoney

As of late, the big question on everyone’s mind has been: Will the recovery stick? And while the talking heads have been debating their positions on the issue, the chief talking head himself – Federal Reserve Chairman Ben Bernanke – appeared before the House Financial Services Committee and a Senate panel last week to offer his semiannual report on the state of the economy.

What was the word? Bernanke said the economy is gaining traction and stressed that the Fed is prepared to act if higher commodity prices start to have a negative effect on U.S. growth. His comments also offered a brighter outlook on the status of rising energy costs, inflation risk, and job creation. Good news indeed!

While acknowledging that a prolonged rise in oil prices could pose a danger to the economic recovery, the Fed chief countered that other risks to the economy, including rising commodity prices, were more likely to affect consumer spending. At the same time, Bernanke reiterated his commitment to keeping inflation low, and added: "I recognize that the increases in gas prices are very troubling… but they are not inflation per se. Inflation is an increase in the overall price level, which is very low. The inflation rate right now is 1.2% for all goods and services".
As for jobs, Bernanke expressed confidence that growth would increase this year. Supporting his view, the Labor Department announced on Friday that the nation’s unemployment rate fell to 8.9% in February, the lowest level in two years. The report suggests that companies are gaining confidence in the economy and their own financial prospects. It also strengthens hopes that businesses will shift into a more aggressive hiring mode to heighten momentum for the ongoing recovery.

Against the backdrop of geopolitical turmoil that has packed the headlines in recent weeks, the Fed chairman’s testimony offered a positive perspective on the improving state of the American recovery.

HEADLINES:
On Tuesday, Apple Chief Steve Jobs introduced the world to the iPad2, a sleeker, faster follow-up to the original. The market sent shares of Research in Motion down 0.3%, and Motorola was down by over 4%. The new iPad2 sports front and back facing cameras, more memory, and a faster processor, but despite the upgrades, the iPad2 starts at $499, while Xoom tablets will run between $599 and $799.

President Barack Obama said Saturday that he is willing to offer deeper spending cuts if it means Republicans and Democrats can work out their differences and reach an agreement on the federal budget. The standoff over government spending intensified this past week as Republicans ripped the White House’s offer to make $6.5 billion in budget cuts this fiscal year, and the threat of a government shutdown lay over the horizon. Government operations are now running on a stopgap funding measure that expires on March 19.

U.S. manufacturers expanded at the fastest pace in nearly seven years last month, but a sudden rise in the price of raw materials could threaten their profits. The Institute for Supply Management said its index of manufacturing activity rose to 61.4 in February, the highest reading since May 2004. But prices paid for steel, plastics, rubber and other raw materials rose for a third straight month, a sign that increasing production costs could spark higher inflation.

National Football League owners and players agreed Friday to a seven-day extension to contract talks in an effort to resolve the league’s labor dispute. The agreement means the CBA will remain in force until the night of March 11 and averts the threat of a lockout by the owners or a lawsuit by the players for at least a week. The owners were due to earn about $4 billion in TV money this coming season, even in the event of a lockout.

Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

Will higher oil prices derail the US economy?
By Ken Mahoney

As turmoil in the Middle East continues to roil the markets, it is no coincidence that "oil" is at the root of economic concerns. From an investment perspective, analyzing oil's relationship to the markets is crucial, but the reality is that nearly everyone (investors and non-investors alike) are affected by oil prices. So what exactly is affecting the rise in oil costs? And, more importantly, do oil prices have the potential to derail America's economic recovery?

After the fall of dictatorial governments in Tunisia and Egypt, unrest has spread throughout the Middle East, with Libya dominating the spotlight this week. The International Energy Agency reported late Friday that Libya is probably producing about 850,000 barrels of oil daily, down from its normal capacity of 1.6 million barrels, which represents just under 2% of the world's oil supply. While the sudden oil shortage hits European refiners the hardest, oil fears still caused the stock market to suffer its first weekly loss in a month. For the week, the S&P 500 slid 1.7%; the Dow dropped 2.1%, and the Nasdaq fell 1.9%. Happily, fears were eased somewhat on Friday when Saudi Arabia reported it has increased its crude oil production to 9 million barrels a day to make up for supplies lost in Libya.

What we're seeing right now is a tug of war between worry and economic fundamentals. While most U.S. economic data looks good, investors are focused on the potential implications of interruptions in oil production. For the moment, this issue will dominate the headlines regardless of how attractive other data looks.

U.S. drivers have already been feeling the pinch at the pump, with gas prices spiking 6 cents on Friday, the biggest one-day jump in two years. The national average price for a gallon of regular gas rose to $3.29, according to AAA, marking the fourth day in a row that prices have risen and bringing the national average to the highest level since October 2008. In general, every $1 increase in the price of oil costs consumers $1 billion over the course of a year. Higher oil prices also weigh on the U.S. economy by increasing the costs of moving goods, thus transferring rising costs to manufacturers, wholesalers, retailers, and eventually the American public.

If gas prices continue to rise as some analysts predict, how will this affect the economic recovery? Put simply, there is no way to know for sure. Granted, when gas prices go up, Americans have less to spend on everything else. And since consumer spending makes up over 70% of the U.S. economy , a drop in spending could slow the recovery down. At the same time though, modest increases in fuel prices do not inevitably cause economic slowdowns. What they more often do is cause alarm, thus affecting consumers' perceptions about what they can afford and causing them to react by tightening their belts.

So while the natural reaction may be to retreat to conservative investments and cut-off all spending on nonessentials, it is important to avoid overreacting. The coming week promises to shed more light on the true status of our domestic economy as various data related to jobs, payrolls, and manufacturing are released.

Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply contact our office at 845/371-0101.
We love being introduced!

Mr. Mahoney is a registered broker with Aurora Capital LLC, registered broker-dealer with U.S. Securities and Exchange Commission, member FINRA/MSRB/SIPC. Clearing through Legent Clearing LLC, member FINRA/MSRB/SIPC.

*Stock investing involves market risk including loss of principal. The fast price swings of commodities will result in significant volatility in an investor's holdings. Government bonds and Treasury Bills are guaranteed by the US Government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named 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. Please consult your financial advisor for further information.

Markets climb to 2 ½ year highs, what’s next? Ken Mahoney

Wall Street started last week holding its breath while waiting to see whether Hosni Mubarak would step down as Egypt’s president. Bowing to pro-democracy protests, Mubarak resigned on Friday, ending 30 years of authoritarian rule in the Middle East’s most populous country.

As fireworks burst over Cairo’s Tahrir Square, there was a collective sigh of relief on Wall Street, while the benchmark averages rose to finish Friday’s session with weekly gains. U.S. stocks climbed to fresh 2 1/2-year closing highs after the resignation of Mubarak removed a layer of uncertainty from global markets. The Dow had a weekly advance of 1.5%, while the S&P 500 rose 1.4% and the Nasdaq added 1.5%.
Analysts and investors agree that Mubarak’s resignation dramatically reduces geopolitical risk and uncertainty from the region.

Reflecting this, oil prices fell following the news in Egypt, with crude dropping to $85.16 a barrel in midday trading Friday. Other dollar-denominated commodities, including gold and silver, also drifted lower following Mubarak's resignation. Gold prices slid $5.30, settling at $1,357.20 an ounce.

On another topic, how does starting a new week on St. Valentine’s Day traditionally affect the markets? Interestingly, the “day of love” hasn’t customarily shown much “love” to investors; at least when using the S&P 500 index as a gauge. According to Howard Silverblatt, a senior index analyst at S&P Indices, going back to 1928, February 14 trading days only notched gains on the S&P 38.7% of the time against a historical daily rate of 52.03%. Here’s an interesting caveat though – in looking at the 11 Valentine’s Days that occurred on the first trading day of the week, the S&P 500 logged a gain 63.4% of the time. While we’re certainly not trying to make a prediction, it is interesting to see what history can teach us about market behaviors.

From war and peace one week, to love and chocolates the next, it just goes to show that almost any world event has potential to affect people’s investments. Like everything in life, weathering all the little ups and downs requires intelligence, patience, and a cool head.

ECONOMIC CALENDAR:
Tuesday – Retail Sales, Empire State Mfg. Survey, Import and Export Prices, Redbook, Treasury International Capital, Business Inventories, Housing Market Index Wednesday – Housing Starts, Producer Price Index, Industrial Production, EIA Petroleum Status Report, FOMC Minutes
Thursday – Consumer Price Index, Jobless Claims, Industrial Production, Leading Indicators, Philadelphia Fed Survey

Data as of 02/11/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 1.39 5.69 23.2 0.98 0.11
Dow 1.50 6.01 20.9 2.48 1.38
NASDAQ 1.45 5.90 29.0 4.84 1.37
MSCI EAFE 0.07 4.48 17.6 1.71 N/A
10-year Treasury Note (Yield Only) 3.65 N/A 3.73 4.58 5.02

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.

HEADLINES:
Pandora Media Inc., filed papers Friday to raise as much as $100 million in an initial public offering of stock. Pandora offers an Internet service that creates playlists of songs based on user feedback. The Oakland, Calif.-based company said it now has more than 80 million registered users, and “a more than 50% share of all Internet radio listening time among the top 20 stations and networks in the United States.”

The euro fell to a three-week low against the dollar as speculation increased that Portugal will follow Ireland in tapping the European Financial Stability Facility. Yields on 10-year Portuguese debt climbed on Feb. 10 to 7.64 percent, the highest level since the introduction of the euro in 1999.

U.S. consumer sentiment rose to its highest level in eight months in early February, boosted by recent tax cuts and optimism about the economy. The preliminary February reading for the overall index on consumer sentiment came in at 75.1, up from 74.2 in January, the highest level since June 2010.

The Commerce Department says the deficit in December increased 5.9% to $40.6 billion. It grew because the 2.6% gain in imports outpaced the 1.8% rise in exports. For 2010, the U.S. trade deficit rose to $497.8 billion, a 32.8% surge and the biggest annual percentage gain since 2000.

Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!

*Stock investing involves market risk including loss of principal. The fast price swings of commodities will result in significant volatility in an investor’s holdings. Government bonds and Treasury Bills are guaranteed by the US Government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named 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. Please consult your financial advisor for further information.

Investor’s are more optimistic

In spite of ongoing turmoil in Egypt and the Middle East, the markets continued their gain last week. For the period ending February 4th, the Dow, the S&P 500, and the Nasdaq all climbed reflecting elevated optimism in the markets. The AAII Sentiment Survey for last week shows that 51.5% of investors are feeling bullish, up 9.5% from the week of January 24th. That’s well above the historical average of 39%.
Indeed, this optimism is even more remarkable in light of last week’s jobs report which has been subject to conflicting opinions and interpretations. Case in point: According to a MarketWatch headline from Friday, the “job crisis isn’t over”, while a cnnmoney.com headline from the same day touted that, “the job market is getting better.” Each headline could be considered accurate, but clearly they offer different slants. Though the rate of hiring did not show a notable increase, the unemployment rate still fell to 9.0% - bad news and good news at the same time. Some analysts predict that bad weather across the U.S. is partially to blame, with more than 850,000 workers prevented from working at the time the survey was conducted. Other explanations have also been cited, and as a result, it appears that many are waiting for February’s report for clarification before jumping to conclusions.

Recent events, both within the U.S. and internationally, illustrate a noteworthy aspect of investing: It is impossible to predict how the stock market will react to news. Such an optimistic week in light of Egyptian strife and a conflicting jobs report is a pleasant surprise. It seems that the market has had time to price in geopolitical risks in Egypt and sluggish jobs growth and found such factors to be no immediate threat. Clearly, the headlines and the stock market do not always move in tandem. This is a good fact to remember when evaluating how much credence should be given to sensational news reports.

ECONOMIC CALENDAR
Tuesday – Redbook
Wednesday – Bank Reserve Settlement, EIA Petroleum Status
Thursday – BOE Announcement, Jobless Claims, Wholesale Trades, Treasury Budget Friday – International Trade, Consumer Sentiment





Data as of 02/04/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 2.71 4.23 23.3 0.74 -0.29
Dow 2.27 4.45 20.9 2.41 1.13
NASDAQ 3.07 4.39 30.3 4.48 0.41
MSCI EAFE 3.16 3.93 15.7 -0.41 1.56
10-year Treasury Note (Yield Only) 3.33 N/A 3.61 4.53 5.14

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.

HEADLINES:

The Green Bay Packers won its fourth Superbowl title in a 31-25 victory over the Pittsburgh Steelers. The Vince Lombardi Trophy is headed back to Titletown for the first time in 14 years.

Super Bowl-related consumer spending will reach $10.1 billion this year, the National Retail Federation says. The Washington-based trade group cites a survey conducted by its Retail Advertising and Marketing Association division that says the average consumer will spend $59.33 on game-related merchandise, apparel and snacks, up from $52.63 last year.

Hackers have repeatedly penetrated the computers running Nasdaq during the past year. Though the exchange’s trading platform was not violated and no information has been compromised, a federal investigation is underway.

Businesses’ unemployment-insurance payments rose 37% in 2010. Last year, the amount employers paid into state unemployment-insurance funds rose 34%. Combined with the increase in total wages, businesses paid out $43 billion.

On Friday, Bank of America appointed a new foreclosure and loan modifications czar, and created a new unit to oversee problem home loans. The new unit creates a seventh major division at the bank and will be overseen by Terry Laughlin. The move splits the largest U.S. bank by assets’ mortgage business: one focused on new and current mortgages, and another dedicated to foreclosures.



Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!


*Stock investing involves market risk including loss of principal. The fast price swings of commodities will result in significant volatility in an investor’s holdings. Government bonds and Treasury Bills are guaranteed by the US Government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named 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. Please consult your financial advisor for further information.