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The Weekly Market Snapshot from Frazier Allen


Weekly Market Snapshot

Market Commentary by Scott J. Brown, Ph.D., Chief Economist

Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services

Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services

The economic data were mixed, but the week’s highlight, the November Employment Report, was disappointing. Nonfarm payrolls rose by 39,000 (vs. a median forecast of +140,000), while the two previous months were revised a net 38,000 higher. Private-sector payrolls rose by 50,000. State and local government fell by 13,000 (down 250,000, or -0.3% over the last 12 months). Manufacturing fell by 13,000. Construction slipped 5,000. Retail dropped 28,100 (up 300,800 before seasonal adjustment). Temp-help payrolls rose by 39,500 (up 9.2% year-over-year). The unemployment rate rose to 9.8% vs. 9.6% in October and 10.0% a year ago.

Ignoring most of the economic data, the stock market action seemed to be dictated largely by shifting views of the European debt crisis. An 85 financing package by the European Union and the IMF for Ireland (announced on Sunday) initially did little to calm the fears. However, stocks rallied broadly on Thursday. Equities fell on the November employment figures, but the damage was relatively limited considering the degree of disappointment relative to expectations.

Next week, the economic calendar thins out considerably (the following week will more than make up for that). The bond market will face some Treasury supply (3-, 10-, and 30-year securities). Taken off guard by all the criticism against the Fed’s latest program of asset purchases, Chairman Bernanke will try to restate his case on 60 Minutes.


  Last Last Week YTD return %
DJIA 11362.41 11187.28 8.96%
NASDAQ 2579.35 2453.12 13.67%
S&P 500 1221.53 1198.35 9.54%
MSCI EAFE 1595.08 1591.96 0.91%
Russell 2000 751.2 736.53 20.12%

Consumer Money Rates

  Last 1-year ago
Prime Rate 3.25 3.25
Fed Funds 0.21 0.12
30-year mortgage 4.71 4.93


  Last 1-year ago
Dollars per British Pound 1.559 1.665
Dollars per Euro 1.320 1.504
Japanese Yen per Dollar 83.720 87.230
Canadian Dollars per Dollar 1.005 1.050
Mexican Peso per Dollar 12.352 12.813


  Last 1-year ago
Crude Oil 88.00 76.60
Gold 1386.95 1209.65

Bond Rates

  Last 1-month ago
2-year treasury 0.46 0.34
10-year treasury 2.96 2.5
10-year municipal (TEY) 4.72 4.15

Treasury Yield Curve – 12/03/2010 

Treasury Yield Curve – 12/03/2010

S&P Sector Performance (YTD) – 12/03/2010 

S&P Sector Performance (YTD) – 12/03/2010

Economic Calendar

December 5th  —  Bernanke on 60 Minutes
December 9th  —  Jobless Claims (week ending December 4th)
December 10th  —  Import Prices (November)
International Trade (October)
Consumer Sentiment (mid-December)
December 14th  —  Producer Price Index (November)
Retail Sales (November)
FOMC Meeting
December 15th  —  Consumer Price Index (November)
Industrial Production (November)
December 16th  —  Building Permits, Housing Starts (November)
December 24th  —  Christmas Holiday (markets closed)

Important Disclosures

Past performance is not a guarantee of future results. There are special risks involved with global investing related to market and currency fluctuations, economic and political instability, and different financial accounting standards. The above material has been obtained from sources considered reliable, but we do not guarantee that it is accurate or complete. There is no assurance that any trends mentioned will continue in the future. While interest on municipal bonds is generally exempt from federal income tax, it may be subject to the federal alternative minimum tax, state or local taxes. In addition, certain municipal bonds (such as Build America Bonds) are issued without a federal tax exemption, which subjects the related interest income to federal income tax. Investing involves risk and investors may incur a profit or a loss.

US government bonds and treasury bills are guaranteed by the US government and, if held to maturity, offer a fixed rate of return and guaranteed principal value. US government bonds are issued and guaranteed as to the timely payment of principal and interest by the federal government. Treasury bills are certificates reflecting short-term (less than one year) obligations of the US government.

Commodities trading is generally considered speculative because of the significant potential for investment loss. Markets for commodities are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising. Specific sector investing can be subject to different and greater risks than more diversified investments.

Tax Equiv Muni yields (TEY) assume a 35% tax rate on triple-A rated, tax-exempt insured revenue bonds.

Material prepared by Raymond James for use by its financial advisors.

The information contained herein has been obtained from sources considered reliable, but we do not guarantee that the foregoing material is accurate or complete. Data source: Bloomberg, as of close of business December 2nd, 2010.

©2010 Raymond James Financial Services, Inc. member FINRA / SIPC.

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