Weekly Market Update - March 1, 2013

Domestic stock prices were slightly higher this week. Stock prices ended the week modestly higher as the spending cuts resulting from the budget sequester began to kick in. The market has largely discounted the impact of the cuts, and the S&P 500 Index gained 1.1% in February, extending its four month rally. The S&P and Dow Industrials are approximately 4% and 1% below their respective record highs. Global markets were generally mixed for the week. World markets turned in mixed results, with the U.S. and Asian markets rising slightly and European markets somewhat lower. European markets were impacted by declining inflation and record unemployment. In addition, manufacturing data in China trailed expectations.

Treasury prices rose this week. Yields on the benchmark 10‐ year Treasury declined sharply this week as U.S. spending cuts began. Investors sought the safety of Treasury securities as policymakers in Washington grapple with how to improve the long‐term fiscal outlook without hurting near‐term growth to such an extent that raises fears of recession.

Commodity indexes declined again this week. Crude oil declined to its lowest level this year on slowing manufacturing growth in China and spending cuts in the U.S.

MARKET DASHBOARD
Index	Price	Weekly Chg.	% Chg.	YTD % Chg.
S&P 500	1,517.23	2.64	0.2%	6.5%
Dow Industrials	14,089.66	82.44	0.6%	7.5%
Nasdaq Composite	3,169.74	7.33	0.2%	5.0%
Russell 2000	914.73	-3.01	-0.3%	7.5%
Euro Stoxx Index	289.02	0.45	0.2%	3.3%
Shanghai Composite	2,359.51	45.34	2.0%	4.0%
10-Year U.S. Treasury	1.85	-11  bps	NM	1 bps
DJ UBS Commodity Index	135.77	-0.92	-0.7%	-2.4%
Gold	$1,576.30	-$5.06	-0.3%	-5.9%
Crude Oil	$90.95	-$2.28	-2.4%	-2.0%
U.S. Dollar Index	82.28	0.80	1.0%	3.1%
VIX Index	15.41	1.15	8.1%	-15.0%
Source: Bloomberg
As of March 1, 2013