Market Summary – June 7, 2013

Domestic equities posted gains last week, while non‐U.S. markets dropped. Investors were concerned about the effectiveness of Japan’s economic stimulus efforts and the chance that the Fed
might end its easing program. The U.S. economy added 175,000 jobs in May, and the unemployment rate rose to 7.6% as more Americans entered the labor force. Initial jobless gains dropped
by 11,000 new claims to a seasonally adjusted 346,000. The ISM factory index fell to 49.0 in May from 50.7 in April. The U.S. trade deficit widened by 8.5% to $40.3 billion in April, as U.S.
imports rose 2.4% while exports increased just 1.2%.

Japan’s Nikkei Stock Average has lost close to 20% in less than three weeks. Prime minister, Shinzo Abe, pledged to boost growth by raising incomes by 3% and creating special economic zones
to attract foreign businesses. Japan is also considering changing how public pensions are invested with a goal of increasing returns through equity investing. The HSBC China purchasing
managers’ index declined to 49.2, its worst reading since October. And the Markit eurozone PMI rose to 48.3 from 46.7 in April.

The S&P 500 Index gained 0.78% and the DJIA rose 0.88% last week. Consumer staples (1.59%), energy (1.22%), and telecomm (1.07%) led the S&P 500 Index sectors, while materials (‐
0.29%), industrials (‐0.19%), and technology (0.45%) were the worst performing sectors. Crude oil gained 4.41% and natural gas dropped ‐3.92%. The yield on the 10 year U.S. Treasury closed
the week at 2.17%.

Market Summary June 7

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