The Weekly Market Snapshot from Frazier Allen for the week of February 27th, 2012

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

A deal was reached in the €130 billion bailout package for Greece. However, investors almost immediately began to doubt Greece’s ability to stick to the plan (especially given the unrealistic assumptions about Greece’s growth prospects). Meanwhile, oil and gasoline prices continued to rise, posing a more significant threat to the U.S. growth outlook.

The economic calendar was relatively thin. Home sales figures were mixed, but January housing data aren’t all that critical. Jobless claims continued to trend at a relatively low level. Consumer sentiment rebounded from a dip in the middle of the month, apparently as job market optimism offset worries about higher gasoline prices.

Next week, the calendar heats up again.

The Fed Chairman’s semi-annual monetary policy testimony to Congress (to the House Financial Services Committee on Wednesday and to the Senate Banking Committee on Thursday) is often a big deal for the markets, but we’re unlikely to learn much this week. That is, Bernanke should present a moderate, but uncertain economic outlook.

Monetary policy changes (more QE) would depend on a loss of momentum in growth or expectations that inflation will be below target. The estimate of 4Q11 GDP growth is expected to be little changed from the advance estimate (+2.8%). The Beige Book will provide anecdotal evidence of what’s going on with the economy (expected to be a bit brighter than the previous assessment).

Indices

	Last	Last Week	YTD return %
DJIA	12984.69	12904.08	6.28%
NASDAQ	2956.98	2959.85	13.51%
S&P 500	1363.46	1358.04	8.42%
MSCI EAFE	1559.01	1530.02	10.37%
Russell 2000	829.23	829.96	11.92%

Consumer Money Rates

	Last	1-year ago
Prime Rate	3.25	3.25
Fed Funds	0.11	0.16
30-year mortgage	3.88	4.90

Currencies

	Last	1-year ago
Dollars per British Pound	1.570	1.620
Dollars per Euro	1.332	1.374
Japanese Yen per Dollar	80.180	82.380
Canadian Dollars per Dollar	0.999	0.993
Mexican Peso per Dollar	12.842	12.208

Commodities

	Last	1-year ago
Crude Oil	107.49	96.50
Gold	1786.48	1415.63

Bond Rates

	Last	1-month ago
2-year treasury	0.30	0.21
10-year treasury	1.98	1.93
10-year municipal (TEY)	2.94	2.92

Treasury Yield Curve – 2/24/2012

S&P Sector Performance (YTD) – 2/24/2012

Economic Calendar

February 27th	—	Pending Home Sales Index (January)
February 28th	—	Durable Goods Orders (January) S&P/Case-Shiller Home Price Index (December) Consumer Confidence (January)
February 29th	—	Real GDP (4Q11, 2nd estimate) Chicago PM Index (February) Bernanke Monetary Policy Testimony (House) Fed Beige Book
February 30th	—	Jobless Claims (week ending February 25th) Personal Income and Spending (January) ISM Manufacturing Index (February) Bernanke Monetary Policy (Senate) Motor Vehicle Sales (February)
March 9th	—	Employment Report (February)
March 13th	—	FOMC Policy Decision (no press briefing)
March 16th	—	Consumer Price Index (February)

Important Disclosures

[320left]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 February 23rd, 2012.

©2012 Raymond James Financial Services, Inc. member FINRA / SIPC.