The Weekly Market Snapshot from Frazier Allen for the week of February 12th, 2012

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

Global equity markets rallied on progress on a Greek bailout package, but reacted negatively as Greece stumbled as it approached the finish line. In the U.S., investors began to question whether the stock market rally has gone too fast in 2012.

The economic calendar was thin. Consumer credit rose sharply in December, following a strong gain in November, apparently reflecting the improvement in motor vehicle sales. The trade deficit was narrower than expected in December (implying, all else equal, a small upward revision to the 4Q11 GDP growth estimate).

Five big banks reached a foreclosure settlement with the attorneys general of 49 states and the Obama administration, which will provide mortgage adjustments for about 10% of those underwater on their mortgages and distribute checks of around $2000 to about 750,000 who were foreclosed upon through faulty or fraudulent practices. The settlement should help the housing sector to some extent, but is not expected to lead to a sharp recovery.

Next week, the economic calendar turns busy. The focus is likely to be on the reports of retail sales and consumer prices. Seasonal adjustment may magnify the impact of unusually mild weather in January (likely apparent in residential construction and industrial production). The White House’s Office of Management and Budget will release its budget outlook on Monday.

Significant deficit reduction is expected in this plan, following required discretionary spending cuts from last year’s Budget Control Act, but it will be interesting to see what gets cut and whether there will be a push to soften or postpone scheduled tax increases (the Bush tax cuts and the reduction in payroll taxes). Note that the payroll tax reduction, which is set to expire at the end of February, has yet to be extended for the full calendar year.

Indices

	Last	Last Week	YTD return %
DJIA	12890.461	12705.41	5.51%
NASDAQ	2927.23	2859.68	12.36%
S&P 500	1351.95	1325.54	7.50%
MSCI EAFE	1549.80	1518.58	9.72%
Russell 2000	824.99	812.89	11.35%

Consumer Money Rates

	Last	1-year ago
Prime Rate	3.25	3.25
Fed Funds	0.12	0.13
30-year mortgage	3.89	5.06

Currencies

	Last	1-year ago
Dollars per British Pound	1.583	1.610
Dollars per Euro	1.330	1.371
Japanese Yen per Dollar	77.530	82.370
Canadian Dollars per Dollar	0.994	0.994
Mexican Peso per Dollar	12.712	12.051

Commodities

	Last	1-year ago
Crude Oil	99.84	86.71
Gold	1739.40	1363.03

 

Bond Rates

	Last	1-month ago
2-year treasury	0.27	0.22
10-year treasury	1.98	1.86
10-year municipal (TEY)	2.85	2.85

Treasury Yield Curve – 2/10/2012

S&P Sector Performance (YTD) – 2/10/2012

Economic Calendar

February 13th	—	OMB Budget Outlook
February 14th	—	Small Business Optimism (January) Import Prices (January) Retail Sales (January
February 15th	—	Empire St. Manufacturing Index (February) Industrial Production (January) Homebuilder Sentiment (February) FOMC Minutes (January 1/24th-25th)
February 16th	—	Jobless Claims (week ending February 11th) Producer Price Index (January) Building Permits, Housing Starts (January) Philadelphia Fed Index (February)
February 17th	—	Consumer Price Index (January) Leading Economic Indicators (January)
February 20th	—	President’s Day Holiday (markets closed)
March 9th	—	Employment Report (February)
March 13th	—	FOMC Policy Decision (no press briefing)

Treasury Yield Curve – 2/3/2012

S&P Sector Performance (YTD) – 2/3/2012

Economic Calendar

February 7th	—	Bernanke Testimony (Senate Budget Committee)
February 9th	—	Jobless Claims (week ending February 4th)
February 10th	—	Trade Balance (December) Consumer Sentiment (mid-January)
February 14th	—	Retail Sales (January)
February 15th	—	Industrial Production (January)
February 16th	—	Producer Price Index (January) Building Permits, Housing Starts (January)
February 17th	—	Consumer Price Index (January)
February 20th	—	President’s Day Holiday (markets closed)
March 9th	—	Employment Report (February)
March 13th	—	FOMC Policy Decision (no press briefing)

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 February 9th, 2012.

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

Clarksville Parks and Recreation Report for February 12th, 2012

Clarksville, TN – The weekly Clarksville Parks and Recreation Department Recreation Report provides Clarksvillians with a glimpse at the activities and events that are available from the Parks and Recreation Department for them to enjoy together as a family.

This weeks highlights include:

• Baseball, Blastball®, Softball & T-ball Youth Recreation Leagues
• Vendors Wanted
• Silver Socials
• Story Tellers
• Calling all coaches!
• Movies in the Park
• Youth Nights

[Read more]

Clarksville Parks and Recreation Youth Recreation Leagues Registration is underway

Clarksville, TN – Registration is underway for the Clarksville Parks & Recreation’s Youth Recreation Leagues. Participants can register no later than March 30th at any of our community centers, the Parks & Recreation Main office as well as online at recpro.cityofclarksville.com.

The baseball, softball and t-ball league is open to youth ages 5 to 14. Birth certificates are required at registration to verify the child’s age. All games are played at Heritage Park Baseball Fields. [Read more]

Tennessee Wildlife Resources Agency set to host Tennessee Outdoors Youth Summit in Montgomery County

Nashville, TN – The Tennessee Wildlife Resources Agency will host the Third Annual Tennessee Outdoors Youth Summit (TOYS), June 10th-15th, 2012 for high school students from across Tennessee. The students will be introduced to many outdoor activities at the event to be held at the Montgomery County Shooting Complex near Clarksville.

Among the different outdoor activities that the students will have an opportunity to become introduced to will include boating, hunting, trapping, archery, photography, marksmanship, plant identification, forestry, camping, water quality, trap shooting, skeet shooting, wildlife identification, and several classes with wildlife and fishery biology as the topic. The summit is designed to deepen the students’ appreciation for outdoor-related activities. [Read more]

Austin Peay State University math students and faculty perform well at Annual Conference

Clarksville, TN – Five Austin Peay State University faculty members and four students presented at the Middle Tennessee Mathematics’ Teachers annual conference on February 3rd-4th at Ravenwood High School in Brentwood Tennessee. More than 240 in-service and pre-service teachers attended the two-day event.

Ashley Whitehead presented “Problem Solving and Modeling with Fractions.” She also presented “Student Teaching: the good, the bad, and the ugly” with Dr. Ann Assad, APSU associate professor of mathematics. Additionally, Assad presented “Early Experiences in Problem Solving through Connections.” [Read more]

2nd Annual Coaches’ Banquet to feature SEC Basketball Legend Barry Booker

Clarksville, TN – Clarksville Parks & Recreation is pleased to announce the keynote speaker for the 2nd annual Coaches’ Banquet to be held Thursday, March 15th at the William O. Beach Civic Hall at 6:30pm.

This year’s banquet, which will honor all coaches in the Clarksville-Montgomery County area, will feature former Vanderbilt standout and current record-holder, Barry Booker. [Read more]

The Clarksville Civil War Roundtable’s next meeting is February 15th, 2012

The 95th Meeting

Clarksville, TN – The next meeting of the Clarksville (TN) Civil War Roundtable will be on Wednesday, February 15th at the Bone & Joint Center, 980 Professional Park Drive, right across the street from Gateway Hospital. This is just off Dunlop Lane and Holiday Drive and only a few minutes east of Governor’s Square mall. The meeting begins at 7:00pm and is always open to the public. Members please bring a friend or two – new recruits are always welcomed.

The meetings topic is “Nashville – Siren’s Song of the Confederacy” [Read more]

Roxy Regional Theatre explores Relationships with Hilarious Musical Revue “I Love You, You’re Perfect, Now Change”

Clarksville, TN – The Roxy Regional Theatre takes on the truths and myths behind that contemporary conundrum known as “The relationship” with the hilarious musical revue “I Love You, You’re Perfect, Now Change”, opening Friday, February 10th, at 8:00pm.

Directed by and featuring Ryan Bowie, along with Heather Anderson, Josh Bernaski and Ashley Laverty, this celebration of the mating game explores the journey from dating and waiting to love and marriage, and reveals the agonies and triumphs of in-laws and newborns, trips in the family car and pick-up techniques of the geriatric set.

[Read more]

Award-winning CBS News correspondent to speak February 20th at Austin Peay State University

Clarksville, TN – On August 25th, 2006, NBC Executive Producer Jeff Fagan poked his head into the dressing room at CBS studios.

“Good luck, you’ve come a long way to get here. You’ve earned it,” he said to Byron Pitts.

Pitts was about to make his first on-camera studio open for the CBS News Broadcast “60 Minutes.” Pitts thought to himself, “if only Fagan knew.” His mind flashed back to elementary school, when a therapist informed his mother, “I’m sorry, Mrs. Pitts, your son cannot read.

[Read more]

Austin Peay State University employees note their various accomplishments

Clarksville, TN – Several faculty and staff members at Austin Peay State University announce their recent professional and scholarly activities.

Dr. Mike Gotcher, chair of the APSU Department of Communication, Dr. Anna Filippo, assistant professor of communication, Tracy Nichols, communication instructor, and Dr. Melony Shemberger, assistant director of communication in the APSU Public Relations Office, judged various individual events and debate rounds at the Northeast High School Speech and Debate Tournament held February 4th at the school in Clarksville. [Read more]

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