3rd QUARTER EQUITIES
Driven by the fundamentals of the economy and corporate earnings, U.S. stock indexes showed impressive gains. The domestic story was aided by the international markets – which had their best quarterly performance since 1997. The star of the market was the Nasdaq Composite Index which posted a 7.3% gain in the third quarter and was ahead 21.4% for the year. Investors were attracted to the product innovations in technology. The impact was felt in the broader market indexes. The S&P was up 5.2% for the quarter and 13.4 % for the year. The Dow Jones Industrial Average increased 7.5% for the quarter and 14.7% for the year. The Russell 2000 index of small cap stocks was a strong performer in the quarter. It moved ahead 6.8% for the period and was up 11.1% for the year.