Davidson 99 Regional Stock Index® Outperforms Major Indices for Quarter, First Half of Year

GREAT FALLS, Mont.--(EON: Enhanced Online News)--Halfway through 2010, the Davidson 99 Regional Stock Index^® continues to outperform the major U.S. stock indexes, ending in positive territory. D.A. Davidson & Co., the largest full-service investment firm based in the Northwest, today announced that the Davidson 99 dropped 6.4 percent in the second quarter of 2010 but rose 1.0 percent for the first half of the year, outperforming the Dow Jones Industrial Average, down 10.0 percent for the second quarter and off 6.3 percent for the first half of 2010. The S&P 500 dropped 11.9 percent during the second quarter and is off 7.6 percent year-to-date. The broader NASDAQ Composite fell 12.0 percent for the quarter and is off 7.1 percent for the year.

“The good news is that we believe that the worst appears to be over for many regional banks, technology and industrial companies that were hit hard during that sharp business slowdown between 2007 and late 2009”

Since its inception on Jan. 1, 2004, the Davidson 99 index value has risen 27.5 percent, versus a 7.3 percent decline for the S&P 500 and a 5.3 percent gain for the NASDAQ Composite.

“The second quarter was very tough for the entire market,” said Fred Dickson, Chief Market Strategist for Davidson Companies, the financial services holding company that operates D.A. Davidson & Co. “However, the Davidson 99 Regional Stock Index fared better than the major market indices. Its strength is due to its broad diversification with solid positive performances from a number of consumer, healthcare and technology companies included in the index that appear to be delivering revenue and earnings growth even as the national economic recovery slowly progresses. Some companies in the index – including a few industrial materials, retailers, financial services and technology companies – continue to struggle as seen by their poor stock price performance during the quarter, thus pulling down the overall performance of the Davidson 99 during the second quarter.”

“The good news is that we believe that the worst appears to be over for many regional banks, technology and industrial companies that were hit hard during that sharp business slowdown between 2007 and late 2009,” Dickson said. “Credit availability, consumer confidence and export sales continue to modestly improve throughout the region.”

The Davidson 99 is comprised of 99 stocks from companies operating within seven Northwest and Rocky Mountain states, including Colorado, Idaho, Montana, Oregon, Utah, Washington and Wyoming. The securities were selected based on market capitalization, importance within their sectors and importance in the states they represent. All 10 major market sectors are represented, showing the diversification of the region’s companies.

The best performing stocks in the Davidson 99 for the second quarter of 2010 were led by Coinstar, Inc., up 32 percent. The worst-performers were led by Coldwater Creek Inc., down 51.6 percent.

During the second quarter, one change was made to the composition of the Davidson 99 index. First Interstate Bancsystem Inc. replaced Nautilus Inc. in the index.

The Davidson 99 index is published daily at dadavidson.com, with occasional commentary from D.A. Davidson’s Individual Investor Group Strategy Team on the performance of the index and implications regarding the economic health of these regions. The index is price-weighted, or calculated in the same manner as the Dow Jones Industrial Average, the world’s most widely followed stock index. The closing price of each component in the index is determined daily after the markets’ close, and the values are summed and compared with the value set on Dec. 31, 2003, then adjusted for stock splits and mergers. The index was set to a base value of 100 on Dec. 31, 2003.

About D.A. Davidson & Co.

D.A. Davidson & Co. (www.dadavidson.com) is the largest full-service investment firms based in the Northwest, providing financial services to investors and corporate clients nationwide, with a strong focus on the West and Midwest. The firm is recognized for its award-winning research, as well as the Davidson 99 Regional Stock Index®, a benchmark of the Northwest’s economic landscape. D.A. Davidson & Co. has offices in 16 states and is an employee-owned company headquartered in Montana. The company is part of Davidson Companies, a comprehensive financial services holding company that is celebrating 75 years of business: www.davidson75.com.

Shares in the Davidson 99 Regional Stock Index cannot be bought or sold, and companies included in the index may or may not be covered by D.A. Davidson’s Individual Investor Group or Institutional Research team. Information regarding the national indices referred above or a complete list of companies covered by Davidson research can be obtained at www.dadavidson.com or by contacting a local D.A. Davidson office. D.A. Davidson makes a market in Coinstar, Inc. (CSTR), Coldwater Creek Inc. (CWTR) and First Interstate Bancsystem Inc. (FIBK). D.A. Davidson participated as a co-manager in the initial public offering for First Interstate Bancsystem, Inc. in March 2010.