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Charles Schwab & Co., Inc.
Midday Market View(TM) for Thursday, May 17, 2001 as of 1:00PM EDT Information provided by Standard & Poor's ================================================================ U.S. INDICES (1:00p.m. EDT) ---------------------------------- Market Value Change DJIA 11,281.10 + 65.20 Nasdaq Comp. 2,201.82 + 35.38 S&P 500 1,292.38 + 7.39 ---------------------------------- NYSE Advancing Issues 1,822 NYSE Declining Issues 1,161 NYSE Trading Volume 745 mln NASDAQ Advancing Issues 2,292 NASDAQ Declining Issues 1,344 NASDAQ Trading Volume 1.17 bln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 1-year bill 3.68% n/a 5-year note 4.99% - 8/32 10-year note 5.45% - 1/32 30-year bond 5.81% + 16/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ U.S. TRADING SUMMARY Equities continued to consolidate early morning gains as technology stocks moved higher on positive earnings news and confidence that the economy may turn upward in the final three months of this year. Indeed, earnings guidance from Oracle added to the growing chorus that feels an economic upturn is not far away. With the Federal Reserve keeping the possibility of interest-rate cuts on the table, traders felt confident putting money back to work. Sectors outperforming during today's session included entertainment, computer systems and drugs. Sectors bucking the positive trend included financials, telephone and insurance. ---------------------------------------------------------------- U.S. TREASURY SUMMARY Longer-dated issues are outperforming shorter-dated issues at midday. Shorter-dated issues are lower in price on strength in stocks and lowered Federal Reserve easing expectations while the longer-dated issues outperform on reduced inflation expectations, the Treasury buyback of debt and reports that Argentina is a buyer of long-dated debt instruments. The long end is higher in price, pushing yields lower, as the market continues to reduce expectations of inflation after yesterday's tame Consumer Price Index data. The bond was also supported by today's economic data as initial jobless claims declined, indicating to some that the labor market may not be as weak as previously thought. ---------------------------------------------------------------- CURRENCY SUMMARY The U.S. dollar is little changed versus the euro, but has slipped lower against the yen when compared with morning levels. Indeed, the greenback has eroded to around 122.5 yen per dollars from 123.0 yen per dollars this morning. As for the euro, the dollar is trading around the 0.882 level. ---------------------------------------------------------------- MAJOR COMPANY / INDUSTRY NEWS (All prices as of 1:05 p.m. EDT) ** Discount retailer K-Mart (KM: 10.68, + 0.55) reported a fiscal first-quarter loss due to costs related to improving store operations and the liquidation of inventory. The nation's second-largest discount retailer reported losing $25 million, or $0.05 per share, versus making a profit of $22 million, or $0.06 a share in the same quarter last year. If early retirement and employee severance charges had not been included, the loss would only have been $10 million, or $0.02 per share. Analysts had expected the company to lose $0.07 per share, so the company did report a narrower-than-expected dip in the red, excluding one-time charges. ** Citigroup (C: 50.71, - 1.08) is buying Mexican bank Banacci, Mexico's second largest, in a cash-and-stock deal valued at $12.5 billion. The deal still has to be approved by regulators, but if given the green light, the buyout will close in the fiscal fourth quarter of this year. Citigroup stated that the acquisition of Banacci will also help it gain market share with the Hispanic population in the U.S. Further, Citigroup has applied to list its shares on the Mexican Stock Exchange, and it will be the first international company to do so if the merger is approved. ** Transmeta (TMTA: 13.50, + 0.40), a manufacturer of low-power semiconductor chips, bagged another large computer giant as Sharp Electronics of Japan introduced a new laptop computer that uses Transmeta's Crusoe chip. Transmeta now has all the major laptop manufacturers using its new generation chip technology. Just last week Toshiba joined the ranks of firms using Crusoe. ---------------------------------------------------------------- RESEARCH SPOTLIGHTS ** Wells Fargo Van Kasper upgraded shares of Novellus Systems Inc. (NVLS: 53.54, + 0.69) from a buy to a strong buy rating. ** Merrill Lynch upgraded shares of Acxiom Corp. (ACXM: 17.10, - 0.06) from an intermediate-term neutral to an intermediate-term accumulate rating. ** Wells Fargo Van Kasper upgraded shares of KLA-Tencor Corp. (KLAC: 54.86, - 0.01) from a buy to a strong buy rating. ################################################################ Log in using the links below to: Access your account: https://investing.schwab.com/trading/start?SANC=CCBodyi&NeedCASelValue=Y View your Email Alert customization options: https://investing.schwab.com/trading/start?SANC=EAMyAlerts Perform research or request a market quote: https://investing.schwab.com/trading/start?SANC=Quotes Place a trade order: https://investing.schwab.com/trading/start?SANC=TradeStock To visit Schwab's home page, use this link: http://www.schwab.com/ ----------------------------------------------------------------- To unsubscribe or modify your Email Alert customization options, log in using the link below or copy and paste it into your browser's address window: https://investing.schwab.com/trading/start?SANC=EAMyAlerts Now you can receive graphics Email Alerts in HTML format, using helpful, full-color graphics and active Web links that connect you directly to information you want. Use the link below to log in and change your email format preference: https://investing.schwab.com/trading/start?SANC=EAEditEmailAddr ---------------------------------------------------------------- Notice: All email sent to or from the Charles Schwab corporate email system may be retained, monitored and/or reviewed by Schwab personnel. (1000-8752) Copyright 2001 Standard & Poor's MMS Inc. All rights reserved. Standard & Poor's MMS services are for personal use only. Commercial use or redistribution in any form, print or electronic, is prohibited. Distribution by Quris, Inc.
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