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Charles Schwab & Co., Inc.
Midday Market View(TM) for Friday, May 18, 2001 as of 1:00PM EDT Information provided by Standard & Poor's ================================================================ U.S. INDICES (1:00p.m. EDT) ---------------------------------- Market Value Change DJIA 11,201.40 - 47.10 Nasdaq Comp. 2,183.85 - 9.83 S&P 500 1,283.22 - 5.27 ---------------------------------- NYSE Advancing Issues 1,455 NYSE Declining Issues 1,461 NYSE Trading Volume 633 mln NASDAQ Advancing Issues 1,638 NASDAQ Declining Issues 1,896 NASDAQ Trading Volume 995 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 1-year bill 3.71% n/a 5-year note 4.98% - 1/32 10-year note 5.40% + 2/32 30-year bond 5.75% + 6/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ U.S. TRADING SUMMARY The major U.S. equity markets continue to hover around unchanged levels as profit takers and bargain hunters battle for supremacy. Initially, the markets headed south on negative outlooks from two tech giants, Dell and Palm. Yet, buyers were waiting for the sellers as the NASDAQ found support and clawed back into positive territory. But given the strong gains earlier this week in equities, and the upcoming weekend, buyers were less willing to trade aggressively and pay higher prices for shares. Instead, those looking to buy let the sellers bring the market back to them. The lack of a commitment from buyers and sellers has resulted in volatile trade around unchanged levels. ---------------------------------------------------------------- U.S. TREASURY SUMMARY Treasuries are mixed at midday with the longer-dated issues stronger in price as the other maturities remain underwater. Shorter-dated securities are under pressure from lowered expectations of Federal Reserve interest-rate easing as some analysts have concluded that the Fed may not continue to cut interest rates, or at least not cut as aggressively as they have been this year. Competing debt supply is also weighing on 2-, 5- and 10-year maturities as the stampede to issue new debt continues. Meanwhile, the bond is higher in price on oversold conditions and continued downward revisions to inflation expectations after Wednesday's tame Consumer Price Index. ---------------------------------------------------------------- CURRENCY SUMMARY The U.S. dollar has maintained its early gains against the yen and the euro, trading at around 0.877 dollars per euro and 123.6 dollars per yen. The dollar gained ground against both currencies overnight and early this morning on a combination of factors. Renewed concerns over the European Central Bank's implementation of monetary policy, along with discouraging economic data, weighed on the euro. The yen came under pressure after the Bank of Japan indicated that it may buy back additional Japanese government debt. ---------------------------------------------------------------- MAJOR COMPANY / INDUSTRY NEWS (All prices as of 1:05 p.m. EDT) ** French telecommunications giant Alcatel (ALA: 29.40, - 2.64) is reportedly in talks to buy Lucent Technologies (LU: 10.03, + 0.22) for about $40 billion. According to the New York Times, discussions are in a crucial advanced stage, with a decision on the next step coming within a week. Alcatel shares were pummeled in Europe on the news as investors questioned the value of the deal for the French giant as well as the ability of Alcatel to integrate Lucent's business and corporate culture. The deal would involve Lucent getting a 20% premium for its shares in an all-stock transaction. ** Instinet Group (INET: 17.92, + 3.42), the leading institutional third market stock exchange, went public today. The company raised $464 million in the first IPO of an alternative trading network. The IPO of Instinet, which is the largest electronic communication network, is seen as a major test for other ECNs hoping to go public. Reuters will retain a majority stake, 87%, in the company. Instinet's value of $3.5 billion eclipses the expected market value of the NASDAQ stock market, which is $2 billion. NASDAQ is expected to go public sometime in 2002. The Instinet IPO is the first higher profile offering to hit the Street in some time, and investors are closely watching how well it is received. ---------------------------------------------------------------- RESEARCH SPOTLIGHTS ** Lehman Brothers upgraded shares of Johnson & Johnson (JNJ: 100.19, - 0.13) from a market performer to a buy rating. ** Lehman Brothers upgraded Broadcom (BRCM: 42.58, + 1.54) from a market performer to a buy rating. ** Bear Stearns upgraded shares of Ann Taylor Stores (ANN: 37.64, - 0.35) from a neutral to an attractive 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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