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Charles Schwab & Co., Inc.
Midday Market View(TM) for Friday, May 25, 2001 as of 1:00PM EDT Information provided by Standard & Poor's ================================================================ U.S. INDICES (1:00p.m. EDT) ---------------------------------- Market Value Change DJIA 11,031.00 - 91.40 Nasdaq Comp. 2,258.26 - 23.76 S&P 500 1,281.28 - 11.89 ---------------------------------- NYSE Advancing Issues 1,329 NYSE Declining Issues 1,547 NYSE Trading Volume 551 mln NASDAQ Advancing Issues 1,673 NASDAQ Declining Issues 1,848 NASDAQ Trading Volume 822 mln ================================== U.S. TREASURIES ---------------------------------- Value Yield Change 1-year bill 3.67% n/a 5-year note 5.01% unch 10-year note 5.49% - 5/32 30-year bond 5.85% - 8/32 The tables above look best when viewed in a fixed-width font, such as "Courier." ================================================================ U.S. TRADING SUMMARY Stocks continued to consolidate near intraday lows after a salvo of weak economic data raised more concerns over the health of the U.S. economy and the outlook for corporate profits. However, given the implications of a weaker economy for Federal Reserve rate policy, and upcoming income and confidence data next week, the market may revisit this issue when trading resumes on Tuesday. Sectors outperforming the broader market averages included semiconductor manufacturers, oil and healthcare. Sectors under-performing included communications and telecommunications equipment manufacturers, drug firms, and computer software and systems. Trading volumes remain thin ahead of the three-day weekend. ---------------------------------------------------------------- U.S. TREASURY SUMMARY Treasuries are near unchanged levels at midday with traders selling into any signs of strength ahead of the long weekend. Overnight comments from Federal Reserve Chairman Alan Greenspan sent Treasuries higher at the open. Greenspan's comment that "the period of sub-par growth is not over yet" led many to believe that more Fed interest-rate cuts are likely. Most of this morning's data were also supportive as existing home sales, durable goods orders and the University of Michigan sentiment data were all at least slightly weaker than expected. However, while the Gross Domestic Product data was largely in line with expectations, the inventory component was revised to reflect the steepest contraction in 13 years. Traders used this as an excuse to take profits ahead of the long weekend. After decent volume this morning, the market has slowed and prices are heavy moving into the early close. ---------------------------------------------------------------- CURRENCY SUMMARY The U.S. dollar has continued to recover against the yen, trading to around 120.7 yen from just below the 120 yen level overnight. Concerns that the Japanese currency has come too far, too fast has led to mild yen profit-taking over the past few sessions. Moreover, thin preholiday conditions are likely exacerbating the pair's move today. As for the euro, the dollar is little changed versus morning levels, with the pair trading around the 0.858 dollar per euro level. ---------------------------------------------------------------- MAJOR COMPANY / INDUSTRY NEWS (All prices as of 1:05 p.m. EDT) ** Semiconductor chip manufacturer Advanced Micro Devices (AMD: 31.91, - 0.04) has become a partner of Transmeta (TMTA: 14.65, + 0.55), an upstart semiconductor firm that specializes in low-power processors. Transmeta has licensed AMD's x86-64 microprocessor architecture and complementary technology, which Transmeta will use as a speed performing enhancement. For AMD, this deal represents the first licensee for its x86-64 technology, which first came to market in August 2000. Both AMD and Transmeta have become something of a thorn in the side of chip titan Intel (INTC: 29.41, + 0.20). ** Wal-Mart (WMT: 51.60, - 1.29) is being sued by the federal government for allegedly selling an exercise glider with the Weider and Weslo brand names that it knew was dangerous and had caused numerous injuries, according to the New York Times. This is the first time a retailer has been sued for failing to report dangerous products. Wal-Mart allegedly knew of the injury causing problem, but failed to report it to the Consumer Product Safety Commission as required by law. The lawsuit seeks about $4.5 million in penalties. The government stated that Wal-Mart knew of 46 incidents of product failure. A spokesman for Wal-Mart said the company had no reason to suspect that the equipment posed a danger. ---------------------------------------------------------------- RESEARCH SPOTLIGHTS ** Deutsche Bank Alex Brown upgraded shares of Tivo Inc. (TIVO: 10.68, + 2.18) from an under-perform to a market perform rating. ** Gerard, Klauer & Mattison upgraded shares of Burlington Resources (BR: 47.99, - 0.61) from an outperform to a buy rating. ** Southwest Securities upgraded shares of Take Two Interactive (TTWO: 20.02, + 0.63) from a neutral to a buy rating. Editor's Note: Due to the Memorial Day holiday, Midday Market View will not be delivered on Monday. ################################################################ 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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