Charles Schwab & Co., Inc.

Morning Market View(TM) for Friday, June 1, 2001
as of 11:00AM EDT
Information provided by Standard & Poor's

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U.S. INDICES
(11:00a.m. EDT)

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Market            Value     Change

DJIA          10,870.10    - 41.80
Nasdaq Comp.   2,110.51     + 0.02
S&P 500        1,249.63     - 6.19
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NYSE Advancing Issues        1,131
NYSE Declining Issues        1,564
NYSE Trading Volume        280 mln
NASDAQ Advancing Issues      1,431
NASDAQ Declining Issues      1,664
NASDAQ Trading Volume      477 mln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.54%        n/a
5-year note       4.89%     + 1/32
10-year note      5.35%     + 6/32
30-year bond      5.70%    + 21/32

The tables above look best when viewed in a fixed-width font,
such as "Courier."

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U.S. TRADING SUMMARY

Equities pushed traders around this morning, as a barrage of data
prompted quick changes of direction. Buying interest was spurred
early in the session after the widely anticipated employment
report failed to live up to traders' worst fears. Indeed, the
NASDAQ rose well over 1% in early trading, but both the Dow and
S&P 500 lagged the tech index and spent most of the time in the
red. The subsequent release of weaker-than-anticipated data on
the manufacturing sector broke the back of the tech rally as the
NASDAQ gave back all its gains while the other two indices
plunged further in the red. Overall, the economic data failed to
alleviate investors' and traders' worries over the health of the
U.S. economy, making market participants reluctant to commit more
capital to the stock market.

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JAPAN / EUROPE SUMMARY

European indices slid back into negative territory on the back of
softness in U.S. stocks. European shares came under early
pressure due to weakness in telecommunications stocks, which were
hit after it was reported that Dutch firm Royal KPN will issue
$4.7 billion in stock to cut its crippling current debt load. The
headline bourses were pulled out of the cellar after U.S. tech
stocks moved higher on the release of May employment data.
However, the later reversal in U.S. stocks pulled the European
headline indexes off their respective highs. The French CAC-40
fell 0.4% while the German Dax dropped 0.1%. The London FTSE is
just above unchanged levels. In Japan, stocks ended another
disappointing week on a quiet note as the benchmark Nikkei-225
index slipped 0.3% and the broader Topix lost 0.1%.

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CURRENCY SUMMARY

The U.S. dollar dropped in anticipation of poor payroll numbers
but did quite well after traders saw that the figures were better
than expected. The euro topped 0.850 before resuming its slide to
the 0.846 area, while the dollar climbed back over 119 yen from
118.50 yen at New York session lows. However, the release of weak
U.S. manufacturing data added a bit of pressure to the dollar, as
the greenback dipped to 0.848 dollars per euro and fell back
below the 119 yen per dollar level.

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MAJOR COMPANY / INDUSTRY NEWS
(All prices as of 11:05 a.m. EDT)

** Altera (ALTR: 24.45, + 0.45), a semiconductor firm, warned
investors late Thursday that fiscal second-quarter sales will
fall short of current Wall Street expectations. The firm stated
that sales will drop 25% from the $287.4 million it recorded in
its fiscal first quarter. Back in April, the company had
announced that revenue would fall about 20%. Altera supplies
programmable logic devices to more than 13,000 manufacturers who
use the devices to make computer, industrial and communications
equipment. According to the firm's president and CEO,
international demand has slowed at a faster pace than the firm
expected.

** General Mills (GIS: 42.57, + 0.21), the largest cereal
manufacturer in the U.S., announced late Thursday that it had
partially settled a dispute stemming from a 1994 incident.
General Mills took a sizable hit in 1994 to cover losses on oats
after a contractor used a pesticide on oat supplies that wasn't
approved by the Environmental Protection Agency. The contractor
hid the error and was later convicted on criminal charges.
General Mills will receive the payment from a group of insurance
companies. The firm stated that it will receive $55 million,
which will add to after-tax profits by $34 million, or $0.12 per
share.

** Bridgestone/Firestone has released its own independent
analysis of the tire failure and rollover problem with Ford's (F:
24.34, - 0.01) Explorer sport utility vehicle. The embattled tire
maker pegs the design of the Explorer as the fundamental problem
behind the accidents with Ford's popular SUV.
Bridgestone/Firestone asked the National Highway Transportation
Safety Board to begin its own investigation. Ford alleges that
Firestone tires are the cause, and went so far as to announce a
massive recall of Firestone tires on Ford vehicles.

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ECONOMIC NEWS

** Unemployment rate for May was 4.4%, down from the previous
4.5%. The S&P MMS consensus estimate was 4.6%.

** Nonfarm payrolls for May dropped 19K, compared to the previous
182K decline. The consensus estimate called for a fall of 25K.

** National Association of Purchasing Managers' index for May was
42.1%, compared to the previous 43.2%. The consensus estimate was
43.5%.

** Construction spending for April rose 0.3%, compared to the
previous 1.1% increase. The consensus estimate called for a 0.2%
gain.

NEXT WEEK'S DATA

** MONDAY - No data.

** TUESDAY - First-quarter productivity revision, April factory
orders.

** WEDNESDAY - No data.

** THURSDAY - Weekly initial jobless claims, April wholesale
trade, April consumer credit.

** FRIDAY - No data.

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