Charles Schwab & Co., Inc.

Midday Market View(TM) for Thursday, June 7, 2001
as of 1:00PM EDT
Information provided by Standard & Poor's

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U.S. INDICES
(1:00p.m. EDT)

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Market            Value     Change

DJIA          11,018.80    - 51.40
Nasdaq Comp.   2,230.80    + 13.07
S&P 500        1,266.72     - 3.31
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NYSE Advancing Issues        1,319
NYSE Declining Issues        1,605
NYSE Trading Volume        575 mln
NASDAQ Advancing Issues      1,682
NASDAQ Declining Issues      1,817
NASDAQ Trading Volume      879 mln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.56%        n/a
5-year note       4.84%     - 4/32
10-year note      5.30%    - 11/32
30-year bond      5.71%    - 24/32

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

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U.S. TRADING SUMMARY

U.S. stocks have reversed direction by midday, as the Dow and S&P
500 fell into the red while the NASDAQ pared its early gain.
Early optimism has given way to caution, as investors mull a
variety of earnings preannouncements. Intel's impending
midquarter financial update, scheduled after the close of today's
session, also looms large. This is the first time in its history
that Intel will give a midquarter update and some in the market
are concerned that the semiconductor behemoth may reduce
forecasts for its second quarter. However, shares of Intel are
leading the NASDAQ higher, as many in the market remain
optimistic that the firm will report good news. Not surprisingly,
shares of semiconductor manufacturers are the best-performing
issues in the S&P 500 at midday. Banks and financials are the
worst-performing issues in the index.

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U.S. TREASURY SUMMARY

Profit-taking continues in the Treasury markets as all maturities
suffer declines. Bullish economic data put a bid in Treasuries
earlier this morning after a larger-than-expected rise in initial
jobless claims and firmer-than-anticipated wholesale inventory
data helped boost the longer-dated issues. Treasuries initially
gained on the back of the economic releases, but profit-taking
quickly took over. Further, supply added a little additional
pressure as corporate issuance was becoming active once again. By
midday, all Treasuries were under pressure with longer-dated
issues under-performing shorter-dated maturities.

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CURRENCY SUMMARY

The U.S. dollar has taken a knock after a U.S. trade group
responded to U.S. Treasury Secretary Paul O'Neill's strong U.S.
dollar reiteration by seeking clarification of this policy and
stating that the U.S. should not condone foreign exchange
manipulation by trade partners - a swipe at Japan and the
European Central Bank "condoning a weak euro." The dollar has
fallen to around the 0.850 dollar per euro level and slipped back
to around 119.8 yen.

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MAJOR COMPANY / INDUSTRY NEWS
(All prices as of 1:05 p.m. EDT)

** Cendant Corp. (CD: 17.98, - 0.50) is close to buying Galileo
International (GLC: 30.00, + 0.50) for $3 billion in both cash
and stock, according to The Wall Street Journal. Cendant is the
world's largest travel and hotel franchiser. Galileo is an
electronic travel-reservation service. The companies are in the
final stages of negotiations, with a deal likely to be announced
as early as next week, according to the article. Cendant appears
to be offering about $34 per share for Galileo. Cendant owns
hotel brands Ramada Inn and Howard Johnson along with car rental
service Avis. Cendant confirmed that it is in talks with Galileo,
but declined to reveal the terms.

** Toys R Us (TOY: 27.96, - 0.19) is going after Wal-Mart's (WMT:
51.01, + 0.26) and K-Mart's (KM: 10.72, - 0.02) businesses in
smaller markets of about 75,000 people by opening abbreviated
stores that will sell some products from all three types of Toys
R Us' retail establishments. This new store will carry up to five
times the number of toys that its competitors keep in stock and
feature selections from Toy R Us, Babies R Us and Kids R Us
merchandise.

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RESEARCH SPOTLIGHTS

** Thomas Weisel Partners upgraded shares of Citrix (CTXS: 28.54,
+ 0.58) from a market performer to a buy rating.

** Goldman Sachs upgraded shares of Mitchell Energy and Dev Corp.
(MND: 52.90, + 0.66) from a trading buy to their recommended
list.

** BB&T Capital Markets upgraded shares of Culp Inc. (CFI: 4.09,
- 0.07) from a hold to a strong buy rating.

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