Charles Schwab & Co., Inc.
Email Alert

Midday Market View(TM) 
for Monday, November 19, 2001
as of 1:00PM EST
Information provided by Schwab Center for Investment Research
and Bridge 


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

----------------------------------
Market            Value     Change

DJIA           9,908.44    + 41.45
Nasdaq Comp.   1,913.24    + 14.66
S&P 500        1,143.08     + 4.43
----------------------------------
NYSE Advancing Issues        1,637	
NYSE Declining Issues        1,367
NYSE Trading Volume        645 mln
NASDAQ Advancing Issues      1,843
NASDAQ Declining Issues      1,547
NASDAQ Trading Volume      1.0 bln

==================================

U.S. TREASURIES
----------------------------------
Value            Yield      Change

6-month bill      2.00%        n/a
5-year note       4.12%    + 11/32
10-year note      4.78%    + 15/32
30-year bond      5.22%    + 23/32

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

================================================================

STOCKS HIGHER MIDDAY

U.S. equities were higher midday on the heels of 
better-than-expected economic data and predominantly positive 
equity news. October housing starts reflected a softening but 
still robust market for new home building, though building 
permits data was weaker. In equities news, Philips Petroleum 
(P,52,f2) and Conoco Inc. (COC,25,f2) announced a strategic 
merger, and Dow component Alcoa Inc. (AA,38,f2) said it would 
eliminate jobs in a cost-cutting move. Meanwhile, U.S. 
Treasuries were trading higher midday and European markets were 
posting gains late in the session.

As of 11:55 a.m. EST, the Dow Jones Industrial Average was up 
0.58%, while the Nasdaq was up 0.86%. The S&P 500 Index was up 
0.47%. Computer related and retail issues drove the advancers 
while oil and semiconductors paced the decliners.

Phillips Petroleum was trading higher after it agreed to 
purchase rival Conoco Inc. for more than $15 billion, creating 
the third largest U.S. oil company. Conoco shareholders will 
receive 0.4677 shares of the combined company, ConocoPhillips, 
for each of their original shares. Additionally, Phillips' CEO 
said the company will eliminate jobs following the merger in an 
effort to reign in costs and cut duplicate positions. The 
companies hope to close the deal by the second half of 2002.

Shares of Alcoa Inc. were higher after the Dow component 
announced it would cut 6,500 workers, or 4.6% of its work force, 
and close plants in America and Europe in an effort to reduce 
expenses amid declining aluminum demand. The company said it 
would incur 4Q charges of up to $250 million as a result of the 
restructuring and that the decision was designed to "optimize 
Alcoa's manufacturing system after a recent series of 
acquisitions."

Lowe's Companies (LOW,42) got a lift after it posted a 24% rise 
in fiscal 3Q net income to $0.32 per share, $0.01 ahead of the 
First Call $0.31 per share consensus forecast. Sales rose 21% to 
$5.45 billion, with same-store sales rising 4%. The company's 
CEO noted strength in all product categories across every 
geographic region, saying consumer traffic accelerated during 
the quarter. Lowe's expects fiscal 2002 profits of $1.24-$1.25 
per share, ahead of the Street's $1.23 mean estimate.

----------------------------------------------------------------

TREASURY AND ECONOMIC SUMMARY

Treasuries were higher midday, recouping some of last week's 
sharp losses, despite the stronger-than-expected housing starts 
data. Total starts for October fell 1.3% to a 1.552 million unit 
annual rate from September's revised 1.572 million unit pace. 
Analysts were expecting a 4.7% decline to a 1.500 million unit 
annual rate. Weakness was most noticeable in the West. Despite 
the unexpected resiliency in the housing market, buoyed by 
historically low interest rates, the more forward-looking 
building permits fell 3.6% in October, roughly matching 
expectations, on the heels of a revised 2.7% decline the prior 
month. Permits were previously reported as having dropped 3.0% 
in September.

----------------------------------------------------------------

WORLD MARKETS

European markets were higher later in the day, despite a 
Bundesbank report reflecting sequentially flat 3Q German 
economic growth and a potentially weaker 4Q. Optimism that lower 
interest rates and falling crude prices will eventually 
stimulate economic expansion helped boost the Bloomberg 500 
index, which was up 1.24% as of 11:55 a.m. EST. Telecoms and 
financials paced the advancers, while pharmaceuticals and foods 
led the decliners. In equities news, Microsoft Corp. 
(MSFT,66,f1) formally responded to European Union charges that 
it violated anti-trust laws in a written rebuttal addressing the 
Commission's objections. The euro was down against the U.S. 
dollar following weekend comments from hawkish European Central 
Bank officials hinting that they may not reduce euro-zone 
interest rates further. Crude oil was lower amid renewed 
concerns that Russia will offer nothing more in the way of OPEC 
concessions than a meager, symbolic production cut.

Jeffrey Reeve, Market Analyst

================================================================

LOGIN to access your account:

https://investing.schwab.com/trading/start

----------------------------------------------------------------

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

----------------------------------------------------------------

Notice: All email sent to or from the Charles Schwab corporate 
email system may be retained, monitored and/or reviewed 
by Schwab personnel. (0801-11478)

Information provided by Bridge Information Systems.
Copyright 2001 Bridge Information Systems.  

Charles Schwab & Co., Inc. ("Schwab") is a member of the NYSE, 
other major U.S. Securities Exchanges, and SIPC. Schwab is a 
specialist in various securities on the Pacific, Boston and 
Cincinnati Stock Exchanges and is subsidiary of The Charles 
Schwab Corporation, which is listed on the NYSE and trades 
under the symbol "SCH". Schwab Capital Markets L.P. is a member 
of the NASD and SIPC.

Schwab Capital Markets L.P. is also a subsidiary of The Charles 
Schwab Corporation and is a market maker in approximately 
4,900 securities.

Schwab Center for Investment Research ("SCIR") is part of 
Charles Schwab & Co., Inc. The information contained herein is 
obtained from sources believed to be reliable, but its accuracy 
or completeness is not guaranteed. This report is for 
informational purposes only and is not a solicitation, or a 
recommendation that any particular investor should purchase or 
sell any particular security. Schwab does not assess the 
suitability or the potential value of any particular 
investment. All expressions of opinions are subject to change 
without notice. The Charles Schwab Corporation, Schwab, Schwab 
Capital Markets L.P. and its officers, directors, employees, 
consultants and/or members of their families may have a position
in, and may from time to time, purchase or sell any of the 
mentioned or related securities including derivatives in such 
securities. At any given time, Schwab specialists, or Schwab 
Capital Markets L.P. market makers, may have an inventory 
position, either "long" or "short" in any security mentioned in 
this report as a result of their specialist/market making 
functions, respectively. Additionally, Schwab or Schwab 
Capital Markets L.P. may be on the opposite side of orders 
executed on the floor of the Pacific, Boston and/or Cincinnati 
Stock Exchanges or over-the-counter market respectively, as 
well. Schwab (or persons related thereto) or consultants may 
perform or solicit investment banking or other business from 
any company mentioned in this report. 
(C)2001 Charles Schwab & Co., Inc.

1) Schwab Capital Markets L.P. makes a market in this security. 
2) Schwab is a specialist in this security. 
3) Schwab has managed or co-managed a public offering in this 
   security within the last three years. 
4) An employee of Schwab is a Director of this company. 
5) An analyst covering this stock has an investment position. 

This service is for personal use only. Commercial use or 
redistribution in any form, print or electronic, is prohibited.

Distribution by Quris, Inc.