Charles Schwab & Co., Inc.

Midday Market View(TM) for Friday, May 25, 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          11,031.00    - 91.40
Nasdaq Comp.   2,258.26    - 23.76
S&P 500        1,281.28    - 11.89
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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

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U.S. TREASURIES
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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."

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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.

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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.

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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.

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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.

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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.

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