Charles Schwab & Co., Inc.
Email Alert

Midday Market View(TM) 
for Wednesday, December 26, 2001
as of 12:30PM EST
Information provided by Schwab Center for Investment Research
and Bridge 


U.S. INDICES
(12:30 p.m. EST)

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Market            Value     Change

DJIA          10,154.49   + 119.15
Nasdaq Comp.   1,979.51    + 35.03
S&P 500        1,157.22    + 12.57
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NYSE Advancing Issues        2,003	
NYSE Declining Issues          963
NYSE Trading Volume        384 mln
NASDAQ Advancing Issues      1,995
NASDAQ Declining Issues      1,449
NASDAQ Trading Volume      567 mln

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U.S. TREASURIES
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Value            Yield      Change

6-month bill      1.87%        n/a
5-year note       4.53%    - 10/32
10-year note      5.19%    - 13/32
30-year bond      5.51%    - 12/32

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

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SANTA CLAUS RALLY

U.S. equities are higher midday as some upbeat news in the 
retail and Internet sectors is giving equities a lift in the 
post-holiday session. Wal-Mart (WMT,59,f2&f4) reported it sees 
higher-than-expected December same-store sales while Internet 
portal Yahoo! (YHOO,18.03,f1) said sales at its shopping site 
increased significantly. U.S. Treasuries are trading lower and 
European markets are closed.

As of 11:46 a.m. EST, the Dow Jones Industrial Average is up 
1.2% while the Nasdaq Composite Index is 1.9% higher. The S&P 
500 Index is up 1.2%. Oil-related and semiconductor shares are 
pacing the advancers while steel and toy issues are leading the 
decliners.

Leading retailer Wal-Mart is higher after the company stated 
that it anticipates December same-store sales growth at the high 
end of the 4%-6% range, exceeding its previous forecast. For the 
Nov. 23 to Dec. 24 period, Wal-Mart said same-store sales growth 
was in the mid- to upper- single digit percentage range.

Shares of Internet portal Yahoo! Inc. are higher on news that it 
saw an 86% increase in sales at its shopping site during the 
holiday season with ACNielsen figures indicating Yahoo customers 
spent $10.3 billion in 4Q.

Micron Technology (MU,31,f2) is higher amid continued 
speculation that the company is close to agreeing to an alliance 
with South Korea's Hynix Semiconductor (HXSCY,$9.90). A month 
ago, the two firms reported they were in "exploratory" 
discussions regarding strategic options, however, no official 
announcement has been made at this point.

Shares of EchoStar Communications (DISH,27,f1) are slightly 
higher after The Wall Street Journal reported that it wants to 
expand Hughes Electronics Corp.'s (GMH,15.02,f2) satellite 
Internet service. If regulators approve Echostar's proposed 
acquisition of Hughes, the company's chairman said he plans to 
spend $1 billion on Hughes' Spaceway unit and increase ownership 
in fixed satellite firm PanAmsat (SPOT,22,f1).

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TREASURY AND ECONOMIC SUMMARY

U.S. Treasury prices are lower across the curve midday ahead of 
tomorrow's planned $23 billion 2-year Treasury sale. In today's 
only economic release, the Redbook retail sales index recorded a 
4.5% decline for the three weeks ended Dec. 22nd, slightly ahead 
of Bloomberg's -4.6% estimate, with year-over-year sales 
declining 0.6%. Tomorrow, the Labor department will release 
initial jobless claims and on Friday the markets will be 
watching for consumer confidence figures, the Chicago Purchasing 
Managers' Index, new and existing home sales, and durable goods 
orders.

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WORLD MARKETS

European markets are closed for the Christmas holiday. In 
economic news, the French producer price index fell 0.6% in 
November, twice the estimate, with the year-over-year figure 
falling a larger than expected 2.3%. The euro is flat versus the 
U.S. dollar. Crude oil got a boost following statements from 
Saudi oil minister Ali Al-Naimi that OPEC will officially 
announce a 1.5 million barrel per day supply cut on Friday.

Jeffrey Reeve, Market Analyst

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