Charles Schwab & Co., Inc.

Morning Market View(TM) for Thursday, June 7, 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          11,093.40    + 23.20
Nasdaq Comp.   2,248.29    + 30.56
S&P 500        1,274.95     + 4.92
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NYSE Advancing Issues        1,259
NYSE Declining Issues        1,365
NYSE Trading Volume        273 mln
NASDAQ Advancing Issues      1,563
NASDAQ Declining Issues      1,479
NASDAQ Trading Volume      447 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       4.82%     - 1/32
10-year note      5.28%     - 7/32
30-year bond      5.68%    - 14/32

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

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U.S. TRADING SUMMARY

Stocks began the session in negative territory after last night's
sales warning from Broadcom stoked earnings fears. Not
surprisingly, stocks came under a mild bout of selling pressure.
However, the NASDAQ was able to overcome it and has moved back
into the green by 1.4%. Trading remains cautious but optimistic
as Intel is slated to give a financial report on its business
conditions later today. The Dow is being held back by losses in
Philip Morris, shares of which have been hammered after a jury
awarded damages in the latest anti-tobacco lawsuit.

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JAPAN / EUROPE SUMMARY

European markets are mixed, but have improved along with U.S.
stocks. There has been much for European stock traders to think
about today, as British citizens went to the polls while the
European Central Bank met to decide the path of interest rates.
The ECB decided to leave rates unchanged at 4.5% even though
economic data showed growth is slowing within the region. While
it was widely expected, the lack of action did leave a somewhat
sour taste in traders' mouths. The French CAC-40 has rolled over
for a 0.7% loss on the session while the German Dax slipped 0.1%
from yesterday's close. The London FTSE has managed to pull out
of negative territory to post a 0.4% gain. Elsewhere, Japanese
shares got off to a bad start but were able to reverse course and
end higher on the session. The Nikkei-225 stopped a two-day
losing streak and closed higher by 0.8%. The broader Topix gained
0.3%. Yet, bank shares were again hit with a wave of selling
pressure as tension mounted over problem loan portfolios.

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CURRENCY SUMMARY

The European Central Bank kept interest rates steady following
its meeting today. This was what the market expected and had
little effect on the European currency. Indeed, the common
currency remains little changed versus overnight levels at around
0.849 dollars. The dollar is holding around the 120 yen level
after a somewhat mixed dose of data and a move higher in Japanese
stocks provided some support for the dollar.

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

** Broadcom (BRCM: 38.50, + 2.93), the broadband communications
chip maker, warned investors that it will face a downturn in
fiscal second-quarter sales as continued weakness in the tech
sector reduces its bottom line. Additionally, the company stated
that it will cut its work force. Broadcom now expects sales to
drop between 32% and 35% from first-quarter figures. The company
had previously stated that revenues would drop 20% to 23%.
However, on a positive note, Broadcom does see signs that
business may be stabilizing within its sector.

** Wells Fargo & Co. (WFC: 46.58, - 1.26), the nation's
fourth-largest bank, announced that it will take a $1.13 billion
charge to fiscal second-quarter earnings. The losses were
concentrated in Wells Fargo's venture capital portfolio and came
about due to losing positions in technology investments. Indeed,
the San Francisco-based bank stated that $1.05 billion of the
losses came from public and privately held companies in the
technology and telecommunications sectors.

** Philip Morris (MO: 47.06, - 2.94) was hit with an order to pay
a 56-year-old man with lung cancer $3 billion after a Los Angeles
jury found the company liable for not warning the man of the
health risks of smoking. The verdict was reached late Wednesday
after nine days of deliberations. Philip Morris will appeal the
verdict and many expect the $3 billion punitive damage award to
be reduced.

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ECONOMIC NEWS

** Weekly initial jobless claims rose to 432K, up from the
previous week's 419K and greater than the S&P MMS consensus
estimate of 415K.

** Wholesale inventories in April climbed 0.3%, a greater
increase than the previous boost of 0.1%. A consensus estimate
was not collected by S&P MMS.

** Wholesale sales in April rose 0.3%, compared to the previous
decline of 1.5%. A consensus estimate was not collected by S&P
MMS.

** FRIDAY - No data.

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