Charles Schwab & Co., Inc.

Morning Market View(TM) for Thursday, May 17, 2001
as of 11:00AM EDT
Information provided by Standard & Poor's

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

U.S. INDICES
(11:00a.m. EDT)

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

DJIA          11,245.40    + 29.50
Nasdaq Comp.   2,184.25    + 17.81
S&P 500        1,288.92     + 3.93
----------------------------------
NYSE Advancing Issues        1,660
NYSE Declining Issues        1,049
NYSE Trading Volume        359 mln
NASDAQ Advancing Issues      2,089
NASDAQ Declining Issues      1,146
NASDAQ Trading Volume      614 mln

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

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

1-year bill       3.68%        n/a
5-year note       5.02%    - 12/32
10-year note      5.48%     - 6/32
30-year bond      5.83%    + 10/32

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

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

U.S. TRADING SUMMARY

Equities continued where they left off yesterday as all three of
the majors again surged into the green. Better-than-anticipated
earnings from tech giant Hewlett-Packard and networking
powerhouse Ciena helped give the NASDAQ a good shot in the arm
this morning as the tech index gained almost 1.0%. Both the Dow
and S&P 500 also added to the gains made in Wednesday's
blistering session. The combination of still-modest price
inflation, a Federal Reserve that appears willing to continue to
cut interest rates and a sizable amount of cash on the sidelines
has convinced many in the market that equities are ripe for a
bullish move higher.

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

JAPAN / EUROPE SUMMARY

Europe followed the lead after Wednesday's action in the U.S. as
the major bourses moved higher during their midafternoon trading
session. The French CAC-40 led the indices higher with a 1.0%
gain while the London FTSE stepped-up 0.9%. The German Dax
brought up the rear to rally 0.5%. In Asia, the Nikkei-225 also
looked to the U.S. for direction and dovetailed higher in
somewhat cautious trading ahead of upcoming earnings
announcements from some corporate titans. Technology shares led
to the upside, but trading volume remained relatively low. The
Nikkei-225 ended with a gain of 1.6% while the broad-based Topix
popped 1.5%.

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

CURRENCY SUMMARY

The U.S. dollar has been trading lower against the yen but higher
against the euro. The greenback continues to suffer from
profit-taking pressures after hitting 124 yen per dollar
yesterday, and has dropped around 1 yen from its recent high to
trade at about 123 yen. As for the common currency, the greenback
has strengthened to the 0.881 dollar per euro level from 0.888
dollars per euro overnight.

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

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

** Hewlett-Packard (HWP: 29.85, + 3.11) reported substantially
lower profits from year-ago levels as sales decreased 3%, but the
firm managed to exceed analysts' estimates on an adjusted basis.
The tech giant stated that it earned $319 million, or $0.15 per
share, versus $935 million, or $0.39 per share, in the same
quarter last year. Revenues fell 4.0% to $11.6 billion in the
fiscal second quarter. On a pro forma basis, Hewlett-Packard
earned $0.18 per share compared with a $0.43 per share profit
last year. The Street was looking for earnings between $0.13 and
$0.17 per share in the current quarter.

** Ciena Corp. (CIEN: 60.23, + 1.33) reported fiscal
second-quarter earnings that beat Wall Street estimates by $0.04.
The company reported earning an adjusted net income of $65.4
million, or $0.20 per share, versus $19 million, or $0.06 per
share in the same quarter of last year. Analysts, on average, had
expected the company to earn $0.16 per share during the quarter.
Revenues screamed higher to $425.4 million from $185.7 million
last year. Ciena is a maker of equipment that increases the
capacity of fiber-optic telecommunications networks.

** Oracle Corp. (ORCL: 16.29, - 0.11) announced on Thursday that
it was standing by its targets for its fiscal fourth-quarter
earnings and also stated that business should begin to pick up at
the end of 2001. Oracle's earnings are expected to be flat in the
fourth quarter.

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

ECONOMIC NEWS

** Weekly initial jobless claims came in at a reported 380K,
below the previous week's 388K and the S&P MMS consensus estimate
of 400K.

** Philadelphia Federal Reserve index for May was a negative 8.8,
compared to the previous negative 7.2. The consensus estimate was
negative 10.0.

** Leading economic indicators for April rose 0.1%, reversing
course from the previous decline of 0.2% and matching the
consensus estimate.

** FRIDAY - March U.S. trade report, April Treasury budget.

################################################################

Log in using the links below to:

Access your account:
https://investing.schwab.com/trading/start?SANC=CCBodyi&NeedCASelValue=Y

View your Email Alert customization options:
https://investing.schwab.com/trading/start?SANC=EAMyAlerts

Perform research or request a market quote:
https://investing.schwab.com/trading/start?SANC=Quotes

Place a trade order:
https://investing.schwab.com/trading/start?SANC=TradeStock

To visit Schwab's home page, use this link:
http://www.schwab.com/

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

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

Now you can receive graphics Email Alerts in HTML format,
using helpful, full-color graphics and active Web links that
connect you directly to information you want. Use the link
below to log in and change your email format preference:

https://investing.schwab.com/trading/start?SANC=EAEditEmailAddr

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

Notice: All email sent to or from the Charles Schwab corporate
email system may be retained, monitored and/or reviewed
by Schwab personnel. (1000-8752)

Copyright 2001 Standard & Poor's MMS Inc.  All rights reserved.
Standard & Poor's MMS services are for personal use only.
Commercial use or redistribution in any form, print or
electronic, is prohibited.
Distribution by Quris, Inc.