Charles Schwab & Co., Inc.

Morning Market View(TM) for Tuesday, May 22, 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          11,279.20    - 58.70
Nasdaq Comp.   2,310.84     + 5.25
S&P 500        1,309.18     - 3.65
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NYSE Advancing Issues        1,183
NYSE Declining Issues        1,508
NYSE Trading Volume        344 mln
NASDAQ Advancing Issues      1,660
NASDAQ Declining Issues      1,601
NASDAQ Trading Volume      745 mln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.71%        n/a
5-year note       4.96%     + 2/32
10-year note      5.37%     + 3/32
30-year bond      5.75%     - 3/32

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

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U.S. TRADING SUMMARY

The major U.S. equity indices started in positive territory this
morning, but the Dow quickly turned tail and headed lower after
the open. Weakness in the Dow is fairly broad based, with about
two-thirds of the stocks that make up the index lower. The Dow's
troubles are weighing on the NASDAQ, which is finding difficulty
extending Monday's huge increase. Indeed, after a five-day bull
run in the NASDAQ, traders have been reluctant to push the tech
index substantially higher. The S&P 500 has straddled the
unchanged level, as losses in drugs, electrical equipment and
healthcare offset strength in financials, communications
equipment and computer software shares.

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JAPAN / EUROPE SUMMARY

European shares were higher by midmorning as technology and
telecommunications issues caught fire across the pond. The
NASDAQ's almost 5% jump Monday was the main impetus for the
gains. However, the mixed performance in the U.S. headline
indexes has caused a bit of choppiness in the European indexes,
as well as knocking them off respective intraday highs. The
French CAC-40 has moved 0.9% into the green, while the German Dax
has risen 0.6%. The London FTSE gained 0.7%. Across the Pacific,
both the Nikkei-225 and Topix fell, with bank and insurance
companies the biggest losers of the session. Technology shares
held up relatively well, but shares of Bridgestone/Firestone were
clobbered almost 10% after it pulled the plug on its relationship
with Ford. The benchmark Nikkei-225 fell 0.6% while the broader
Topix slipped 0.3%.

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CURRENCY SUMMARY

The U.S. dollar is mixed against the yen and the euro. More
disappointing European economic data is weighing on the euro,
boosting the dollar to 0.867 dollars per euro. The pair had been
trading at 0.876 dollars per euro overnight. Better-than-expected
Japanese economic data has knocked the dollar lower against the
yen, with the pair trading at 122.5 yen from about 123.2 yen
early this morning.

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

** Bridgestone/Firestone Inc. has terminated its supplier
relationship with Ford (F: 25.89, - 0.76), citing the failure of
the auto maker to acknowledge its responsibility for the problems
associated with about 100 deaths linked to Firestone tire
failures. Bridgestone/Firestone stated that there were design and
manufacturing flaws on its end but that the design of the Ford
Explorer contributed to the deaths. Just hours after the
Bridgestone news, the Associated Press reported that Ford intends
to recall another 10 million to 13 million Firestone tires. This
recall is far greater than the 6.5 million tires recalled last
summer.

** Teligent (TGNT: 0.56, unch), the beleaguered data services and
broadband company, announced that it is filing for Chapter 11
bankruptcy protection. The move will allow Teligent to continue
its operations while the reorganization occurs. The company faced
a May 21 deadline to come up with $350 million in financing or
risk default on its current debt load. Earlier in the month,
Teligent announced that it was cutting its work force by 40%. The
company provides small- and medium-sized customers with wireless
phone and Internet services through microwave satellite dishes
and fiber-optic cable.

** Charter Semiconductor (CHRT: 32.01, - 0.74) warned that its
fiscal second-quarter profits will hit well below analysts'
current estimates. Executives at the firm stated that they now
expect a widening loss of between $0.76 and $0.78 per share
versus the $0.50 to $0.52 per share loss that they had previously
anticipated. Revenues are expected to be about 48% below
first-quarter levels. The company blamed low near-term
visibility, weakening economic conditions and the long process of
inventory correction.

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ECONOMIC NEWS

** No data today.

** WEDNESDAY - No data.

** THURSDAY - Weekly initial jobless claims, April new home
sales.

** FRIDAY - April durable goods orders, revised first-quarter
U.S. Gross Domestic Product, April existing home sales,
University of Michigan final index of consumer sentiment for
May.

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