Charles Schwab & Co., Inc.

Morning Market View(TM) for Friday, July 27, 2001
as of 11:00AM EDT
Information provided by Standard & Poor's

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

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

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

DJIA          10,406.15    - 49.48
Nasdaq Comp.   2,019.90     - 3.06
S&P 500        1,199.98     - 2.95
----------------------------------
NYSE Advancing Issues        1,890
NYSE Declining Issues        1,161
NYSE Trading Volume        211 mln
NASDAQ Advancing Issues      2,108
NASDAQ Declining Issues      1,502
NASDAQ Trading Volume      370 mln

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

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

1-year bill       3.41%        n/a
5-year note       4.59%     + 4/32
10-year note      5.09%     + 7/32
30-year bond      5.52%    + 30/32


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

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

U.S. TRADING SUMMARY

After Thursday's strong session that brought the tech-laden
NASDAQ back above the key 2000 level, a bit of profit-taking
kept the bulls in check early in the session. Various economic
data were released this morning and suggested that the economy
still remains sluggish  and is in the process of bottoming. This
helped bring out a further bit of profit-taking after the
various releases, but the selling was light. Indeed, the NASDAQ
vacillated around the unchanged level, while the Dow slipped
0.5% and the S&P 500 dropped 0.3%.

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

JAPAN / EUROPE SUMMARY

Europe's main markets rallied sharply by midday on Friday as
German auto maker VW and drug maker Schering posted profits that
were in line with expectations. Indeed, after a number of days
in the red, the major indices were poised for a bounce. The
French CAC-40 rose 1.7%, the London FTSE rallied 1.6% and the
German Dax moved higher by 1.4%. In Japan, earnings concerns,
especially among technology companies, took center stage and
dominated the mood in Tokyo, following poor results from major
players Sony and Fujitsu. The benchmark Nikkei dropped 0.5%
while the broad-based Topix fell about 0.7%.

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

CURRENCY SUMMARY

Initially, the dollar fell sharply versus both the European euro
and Japanese yen as slightly weaker-than-expected economic data
for the U.S. economy impacted negatively on the greenback. But
profit-taking and trader position-squaring ahead of the weekend
and elections in Japan on Sunday helped mitigate much of the
early dollar damage. By midmorning the dollar was trading at
0.874 dollars per euro while the greenback traded at roughly
123.9 yen.

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

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

** JDS Uniphase (JDSU: 8.48, - 0.99), the once highflying
technology networking powerhouse, reported a massive $50.6
billion loss for its full-fiscal year and stated that it would
slash another 7,000 employees from its work force. JDS reported
losing $477 million, or $0.36 per share, versus earning $137
million, or $0.14 per share, during the same quarter last year.
First Call expected the company to earn $0.03 per share.
Including all charges, the company lost $7.9 billion, or $5.99
per share, and recorded a full-year loss of $50.6 billion, or
$46.30 per share.

** Qualcomm (QCOM: 63.26, + 3.60) reported earnings after the
bell on Thursday that just beat Wall Street expectations. The
developer of wireless semiconductors and technology stated that
it earned $174.4 million, or $0.22 per share, versus $218
million, or $0.27 per share, in the same quarter of one year
ago. First Call had the average analyst estimate expecting
Qualcomm to earn $0.21 per share. Revenues fell 10% from the
same quarter last year.

** The U.S. Department of Justice filed papers late Thursday
that rejected Microsoft's (MSFT: 65.20, - 1.39) argument for an
appeals court to reconsider its unanimous ruling against the
software giant stating that Microsoft engaged in anticompetitive
practices. The Justice Department issued a seven-page legal
brief that summarily rejected the software giant's reasons for
letting the court revisit the judgment.

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

ECONOMIC NEWS

**Advance Gross Domestic Product for the second quarter came in
at 0.7%, less than the previous 1.2% and in line with the S&P
MMS consensus estimate of 0.7%.

** New home sales in June stood at 922K, greater than the
previous 907K but less than the consensus estimate of 925K.

** Consumer sentiment stands at 92.4, less than the previous
92.6 and below the consensus estimate of 93.7.

NEXT WEEK'S DATA

** MONDAY - No data.

** TUESDAY - June personal income and personal consumption
expenditures, July Chicago Purchasing Managers' index, July
consumer confidence.

** WEDNESDAY - July National Association of Purchasing Managers'
index, June construction spending, July domestic unit auto
sales.

** THURSDAY - Weekly initial jobless claims, June factory
orders.

** FRIDAY - July employment report.

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

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.