Charles Schwab & Co., Inc.

Midday Market View(TM) for Tuesday, June 5, 2001
as of 1:00PM EDT
Information provided by Standard & Poor's

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U.S. INDICES
(1:00p.m. EDT)

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Market            Value     Change

DJIA          11,148.70    + 87.20
Nasdaq Comp.   2,225.17    + 69.24
S&P 500        1,280.06    + 12.95
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NYSE Advancing Issues        1,829
NYSE Declining Issues        1,141
NYSE Trading Volume        616 mln
NASDAQ Advancing Issues      2,247
NASDAQ Declining Issues      1,275
NASDAQ Trading Volume      993 mln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.57%        n/a
5-year note       4.85%     + 8/32
10-year note      5.30%    + 10/32
30-year bond      5.65%    + 15/32

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

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U.S. TRADING SUMMARY

Technology stocks continue to gain steam from this morning's
rally, which was triggered after a duo of tech companies, Xilinx
and Comverse Technology, boosted hopes that the bad news on
technology spending may be coming to an end. This helped bolster
investor confidence despite the weak economic data that was
released this morning. Semiconductors, networkers and software
stocks all powered the NASDAQ higher for an almost 3% gain.
General market sectors bucking the upward trend were mostly
defensive in nature and included electricity, natural gas and
tobacco shares. While it took them a little while longer to join
the tech party, both the Dow and S&P 500 crept higher throughout
the morning.

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U.S. TREASURY SUMMARY

Treasuries were enjoying another day in the green at midday as a
bout of weak economic data helped all maturities rally and mostly
ignore the gains in the stock market. Trading remained thin and
lackluster as typical summer doldrums continued to thwart
liquidity. Shorter-dated issues received a boost from the Federal
Reserve's purchase of Treasury bills. Longer-dated issues have
been cheered from weakness in the factory orders report and data
on the non-manufacturing sector.

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CURRENCY SUMMARY

The euro has managed to recover to around the 0.850 dollar level,
with dealers reporting a U.S.-based fund behind the move higher.
While it may be a bit premature, currency intervention tends to
work better when it goes along with the market. As such, today's
bounce from cycle lows could give the European Central Bank the
latitude to intervene and boost the value of the euro. The dollar
is little changed versus the yen when compared with morning
levels. The pair is trading at about 120.3 yen.

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MAJOR COMPANY / INDUSTRY NEWS
(All prices as of 1:05 p.m. EDT)

** Lucent Technologies (LU: 8.62, + 0.62), which recently spurned
a takeover offer from Alcatel (ALA: 26.15, + 0.77), plans to
speed up cost-cutting measures. However, specifics of the
cost-cutting plan were not revealed. Henry Schacht, the firm's
chief executive and chairman, also said that Lucent does not plan
to go after other merger possibilities. In his comments at an
industry trade show, he reaffirmed fiscal guidance for the fiscal
third quarter, saying that the firm should see a modest revenue
improvement compared with the second quarter.

** Nortel Networks (NT: 13.73, - 0.25) will link with software
titan Microsoft (MSFT: 72.30, + 1.52) in order to combine
technologies and bring such broad-ranging services as e-mail and
supply-chain management to phone carriers that can then sell the
Internet-related services. The blending of technologies is
designed to streamline data center operations and has been in
advanced testing and joint research for about 12 months. Such
testing was implemented in order to ensure product
compatibility.

** Blockbuster (BBI: 21.52, - 0.29), the largest video-rental
chain in the world, is offering to settle lawsuits that stemmed
from customers paying inflated fees for overdue video rentals
with the company unfairly profiting as a result. The offer to
settle 23 class-action lawsuits entails Blockbuster offering both
refunds and certificates for free video rentals as well as $1 off
coupons for non-food items. Given the time and money required to
defend the lawsuits, Blockbuster decided to settle the cases.

** General Mills (GIS: 42.83, + 0.03), maker of such breakfast
staples as Wheaties, Total and Cheerios, is increasing its prices
by an average of 2%. The price hike will amount to about $0.06 or
$0.07 a box and is the result of higher energy, ingredient and
packaging costs. General Mills last increased prices in April
1999, when the company hiked prices by 2.5%.

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RESEARCH SPOTLIGHTS

** Goldman Sachs upgraded shares of SAP AG (SAP: 37.46, + 0.96)
from a market outperformer rating to their European recommended
list.

** Lehman Brothers upgraded shares of J.C. Penney (JCP: 22.77, +
2.09) from a buy to a strong buy rating.

** Needham & Co. upgraded shares of Sypris Solutions (SYPR: 7.29,
- 0.93) from a hold to a buy rating.

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