Charles Schwab & Co., Inc.
Email Alert

Morning Market View(TM) 
for Monday, December 24, 2001
as of 9:30AM EST
Information provided by Schwab Center for Investment Research


STOCKS FLAT IN PRE-HOLIDAY SESSION

Stocks are poised to open flat to slightly higher in the absence 
of any market-moving earnings news or economic data on this 
pre-holiday, abbreviated session. In equity news, Schering 
Plough (SGP,36,f2) won FDA approval in the U.S. for a 
potentially blockbuster drug. Treasuries are flat while European 
markets are generally higher, despite Argentina's debt default 
announcement. The U.S. equities market is scheduled for a 1:00 
p.m. EST close.

Shares of Schering-Plough were higher in premarket activity 
after the pharmaceutical giant received FDA approval late Friday 
for Clarinex, the successor to Schering's flagship allergy drug, 
Claritin, the patent on which expires in December 2002. Schering 
also said that it was close to resolving manufacturing plant 
problems previously cited by the FDA, which could include paying 
up to $500 million in fines. The company's CEO said he expects 
4Q earnings of $0.36 per share, $0.05 per share below the 
previous First Call consensus estimate, primarily due to the 
negative impact of its manufacturing difficulties on sales. He 
also said that full year 2002 earnings growth would be in the 
"low double-digits."

Brewing giant Adolph Coors Co. (RKY,59,f2) has agreed to 
purchase Belgian Interbrew SA's (IBRWF,26) U.K. Carling unit for 
$1.7 billion in cash, providing Coors with one of Britain's 
leading beer brands. The move comes as Interbrew was ordered to 
sell Carling by British regulators as a result of its purchase 
of Bass Brewers and Whitbread Plc's brewing unit last year.

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TREASURY AND ECONOMIC SUMMARY 

Bonds were virtually unchanged across the curve in thin 
pre-holiday trading with no economic data slated for release 
until Wednesday's consumer confidence and existing home sales 
data. The Bond Market Association has recommended a 2:00 p.m. 
EST close for the U.S. government debt market today.

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WORLD MARKETS 

European bourses were mixed but generally higher, with the 
Bloomberg European 500 index up 0.4% as of 8:57 a.m. EST. 
Telecom service and banking stocks were higher, while travel and 
leisure stocks were lower following a thwarted attempt by a 
passenger to ignite an explosive aboard flight 63 from Paris to 
Miami on Saturday. The euro was trending lower against the 
dollar after Argentina's interim President Adolfo Rodriguez Saa 
suspended payment on up to $132 billion of government debt, 
saying instead that he would divert the payments toward creating 
jobs and assisting the poor. Though he maintained that the 
Argentinian peso would remain pegged to the U.S. dollar, he 
suggested printing new notes that provincial governments could 
utilize to meet obligations, a move that could potentially 
undermine the peg.

Asian markets were mixed with Japan's Nikkei 225 index closed 
for a national holiday. The dollar hit a fresh 3-year high 
against the yen, approaching the 130 yen per dollar level, 
despite comments from Japan's trade minister hinting that it 
wouldn't be prudent to let the yen weaken any further. In other 
news, Japan's government approved a budget bill for its next 
fiscal year that will cut policy-related spending by 2.3%, a 
move that was advocated by the country's finance minister to 
expedite structural reforms.

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FUTURES WATCH 

In the March Globex futures contract as of 8:57 a.m. EST, the 
S&P 500 index was down 2 points while the Nasdaq 100 index was 3 
points lower (6 points above fair value). The March DJIA futures 
contract was down 10 points (2 points above fair value), while 
Nymex crude oil futures trading is closed in observance of the 
holiday.

William Johnson, Market Analyst

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