Charles Schwab & Co., Inc.

Midday Market View(TM) for Wednesday, May 23, 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          11,168.90    - 88.30
Nasdaq Comp.   2,280.24    - 33.61
S&P 500        1,295.80    - 13.58
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NYSE Advancing Issues        1,095
NYSE Declining Issues        1,869
NYSE Trading Volume        628 mln
NASDAQ Advancing Issues      1,368
NASDAQ Declining Issues      2,261
NASDAQ Trading Volume     1.05 bln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.68%        n/a
5-year note       4.95%     + 2/32
10-year note      5.41%     - 4/32
30-year bond      5.81%    - 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

A six-day winning streak is on the canvas after morning trading
has left the major U.S. equity indices well in the red.
Profit-taking and concerns over Republican Senator James
Jeffords' probable defection from his party have hit equities
hard. The result of such a defection would be a huge power
shakeup within the Senate. Indeed, it would be a large blow to
President Bush's and the Republican Party's ability to write and
pass legislation. Technology shares, which have been the biggest
winners over the past few weeks, were predictably the hardest
hit. Semiconductors, along with the biotechnology and the auto
sector, have suffered the brunt of investor worry. Defensive
sectors were mainly outperforming during Wednesday's session with
tobacco, household products and food stocks in the green.

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U.S. TREASURY SUMMARY

Treasury prices were mixed at midday, as longer-dated issues
reversed early gains while shorter-dated issues outperformed.
News that Republican turncoat Jeffords may delay his exit speech
until Thursday when he returns to Vermont "to be among his
people" may have played a role. News that he could disrupt the
tax-cut bill saw Treasuries rally this morning, but wires suggest
he may be making his cross-over date effective after the Senate
vote anyway. Shorter-dated issues have benefited from the
broad-based stock slump to outperform longer-term counterparts.

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CURRENCY SUMMARY

The U.S. dollar has slumped further against the yen, trading to
almost the 120 yen level. Meanwhile, the euro has managed to
stabilize around the 0.860 dollar level. The main catalyst for
the euro's losses was the failure of the European Central Bank to
cut interest rates at today's meeting.

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

** Ford (F: 25.04, - 0.94) is looking to a total of three other
tire manufacturers to supply its latest recall of 13 million
tires. But while Goodyear Tire & Rubber (GT: 29.63, - 0.77),
Michelin, and Continental Tire and Rubber will supply replacement
tires, Ford's long-term tire supplier has yet to be named. Ford
stated that the latest 13 million tire recall was precautionary
and pre-emptive in nature due to the car maker's latest findings
that those tires had higher failure rates than competitors'. Ford
plans to replace all 15-, 16- and 17-inch Wilderness AT tires on
its Explorer and Expedition SUVs along with the Ranger series and
some F-150 pickup trucks.

** Aerospace giant Boeing (BA: 66.71, - 1.29) is in talks with
Britain's BAE Systems about a joint venture to supply tanker
aircraft to the U.S. military, according to the Financial Times.
BAE is the world's fourth-largest defense equipment maker and
such a merger would push the companies closer together. The
market for military tanker aircraft is valued at about $50
billion, and this deal could be worth as much as $19 billion.

** Wachovia Corp. (WB: 65.09, - 0.61) asked hostile suitor
SunTrust Banks (STI: 61.28, - 0.56) to kill its unsolicited
takeover bid as Wachovia's board decided to continue its planned
$13 billion merger with First Union (FTU: 31.50, - 0.20). For its
part, SunTrust stated that it will continue its hostile takeover
bid and that it shall sue both Wachovia and First Union over an
important provision of their planned merger.

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RESEARCH SPOTLIGHTS

** Goldman Sachs added Dell Computer (DELL: 27.36, + 1.42) to
their recommended list and gave a price target of $32.

** First Union upgraded shares of Clear Channel Communications
(CCU: 62.59, - 1.39) from a buy to a strong buy rating.

** A.G. Edwards upgraded shares of Professional Detailing (PDII:
86.45, + 0.37) from a maintain to an accumulate rating.

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