Charles Schwab & Co., Inc.

       Morning Market View(TM) for Tuesday, August 7, 2001
                       as of 11:00AM EDT
           Information provided by Standard & Poor's

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

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Market            Value     Change

DJIA          10,449.50    + 48.20
Nasdaq Comp.   2,038.14     + 3.88
S&P 500        1,205.01     + 4.53
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NYSE Advancing Issues        1,460	
NYSE Declining Issues        1,233
NYSE Trading Volume        240 mln
NASDAQ Advancing Issues      1,433
NASDAQ Declining Issues      1,571
NASDAQ Trading Volume      374 mln

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U.S. TREASURIES
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Value             Yield     Change

1-year bill       n/a        n/a
5-year note       4.65%     - 1/32
10-year note      5.16%     - 1/32
30-year bond      5.58%     + 6/32


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

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U.S. TRADING SUMMARY

Stocks started the session mixed as early spillover weakness 
from yesterday's losses were offset by better-than-expected 
economic data on U.S. productivity. Also weighing on the markets 
were jitters over Cisco Systems' earnings, which are due after 
today's close. Not surprisingly, the major indices traded within 
tight ranges early in the day and have not strayed too far from 
unchanged levels. After Monday's slow trade, which was the 
lightest volume day of the year, Tuesday has shown much of the 
same characteristics as many traders take vacations during the 
month of August. By midmorning, the headline indices had bounced 
off earlier lows but had not moved too far into the green.

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JAPAN / EUROPE SUMMARY

European bourses were mostly lower in midafternoon trading as 
traders sold technology issues and aerospace stocks on news that 
Boeing had some future orders postponed. Leading the decliners 
was the French CAC-40 with a 0.4% loss. The London FTSE dropped 
0.1% while the German Dax fell 0.3%. In Japan, a surge in buying 
of technology shares during the lunch hour boosted the market in 
the afternoon session, as chip and related shares regained lost 
ground from weakness early in the session. The Nikkei 225 closed 
up 0.6% and the broader Topix gained 0.5%.

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CURRENCY SUMMARY

U.S. productivity data had little effect on the U.S. dollar, as 
the greenback remains little changed from morning levels versus 
the euro and the yen. The greenback got a boost against the euro 
overnight, as disappointing European economic data weighed on 
the common currency and pushed the dollar to around 0.876 
dollars per euro from around 0.881. The pair managed to hold 
around 0.877 dollars at midmorning. Meanwhile, the dollar was 
trading about 123.8 yen.

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

** EBay (EBAY: 64.37, + 0.97) is buying a leading home auction 
site called HomesDirect.com in order to expand its real estate 
offerings. HomesDirect specializes in the sale of foreclosed 
properties and is mostly owned by venture-capital firm Idealab, 
based in Southern California. HomesDirect stated that it sold 
about 130,000 homes through its Web site in 2000. Financial 
terms of the deal were not disclosed.

** Textron (TXT: 56.44, + 1.44) announced on Monday that it 
agreed to sell its auto parts division to major rival Collins & 
Aikman (CKC: 8.06, - 0.14) in a cash and stock deal valued at 
about $1.3 billion. Textron, which owns Cessna Aircraft and Bell 
Helicopter, began talks with various companies for its auto 
parts division earlier this year. Textron is shifting its 
business out of the volatile automobile sector.

** Emerson (EMR: 55.90, - 0.34), a major electronics 
manufacturer, reported fiscal third-quarter earnings on Tuesday 
that fell due to slow sales in its electronics and 
telecommunications sectors. Restructuring costs also impacted. 
It also warned that it would experience lower sales in its 
fourth quarter as well. Emerson said that its earnings fell to 
$330 million, or $0.77 per share, versus almost $374 million, or 
$0.87 per share, one year ago. This is in line with current 
analyst estimates.

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ECONOMIC NEWS

** Second-quarter productivity report showed a 2.5% jump, much 
higher than the previous increase of 0.1% and above the S&P MMS 
consensus estimate of a 1.6% rise.

** WEDNESDAY - June wholesale trade.

** THURSDAY - July trade price indexes, weekly initial jobless 
claims.

** FRIDAY - July Producer Price Index.

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