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       Morning Market View(TM) for Thursday, July 19, 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          10,659.50    + 89.70
Nasdaq Comp.   2,065.67    + 49.50
S&P 500        1,221.17    + 13.46
----------------------------------
NYSE Advancing Issues        1,685
NYSE Declining Issues          964
NYSE Trading Volume        373 mln
NASDAQ Advancing Issues      1,984
NASDAQ Declining Issues        988
NASDAQ Trading Volume      545 mln

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U.S. TREASURIES
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Value             Yield     Change

1-year bill       3.43%        n/a
5-year note       4.64%     - 4/32
10-year note      5.11%     - 5/32
30-year bond      5.52%     - 3/32


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

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U.S. TRADING SUMMARY

After yesterday's sell-off, the major averages all moved higher
from the open as a number of encouraging corporate outlooks
lured back the buyers. Technology shares have been the largest
beneficiaries of buyer interest today, as a host of encouraging
earnings announcements from U.S. firms and cell-phone maker
Nokia helped offset concerns over IBM's somewhat pessimistic
outlook. Technology investors had further reason to cheer when
Dell Computer reaffirmed its earnings outlook this morning. Not
surprisingly, the NASDAQ has been the largest beneficiary of the
tech buying, jumping 2.5%. The S&P 500 rose more than 1% on
strength in semiconductors, communication and computer
software/systems. The Dow has gains just shy of 1%, led higher
by shares of United Tech, Microsoft and GE.

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JAPAN / EUROPE SUMMARY

European stocks were mostly higher in midafternoon European
trading as a positive earnings report from cell-phone maker
Nokia and encouraging results from SAP, the largest European
software producer based in Germany, provided support. The German
Dax has powered 1.0% higher, while the French CAC-40 rose 0.7%.
The London FTSE is holding around unchanged levels, restrained
by weakness in shares of British Telecom and Vodafone.
Elsewhere, the Japanese market was weaker overall, with banking
shares falling sharply on increasingly negative sentiment.
Indications from U.S. Federal Reserve Chairman Alan Greenspan
that the U.S. economy could weaken further set a gloomy tone.
The Topix index finished lower by 0.4% and ended the session at
its lowest level since March 15. The Nikkei 225, heavily
weighted in technology shares, managed to finish 0.1% higher.

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CURRENCY SUMMARY

The U.S. dollar has found some relief after yesterday's drubbing
that came on Greenspan's testimony and perceptions that the U.S.
would abandon its strong-dollar policy. The dollar has found
some comfort versus the euro, strengthening to around the 0.870
dollar per euro level after trading as low as 0.878 dollars per
euro overnight. However, the greenback has had a more difficult
time versus the yen, slipping further to around the 123.5 yen
level after trading just above the 124 yen level overnight.
Recall that the dollar was trading around 125.5 yen and 0.850
dollars per euro as recently as Tuesday.

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

** IBM (IBM: 104.68, + 0.40) reported earnings for its second
quarter in line with Wall Street expectations on slightly
slowing sales that were below expectations. Earnings totaled
$2.1 billion, or $1.15 per share, versus $1.9 billion, or $1.06
per share, in the same quarter last year. Revenues, at $21.6
billion, were about $1 billion below what Wall Street had
expected. But while results in the current quarter were roughly
in line with estimates, IBM was somewhat cautious over future
prospects. The firm stated that a number of problems could
impact their bottom line, including the negative effects of a
strong U.S. dollar, weakness in some business lines and
investment losses. IBM is the world's largest computer hardware
supplier, a leading software supplier and has the world's
largest technology services businesses.

** Satellite TV firm Echostar (DISH: 30.54, + 0.57) handily beat
Wall Street estimates, reporting a second-quarter profit when
analysts expected the company to lose money during the quarter.
Instead, the second-largest satellite TV provider earned $2.3
million, or nil on a per share basis, versus Wall Street
expectations that the company would lose $0.10 per share. Sales
rose about 50% to about $966 million. The unexpectedly good news
came as a result of a jump in the number of subscribers, which
grew 6% to 6.1 million customers.

** Lawsuit-plagued Philip Morris (MO: 46.13, + 0.65) reported
fiscal second-quarter earnings that matched Wall Street
estimates. The maker of Marlboro cigarettes and Miller beer
earned $2.3 billion, or $1.03 per share, versus $2.2 billion, or
$0.95 per share, in the same quarter last year. Revenues rose
11% to $23.2 billion over last year's quarter as the firm hiked
cigarette prices.

** A host of large technology firms reported corporate results
last night. Siebel Systems (SEBL: 36.17, - 1.47) beat estimates
when it reported earning $0.15 per share versus $0.10 per share
a year ago. Analysts had expected earnings of $0.13 per share.
Elsewhere, Applied Micro Circuits (AMCC: 18.17, + 1.17) reported
a first-quarter loss, excluding charges, of $13.6 million or
$0.05 per share. The company expects to cut 5% of its work force
and take an $8 million to $11 million charge against earnings
for the cutback. Broadcom (BRCM: 44.28, + 5.28) reported a sharp
drop in second-quarter profits, but joined Applied Micro
Circuits in saying it expects sales to possibly rebound toward
the end of this year.

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ECONOMIC NEWS

** U.S. trade balance for May came in at a $28.3 billion
deficit, less than the previous $32.0 billion deficit and below
the S&P consensus estimate of a $32.0 billion deficit.

** Weekly initial jobless claims came in at 414K, less than the
previous week's 449K and below the consensus estimate of 425K.

** Leading economic indicators for June rose 0.3%, slightly
below the previous month's 0.4% increase and matching the
consensus estimate.

** Philadelphia Federal Reserve manufacturing index for July due
out at 12:00 p.m. EDT.

** FRIDAY - U.S. Treasury budget for June.

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