Charles Schwab & Co., Inc.

Midday Market View(TM) for Friday, June 1, 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          10,915.10     + 3.20
Nasdaq Comp.   2,135.06    + 24.57
S&P 500        1,256.18     + 0.36
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NYSE Advancing Issues        1,484
NYSE Declining Issues        1,466
NYSE Trading Volume        521 mln
NASDAQ Advancing Issues      1,868
NASDAQ Declining Issues      1,640
NASDAQ Trading Volume      815 mln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.53%        n/a
5-year note       4.91%     - 1/32
10-year note      5.35%     + 5/32
30-year bond      5.70%    + 20/32

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

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U.S. TRADING SUMMARY

The NASDAQ's price action remains something of a conundrum for
traders as volatile action has characterized the performance of
the tech heavy index. After an initial rally on payroll figures
that were not as weak as feared, and a subsequent selloff later
in the session on weaker-than-expected manufacturing data, the
NASDAQ clawed its way back to its highs of the day. Indeed,
bargain hunters continue to support the index by buying on the
dips. The gains on the NASDAQ have also helped bring the Dow and
S&P 500 off early lows. Sectors outperforming during today's
session included the semiconductors, computer software, drugs and
healthcare providers. Insurance providers, telephone and electric
power companies were the worst-performing sectors.

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U.S. TREASURY SUMMARY

Treasuries were broadly higher across the board in midday
trading. Initially, a stronger-than-expected payroll report
weighed on the longer-dated issues, but poor manufacturing data
helped the bond turn the corner and rally sharply higher.
Subsequent weakness in the stock market was also supportive for
Treasuries, though the shorter-dated issues remained constrained
by beliefs the Federal Reserve is nevertheless nearing the end of
its current interest-rate easing cycle.

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CURRENCY SUMMARY

The euro failed to breach the 0.850 level, with the common
currency now likely to trade within a narrow range for the
remainder of the session. Dealers report European selling
interest near the highs. The euro was trading around 0.846
dollars per euro by midday, just off session lows. As for the
yen, the dollar remains around the 119 yen level.

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

** General Motors' (GM: 56.75, - 0.15) proposal to buy Daewoo
motors of Korea has come under fire from Daewoo's workers union.
Five representatives from Korea left for the U.S. to protest the
GM bid along with union representatives from the United States.
For many years, unions have strongly resisted any selling of key
businesses to foreigners due to the fear of mass layoffs at the
companies that are taken over.

** Tyco International (TYC: 56.93, - 0.52), a conglomerate that
makes a diverse array of items from smoke detectors to medical
supplies along with managing a finance business, reported that it
plans to sell $2.2 billion in common stock in a public offering
to repay current debt. Tyco grows its business through
acquisitions of other companies, but servicing the accumulated
debt of these purchases can weigh on profits. Tyco will sell 39
million shares, and the offering is scheduled to close on June 6.
Lehman Brothers will be the lead underwriter.

** Vivendi (V: 63.48, - 0.32) agreed on Friday to buy educational
publisher Houghton Mifflin (HTN: 59.51, + 4.95) for $2.2 billion
in cash and debt. The French entertainment conglomerate will
offer $60 per share for a 10% premium over Houghton's closing
price on Thursday. Houghton Mifflin is the last independent
educational publishing firm. Vivendi has been on a buying binge
of late as it looks to shore up its global leadership positions
at all of its media and content businesses.

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RESEARCH SPOTLIGHTS

** Merrill Lynch upgraded shares of Novellus Systems (NVLS:
49.96, + 2.06) from an intermediate-term neutral to an
intermediate-term accumulate rating.

** Buckingham Research upgraded shares of Value City Department
Stores (VCD: 10.45, + 0.20) to an accumulate rating and gave a
$15 price target.

** Morgan Stanley upgraded shares of Watson Pharmaceuticals (WPI:
62.88, + 2.78) to a strong buy rating and gave a $78 price
target.

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