Charles Schwab & Co., Inc.

Midday Market View(TM) for Monday, July 30, 2001
as of 1:00PM EDT
Information provided by Standard & Poor's

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U.S. INDICES
(1:00 p.m. EDT)

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Market            Value     Change

DJIA          10,402.20    - 14.40
Nasdaq Comp.   2,028.20     - 0.87
S&P 500        1,205.41     - 0.41
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NYSE Advancing Issues        1,484
NYSE Declining Issues        1,455
NYSE Trading Volume        469 mln
NASDAQ Advancing Issues      1,524
NASDAQ Declining Issues      1,936
NASDAQ Trading Volume      718 mln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.44%        n/a
5-year note       4.59%       unch
10-year note      5.10%     - 1/32
30-year bond      5.54%     + 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

Dull trading seen this morning continued into midday as the
major indices took a rest after last week's barrage of
second-quarter earnings reports. Indeed, the averages have taken
a breather ahead of important economic data due tomorrow.
Additionally, more key data is due throughout the week. On the
industry front, semiconductor manufacturers, drug makers and
computer software firms were outperforming. However, the
electrical equipment, telecom and manufacturing sectors were
under pressure. By midday, all the major indices continued to
hover around unchanged levels as trading volume remained thinner
than usual.

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U.S. TREASURY SUMMARY

Treasuries fluctuated to either side of unchanged in a compact
range trade this morning. Mild softness in stocks was keeping a
bid in the yield curve, but volume has been light as few traders
are looking to take large positions ahead of key economic data
due later in the week. Indeed, personal income and consumer
confidence data are on tap for tomorrow, while a key report on
manufacturing health is due on Wednesday. Yet, traders will
mainly be looking ahead to Friday's critical employment report.
By midday, all maturities had moved slightly into the red

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CURRENCY SUMMARY

The dollar is little changed from morning levels against both
the yen and the euro as there has been no market moving
information. Most of the excitement came overnight, as the
greenback shot higher versus the yen, charging to 125 yen per
dollar from around 123.5 yen. At midday, the dollar was trading
just above the 125 yen level and around 0.875 dollars per euro.

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

** Microsoft (MSFT: 66.63, + 1.16) appears to be in a major
battle with AOL Time Warner (AOL: 45.56, + 0.42) to prevent it
from acquiring AT&T Corp.'s (T: 20.34, - 0.14) cable business,
according to the Financial Times of London. The paper reported
that the software titan views AOL Time Warner as its first rival
in the consumer Internet arena, especially so after Comcast's
(CMCSK: 37.55, + 0.58) bid for AT&T Broadband appeared to fail.
An acquisition of AT&T Broadband would give AOL control of
roughly 40% of the U.S. market and about 29 million subscribers.
Microsoft has about $50 billion in cash and cash equivalent
investments that it could use to thwart AOL, including
encouraging other bidders to out negotiate AOL Time Warner.


** GE Capital, the financial services arm of General Electric
(GE: 43.74, - 0.91), has agreed to buy Heller Financial (HF:
52.88, + 16.98) for about $5.3 billion in cash. This represents
about a 50% premium for Heller based on the Friday closing price
of its stock. GE looks to realize a gain in its core businesses
from Heller's equipment leasing and real estate finance
operations. The deal is expected to pass regulatory hurdles and
would be a victory for GE in light of the firm's busted merger
with Honeywell (HON: 37.10, - 0.27) just a month ago.


** Williams Cos. (WCG: 2.16, + 0.16) reported fiscal
second-quarter profits that were much higher than what Wall
Street expected as oil refining margins improved and natural gas
prices surged. The company posted a profit of $339.5 million, or
$0.69 per share, versus $351.8 million, or $0.78 per share a
year earlier. Analysts expected Williams to earn about $0.54 per
share on average. Second-quarter revenues rose to $2.8 billion
from $2.3 billion.

** Adobe Systems (ADBE: 41.27, - 1.79) warned Wall Street on
Monday that revenues have decreased due to the economic slowdown
contributing to slower-than-expected sales. The company expects
to meet its profit-per-share estimates, excluding items. The
Street expects Adobe to earn $0.28 per share for its upcoming
quarter. Adobe is expected to report its results on Sept. 13.

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RESEARCH SPOTLIGHTS

** Lazard Freres upgraded shares of P&O Princess Cruises (POC:
21.25, + 0.75) from an outperform to a buy rating.

** Commerzbank upgraded shares of NRG Energy Inc. (NRG: 20.10, -
0.50) from an accumulate to a buy rating.

** Research Capital upgraded shares of Pivotal Corp. (PVTL:
9.69, - 0.56) to a buy rating.

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