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 Charles Schwab  [IMAGE] Morning Market View Email Alert [IMAGE] For Friday, August 24, 2001 as of 9:30AM EDT  Information provided by Schwab Center for Investment Research  Login        Also In This Issue:    Treasury and Economic Summary    World Markets    Futures Watch          QUICK QUOTE  Please Enter Stock Symbol:         MARKETS LOOK TO START FRIDAY IN THE GREEN   Equity index futures are off of earlier highs, but still remain firmly to the upside. Positive developments in the technology sector are lifting investors' spirits this morning, despite weaker-than-expected durable goods orders data.  Durable goods data released by the Commerce Department suggest continued weakness in the U.S. economy. The weaker-than-expected numbers were the lowest since 1998 and would have been worse were it not for a pickup in orders for cars.  Technology shares are likely to open higher today after Cisco Systems (CSCO,16.76f1) CEO John Chambers reported that the first few weeks of the quarter are meeting the company's forecasts and that he was "pleased so far with August." Chambers hinted that business conditions are stabilizing, even though the company had previously said that it expected sales to be unchanged to down 5% for the quarter. The company also reported that it would restructure and centralize its operations as it eliminates three of its telecommunications divisions. Additionally, the chief of telecommunications-products is resigning.  Software issues could also get a boost after Microsoft Corp. (MSFT,59f1) said that it has completed its new Windows XP operating system and will present the final version to computer manufacturers on Friday, even as the company grapples with anti-trust concerns in the courts and relentless adversarial pressure to implement changes in the product.  Telecommunications equipment maker ADC Telecom (ADCT,4.27f1) reported a 3Q pro-forma loss of $0.05/share, $0.01 better than the First Call consensus estimate, on a 39% decrease in sales. The company warned that it expects a 4Q pro-forma loss of $0.03 per share, $0.01 lower than analysts' estimates, and failed to provide fiscal 2002 earnings per share guidance due to uncertainty surrounding the economic slowdown and market conditions.  Return to  TOP      TREASURY AND ECONOMIC SUMMARY   Bonds, which appear to be taking cues from the stock market, had a muted reaction to the durable goods orders release this morning, rising just slightly off of morning lows as the volatility-plagued numbers suggest continued economic weakness. According to the Commerce Department, total orders for July declined 0.6% to $182 billion, worse than the Dow Jones Newswires forecast of $183 billion. June's numbers were revised much lower, down 2.6% from the previously reported 1.7% decline. Excluding transportation, orders fell 1.4%. Orders for autos and auto-parts rose 3.8% and communications orders rose 18.3%, while semiconductor orders dropped 26%.  Return to  TOP      WORLD MARKETS   European markets were trading firmly in positive territory after a German Consumer Price Index report indicated that import and factory orders prices fell more than expected in August as oil and food prices dropped. Inflationary pressures in the euro-zone continue to abate, fueling speculation that the European Central Bank will cut interest rates at next Thursday's policy meeting. The Bloomberg European 500 Index was up 1.03% as of 8:54 a.m. EDT with telecommunication services stocks leading the way, buoyed by Cisco's upbeat report. The euro was weaker against the U.S. dollar, as traders booked profits going into the weekend on light volume in front of the UK's banking holiday on Monday.  Asian markets were mixed, with Japan's Nikkei-225 Index closing up 0.35% as bargain-hunters sought attractive technology stocks, which reversed earlier losses following the Cisco news. The dollar climbed against the yen, and crude oil prices increased slightly as refinery outages in the U.S. exacerbated concerns about lower inventory levels overall.  Return to  TOP      FUTURES WATCH   In the September Globex futures contract as of 8:54 a.m. EDT, the S&P 500 Index was up 5 points, or 4 points above fair value, while the Nasdaq 100 Index was up 23 points, or 24 points above fair value. The September DJIA futures contract was higher by 31 points, or 32 points above fair value, and the October crude oil futures traded on the NYMEX were up $0.02 at $26.65/barrel.  William Johnson, Market Analyst  Return to  TOP     Notice: All email sent to or from the Charles Schwab corporate email system may be retained, monitored and/or reviewed by Schwab personnel. 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