Charles Schwab & Co., Inc.

Morning Market View(TM) for Tuesday, June 5, 2001
as of 11:00AM EDT
Information provided by Standard & Poor's

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

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Market            Value     Change

DJIA          11,074.20    + 12.70
Nasdaq Comp.   2,212.30    + 56.37
S&P 500        1,274.76     + 7.65
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NYSE Advancing Issues        1,497
NYSE Declining Issues        1,200
NYSE Trading Volume        293 mln
NASDAQ Advancing Issues      1,948
NASDAQ Declining Issues      1,183
NASDAQ Trading Volume      496 mln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.56%        n/a
5-year note       4.86%     + 6/32
10-year note      5.30%     + 9/32
30-year bond      5.67%    + 10/32

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

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U.S. TRADING SUMMARY

A rally in technology shares has pulled the headline indexes up
by their bootstraps. A lack of further bad news from chip maker
Xilinx, combined with good news from telecom software company
Comverse Technology, has lit a fire under the NASDAQ, as the
index surged almost 3%. Gains in the NASDAQ have supported the
Dow and S&P 500, which are enjoying modest gains. U.S. economic
data released this morning was mostly overlooked, as investors
once again put money in the technology sector. However, with a
variety of high-profile technology firms expected to give
earnings guidance this week, trading in the NASDAQ, and stocks in
general, could remain volatile.

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JAPAN / EUROPE SUMMARY

European markets were higher in Tuesday trading as gains in U.S.
tech stocks helped the major indexes recover from early weakness.
The French CAC-40 was in the lead with a 1.3% gain. Meanwhile,
both the German Dax and the London FTSE rose 0.4%. Elsewhere,
Japanese stocks sank as high-technology shares took a beating and
pressured the Nikkei-225 index below the 13,000 level intraday.
But by the close, a late rally in banking shares helped take the
Nikkei-225 off its lows as the index finished the session with a
1.0% decline. The broader Topix slipped 0.5%.

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CURRENCY SUMMARY

The euro has mostly been hovering above overnight lows set in
Asia of around 0.843 dollars, seemingly braced for currency
intervention after matching November lows. Eurogroup officials
repeated that there is a lack of inflation pressure due to the
currency's weakness, but they did not rule out currency
intervention. European sentiment data, released overnight, was
somewhat weak and any erosion in German and European Monetary
Union area employment data scheduled for release this week could
generate speculation that another interest-rate cut is imminent.
A report showing a drop in Japanese household spending pulled the
yen lower against the dollar. The reminder that the Japanese
economy is still suffering pulled the Japanese currency to 120.2
yen per dollar from levels as low as 118.8 yen per dollar
overnight.

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

** Xilinx (XLNX: 45.26, + 3.67) reported that order cancellations
"slowed considerably." However, first-quarter sales are still
expected to contract 15% to 25% from the previous quarter. Xilinx
sales have been hit hard this year as customers have canceled or
delayed orders due to the weakening economy.

** Ford Motor Co. (F: 24.15, - 0.44) is widening the recall of
vehicles with Firestone tires to include various models sold in
Europe, according to the Financial Times of London. The Times
stated that Ford is about to recall roughly 23,000 vehicles
across the pond for tire replacement on Ford Explorer sport
utility vehicles. This is the first time that Ford has
acknowledged the potential problem in this region of the world.

** FleetBoston (FBF: 41.72, -0.07) is buying Liberty Financial's
(L: 32.69, - 1.11) asset management division in a deal valued at
roughly $1 billion. FleetBoston stated that the merger would add
$51 billion in assets under management and bring their total
assets to $173 billion. The deal will make FleetBoston the
29th-largest investment manager, versus its previous 42nd-place
ranking. Some of the names that will become part of Fleet include
Crabbe Huson Group, Stein Roe & Farnham, Newport Pacific
Management, and Liberty Asset Management.

** Boeing (BA: 66.95, + 0.92) landed a major contract for the
U.S. Air Force's C-130 Transport Avionics Modernization Program.
The deal is potentially worth about $4 billion, but still has to
be approved by the Defense Department's Defense Acquisition
Board. Boeing will develop and modernize a common cockpit
avionics system for the roughly 500 C-130 transport aircraft in
service for the Air Force. Key suppliers include Northrop Grumman
(NOC: 90.50, + 0.22), Honeywell (HON: 48.58, - 0.16) and others.

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ECONOMIC NEWS

** First-quarter productivity was revised downward to show a
decline of 1.2%, compared to the initially estimated decline of
0.1%. The S&P MMS consensus estimate called for a 0.7% decline.

** April factory orders decreased by 3.0%, down from the previous
increase of 0.7. The consensus estimate called for a decrease of
2.8%.

** WEDNESDAY - No data.

** THURSDAY - Weekly initial jobless claims, April wholesale
trade, April consumer credit.

** FRIDAY - No data.

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