Charles Schwab & Co., Inc.
Email Alert

Midday Market View(TM) 
for Monday, October 29, 2001
as of 1:00PM EST
Information provided by Schwab Center for Investment Research
and Bridge 


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

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Market            Value     Change

DJIA           9,343.12    -202.05
Nasdaq Comp.   1,737.09     -31.87
S&P 500        1,086.88     -17.73
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NYSE Advancing Issues        1,063	
NYSE Declining Issues        1,873
NYSE Trading Volume        511 mln
NASDAQ Advancing Issues      1,258
NASDAQ Declining Issues      2,046
NASDAQ Trading Volume      767 mln

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U.S. TREASURIES
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Value            Yield      Change

6-month bill      1.99%        n/a
5-year note       3.66%     - 6/32
10-year note      4.47%     - 5/32
30-year bond      5.24%     - 2/32

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

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STOCKS EXTEND DECLINES

With no major earnings news to guide stocks, equity markets fell 
as traders booked profits ahead of this week's potentially 
recessionary economic data. Shares of Boeing Co. (BA,35,f2) 
pressured Blue Chips after losing the bid for the government's 
Joint Strike Fighter contract to rival Lockheed Martin 
(LMT,51,f2) on Friday.

As of 11:58 a.m. EST, the Dow Jones Industrial Average was down 
2.2%, while the Nasdaq Composite Index was 1.1% lower. The S&P 
500 Index was down 1.6%. Auto, aerospace-defense, retail and 
wireless stocks were among the worst-performers while 
oil-related, air-freight and select healthcare stocks paced the 
advancers.

Shares of Boeing Co. were under pressure after the aircraft 
manufacturer cut its sales forecasts for next year by $1 
billion, to $55 billion, after failing to secure a government 
contract to build the new Joint Strike Fighter. However, the 
company's CEO said that the news won't have a "material impact" 
on the Dow component's 2001 outlook. The largest defense 
contract ever, valued at roughly $200 billion, was awarded to 
Boeing's top rival Lockheed Martin on Friday.

Satellite-TV service provider EchoStar Communications 
(DISH,25,f1) agreed to purchase General Motors Corp.'s 
(GM,43,f2) Hughes Electronics (GMH,14.66,f2) unit for about 
$31.5 billion in cash, stock and assumed debt after top rival 
News Corp. (NWS,27) withdrew its bid for the company. The 
transaction will give EchoStar nearly a 91% share of the 
satellite-TV market, which could provoke regulatory scrutiny.

Shares of UAL Corp. (UAL,14.50) were higher after Chairman and 
Chief Executive James Goodwin stepped down as part of a weekend 
management shakeup amid mounting pressure from labor unions 
unsatisfied with Goodwin's performance. The board appointed John 
Creighton Jr. as the interim CEO to lead UAL out of its current 
financial duress. Goodwin, who spent slightly more than 2 years 
at the head post, exacerbated the unions' loss of confidence in 
his leadership when he wrote a recent letter to employees saying 
that the company "will perish" next year if it doesn't curb its 
mounting losses.

Leading express shipment company Fedex Corp. (FDX,41,f2) said 
that its fiscal 2Q profits would exceed the Street's forecast as 
losses from its air-freight business were buffered by a pickup 
in its ground operations and cost-control measures. The company 
now expects 2Q earnings of $0.40-$0.45 per share, excluding $101 
million in federal assistance following the terrorist attacks, 
ahead of the Street's $0.35 per share consensus, as the company 
expands its home delivery and business-to-business services.

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TREASURY AND ECONOMIC SUMMARY

Bonds rose across the curve in a flight-to-quality move out of 
equities as cautious sentiment prevailed ahead of this week's 
economic data. Traders remain guarded ahead of the potentially 
recessionary data, including the advance 3Q Gross Domestic 
Product, National Association of Purchasing Management survey 
and employment situation reports.

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WORLD MARKETS

European bourses were weaker this morning with softness in 
telecom, pharmaceutical and computer-related shares. Shares of 
Morgan Crucible Co. (MCRUF,2.75) were under pressure after the 
U.K. manufacturer of wireless components reported 
worse-than-expected profits on slumping demand. In the same 
sector, Ericsson (ERICY,4.33,f1) was slightly lower after 
analyst downgrades. Novartis AG (NVS,38,f2) pulled out of a 
collaboration with Novo Nordisk A/S (NVO,40) to develop a 
diabetes drug, sending Novo shares lower. The Bloomberg European 
500 Index was off 2.02% as of 11:58 a.m. EST. The euro extended 
its gains against the dollar on the heels of weakness in U.S. 
markets.

William Johnson, Market Analyst

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