Charles Schwab & Co., Inc.

Morning Market View(TM) for Wednesday, May 30, 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          10,962.30    - 76.80
Nasdaq Comp.   2,113.32    - 62.22
S&P 500        1,256.34    - 11.59
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NYSE Advancing Issues        1,081
NYSE Declining Issues        1,559
NYSE Trading Volume        333 mln
NASDAQ Advancing Issues        895
NASDAQ Declining Issues      2,271
NASDAQ Trading Volume      615 mln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.66%        n/a
5-year note       5.04%       unch
10-year note      5.50%     + 3/32
30-year bond      5.84%     + 8/32

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

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U.S. TRADING SUMMARY

A combination of disappointing earnings news, an analyst
downgrade and fallout from the failure of the Alcatel/Lucent deal
has put technology stocks through the grinder this morning. News
of reduced earnings expectations from Sun Microsystems and
RadioShack have weighed on the technology sector, as these two
firms joined the growing ranks of companies that announced that
they will fall short of investors' earnings expectations in the
second quarter of this year. With recent earnings
preannouncements running counter to hopes for at least a
bottoming of earnings troubles during the second quarter, market
participants have began to revaluate the solid stock market gains
in March and April. A downgrade of the fiber-optic equipment
sector by a Morgan Stanley analyst further added to the tech
sector's woes. Weakness in the NASDAQ spilled over into the S&P
500 and the Dow. The Dow fell through the psychologically
important 11,000 level.

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JAPAN / EUROPE SUMMARY

Concerns over earnings prospects have not been confined to the
U.S. market, as European shares are also in the red as
uncertainty over European firms' profit prospects have weighed on
the major bourses. The French CAC-40 has led the way lower,
falling about 1%. The German Dax and the French FTSE have both
lost 0.8%. The disappointing news from Sun Microsystems hit
Japanese technology shares hard during Japanese trading hours,
which helped pull stocks lower. The Nikkei-225 fell 2.0% while
the Topix index shed 1.9%.

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CURRENCY SUMMARY

The dollar has been confined to a fairly narrow trading range
versus the euro and the yen. Another round of disappointing data
has weighed on the euro overnight, but the failure of the
Alcatel/Lucent deal and the shaky performance in U.S. stocks
provided some support for the euro. Some concern is circulating
that the European Central Bank may intervene to boost the dollar.
The dollar is trading at 0.857 dollars per euro. The dollar is
little changed versus the yen, trading around 120 yen.

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

** Sun Microsystems (SUNW: 16.43, - 2.24) was the latest major
earnings disappointment for investors, as the technology
headliner warned that earnings and sales in its fiscal fourth
quarter could be well below analysts' expectations. The firm now
expects to earn $0.02 to $0.04 per share in the three months
ending June 30, which would fall short of the $0.06 per share
estimate surveyed by First Call. Revenue is anticipated to come
in between $3.8 billion to $4.0 billion, which would be below the
$4.1 billion or higher in sales the company had said it expected
during the quarter. A sudden drop in European demand for Sun's
products, combined with slowing demand in Asia and reduced demand
in the U.S. has impacted the firm's bottom line.

** French firm Alcatel (ALA: 25.19, - 2.22) and U.S. telecom
heavyweight Lucent (LU: 8.37, + 0.05) ended merger talks,
reportedly due to the inability of the two firms to come to an
agreement on who would control the combined company. According to
The Wall Street Journal's account, what was initially envisioned
as a merger of equals by Lucent increasingly began to look like a
takeover. As such, Lucent quickly got cold feet and walked away
from the possible deal. The firms released a combined statement
saying that talks had been "terminated."

** RadioShack (RSH: 27.07, - 5.78) joined the chorus of companies
warning of lower profits in the current quarter, citing slower
sales of goods. The firm now sees profits of $0.25 to $0.27 per
share in its fiscal second quarter. This is below the $0.34
analysts were expecting and well off the $0.38 per share the firm
earned in the same quarter last year. Lackluster sales of cell
phone services, combined with weak computer sales, took the blame
for the expected earnings shortfall.

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ECONOMIC NEWS

** No data today.

** THURSDAY - Weekly initial jobless claims, Chicago Purchasing
Managers' index for May.

** FRIDAY - May employment report, May National Association of
Purchasing Managers' index, April construction spending, May
domestic auto sales.

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