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       Morning Market View(TM) for Wednesday, July 25, 2001
                       as of 11:00AM EDT
           Information provided by Standard & Poor's

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

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Market            Value     Change

DJIA          10,336.70    + 95.60
Nasdaq Comp.   1,979.83    + 20.59
S&P 500        1,180.99     + 9.34
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NYSE Advancing Issues        1,545
NYSE Declining Issues        1,074
NYSE Trading Volume        328 mln
NASDAQ Advancing Issues      1,592
NASDAQ Declining Issues      1,392
NASDAQ Trading Volume      454 mln

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U.S. TREASURIES
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Value             Yield     Change

1-year bill       3.42%        n/a
5-year note       4.65%     - 4/32
10-year note      5.14%     - 9/32
30-year bond      5.54%     - 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

Choppy trading has been the main characteristic of this
morning's action in U.S. equities. After all the selling
pressure over the past few sessions, a bounce in the major
averages was due and started early this morning. Indeed, the
bourses reversed course in premarket trading and headed higher
using a positive earnings report from PeopleSoft as fuel for the
bulls. After dropping lower shortly after the open, equities
made a break for the upside, led by the NASDAQ. However,
concerns over upcoming earnings reports may keep some residual
selling pressure on the bulls. Computer software, telephone and
communications equipment shares are the largest beneficiaries of
the morning's gains. Meanwhile, financials, banks and tobacco
stocks are under pressure.

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JAPAN / EUROPE SUMMARY

European markets reversed course, eroding earlier gains as
German communications and engineering giant Siemens slipped into
the red after reporting earnings. The company reported a
third-quarter loss and stated that its semiconductor
manufacturing division would cut jobs. A strong sell off in
French telecom firm Alcatel before its earnings release tomorrow
also cast a pall over the markets. Indeed, the French CAC-40
dropped 0.8%, the German Dax fell 0.7% and the London FTSE
slipped 0.8% by midafternoon. Elsewhere, Tokyo finished
stronger, though it gave up early gains in the afternoon session
as pension funds took profits after the Nikkei-225 was unable to
maintain strength above the key 12,000 level. The benchmark
average closed the session essentially flat while the broader
Topix finished with a 0.8% gain. The rise in the Topix reflects
gains in some of the index's largest capitalization stocks such
as NTT DoCoMo, Sony, Toyota and major banks.

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CURRENCY SUMMARY

The dollar is performing poorly this morning, thanks to anxiety
over the U.S. recovery story via the endless drumbeat of gloomy
corporate earnings and rumored German demand for euros. The
greenback has slipped to about the 0.879 dollar per euro level
from 0.872 overnight and to around 123.6 yen from 124.4 yen
overnight.

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

** Semiconductor equipment manufacturer Lam Research (LRCX:
24.74, + 0.38) reported fiscal fourth-quarter profits that were
much lower than last year's levels, but still managed to beat
Wall Street analysts' expectations. The company stated that it
made $36.9 million or $0.28 per share, excluding one-time losses
and gains, versus a profit of $0.45 per share in the same
quarter last year. Analysts had pegged the company to earn $0.14
per share on average.

** PeopleSoft (PSFT: 36.63, + 2.39) reported fiscal
second-quarter earnings that beat Wall Street expectations and
stated that their next quarter would beat estimates by $0.01 as
well. The company announced earning $47 million, or $0.15 per
share, versus $16 million, or $0.06 per share in the year-ago
quarter. First Call estimates had PeopleSoft earning $0.12 per
share in the latest quarter. Sales rose a
better-than-anticipated 27% to $533 million.

** AT&T (T: 20.02, + 0.56) and AOL Time Warner (AOL: 42.53, -
0.17) are in the beginning stages of negotiations about a deal
to merge both companies' cable operations, reported The Wall
Street Journal. Indeed, the talks began just after Comcast
(CMCSK: 35.55, + 0.46) made an unsolicited bid for AT&T's cable
business last week, which is known as AT&T Broadband. The
Journal suggested that one plan called for AT&T to spin off its
broadband division and to simultaneously merge it with AOL's
cable arm. Undoubtedly, there is more to come on this story from
all players involved.

** QLogic (QLGC: 33.76, - 6.98) reported earnings that were in
line with estimates, but the stock was hammered in early trading
as the firm said sales and profits in its fiscal second quarter
will be lower than expected. The company stated that it earned,
on a pro forma basis, $0.23 per share in its fiscal first
quarter. Sales rose 19% to $92.1 million versus $77.4 million a
year ago.

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ECONOMIC NEWS

** Existing home sales in June stood at a 5.33 million unit
pace, lower than the previous 5.37 million unit pace and greater
than the S&P MMS consensus estimate of a 5.30 million unit pace.

** THURSDAY - Second-quarter employment cost index, June durable
goods orders, weekly initial jobless claims.

** FRIDAY - Advance second-quarter Gross Domestic Product, June
new home sales, July consumer sentiment.

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