Charles Schwab & Co., Inc.

Midday Market View(TM) for Thursday, July 19, 2001
as of 1:00PM EDT
Information provided by Standard & Poor's

================================================================

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

----------------------------------
Market            Value     Change

DJIA          10,613.10    + 43.30
Nasdaq Comp.   2,061.31    + 45.14
S&P 500        1,216.05     + 8.34
----------------------------------
NYSE Advancing Issues        1,745
NYSE Declining Issues        1,194
NYSE Trading Volume        774 mln
NASDAQ Advancing Issues      2,108
NASDAQ Declining Issues      1,310
NASDAQ Trading Volume     1.07 bln

==================================

U.S. TREASURIES
----------------------------------
Value            Yield      Change

1-year bill       3.43%        n/a
5-year note       4.64%     - 4/32
10-year note      5.12%     - 6/32
30-year bond      5.54%    - 11/32


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

================================================================

U.S. TRADING SUMMARY

Stocks remained in the green at midday, although off intraday
highs. Profit-taking pulled the headline indexes lower during
midmorning trading while weak data on the manufacturing sector
weighed further at the noon hour. However, optimism over the
outlook for corporate profits has kept a bid in the market.
Outperforming stocks were primarily from the technology sector
with software makers, semiconductor manufacturers and the
telecommunications equipment producers all showing strong gains.
Sectors bucking the broad-based upward trend included shares in
media firms, financials and banks. By midday, the NASDAQ was
consolidating near its intraday lows, but was still 2.2% higher
on the session. Elsewhere, the Dow gained 0.4% and the S&P 500
rose 0.7%.

----------------------------------------------------------------

U.S. TREASURY SUMMARY

After their major gains yesterday, Treasuries were taking a
break, holding slightly in negative territory as profit-taking
weighed on all maturities. Economic data released early this
morning was, on balance, somewhat negative for Treasuries, but
pressure from the broad-based stock rally had more of a
depressive impact. Yet, trading remained very subdued and
orderly as traders booked profits from the previous days' gains.
A bounce across the yield curve occurred briefly at the noon
hour on a weak piece of manufacturing data, but the gains were
short lived as traders used the rally to sell and book more
profits. By midday, Treasuries remained modestly in the red as
the short-dated issues under-performed the bond.

----------------------------------------------------------------

CURRENCY SUMMARY

The dollar continued to lick its wounds after yesterday's
declines. By midday, the greenback was chopping around the 123.4
yen level and trading just above the 0.870 dollar per euro
level. The European Central Bank's decision to leave rates
unchanged helped the dollar this morning, but the greenback
remains well off its best levels of the week versus the euro.

----------------------------------------------------------------

MAJOR COMPANY / INDUSTRY NEWS
(All prices as of 1:05 p.m. EDT)

** Sprint Corp. (FON: 22.73, + 0.80) reported profits that beat
Wall Street estimates for its fiscal second quarter. The
third-largest long distance provider in the U.S. announced that
it earned $290 million, or $0.33 per share, versus $365 million,
or $0.41 per share, in the same quarter last year. Wall Street
was looking for Sprint to earn $0.28 per share, based on the
First Call survey of analysts. Revenues, however, slipped to
$4.31 billion from $4.45 billion in the same quarter last year.

** Eli Lilly (LLY: 77.68, + 0.93) reported fiscal second-quarter
earnings on Thursday that beat current Wall Street estimates as
sales of its leading drug Prozac and various diabetes care
products surged. The eighth-largest drug manufacturer in the
U.S. said that earnings rose to $828 million, or $0.76 per
share, versus $666 million, or $0.61 per share a year earlier.
Wall Street was looking for the company to earn $0.74 per share.

** It looks as though the merger between PepsiCo (PEP: 46.45, -
0.54) and Quaker Oats (OAT: 87.35, - 0.44) is in trouble.
Attorneys at the Federal Trade Commission are recommending that
the agency file court papers to block the purchase of Quaker by
Pepsi. Concerns have arisen over the fact that Pepsi would
acquire Quaker's Gatorade brand drink and thus dominate the
sports-beverage market.

** Dell (DELL: 28.29, + 1.09) announced that upcoming earnings
that will be in line with current analyst expectations. The
PC-making titan expects to report earnings of $0.16 per share on
revenues of about $7.6 billion for the period ending Aug. 3.
This figure excludes a $700 million charge Dell will take as
part of an already implemented restructuring program.

----------------------------------------------------------------

RESEARCH SPOTLIGHTS

** CIBC World Markets upgraded shares of AmSouth Bancorp. (ASO:
19.54, + 0.33) from a hold to a buy rating.

** UBS Warburg upgraded shares of Siebel Systems (SEBL: 35.48, -
2.16) from a buy to a strong buy rating.

** Tucker Anthony Sutro upgraded shares of KLA-Tencor Corp.
(KLAC: 51.96, + 3.12) from an under-performer to a market
performer rating.

################################################################

Log in using the links below to:

Access your account:
https://investing.schwab.com/trading/start?SANC=CCBodyi&NeedCASelValue=Y

View your Email Alert customization options:
https://investing.schwab.com/trading/start?SANC=EAMyAlerts

Perform research or request a market quote:
https://investing.schwab.com/trading/start?SANC=Quotes

Place a trade order:
https://investing.schwab.com/trading/start?SANC=TradeStock

To visit Schwab's home page, use this link:
http://www.schwab.com/

-----------------------------------------------------------------

To unsubscribe or modify your Email Alert customization options,
log in using the link below or copy and paste it into your
browser's address window:

https://investing.schwab.com/trading/start?SANC=EAMyAlerts

Now you can receive graphics Email Alerts in HTML format, using
helpful, full-color graphics and active Web links that connect
you directly to information you want. Use the link below to log
in and change your email format preference:

https://investing.schwab.com/trading/start?SANC=EAEditEmailAddr

----------------------------------------------------------------

Notice: All email sent to or from the Charles Schwab corporate
email system may be retained, monitored and/or reviewed by
Schwab personnel. (1000-8752)

Copyright 2001 Standard & Poor's MMS Inc.  All rights reserved.
Standard & Poor's MMS services are for personal use only.
Commercial use or redistribution in any form, print or
electronic, is prohibited.
Distribution by Quris, Inc.