Charles Schwab & Co., Inc.

Morning Market View(TM) for Monday, May 21, 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          11,245.40    - 56.30
Nasdaq Comp.   2,236.59    + 37.71
S&P 500        1,293.51     + 1.55
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NYSE Advancing Issues        1,460
NYSE Declining Issues        1,221
NYSE Trading Volume        274 mln
NASDAQ Advancing Issues      1,989
NASDAQ Declining Issues      1,323
NASDAQ Trading Volume      579 mln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.72%        n/a
5-year note       5.00%     - 1/32
10-year note      5.41%     - 3/32
30-year bond      5.80%    - 13/32

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

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U.S. TRADING SUMMARY

Stocks began the first session of the new week quietly as the
three major indices initially hovered around unchanged levels.
From there, the bourses diverged as the NASDAQ rallied while the
Dow slipped into the red. By midmorning, the NASDAQ had pushed a
solid 2.0% into the black on strength in Cisco, Microsoft and
Sun. The industrials have been unable to pull out of the red, as
shares of Procter & Gamble, United Technologies and Home Depot
weigh on the index. A lack of economic data or major events could
keep trading choppy today and through the middle of the week.
Strength in computer software, communication and semiconductors
helped the S&P 500 remain just above the unchanged level.

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JAPAN / EUROPE SUMMARY

European bourses are mixed, as the major indexes hold on either
side of unchanged. The London FTSE has held about 0.2% in the
green. However, the French CAC-40 and the German Dax were off
about 0.2%. Shares of oil firms have been the standouts in the
uninspiring session, as rising crude oil prices have convinced
many investors that shares of oil firms represent a good bet.
Elsewhere, Japanese stocks were the beneficiaries of bargain
hunting as the Nikkei-225 rocketed 2.2% higher while the broader
Topix rallied 0.9%. A reshuffling of stocks in a major investment
firm's global stock index, which left Japanese stocks in a better
position in the index than many had feared, fueled the gains.

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CURRENCY SUMMARY

The euro just can't get a break, as the common currency has
fallen to around 0.875 dollars this morning. The release of yet
another piece of weak economic data, coupled with diminished
confidence in the European Central Bank, conspired to push the
euro lower. A solid performance in Japanese stocks gave the yen a
lift overnight, helping the yen descend to about the 123 yen per
dollar level from almost 124 yen per dollar overnight.

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

** In another sign of the ongoing consolidation of the online
music industry, French conglomerate Vivendi Universal (V: 67.55,
- 0.60) is buying MP3.com (MPPP: 4.87, + 1.86) in a cash and
stock deal valued at roughly $372 million. The deal values
MP3.com at $5 per share, which is a healthy premium over its
Friday closing price of about $3 per share, but well off
MP3.com's highs. Recall that just six months ago, a U.S. judge
ordered MP3.com to pay Vivendi's Universal division about $53
million in damages for violating copyright laws. Vivendi's
strategy seems to follow that of German music giant Bertelsmann
BMG, which announced its alliance with beleaguered Napster late
last year.

** In the latest development in Weyerhaeuser's (WY: 60.54, -
0.51) hostile bid for paper firm Willamette (WLL: 48.99, - 0.49),
Weyerhaeuser is again attempting to circumvent Willamette's board
of directors by directly appealing to shareholders. Weyerhaeuser
stated that it will increase its offer price above the current
$50 per share, if Willamette is willing to negotiate immediately.
Willamette's board has repeatedly rebuffed Weyerhaeuser's
attempts at a takeover, stating that the $50 per share offer is
much too low and undervalues their firm. The company has also
instituted a poison-pill defense against any hostile takeover
attempts, which has kept Weyerhaeuser at bay.

** Lowe's Cos. (LOW: 70.20, + 1.80), the No. 2 home improvement
retailer behind Home Depot (HD: 52.22, - 0.48), reported fiscal
first-quarter earnings on Monday that beat Wall Street forecasts.
Lowe's announced earning $0.58 per share, versus $0.49 per share
in the same quarter last year. Wall Street had been looking for
the company to earn anywhere between $0.51 and $0.57 per share.
The gains were impressive given the headwind Lowe's faced from
the current economic slowdown. Sales for the quarter rose to
$5.28 billion for an 18% gain. The firm expects second-quarter
earnings to meet analysts' expectations.

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ECONOMIC NEWS

** No data today.

** TUESDAY - No data.

** WEDNESDAY - No data.

** THURSDAY - Weekly initial jobless claims, April new home
sales.

** FRIDAY - April durable goods orders, Revised first-quarter
U.S. Gross Domestic Product, April existing home sales,
University of Michigan final index of consumer sentiment for
May.

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