Charles Schwab & Co., Inc.
Email Alert

Midday Market View(TM) 
for Friday, October 26, 2001
as of 1:00PM EDT
Information provided by Schwab Center for Investment Research
and Bridge 


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

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Market            Value     Change

DJIA           9,510.64    + 47.74
Nasdaq Comp.   1,774.92     - 0.55
S&P 500        1,102.18     + 2.09
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NYSE Advancing Issues        1,503	
NYSE Declining Issues        1,347
NYSE Trading Volume        558 mln
NASDAQ Advancing Issues      1,656
NASDAQ Declining Issues      1,604
NASDAQ Trading Volume      947 mln

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U.S. TREASURIES
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Value            Yield      Change

6-month bill      2.01%        n/a
5-year note       3.75%     + 1/32
10-year note      4.55%     + 1/32
30-year bond      5.31%     + 2/32

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

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STOCK MARKETS MIXED

Stocks were trading mostly sideways with some strength in Blue 
Chip shares and weakness in the technology sector.

As of 11:50 a.m. EDT, the Dow Jones Industrial Average was up 
0.4%, while the Nasdaq Composite Index was 0.5% lower. The S&P 
500 Index was unchanged. Biotech, airline and energy related 
stocks led the gainers while computer related shares paced the 
decliners.

Fiber-optic equipment maker JDS Uniphase (JDSU,8.96,f2) said it 
incurred a fiscal 1Q loss of $1.2 billion or $0.93 per share. 
CFO Anthony Muller said the company would have lost $0.03 per 
share if restructuring and merger related costs were excluded, 
matching the consensus First Call estimate. JDS Uniphase blamed 
a slump in demand for telecommunications equipment for its woes, 
but the company's CEO said he sees a "low-point" in demand by 
December or March. As a result JDSU said it expects a loss of 
$0.01 to $0.02 per share in the fiscal 2Q on a 10%-15% 
sequential drop in sales.

Biotech behemoth Amgen (AMGN,59,f1) reported 3Q net income of 
$0.30 per share, $0.01 better than the First Call consensus 
estimate. The company said sales of Neupogen, its treatment to 
prevent infections in chemotherapy patients, rose 2% to $353 
million, while sales of its two anemia drugs, Epogen and 
Aranesp, rose 4.6% to $520 million. Chief Executive Kevin Sharer 
said Aranesp will drive 4Q sales growth and  fiscal year 2001 
sales and earnings should rise 10%-12%.

Internet security provider VeriSign (VRSN,43,f1) reported 3Q 
pro-forma income excluding charges of $0.28 per share, ahead of 
the Street's expectations for earnings of $0.16 per share, but 
warned that 4Q revenues would fall short of expectations. 
Including charges, VeriSign said it lost $1.91 per share.

Lockheed Martin (LMT,50,f2) reported 3Q earnings excluding items 
of $0.41 per share, beating the First Call estimate of $0.37 per 
share. Including items, the defense contractor earned $0.49 per 
share. The Pentagon will announce the lead contractor, either 
Boeing (BA,37,f2) or Lockheed, for its new Joint Strike Fighter 
program after the market close today. 

Contract electronics manufacturer Flextronics International 
(FLEX,21,f1) reported earnings excluding charges of $0.15 per 
share, $0.01 shy of the First Call consensus estimate. Including 
charges, the company lost $0.69 per share.

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TREASURY AND ECONOMIC SUMMARY

Bond prices were slightly lower following the release of 
stronger-than-expected consumer confidence and housing data. The 
University of Michigan's October consumer sentiment survey rose 
to 82.7 from September's 81.8 reading, slightly higher than the 
Bloomberg forecast of 82.5. The current conditions component 
fell to 94.0 from September's 94.6, and the future expectations 
component rose to 75.5 from 73.5.

New home sales fell for the second straight month in September, 
according to the Commerce Department. Sales dropped 1.4% to an 
annual rate of 864,000, the lowest rate in 13 months. Analysts 
per Dow Jones Newswires had been expecting an annual rate of 
855,000. August sales were downwardly revised from a rate of 
898,000 to a rate of 876,000. The inventory of homes for sale 
rose to 4.4 months from the prior month's 4.2 month supply.

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WORLD MARKETS

European stocks were generally higher, led by technology shares, 
following the Nasdaq's 2.5% rise yesterday. Shares of mobile 
network provider Ericsson (ERICY,4.56,f1) rose, despite a 
wider-than-expected 3Q loss, after the company named Michael 
Treschow as chairman. As of 10:53 a.m. EDT, the Bloomberg 
European 500 Index was up 2.13%. 3Q Gross Domestic Product in 
the UK rose a better-than-expected 0.6%. Italian retail sales 
rose a better-than-expected 3.0% year-over-year in August.

Isaia Carucci, Market Analyst

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