Charles Schwab & Co., Inc.
Email Alert

Midday Market View(TM) 
for Monday, November 26, 2001
as of 12:30PM EST
Information provided by Schwab Center for Investment Research
and Bridge 


U.S. INDICES
(12:30 p.m. EST)

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Market            Value     Change

DJIA           9,932.10    - 27.61
Nasdaq Comp.   1,918.53    + 15.33
S&P 500        1,150.86     + 0.52
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NYSE Advancing Issues        1,382	
NYSE Declining Issues        1,607
NYSE Trading Volume        511 mln
NASDAQ Advancing Issues      1,671
NASDAQ Declining Issues      1,741
NASDAQ Trading Volume      837 mln

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U.S. TREASURIES
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Value            Yield      Change

6-month bill      2.03%        n/a
5-year note       4.30%     + 7/32
10-year note      4.92%    + 15/32
30-year bond      5.31%    + 21/32

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

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STOCKS SHED EARLIER GAINS 

U.S. stocks are mixed but generally lower following a report by 
the National Bureau of Economic Research indicating that the 
U.S. officially fell into a recession in March of this year, 
citing a plethora of economic indicators.  Although economic and 
corporate news was sparse following the holiday weekend, early 
post-Thanksgiving results in the retailing sector, including 
record sales at Wal-Mart Stores (WMT,55,f2&f4), hinted that 
consumer spending may be more resilient than previously 
expected. Lucent Technologies (LU,7.93,f2) is suffering from 
analyst downgrades. Treasuries were higher as bottom-fishers 
stepped up in the absence of any salient economic data and 
European markets are mixed late in the day.

As of 11:55 a.m. EST, the Dow Jones Industrial Average is down 
0.4%, while the Nasdaq is up 0.7%. The S&P 500 index is down 
0.1%. Energy-related and communication equipment stocks are 
leading the decliners, while semiconductor, wireless and auto 
issues are among the best performers.

Shares of Wal-Mart were lower even as the discount retailing 
giant reported a single-day record for sales of $1.25 billion on 
Friday after its Holiday Blitz promotion attracted 
bargain-hunters to its stores. Most of the holiday buying 
appeared to be narrow in scope, with shoppers favoring the 
deep-discount retailers over department stores. According to 
TeleCheck Services Inc., same store sales in the U.S. rose 2.4% 
on Friday.  In related news, Pier One Imports (PIR,14.41) got a 
boost after it raised its same-store sales forecast for November 
to an increase of 6%-8% and increased its 3Q earnings forecast 
to $0.21-$0.23 per share from the previous $0.19-$0.21 per share 
guidance.

Shares of Lucent Technologies were under pressure after the 
communication networking company was downgraded by analysts at 
two major brokerage houses. An ABN AMRO analyst lowered his 2002 
earnings forecast to a loss of $0.53 per share from the previous 
$0.39 per share loss estimate, while an analyst at Morgan 
Stanley cited capital spending cuts and regulatory issues as 
concerns.

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TREASURY AND ECONOMIC SUMMARY

Bonds are higher across the curve as bargain-hunters stepped in 
following the recent declines in Treasuries. Earlier, NBER said 
that the 10-year U.S. economic expansion officially ended in 
March of this year and a recession has officially ensued. 
Uplifting comments from St. Louis Federal Reserve Bank President 
William Poole that the U.S. is starting to display signs of a 
recovery did little to stem the upward momentum in Treasuries, 
despite Poole's reference to rising equity prices, a firming 
housing market, and stronger retail sales.

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WORLD MARKETS

European markets are mixed late in the session, shedding earlier 
gains as U.S. markets meandered in and out of positive 
territory. The Bloomberg European 500 index is down 0.07% as of 
11:55 a.m. EST. Telecom equipment and mining stocks are the 
best-performing issues, while energy stocks are pacing the 
decliners. Nokia (NOK,25,f2) and Ericsson (ERICY,5.74,f1) shares 
were higher after Morgan Stanley increased its forecast for 
worldwide wireless phone unit sales by 5.4% to 390 million 
phones in 2001 and by 3.6% to 435 million phones in 2002. In 
other equity news, Deutsche Lufthansa AG's (DLAKY,14.00) CEO 
said that he sees "no signs of recovery" in passenger traffic, 
though he does anticipate an eventual pick up in demand. The 
euro remained in positive territory against the dollar but 
retreated from earlier highs. Crude oil is trading lower as 
Russia continues to act defiant toward any meaningful production 
cut, choosing to wait until Dec. 10 instead to plan production 
for 2002.

William Johnson, Market Analyst

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