Charles Schwab & Co., Inc.
Email Alert

Morning Market View(TM) 
for Wednesday, December 26, 2001
as of 9:30AM EST
Information provided by Schwab Center for Investment Research


MERRY CHRISTMAS!

U.S. equity index futures are pointing to a slightly lower open 
in the post-Christmas session as economic and equity news is 
sparse. Wal-Mart (WMT,57,f2&f4) and Echostar Communications 
(DISH,27,f1) were among the few U.S. companies in the headlines 
this morning while U.S. Treasuries are lower and Japanese 
markets rose slightly.

Leading retailer Wal-Mart stated that it anticipates December 
same-store sales at the high end of the 4%-6% range, exceeding 
its previous forecasts. For the Nov. 23 to Dec. 24 period, the 
company said same-store sales were in the mid-to-upper single 
digit percentage range.

According to The Wall Street Journal, EchoStar Communications 
Chairman Charlie Ergen wants to expand Hughes Electronics 
Corp.'s (GMH,15.02,f2) satellite Internet service. If regulators 
approve Echostar's proposed acquisition of Hughes, the Journal 
reported, Ergen plans to postpone a "full-scale deployment" of 
the Internet service until 2004, opting to spend $1 billion in 
order to design and launch a "new generation" of satellites.

Pharmaceutical giant Pfizer Inc. (PFE,40.77,f2) received a 
favorable court ruling related to its antidepressant drug 
Zoloft. A federal judge ruled the company is not liable in the 
case of a man who committed suicide while on the drug, despite 
allegations by the widow that Pfizer failed to disclose possible 
side effects.

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TREASURY AND ECONOMIC SUMMARY 

U.S. Treasury prices were a bit lower across the curve in the 
post-Christmas session. The Redbook retail sales index recorded 
a 4.5% drop for the three weeks ended Dec. 22, with 
year-over-year sales declining 0.6%. Tomorrow, the Labor 
department will release initial jobless claims and on Friday the 
markets will be watching for consumer confidence figures, as 
well as the Chicago Purchasing Managers' Index, home sales 
figures and durable goods orders.

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WORLD MARKETS 

European markets were closed for the holiday. In economic news, 
the French Producer Price Index fell 0.6% in November, twice the 
estimate, with the year-over-year figure falling a 
larger-than-expected 2.3%. On the corporate front, equity 
stories were expectedly sparse given the market closure. The 
euro is trading slightly lower versus the U.S. dollar.

Asian markets finished marginally higher as the Nikkei 225 index 
advanced 0.6%, with finance and construction issues leading the 
way. Mitsubishi Heavy Industries Ltd. (MHVYF,2.55) announced it 
plans to cut another 5,000 jobs, or 7.6% of its work force, and 
said it would not meet its goal of a 170 billion yen ($1.3 
billion) profit until 2006, two years behind schedule. The yen 
is higher versus the U.S. dollar, bucking a nine-day trend.

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FUTURES WATCH 

In the March Globex futures contract as of 8:53 a.m. EST, the 
S&P 500 Index was down 2.5 points (a point below fair value) 
while the Nasdaq 100 index was 3 points higher (5 points above 
fair value). The March DJIA futures contract was down 25 points 
(17 points below fair value), and the February crude oil futures 
traded on the NYMEX were up $0.08 at $19.70/barrel.

Jeffrey Reeve, Market Analyst

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