Charles Schwab & Co., Inc.
Email Alert

Midday Market View(TM) 
for Wednesday, November 14, 2001
as of 1:00PM EST
Information provided by Schwab Center for Investment Research
and Bridge 


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

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Market            Value     Change

DJIA           9,793.59    + 42.64
Nasdaq Comp.   1,890.75     - 1.36
S&P 500        1,138.90     - 0.19
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NYSE Advancing Issues        1,722	
NYSE Declining Issues        1,257
NYSE Trading Volume        742 mln
NASDAQ Advancing Issues      1,700
NASDAQ Declining Issues      1,615
NASDAQ Trading Volume      1.2 bln

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U.S. TREASURIES
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Value            Yield      Change

6-month bill      1.86%        n/a
5-year note       3.79%    - 15/32
10-year note      4.46%    - 22/32
30-year bond      4.97%    - 26/32

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

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STOCKS MIXED IN MIDDAY ACTION

Stocks were flat to higher following a much better-than-expected 
retail sales report and some mildly positive corporate earnings 
news. Retail sales for October were higher primarily reflecting 
aggressive incentive financing at auto dealerships.

As of 11:52 a.m. EST, the Dow Jones Industrial Average was up 
0.5%, while the Nasdaq was down 0.1%. The S&P 500 Index was 
unchanged. Retail stocks were among the best performers, while 
energy-related stocks led the decliners.

Computer and printer maker Hewlett-Packard (HWP,22,f2) posted 
fiscal 4Q profits of $0.19 a share, well ahead of the First Call 
consensus estimate of $0.08 per share on an 18% decline in 
sales. The company cited strength in the performance of its 
imaging and services segments as well as storage and PC 
products, despite the continued soft computing environment. 
Looking ahead, HP said it sees fiscal 1Q margins and expenses to 
be flat with 4Q, with slightly lower revenues.

Network-attached storage maker Network Appliance (NTAP,15.56,f1) 
reported a fiscal 2Q profit excluding charges of $0.02 a share, 
above the Street's breakeven forecast. Including items, Network 
Appliance incurred a loss of $0.03 per share on a 25% drop in 
sales to $194.7 million. NTAP's CEO said that he expects 3Q 
revenues and earnings to be sequentially flat amid a murky 
outlook for business demand.

Shares of BEA Systems (BEAS, 16.56,f1) were nearly flat after 
the business software maker reported 3Q operating earnings of 
$0.06 per share, $0.01 higher than the First Call consensus 
estimate on a 2% decline in revenue. The company reiterated its 
4Q EPS guidance of $0.06 - $0.07 per share and said new products 
were helping to drive sales. 

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TREASURY AND ECONOMIC SUMMARY

U.S. Treasuries were down, though off of lows reached in the 
wake of this morning's retail sales data as stocks backed off 
earlier highs. According to the Commerce Department, retail 
sales rose 7.1%, boosted by a record 26.4% jump in auto sales, 
amid 0% financing incentives at most of the major dealerships. 
September's sales figures were revised to a 2.2% decrease from 
the previously reported 2.4% decline. Analysts per Dow Jones 
Newswires were expecting an increase in October retail sales of 
2.5%. Excluding autos, retail sales were up 1.0%, above the 
consensus forecast for a 0.4% increase on strength in clothing 
stores and building materials sales. Consumer spending remains 
the linchpin of economic growth and the strong retail sales 
results are somewhat impressive given the backdrop of the recent 
terrorist attacks, ongoing retaliatory campaign and waning 
employment conditions.

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WORLD MARKETS

European markets gave back earlier gains and headed mostly lower 
in step with U.S. equity markets. Energy, gas and insurance 
issues led the decliners, while travel, metals and manufacturing 
were among the advancers. The Bloomberg 500 index was up 0.05% 
as of 11:52 a.m. EST. BP Plc (BP, 46) was among noteworthy 
energy-related decliners as oil continued to get hammered 
following comments from OPEC ministers stating that, without the 
support of non-OPEC members (mainly Russia), production cuts 
would not effectively boost prices. The euro, after trending 
lower against the dollar this morning amid a worse-than-expected 
1.0% drop in October German retail sales, firmed to trade higher 
as traders booked profits in the greenback.

Jeffrey Reeve, Market Analyst

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