COMMENTARY
      Oh, what a market. Despite signs that the economy was slowing and despite the 
      warnings from market mavens that a major correction was in the cards, stocks 
      surged to new highs. On May 31, the Dow industrials shot up 86 points, the 
      biggest one-day gain in three years. Since January, the Dow and the S&P 500 
      index are ahead an amazing 16%, far outpacing foreign bourses. Bonds were on 
      the rise, too, as long rates fell to their lowest level in 15 months. With 
      money pouring in from overseas, the U.S. markets should keep rolling.
      
      MARKET ANALYSIS
      
                                                                 % change
      U.S. STOCKS                                 Latest      Week     52-week
      DOW JONES INDUSTRIALS                       4465.1       0.6       18.7
      MIDSIZE COMPANIES (S&P MidCap Index)        189.9       -0.1       10.7
      SMALL COMPANIES (Russell 2000)              270.3       -0.8        8.1
      ALL COMPANIES (Russell 3000)                302.2        0.6       14.6
      
                                                     % change (local currency)
      FOREIGN STOCKS                        Latest      Week      52-week
      LONDON (FINANCIAL TIMES 100)          3319.4      -0.2       13.2
      TOKYO (NIKKEI INDEX)                  15,436.8    -3.3      -26.7
      TORONTO (TSE COMPOSITE)               4448.6       0.2        3.7
      
      FUNDAMENTALS                              Latest      Week ago  Year ago
      90-DAY TREASURY BILL YIELD                5.80%       5.83%       4.25%
      30-YEAR TREASURY BOND YIELD               6.65%       6.74%       7.38%
      S&P 500 DIVIDEND YIELD                    2.51%       2.55%       2.80%
      S&P 500 PRICE/EARNINGS RATIO              16.4        16.3        20.2
      
      TECHNICAL INDICATORS                        Latest    Week ago  Reading
      S&P 500 200-day moving average              479.3     477.9     Positive
      Stocks above 200-day moving average         68.0%     69.0%     Neutral
      Speculative sentiment: Put/call ratio       0.71      0.69r     Positive
      Insider sentiment: Vickers sell/buy ratio   1.23      1.26      Positive
      BLOOMBERG FINANCIAL MARKETS
      
      INDUSTRY GROUPS
      
                             % change                         % change
      ONE-MONTH LEADERS     1-    12-   Strongest stock      1-    12-
                            month month in group             month month Price
      1 HOMEBUILDING        15.3    6.2 PULTE                21.4  12.9  26 1/4
      2 BROADCASTING        10.3   11.9 CAPITAL CITIES/ABC   13.6  29.0  96
      3 MONEY CENTER BANKS   8.0   14.6 BANKERS TRUST NEW 
                                        YORK                 14.8 -10.3  62 1/4
      4 MAJOR REGIONAL BANKS 7.9    4.4 BANK OF NEW YORK     22.4  35.3  40 1/4
      5 HMOs                 6.7  -22.9 U.S. HEALTHCARE      15.4 -22.0  30 7/8
      
                                % change                     % change
      ONE-MONTH LAGGARDS       1-    12-   Weakest stock    1-    12-
                               month month in group         month month Price
      1 LEISURE TIME           -9.7  -13.7 BRUNSWICK        -14.0 -25.4 18 3/8
      2 MANUFACTURED HOUSING   -8.5   -2.0 FLEETWOOD 
                                           ENTERPRISES      -10.3  -2.4 20 5/8
      2 PAPER CONTAINERS       -6.6   -2.3 STONE CONTAINER  -17.0  10.9 16 1/2
      4 ENGINEERING AND 
        CONSTRUCTION           -5.7  -12.7 MORRISON KNUDSEN -31.8 -74.3  5 3/8
      5 TRUCKING               -5.6  -25.5 CONSOLIDATED
                                           FREIGHTWAYS       -8.3  -9.2 23 3/8
      MORNINGSTAR INC.
      
      MUTUAL FUNDS
      
      LEADERS                                LAGGARDS
      Four-week total return              %  Four-week total return         %
      1 BT INVESTMENT PACIFIC BASIN 
        EQUITY                          12.6 DFA JAPANESE SMALL COMPANY   -7.2
      2 MORGAN STANLEY ASIAN GROWTH A   12.4 JAPAN                        -6.2
      3 MORGAN STANLEY INSTL. ASIAN 
        EQUITY                          12.3 CAPSTONE NIKKO JAPAN         -5.5
      
      52-week total return            %    52-week total return            %
      1 SELIGMAN COMMUNICATIONS & 
        INFORM. A                    78.1  MONITREND GOLD                -37.1
      2 FIDELITY SELECT ELECTRONICS  57.9  STEADMAN OCEANOGRAPHIC 
                                           TECHNOLOGY                    -35.3
      3 ALLIANCE TECHNOLOGY A        57.4  STEADMAN AMERICAN INDUSTRY    -33.8
      DRI/McGRAW-HILL
      
      RELATIVE PORTFOLIOS
      Dollar amounts represent the present value of $10,000 invested one year ago
      in each portfolio 
      
      Percentages indicate five-day total returns
      
       U.S. stocks  Treasury bonds  Foreign stocks  Money market fund    Gold
       $11,765         $11,675          $11,283         $10,524         $9,952
        -0.01%          +2.46%           +3.80%          +0.17%         +1.10%
      
      All data on this page are as of market close Wednesday, May 31, 1995, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close May 30. Mutual fund returns 
      are as of May 26. Relative portfolios are valued as of May 30. A more detailed 
      explanation of this page is available on request. r=revised NA=Not available
      
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