COMMENTARY

Earnings ruled the U.S. stock market this week. The broad averages were up

slightly for the week, but individual stocks and sectors took their cues from

earnings announcements. Semiconductors took it on the chin, when Intel reported

on Jan. 16 that fourth-quarter profits were below Street expectations. Intel

fell 5 points, or 10%. Wal-Mart also reported disappointing earnings, and its

stock was pummeled, falling nearly 10%. Bank stocks, on the other hand, shone,

as Citicorp, Chemical, and Chase Manhattan reported nifty profits.

MARKET ANALYSIS

                                                              % change
      U.S. STOCKS                               Latest    Week     52-week
      DOW JONES INDUSTRIALS                     5066.9    0.7      29.0
      MIDSIZE COMPANIES (S&P MidCap Index)      210.4     1.0      21.2
      SMALL COMPANIES (Russell 2000)            302.6     -0.1     19.9
      ALL COMPANIES (Russell 3000)              344.7     1.3      28.0
      
      FUNDAMENTALS                              Latest    Week ago Year ago
      90-DAY TREASURY BILL YIELD                5.13%     5.17%    5.85%
      30-YEAR TREASURY BOND YIELD               6.01%     6.19%    7.77%
      S&P 500 DIVIDEND YIELD                    2.27%     2.27%    2.76%
      S&P 500 PRICE/EARNINGS RATIO              17.1      16.9     17.1
      
                                                 % change (local currency)
      FOREIGN STOCKS                            Latest    Week     52-week
      LONDON (FINANCIAL TIMES 100)              3704.2    0.9      21.3
      TOKYO (NIKKEI INDEX)                      20,570.3  -0.2     7.0
      TORONTO (TSE COMPOSITE)                   4773.0    -0.2     14.4
      
      TECHNICAL INDICATORS                      Latest    Week ago Reading
      S&P 500 200-day moving average            565.3     562.8    Positive
      Stocks above 200-day moving average       64.0%     63.0%r   Neutral
      Speculative sentiment: Put/call ratio     0.78      0.75r    Positive
      Insider sentiment: Vickers sell/buy ratio 1.45      1.33     Positive
      BLOOMBERG FINANCIAL MARKETS
      
      INDUSTRY GROUPS
                         % change                 % change
                            1-    12-   Strongest stock  1-    12-
      ONE-MONTH LEADERS     month month in group         month month Price
      1 DEFENSE ELECTRONICS 25.8  130.9 LORAL            30.3  129.7 43 1/2
      2 GOLD MINING          9.5   28.5 NEWMONT MINING   15.1   44.1 51 1/2
      3 HEALTH CARE SERVICES 7.9   49.9 ALZA             19.0   29.6 27 3/8
      4 HOSPITAL MANAGEMENT  7.2   43.6 TENET HEALTHCARE  9.2   46.9 20 3/4
      5 ELECTRIC COMPANIES   4.4   21.9 CONSOLIDATED     11.1   23.9 33 3/4
                                        EDISON
      
                      % change                   % change
                         1-    12-   Weakest stock      1-    12-
      ONE-MONTH LAGGARDS month month in group           month month Price
      1 SEMICONDUCTORS   -12.6 13.1  NATIONAL           -29.1 -20.6 15 7/8
                                     SEMICONDUCTOR
      2 ALUMINUM         -8.9   7.0  REYNOLDS METALS    -11.6  -8.0 50 3/8
      3 TRUCKING         -8.7 -16.0  CALIBER SYSTEM     -25.6 -30.8 37 7/8
      4 PERSONAL LOANS   -8.2  26.3  HOUSEHOLD           -9.4  32.2 52 7/8
                                     INTERNATIONAL
      5 COMMUNICATIONS   -7.6  30.8  DSC COMMUNICATIONS -29.6 -39.1 23 1/16
        EQUIPMENT
      MORNINGSTAR INC.
      
      MUTUAL FUNDS
      LEADERS                          LAGGARDS
      Four-week total return      %    Four-week total return         %
      1 LEXINGTON STRATEGIC     18.8   FIDELITY SELECT             -10.2
        INVESTMENTS                    SOFTWARE & COMPUTER
      2 WRIGHT EQUIFUND-MEXICO  16.6   TWENTIETH CENTURY           -10.1
                                       GIFTRUST INVESTORS
      3 MORGAN STANLEY          14.9   STEADMAN AMERICAN            -9.8
        LATIN AMERICAN A               INDUSTRY
      
      52-week total return        %    52-week total return           %
      1 ALGER CAPITAL           65.1   STEADMAN TECHNOLOGY GROWTH  -33.1
        APPRECIATION
      2 PERKINS OPPORTUNITY     60.6   EV MARATHON GREATER INDIA   -31.9
      3 FIDELITY SELECT         58.6   STEADMAN AMERICAN INDUSTRY  -27.5
        ELECTRONICS
      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.      Treasury  Foreign   Money
         stocks    bonds     stocks    market fund   Gold
         $13,189   $13,066   $12,286   $10,564       $10,426
         -0.17%    -0.68%    -0.89%    +0.12%        +0.77%
      
      All data on this page are as of market close Wednesday, Jan. 17, 1996, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close Jan. 16. Mutual fund 
      returns are as of Jan. 12. Relative portfolios are valued as of Jan. 16. A more 
      detailed explanation of this page is available on request. r=revised
      
Before it's here, it's on the Bloomberg Terminal. LEARN MORE