COMMENTARY

A gala week in the U.S. equity markets. Nasdaq stocks and the Standard & Poor's

500-stock index rose to six consecutive all-time highs before falling back on

Feb. 13. Meanwhile, the Dow Jones industrial average reached seven highs before

falling on Feb. 14. The Feb. 14 decline sent the Dow below 5600--which it

reached, for the first time, on Feb. 12. Economically sensitive stocks were

strong. Bonds rallied until Feb. 14, when traders became uncertain about

upcoming economic reports.

MARKET ANALYSIS

                                                   % change
      U.S. STOCKS                     Latest    Week      52-week
      DOW JONES INDUSTRIALS           5579.6    1.6       40.0
      MIDSIZE COMPANIES
       (S&P MidCap Index)             226.5     1.1       26.7
      SMALL COMPANIES (Russell 2000)  321.1     0.5       24.7
      ALL COMPANIES (Russell 3000)    371.8     0.8       33.9
      
      FUNDAMENTALS                    Latest    Week ago  Year ago
      90-DAY TREASURY BILL YIELD      4.93%     4.94%     5.88%
      30-YEAR TREASURY BOND YIELD     6.09%     6.15%     7.56%
      S&P 500 DIVIDEND YIELD          2.10%     2.11%     2.68%
      S&P 500 PRICE/EARNINGS RATIO    18.9      18.8      16.2
      
                                        % change (local currency)
      FOREIGN STOCKS                  Latest    Week      52-week
      LONDON (FINANCIAL TIMES 100)    3745.0    0.5       21.8
      TOKYO (NIKKEI INDEX)            20,943.6  0.0       16.4
      TORONTO (TSE COMPOSITE)         5059.7    0.7       22.7
      
      TECHNICAL INDICATORS            Latest    Week ago  Reading
      S&P 500 200-day moving average  577.9     574.3     Positive
      Stocks above 200-day
       moving average                 72.0%     71.0%     Negative
      Speculative sentiment:
       Put/call ratio                 0.68      0.63      Neutral
      Insider sentiment:
       Vickers sell/buy ratio         1.66      1.63      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 OIL AND GAS       24.2  65.8  ROWAN           24.3  95.7  11 1/2
        DRILLING
      2 COMMUNICATIONS    23.2  67.2  ANDREW          44.5  28.0  49 1/2
        EQUIPMENT
      3 HOTELS AND MOTELS 22.3  30.3  HILTON HOTELS   31.7  27.6  88 3/8
      4 PERSONAL LOANS    22.1  51.5  HOUSEHOLD       26.3  67.8  67 3/4
                                      INTERNATIONAL
      5 COMPUTER SYSTEMS  19.6  44.9  DATA GENERAL    42.9 105.9  17 1/2
      
                           % change                         % change
                          1-    12-   Weakest stock       1-    12-
      ONE-MONTH LAGGARDS  month month in group            month month Price
      1 MACHINE TOOLS     -2.1  0.2   CINCINNATI MILACRON -2.5   6.0  24 1/2
      2 POLLUTION CONTROL -1.2  5.5   BROWNING-FERRIS     -3.3  -8.6  29 1/8
                                         INDUSTRIES
      3 HOMEBUILDING       0.6 22.2   CENTEX              -6.1  11.1  28 3/4
      4 GENERAL            1.2  4.2   WAL-MART STORES     -1.1  -7.4  22
        MERCHANDISE CHAINS
      5 SHOES              2.2 38.7   BROWN GROUP         -7.2 -61.0  12 7/8
      MORNINGSTAR INC.
      
      MUTUAL FUNDS
      LEADERS                     LAGGARDS
      Four-week total return   %  Four-week total return            %
      1 MONITREND GOLD       18.2 GRANDVIEW RETAIL REALTY INCOME  -5.2
      2 PBHG SELECT EQUITY   18.1 WRIGHT EQUIFUND-SWITZERLAND     -3.7
      3 DREYFUS AGGRESSIVE   18.1 CRABBE HUSON SPECIAL            -2.6
        GROWTH
      52-week total return     %  52-week total return              %
      1 MIDAS                94.6 EV MARATHON GREATER INDIA      -24.4
      2 FIDELITY SELECT      76.1 AMERICAN HERITAGE              -24.1
        ELECTRONICS
      3 ALGER CAPITAL        76.0 STEADMAN TECHNOLOGY GROWTH     -22.0
        APPRECIATION
      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
         $13,967   $12,975    $12,192   $10,562       $10,236
         +2.19%    +0.69%     -0.41%    +0.12%        -2.73%
      
      All data on this page are as of market close Wednesday, Feb. 14, 1996, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close Feb. 13. Mutual fund 
      returns are as of Feb. 9. Relative portfolios are valued as of Feb. 13. A more 
      detailed explanation of this page is available on request. r=revised
      
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