COMMENTARY

Federal Reserve Chairman Alan Greenspan's semiannual testimony on the state of

the economy roiled stock and bond markets. The bond market plunged on fears

that another cut in short-term interest rates was no longer in the cards. That

prospect sent the yield on the 30-year Treasury racing from 6.2% to 6.4% in one

day. The stock market had a volatile week as well, with the Dow suffering a

four-day losing streak until gaining 57.4 points on Feb. 21, to close at 5516.

Rallies in computer stocks such as Hewlett-Packard and IBM helped shave the

stock market's weekly decline to 1.1%.

MARKET ANALYSIS

                                                            % change
      U.S. STOCKS                               Latest   Week     52-week
      DOW JONES INDUSTRIALS                     5516.0   -1.1     38.8
      MIDSIZE COMPANIES (S&P MidCap Index)      227.2    0.3      27.9
      SMALL COMPANIES (Russell 2000)            321.3    0.1      26.5
      ALL COMPANIES (Russell 3000)              368.8    -0.8     33.1
      
      FUNDAMENTALS                              Latest   Week ago Year ago
      90-DAY TREASURY BILL YIELD                4.94%    4.93%    5.83%
      30-YEAR TREASURY BOND YIELD               6.37%    6.09%    7.54%
      S&P 500 DIVIDEND YIELD                    2.13%    2.10%    2.68%
      S&P 500 PRICE/EARNINGS RATIO              18.8     18.9     16.3
      
                                                % change (local currency)
      FOREIGN STOCKS                            Latest   Week     52-week
      LONDON (FINANCIAL TIMES 100)              3725.6   -0.5     23.4
      TOKYO (NIKKEI INDEX)                      20,372.2 -2.7     12.5
      TORONTO (TSE COMPOSITE)                   4961.1   -1.9     20.4
      
      TECHNICAL INDICATORS                      Latest   Week ago Reading
      S&P 500 200-day moving average            580.4    577.9    Positive
      Stocks above 200-day moving average       70.0%    72.0%    Neutral
      Speculative sentiment: Put/call ratio     0.68     0.69r    Neutral
      Insider sentiment: Vickers sell/buy ratio 1.75     1.66     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 DRILLING 27.7 61.9 ROWAN               28.8 95.8 11 3/4
      2 MACHINE TOOLS        16.5 11.6 CINCINNATI MILACRON 25.7 24.3 26 7/8
      3 TOYS                 14.0 40.6 HASBRO              18.3 11.8 35 1/2
      4 COMMUNICATIONS       13.8 63.2 ANDREW              40.6 31.1 50 1/4
        EQUIPMENT
      5 AIRLINES             13.8 50.7 SOUTHWEST AIRLINES  27.3 71.3 29 1/8
                             % change                     % change
                            1-    12-   Weakest stock    1-    12-
      ONE-MONTH LAGGARDS    month month in group         month month Price
      1 SAVINGS AND LOANS   -5.1  32.2  H.F. AHMANSON     -6.5  36.2 23 1/2
      2 ALCOHOLIC BEVERAGES -3.0  20.7  ADOLPH COORS     -13.5  18.5 20
      3 REGIONAL TELEPHONE  -2.9  30.9  BELLSOUTH         -8.0  32.1 38 5/8
        COMPANIES
      4 POLLUTION CONTROL   -2.9   5.7  WMX TECHNOLOGIES  -4.2   9.1 28 3/8
      5 SHOES               -2.0  36.2  BROWN GROUP       -4.7 -60.9 12 3/4
      MORNINGSTAR INC.
      
      MUTUAL FUNDS
      LEADERS                            LAGGARDS
      Four-week total return          %  Four-week total return        %
      1 MONITREND GOLD              25.3 STEADMAN INVESTMENT         -3.9
      2 PIONEER INDIA A             18.8 WRIGHT EQUIFUND-MEXICO      -3.7
      3 INVESCO STRATEGIC GOLD      16.5 WARBURG PINCUS JAPAN        -2.6
                                         OTC COMMON
      52-week total return            %  52-week total return          %
      1 MIDAS                       96.4 AMERICAN HERITAGE          -22.9
      2 IDS PRECIOUS METALS A       82.6 STEADMAN TECHNOLOGY GROWTH -21.0
      3 ALGER CAPITAL APPRECIATION  80.7 EV MARATHON GREATER INDIA  -20.1
      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.      Foreign   Treasury   Money
         stocks    stocks    bonds      market fund   Gold
         $13,532   $12,342   $12,260    $10,561       $10,162
         -3.14%    -0.23%    -4.57%     +0.11%        -1.42%
      
      All data on this page are as of market close Wednesday, Feb. 21, 1996, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close Feb. 20. Mutual fund 
      returns are as of Feb. 16. Relative portfolios are valued as of Feb. 20. A more 
      detailed explanation of this page is available on request. r=revised
      
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