COMMENTARY

The stock market is desperately trying to adjust to a stronger economy and

higher interest rates. The yield on 30-year Treasuries surged to the highest

level since last August, and stocks tumbled. Although the Dow industrials were

down for the week by only 1.1, the broader indexes suffered more, with the S&P

500 falling by more than 2%. Some foreign bourses got clobbered. Tokyo sank to

its lowest level of the year, while Hong Kong dropped 10%--the result of

concerns about Chinese military exercises off Taiwan.

MARKET ANALYSIS

      
                                                          % change
      U.S. STOCKS                           Latest     Week       52-week
      DOW JONES INDUSTRIALS                 5568.7     -1.1       37.9
      MIDSIZE COMPANIES (S&P MidCap Index)  227.4      -1.3       25.9
      SMALL COMPANIES (Russell 2000)        323.5      -1.1       25.7
      ALL COMPANIES (Russell 3000)          364.3      -2.0       29.7
      
      FUNDAMENTALS
                                            Latest     Week ago   Year ago
      90-DAY TREASURY BILL YIELD            5.12%      5.02%      5.89%
      30-YEAR TREASURY BOND YIELD           6.68%      6.46%      7.36%
      S&P 500 DIVIDEND YIELD                2.19%      2.14%      2.68%
      S&P 500 PRICE/EARNINGS RATIO          18.6       19.0       16.3
      
                                               % change (local currency)
      FOREIGN STOCKS                        Latest     Week       52-week
      LONDON (FINANCIAL TIMES 100)          3640.3     -3.2       19.5
      TOKYO (NIKKEI INDEX)                  19,734.7   -2.5       18.4
      TORONTO (TSE COMPOSITE)               4948.8     -0.5       17.3
      
      TECHNICAL INDICATORS                  Latest     Week ago   Reading
      S&P 500 200-day moving average        589.6      586.7      Positive
      Stocks above 200-day moving average   63.0%      71.0%r     Neutral
      Speculative sentiment: Put/call ratio 0.77       0.56r      Positive
      Insider sentiment: Vickers
       sell/buy ratio                       2.00       1.97       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 SPECIALTY APPAREL  15.3  37.4 CHARMING SHOPPES   39.8  -8.1 4 15/16
        RETAILERS
      2 MACHINE TOOLS      13.8  18.8 GIDDINGS & LEWIS   14.6   2.2 17 5/8
      3 SHOES              12.1  48.7 NIKE               13.2  99.7 77 1/4
      4 DEPARTMENT STORES   9.8  33.0 FEDERATED          19.1  55.8 33 1/2
                                      DEPARTMENT STORES
      5 AIRLINES            8.5  56.2 SOUTHWEST AIRLINES 11.7  78.4 31
      
                            % change                      % change
                           1-    12-  Weakest stock     1-    12-
      ONE-MONTH LAGGARDS  month month in group          month month Price
      1 REGIONAL TELEPHONE -15.2 20.6 AMERITECH         -17.9 23.8  53 1/4
        COMPANIES
      2 INSTRUMENTATION    -14.7 20.1 TEKTRONIX         -28.3  0.8  32 1/4
      3 ELECTRIC COMPANIES  -9.7 13.4 NIAGARA MOHAWK    -19.4 -53.0  6 3/4
                                      POWER
      4 COMMERCIAL SERVICES -8.9 18.9 CUC INTERNATIONAL -22.6 28.4  30 3/8
      5 FINANCIAL SERVICES  -8.1 45.6 FEDERAL NATL.     -12.4 62.9  31
                                      MORTGAGE ASSN.
      MORNINGSTAR INC.
      
      MUTUAL FUNDS
      
      Four-week total return    %  Four-week total return             %
      LEADERS                      LAGGARDS
      1 MONITREND GOLD        24.4 SMITH BARNEY TELECOMM. INCOME   -12.3
      2 AMERICAN HERITAGE     12.7 SELIGMAN COMMUNICATIONS         -10.2
                                   & INFORM. D
      3 INVESCO STRATEGIC GOLD 7.2 LEXINGTON STRATEGIC INVESTMENTS -10.0
      52-week total return      %  52-week total return               %
      1 MIDAS                  74.0 STEADMAN TECHNOLOGY GROWTH     -24.8
      2 IDS PRECIOUS METALS A  72.3 STEADMAN AMERICAN INDUSTRY     -22.1
      3 INVESCO STRATEGIC GOLD 70.6 EV MARATHON GREATER INDIA      -10.0
      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
         $13,271    $11,871      $11,641     $10,557      $10,167
         -2.85%     -1.95%       -3.38%      +0.11%       -0.53%
      
      All data on this page are as of market close Wednesday, Mar. 13, 1996, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close Mar. 12. Mutual fund 
      returns are as of Mar. 8. Relative portfolios are valued as of Mar. 12. A more 
      detailed explanation of this page is available on request. r=revised
      
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