COMMENTARY

U.S. stocks rose to record levels, elevated by hopes that a strong economy

would keep corporate earnings in high gear. Climbing oil prices propelled

energy stocks, but the gains in oil didn't hurt the bond market. Yields of

30-year Treasury bonds stayed well below 7% throughout the week. Traders were

pleased that the Federal Reserve left short-term rates unchanged on May 21.

Tokyo stocks weren't able to break through the 22,000 barrier.

MARKET ANALYSIS

                                                          % change
      U.S. STOCKS                          Latest      Week      52-week
      DOW JONES INDUSTRIALS                5778.0      2.7       30.2
      MIDSIZE COMPANIES (S&P MidCap Index) 242.3       0.6       27.4
      SMALL COMPANIES (Russell 2000)       364.6       1.8       33.8
      ALL COMPANIES (Russell 3000)         389.3       1.8       29.6
      
                                        % change (local currency)
      FOREIGN STOCKS                Latest       Week       52-week
      LONDON (FINANCIAL TIMES 100)  3764.2       -0.3       13.1
      TOKYO (NIKKEI INDEX)          21958.0      -0.4       37.5
      TORONTO (TSE COMPOSITE)       5239.9       0.5        18.0
      
      FUNDAMENTALS                  Latest   Week ago  Year ago
      90-DAY TREASURY BILL YIELD    5.18%    5.14%     5.83%
      30-YEAR TREASURY BOND YIELD   6.81%    6.84%     6.74%
      S&P 500 DIVIDEND YIELD        2.09%    2.13%     2.55%
      S&P 500 PRICE/EARNINGS RATIO  19.7     19.4      16.3
      
      TECHNICAL INDICATORS            Latest   Week ago  Reading
      S&P 500 200-day moving average  614.5    611.7     Positive
      Stocks above 200-day
       moving average                 67.0%    67.0%     Neutral
      Speculative sentiment:
       Put/call ratio                 0.49     0.51r     Negative
      Insider sentiment: Vickers
       sell/buy ratio                 2.14     2.36      Neutral
      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 19.4  44.1   CHARMING SHOPPES 30.5  72.2  7 3/4
        RETAILERS
      2 SOFT DRINKS       14.2  56.4   COCA-COLA        18.1  59.3 46 1/2
      3 OFFICE EQUIPMENT  13.2  38.2   XEROX            18.6  35.1 159 1/8
        AND SUPPLIES
      4 COMMUNICATIONS    12.2  54.8   ANDREW           28.9  61.5 54 5/8
        EQUIPMENT
      5 MANUFACTURED      10.9  34.9   FLEETWOOD        14.3  39.1 28
        HOUSING                        ENTERPRISES
      
                           % change                        % change
                          1-    12-    Weakest stock      1-    12-
      ONE-MONTH LAGGARDS  month month  in group           month month Price
      1 TRUCKING          -4.1  -7.1   CALIBER SYSTEM      -7.1 -2.3  37 3/4
      2 STEEL             -4.0  -2.6   NUCOR              -11.1 10.8  55 1/4
      3 BROADCASTING      -3.1  20.5   TELE-COMMUNICATIONS -5.7 23.2  18 3/4
      4 HMOs              -3.0  55.1   UNITED HEALTHCARE  -11.5 40.3  53 1/8
      5 LEISURE TIME      -1.8  19.0   BRUNSWICK           -8.7  5.0  21
      MORNINGSTAR INC.
      
      MUTUAL FUNDS
      
      LEADERS                       LAGGARDS
      Four-week total return     %  Four-week total return     %
      1 PORTICO MICROCAP INSTL 21.5 CAPSTONE NEW ZEALAND     -3.6
      2 DREYFUS AGGRESSIVE     21.5 CALVERT NEW AFRICA       -3.3
        GROWTH
      3 VOYAGEUR AGGRESSIVE    20.4 PIONEER INDIA A          -3.2
        GROWTH A
      
      52-week total return         %  52-week total return         %
      1 TURNER SMALL CAP EQUITY 130.6 STEADMAN TECHNOLOGY GROWTH -7.7
      2 PBHG SELECT EQUITY       98.5 EV MARATHON GREATER INDIA  -6.5
      3 TCW/DW SMALL             91.5 UNITED SERVICES            -5.8
        CAPITALIZATION GROWTH         CHINA REGION OPPORT
      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
         $13,028    $11,544       $10,639      $10,541      $10,254
         +1.08%     +0.86%        +0.03%       +0.11%       -0.56%
      
      All data on this page are as of market close Wednesday, May 22, 1996, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close May 21. Mutual fund returns 
      are as of May 17. Relative portfolios are valued as of May 21. A more detailed 
      explanation of this page is available on request. r=revised
      
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