COMMENTARY

Good news on the wage and inflation front gave stocks and bonds a real shot in

the arm. The yield on 30-year Treasuries fell to its lowest level in four

months, sending bond prices soaring. And with that, stocks took off. The

spectacular 3.4% rise for the week in the Dow Jones industrials was surpassed

by the 3.8% pop in the S&P 500 index and the stunning 5.5% runup in the NASDAQ

composite. High-tech stocks, which went begging just weeks ago, are now the

rage. The Morgan Stanley High Tech index jumped 8%.

MARKET ANALYSIS

      
                                                                % change
      U.S. STOCKS                                Latest      Week      52-week
      DOW JONES INDUSTRIALS                      5718.7       3.4       22.4
      MIDSIZE COMPANIES (S&P MidCap Index)       228.7        4.0       10.9
      SMALL COMPANIES (Russell 2000)             327.6        3.7       9.3
      ALL COMPANIES (Russell 3000)               376.4        4.0       17.2
      
      FUNDAMENTALS                               Latest    Week Ago    Year Ago
      90-DAY TREASURY BILL YIELD                 5.16%       5.30%       5.53%
      30-YEAR TREASURY BOND YIELD                6.77%       6.97%       6.92%
      S&P 500 DIVIDEND YIELD                     2.17%       2.24%       2.38%
      S&P 500 PRICE/EARNINGS RATIO               19.0        18.3        16.2
      
                                                    % change (local currency)
      FOREIGN STOCKS                        Latest      Week      52-week
      LONDON (FINANCIAL TIMES 100)          3811.1       2.9       9.9
      TOKYO (NIKKEI INDEX)                  20,477.6    -1.0       22.0
      TORONTO (TSE COMPOSITE)               5031.7       2.1       8.8
      
      TECHNICAL INDICATORS                         Latest   Week ago   Reading
      S&P 500 200-day moving average               636.8     635.0     Positive
      Stocks above 200-day moving average          54.0%     44.0%r    Neutral
      Speculative sentiment: Put/call ratio        0.58      0.63r     Negative
      Insider sentiment: Vickers sell/buy ratio    1.97      2.10      Positive
      
      DATA: BLOOMBERG FINANCIAL MARKETS
      
      INDUSTRY GROUPS
                             % change                         % change
                            1-    12-  Strongest stock       1-    12-
      ONE-MONTH LEADERS   month month    in group            month month Price
      1.MONEY CENTER BANKS 6.9   35.1  BANKAMERICA           9.1   53.2  82 1/8
      2.FINANCIAL SERVICES 5.7   30.0  GREEN TREE FINANCIAL  15.8  33.8  36 5/8
      3.ALUMINUM           5.6  -3.5   ALCOA                 8.7   7.5   60 7/8
      4.MAJOR REGIONAL
       BANKS               5.3   31.5  FIRST BANK SYSTEM     10.4  45.4  62 1/2
      5.HOUSEWARES         5.2   10.6  RUBBERMAID            7.5  -2.1   28 3/4
      
                             % change                         % change
                           1-    12-     Weakest stock       1-     12-
      ONE-MONTH LAGGARDS   month month   in group           month  month Price
      1.MACHINE TOOLS     -16.1  -33.8   GIDDINGS & LEWIS   -27.0  -33.3 11 1/2
      2.TRUCKING          -13.6  -36.8   CALIBER SYSTEM     -30.4  -55.8 18 7/8
      3.DEFENSE
       ELECTRONICS        -7.8    49.4   EG&G               -8.4    2.7  19 1/8
      4.AIRLINES          -7.2     3.0   SOUTHWEST AIRLINES -10.4  -13.5 24 3/4
      5.PUBLISHING        -6.7     3.2   McGRAW-HILL        -9.0    4.7  40 3/8
      
      MUTUAL FUNDS
      
      LEADERS                            LAGGARDS
      Four-week total return    %        Four-week total return          %
      FIDELITY SELECT                    LEXINGTON TROIKA
       REGIONAL BANKS          5.8        DIALOG RUSSIA                -19.4
      FIDELITY SELECT
       HOME FINANCE            5.7       PREMIER STRATEGIC GROWTH B    -12.7
      SEQUOIA                  4.9       PERKINS OPPORTUNITY           -12.7
      
      52-week total return     %        52-week total return             %
      LANDMARK SMALL CAP
       EQUITY A                65.3      STEADMAN TECHNOLOGY GROWTH    -34.5
      MONITREND GOLD           53.0      UNITED STATES GOLD SHARES     -20.3
      TURNER SMALL CAP EQUITY  50.0      BHIRUD MID CAP GROWTH         -19.1
      
      MORNINGSTAR INC.
      
      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. stocks  Foreign stocks  Money market fund   Gold   Treasury bonds
         $12,102       $11,326          $10,794       $10,526     $10,110
          +4.27%       +1.69%            +3.47%        +0.11%      +1.29%
      
      DRI/McGRAW-HILL
      
      All data on this page are as of market close Wednesday, Aug. 7, 1996, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close Aug. 6. Mutual fund returns 
      are as of Aug. 2. Relative portfolios are valued as of Aug. 6. A more detailed 
      explanation of this page is available on request. r=revised
      
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