COMMENTARY

Tobacco stocks plunged after Brown & Williamson Tobacco Corp. was found

negligent in a case involving a smoker who developed cancer. Philip Morris Cos.

saw its stock fall 14%, to 91 1/4, which shrunk the company's market

capitalization from $87.7 billion to $75.7 billion. The broader markets were

spooked by jumps in consumer prices and retail sales that fanned inflation

fears. Still, the yield on the 30-year Treasuries hardly moved for the week--up

only two basis points.

MARKET ANALYSIS

      
                                                                % change
      U.S. STOCKS                                Latest      Week      52-week
      DOW JONES INDUSTRIALS                      5666.9     -0.9       22.2
      MIDSIZE COMPANIES (S&P MidCap Index)       229.6       0.4       9.7
      SMALL COMPANIES (Russell 2000)             326.7      -0.3       8.1
      ALL COMPANIES (Russell 3000)               375.2      -0.3       16.4
      
      FUNDAMENTALS                               Latest    Week Ago    Year Ago
      90-DAY TREASURY BILL YIELD                 5.17%       5.16%       5.57%
      30-YEAR TREASURY BOND YIELD                6.79%       6.77%       6.88%
      S&P 500 DIVIDEND YIELD                     2.18%       2.17%       2.39%
      S&P 500 PRICE/EARNINGS RATIO               18.9        19.0        16.2
      
                                                    % change (local currency)
      FOREIGN STOCKS                        Latest      Week      52-week
      LONDON (FINANCIAL TIMES 100)          3832.0       0.5       10.6
      TOKYO (NIKKEI INDEX)                  20,981.1     2.5       15.5
      TORONTO (TSE COMPOSITE)               5048.8       0.3       9.6
      
      TECHNICAL INDICATORS                         Latest   Week ago   Reading
      S&P 500 200-day moving average               638.8    636.8      Positive
      Stocks above 200-day moving average          53.0%    55.0%r     Neutral
      Speculative sentiment: Put/call ratio        0.57     0.57r      Negative
      Insider sentiment: Vickers sell/buy ratio    1.66     1.97       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.HMOs                14.4  23.5   HUMANA                17.8  2.0   19
      2.COMPUTER SYSTEMS    14.3  3.8    COMPAQ COMPUTER       30.1  7.9   56 1/4
      3.METAL AND GLASS
       CONTAINERS           12.5  3.1    CROWN CORK & SEAL     15.0  11.0  48
      4.COMPUTER SOFTWARE   10.8  30.8   COMPUTER ASSOCIATES
                                          INTL.                28.2  67.9  55 1/8
      5.TOYS                9.9   13.7   MATTEL                11.3  13.5  27 1/8
      
                             % change                         % change
                           1-    12-     Weakest stock       1-     12-
      ONE-MONTH LAGGARDS   month month   in group           month  month Price
      1.TOBACCO           -10.8  22.0    PHILIP MORRIS     -11.7   25.0  90
      2.OIL AND GAS
       DRILLING           -9.0   67.3    ROWAN             -17.3   101.8 14 3/8
      3.OIL WELL EQUIPMENT
       AND SERVICES       -7.1   28.5    BAKER HUGHES      -14.1   40.0  29 3/4
      4.DEFENSE
       ELECTRONICS        -6.2   51.6    EG&G              -6.2     0.0  19
      5.INTERNATIONAL OIL -5.6   19.1    EXXON             -9.7     17.1 81 1/4
      
      MUTUAL FUNDS
      
      LEADERS                            LAGGARDS
      Four-week total return    %        Four-week total return          %
      NORTHERN TECHNOLOGY     10.0       PIONEER INDIA B              -11.2
      T. ROWE SCIENCE &
       TECHNOLOGY              9.9       FIDELITY SELECT NATURAL GAS   -9.3
      ROBERTSON STEPHENS
       INFORMATION AGE         9.4       EV TRADITIONAL GREATER INDIA  -7.9
      
      52-week total return     %        52-week total return             %
      LANDMARK SMALL CAP
       EQUITY A               66.2       STEADMAN TECHNOLOGY GROWTH   -35.0
      MONITREND GOLD          57.4       UNITED SERVICES GOLD SHARES  -22.0
      TURNER SMALL CAP EQUITY 52.7       RESERVE INFORMED INVESTORS
                                          GROWTH A                    -19.2
      
      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
         $12,056       $11,233           $10,861       $10,525    $10,123
         -0.33%        -1.03%            -0.68%        +0.11%     +0.32%
      
      DRI/McGRAW-HILL
      
      All data on this page are as of market close Wednesday, Aug. 14, 1996, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close Aug. 13. Mutual fund 
      returns are as of Aug. 9. Relative portfolios are valued as of Aug. 13. A more 
      detailed explanation of this page is available on request. r=revised
      
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