COMMENTARY

Despite a week of interest-rate worries and Mideast tensions, the Dow Jones

industrials logged nearly 100 points to close at 5754.9, just 23 points off the

all-time high. The Dow got some power from its four energy stocks, which

climbed along with oil prices. Small-cap and midcap stocks made gains only

about half that of the larger companies. Fears of higher rates subsided on

Sept. 11 when a Federal Reserve economic survey found little evidence of

inflation.

MARKET ANALYSIS

      
                                                                % change
      U.S. STOCKS                                Latest      Week      52-week
      DOW JONES INDUSTRIALS                      5754.9      1.7       20.8
      MIDSIZE COMPANIES (S&P MidCap Index)       233.9       0.7       7.5
      SMALL COMPANIES (Russell 2000)             336.7       0.6       6.6
      ALL COMPANIES (Russell 3000)               379.2       1.5       13.5
      
      FUNDAMENTALS                               Latest    Week Ago    Year Ago
      90-DAY TREASURY BILL YIELD                 5.30%       5.31%       5.45%
      30-YEAR TREASURY BOND YIELD                7.11%       7.10%       6.52%
      S&P 500 DIVIDEND YIELD                     2.16%       2.20%       2.34%
      S&P 500 PRICE/EARNINGS RATIO               19.1              18.7              
      16.7
      
                                                    % change (local currency)
      FOREIGN STOCKS                        Latest      Week      52-week
      LONDON (FINANCIAL TIMES 100)         3905.6       0.8       9.4
      TOKYO (NIKKEI INDEX)                 20,571.0     1.8      10.5
      TORONTO (TSE COMPOSITE)              5160.4      -0.1      12.5
      
      TECHNICAL INDICATORS                     Latest   Week ago   Reading
      S&P 500 200-day moving average            645.4    643.9     Positive
      Stocks above 200-day moving average       56.0%    55.0%r    Neutral
      Speculative sentiment: Put/call ratio     0.72     0.75r     Positive
      Insider sentiment: Vickers sell/buy ratio 1.27     1.25      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.MACHINE TOOLS     8.1  -30.7   GIDDINGS & LEWIS      8.5   -22.7 12 3/4
      2.SHOES             6.9   95.7   STRIDE RITE           32.8  -14.4 9 5/8
      3.OIL AND GAS
       DRILLING           6.8   69.8   ROWAN                 7.4    100.0 16 1/4
      4.DIVERSIFIED
       MACHINERY          6.5   12.7   DEERE                 16.1   44.7  42 3/8
      5.FOOD
       WHOLESALERS        6.2   2.1    FLEMING               14.8  -42.6  16 1/2
      
                             % change                         % change
                           1-    12-     Weakest stock       1-     12-
      ONE-MONTH LAGGARDS   month month   in group           month  month Price
      1.HOTELS AND MOTELS -10.4  12.1    HARRAH`S          -20.0  -42.6  18 1/2
       ENTERTAINMENT
      2.SPECIALTY APPAREL
       RETAILERS          -8.3   45.2    GAP               -10.6   89.5  31 5/8
      3.HOUSEWARES        -7.1   4.2     RUBBERMAID        -19.5  -21.6  22 3/4
      4.REGIONAL TELEPHONE
       COMPANIES          -7.0   -0.1    AMERITECH         -9.5   -1.0   50 1/4
      5.AIRLINES          -6.6   -2.3    SOUTHWEST        -10.7   -14.1  22 7/8
       AIRLINES
      
      MUTUAL FUNDS
      
      LEADERS                            LAGGARDS
      Four-week total return    %        Four-week total return          %
      1.EV MARATHON GOLD &
       NATURAL RESOURCES      12.4       SMITH BARNEY TELECOMM. INCOME -7.7
      2.JOHN HANCOCK GLOBAL              FIDELITY SELECT AIR
       RESOURCES B            8.1         TRANSPORTATION               -7.2
      3.STATE STREET RESEARCH
       GLOBAL RES. C          7.6        STEADMAN AMERICAN INDUSTRY    -7.0
      
      52-week total return     %        52-week total return             %
      1.LANDMARK SMALL CAP
       EQUITY A              63.8       STEADMAN TECHNOLOGY GROWTH    -44.2
      2.IDS PRECIOUS                    STEADMAN AMERICAN INDUSTRY    -29.8
       METALS A              55.8
      3.MONITREND GOLD       53.1       SELIGMAN COMMUNICATIONS
                                         & INFORM. D       -26.2
      
      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
         $11,728       $11,238           $10,521       $9,984      $9,752
          +1.39%       +0.45%             +0.11%       -0.62%      -0.87%
      
      DRI/McGRAW-HILL
      
      All data on this page are as of market close Wednesday, Sept. 11, 1996, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close Sept. 10. Mutual fund 
      returns are as of Sept. 6. Relative portfolios are valued as of Sept. 10. A 
      more detailed explanation of this page is available on request. r=revised
      
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