COMMENTARY

Stocks hardly moved for the week. The big news instead was in the fixed-income

market. The Fed's decision not to raise rates sparked a mini-rally in

Treasuries, which in fact had been firming even before the Fed meeting on Sept.

24. With retail sales losing vigor and home resales actually falling, the

outlook for fixed-income securities appears bright. The critical question for

stocks: Will this make equities more attractive, or will investors view it as

foreshadowing a slowdown in earnings, and thus lower stock prices?

MARKET ANALYSIS

      
                                                                % change
      U.S. STOCKS                                Latest      Week      52-week
      DOW JONES INDUSTRIALS                      5877.4       0.0       23.4
      MIDSIZE COMPANIES (S&P MidCap Index)       240.8       1.1       12.9
      SMALL COMPANIES (Russell 2000)             343.7       0.6       12.4
      ALL COMPANIES (Russell 3000)               390.2       0.8       16.9
      
      FUNDAMENTALS                               Latest    Week Ago    Year Ago
      90-DAY TREASURY BILL YIELD                 5.04%       5.25%       5.41%
      30-YEAR TREASURY BOND YIELD                6.92%       7.01%       6.58%
      S&P 500 DIVIDEND YIELD                     2.11%       2.12%       2.34%
      S&P 500 PRICE/EARNINGS RATIO               19.7        19.5        16.8
      
                                                    % change (local currency)
      FOREIGN STOCKS                        Latest      Week      52-week
      LONDON (FINANCIAL TIMES 100)          3935.7     -0.5       12.9
      TOKYO (NIKKEI INDEX)                  21,350.7    0.9       16.9
      TORONTO (TSE COMPOSITE)               5322.6      1.0       18.3
      
      TECHNICAL INDICATORS                         Latest   Week ago   Reading
      S&P 500 200-day moving average               648.9    647.2      Positive
      Stocks above 200-day moving average          56.0%    58.0%r     Neutral
      Speculative sentiment: Put/call ratio        0.53     0.53r      Negative
      Insider sentiment: Vickers sell/buy ratio    1.27     1.27       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.SHOES            13.7   90.8   STRIDE RITE            22.6 -17.4 9 1/2
      2.SEMICONDUCTORS   13.0  -7.5    NATIONAL SEMICONDUCTOR 33.1 -28.3 20 5/8
      3.MEDICAL PRODUCTS
       AND SUPPLIES      10.6   19.0   BOSTON SCIENTIFIC      22.2  38.2 56 1/2
      4.COMPUTER SYSTEMS 9.7    23.1   DATA GENERAL           24.7  38.8 13 7/8
      5.COMMUNICATIONS
       EQUIPMENT         9.4    25.5   3COM                   28.7  18.0 56 5/8
      
                             % change                         % change
                           1-    12-     Weakest stock       1-     12-
      ONE-MONTH LAGGARDS   month month   in group           month  month Price
      1.ALUMINUM          -7.1   0.7     ALCOA             -8.2   10.1   58 1/2
      2.METAL AND GLASS
       CONTAINERS         -7.0   15.3    CROWN CORK & SEAL -7.9   25.1   45 1/2
      3.SPECIALTY APPAREL
       RETAILERS          -6.0   47.6    CHARMING SHOPPES  -14.7  15.1   6 3/16
      4.AUTOMOBILES       -5.8   2.7     FORD MOTOR        -7.4   0.8    31 1/4
      5.LONG-DISTANCE
       TELECOMMUNICATIONS -5.4  -11.6    WORLDCOM          -25.1  20.2   19 3/4
      
      MUTUAL FUNDS
      
      LEADERS                            LAGGARDS
      Four-week total return    %        Four-week total return          %
      1.ROBERTSON STEPHENS
       INFORMATION AGE        15.9       CAPPIELLO-RUSHMORE GOLD       -7.7
      2.VOYAGEUR AGGRESSIVE
       GROWTH A               15.1       RYDEX PRECIOUS METALS         -5.3
      3.VANGUARD HORIZON
       CAPITAL OPPORTUNITY    13.7       VAN ECK GOLD/RESOURCES A      -5.3
      
      52-week total return     %        52-week total return             %
      1.LANDMARK SMALL CAP
       EQUITY A              67.3       STEADMAN TECHNOLOGY GROWTH    -44.9
      2.IDS PRECIOUS METALS  55.2       MATTHEWS KOREA                -27.0
      3.GT GLOBAL CONSUMER
       PROD. & SVCS. ADV.    54.5       UNITED SERVICES GOLD SHARES   -22.2
      
      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
         $12,066       $11,194           $10,520      $10,168      $9,839
          +0.39%        -0.01%            +0.11%       +0.21%      +0.05%
      
      DRI/McGRAW-HILL
      
      All data on this page are as of market close Wednesday, Sept. 25, 1996, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close Sept. 24. Mutual fund 
      returns are as of Sept. 20. Relative portfolios are valued as of Sept. 24. A 
      more detailed explanation of this page is available on request. r=revised
      
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