COMMENTARY

The Dow Jones industrial average came within a hair of 6000. The Dow's ascent

to 5992.9 on October 4 was fueled by an unexpected drop in employment, which

soothed inflation fears and sent the yield on the 30-year Treasury bond from

6.83% to 6.74%. The Standard & Poor's 500-stock index and the Nasdaq Composite

Index also hit new highs. But concerns about weakening corporate profits and

rising interest rates jolted markets in mid-week, sending the 30-year bond

yield up to 6.83% and the Dow down to 5930.6.

MARKET ANALYSIS

      
                                                                % change
      U.S. STOCKS                                Latest      Week      52-week
      DOW JONES INDUSTRIALS                      5930.6      -0.1       25.2
      MIDSIZE COMPANIES (S&P MidCap Index)       242.9       -0.2       15.7
      SMALL COMPANIES (Russell 2000)             346.1       -0.6       16.2
      ALL COMPANIES (Russell 3000)               396.1        0.2       19.3
      
      FUNDAMENTALS                               Latest    Week Ago    Year Ago
      90-DAY TREASURY BILL YIELD                  5.13%      5.02%       5.45%
      30-YEAR TREASURY BOND YIELD                 6.83%      6.83%       6.43%
      S&P 500 DIVIDEND YIELD                      2.07%      2.09%       2.35%
      S&P 500 PRICE/EARNINGS RATIO                20.1       19.9        16.7
      
                                                    % change (local currency)
      FOREIGN STOCKS                        Latest      Week      52-week
      LONDON (Financial Times 100)          4009.3     -0.1       15.4
      TOKYO (Nikkei Index)                  20,870.8   -2.9       16.7
      TORONTO (TSE Composite)               5436.1      0.9       21.5
      
      TECHNICAL INDICATORS                       Latest   Week ago   Reading
      S&P 500 200-day moving average             652.9     650.7     Positive
      Stocks above 200-day moving average        62.0%     61.0%r    Neutral
      Speculative sentiment: Put/call ratio      0.57      0.53      Negative
      Insider sentiment: Vickers sell/buy ratio  1.51      1.52      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.OIL & GAS         23.0  117.3  ROWAN                32.3  178.0 20 1/2
       DRILLING
      2.MANUFACTURED      18.5  64.4   FLEETWOOD            18.5  64.4  32 7/8
       HOUSING                          ENTERPRISES
      3.SEMICONDUCTORS    17.9  0.4    MICRON TECHNOLOGY    49.1 -55.4  31 1/2
      4.COMMUNICATIONS    15.7  38.5   SCIENTIFIC ATLANTA   42.0  13.6  17 3/4
       EQUIPMENT
      5.INVESTMENT
       BANKING/BROKERAGE  14.5  23.7   TRAVELERS GROUP      18.9  47.5  52
      
                             % change                         % change
                           1-    12-     Weakest stock       1-     12-
      ONE-MONTH LAGGARDS   month month   in group           month  month Price
      1.DEFENSE           -11.5  33.1    EG&G              -11.5  -9.8   17 1/4
       ELECTRONICS
      2.MACHINE TOOLS     -7.5  -30.6    GIDDINGS & LEWIS  -10.2  -31.6  11 1/2
      3.ALUMINUM          -6.0   1.4     ALCOA             -9.5    5.9   56 1/4
      4.GOLD MINING       -5.3  -0.8     HOMESTAKE MINING  -14.2  -15.4  14 3/8
      5.HOTELS AND MOTELS -3.7   16.4    ITT               -22.5   NA    42 5/8
      
      MUTUAL FUNDS
      
      LEADERS                            LAGGARDS
      Four-week total return    %        Four-week total return          %
      1.ROBERTSON STEPHENS    21.9       PIONEER INDIA B              -13.0
       INFORMATION AGE
      2.MERRILL LYNCH         17.2       EV MARATHON GREATER INDIA    -11.0
       TECHNOLOGY C
      3.VANGUARD HORIZON      16.7       CAPPIELLO-RUSHMORE GOLD       -8.1
       CAPITAL OPPORTUNITY
      
      52-week total return     %        52-week total return             %
      1.DREYFUS AGGRESSIVE   85.6       STEADMAN TECHNOLOGY GROWTH    -40.8
       GROWTH
      2.LANDMARK SMALL CAP   80.0       MATTHEWS KOREA                -25.4
       EQUITY A
      3.WARBURG PINCUS       73.2       PIONEER INDIA B               -22.9
       POST-VENTURE CAP COMM.
      
      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
         $12,364       $11,567           $10,518      $10,212      $9,922
          +1.68%        +0.05%            +0.11%      +1.18%       +0.04%
      
      DRI/McGRAW-HILL
      
      All data on this page are as of market close Wednesday, Oct. 9, 1996, unless 
      otherwise indicated. Industry groups include S&P 500 companies only; 
      performance and share prices are as of market close Oct. 8. Mutual fund returns 
      are as of Oct. 4. Relative portfolios are valued as of Oct. 8. A more detailed 
      explanation of this page is available on request. r=revised NA=Not available
      
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