COMMENTARY

It was a record-breaking week in which U.S. equities charged ahead for five

days in a row. The Dow Jones industrial average broke the 7500 mark on June 10

and then climbed to an all-time high of 7576 on June 11, a 37-point gain in one

day and a 300-point advance since June 4. Heady profit expectations fueled the

gains, which also were enjoyed by the Standard & Poor's 500-stock index. But

the dollar was weak, falling to a seven-month low against the yen, after word

of a huge gain in the Japanese current account surplus.

STOCKS

      
                                                             % change
      U.S. MARKETS                           Latest        Week    Year
      Dow Jones Industrials                  7575.8         4.2    33.6
      NASDAQ Combined Composite              1407.9         2.0    14.4
      S&P MidCap 400                          283.1         1.3    17.8
      S&P SmallCap 600                        157.4         0.6    13.7
      S&P SuperComposite 1500                 185.9         3.2    27.6
      
                                                             % change
      SECTORS                                Latest        Week    Year
      Bloomberg Information Age               262.5         3.2    25.7
      S&P Financials                           99.7         4.6    48.6
      S&P Utilities                           193.4         0.8     1.8
      PSE Technology                          274.6         1.5    25.9
      
                                                             % change
      FOREIGN MARKETS                         Latest        Week    Year
      London (FT-SE 100)                     4724.8         3.7    25.8
      Frankfurt (DAX)                        3677.4         0.4    44.4
      Tokyo (NIKKEI 225)                   20,289.9        -1.6    -7.0
      Hong Kong (Hang Seng)                14,421.5        -2.8    31.2
      Toronto (TSE 300)                      6459.5         0.5    26.5
      Mexico City (IPC)                      4194.4         1.8    30.0
      
                                                          Week     Year
      FUNDAMENTALS                            Latest       ago      ago
      S&P 500 Dividend Yield                  1.72%        1.76%   2.13%
      S&P 500 P/E Ratio (Last 12 mos.)       21.9         21.4    19.2
      S&P 500 P/E Ratio (Next 12 mos.)*      17.8         17.5      NA
      First Call Earnings Revision*          -1.7%        -1.44%    NA
      
                                                            Week
      TECHNICAL INDICATORS                    Latest         ago     Reading
      S&P 500 200-day average                 757.0        752.3     Positive
      Stocks above 200-day average             76.0%        73.0%    Negative
      Options: Put/call ratio                   0.54         0.53    Negative
      Insiders: Vickers Sell/buy ratio          1.41         1.36    Positive
      
      BEST-PERFORMING             Last                                 Last 12
      GROUPS                      month %                              months %
      Broadcasting                22.1          Savings & Loans           72.3
      Oil & Gas Drilling          18.0          Invest. Banking/Brkrge.   66.2
      Personal Loans              15.0          Oil & Gas Drilling        61.2
      Heavy-Duty Trucks           13.5          Semiconductors            59.7
      Savings & Loans             12.7          Computer Software         52.8 
      
      WORST-PERFORMING             Last                                 Last 12
      GROUPS                      month %                              months %
      Trucking                    -5.4          Gold Mining              -20.1
      Semiconductors              -4.6          Engineering & Constr.    -16.7
      Restaurants                 -3.7          Manufactured Housing      -8.1
      Gold Mining                 -2.7          Hotels & Motels           -7.5
      Oil Exploration & Prod.     -2.1          Defense Electronics       -4.2
      
      Data: Bloomberg Financial Markets; *First Call Corp.
      
                     BLOOMBERG MONEY FLOW ANALYSIS
      Rebound ahead?  Stocks with most                    1-month
      significant buying on price weakness    Price        change
      
      IBM                                     86 1/4       -1/2
      Applied Materials                       60 3/4       -7/8
      Texaco                                 111 3/4       -7/8
      Texas Instruments                       86 1/4       -6
      AMR                                     94 1/2       -3/4
      VeriFone                                51 3/4       -3 5/8
      
      Decline ahead?  Stocks with most                     1-month
      significant selling on price strength   Price         change
      
      Microsoft                             124 13/16     6 11/16
      Dell Computer                         110          15  3/4
      3Com                                   45  7/16     7  7/16
      Worldcom                               28 11/16     2  9/16
      Amgen                                  62  5/8      2  1/4
      Nike                                   58  1/8      1  7/8
      
      INTEREST RATES
      
                                     Latest      Week      Year
      KEY RATES                      week%       ago%      ago%
      MONEY MARKET FUNDS             5.15        5.15      4.86
      90-DAY TREASURY BILLS          4.97        5.09      5.27
      6-MONTH BANK CDS               5.21        5.22      4.97
      1-YEAR TREASURY BILLS          5.72        5.77      5.87
      10-YEAR TREASURY NOTES         6.55        6.62      6.99
      30-YEAR TREASURY BONDS         6.83        6.88      7.13
      LONG-TERM AA INDUSTRIALS       7.35        7.39      7.69
      LONG-TERM BBB INDUSTRIALS      7.75        7.80      8.04
      LONG-TERM AA TELEPHONES        7.58        7.64      7.93
      
                   BLOOMBERG MUNI YIELD EQUIVALENTS
      Taxable equivalent yields on AAA-rated, tax-exempt municipal bonds, 
      assuming a 31% federal tax rate.
                                     10-yr. bond          30-yr. bond
                                    Latest  Last         Latest  Last
                                    week    week         week    week
      GENERAL OBLIGATIONS           4.79%   4.87%        5.36%   5.44%
      PERCENT OF TREASURIES         73.00   73.59        78.42   79.09
      TAXABLE EQUIVALENT            6.94    7.06         7.77    7.88
      INSURED REVENUE BONDS         4.92    4.98         5.57    5.63
      PERCENT OF TREASURIES         74.96   75.25        81.47   81.85
      TAXABLE EQUIVALENT            7.13    7.22         8.07    8.16
      
      Data: Bloomberg Financial Markets
      
      MUTUAL FUNDS
      
      EQUITY FUNDS
      Leaders                                    Laggards
      Four-week total return           %         Four-week total return       %
      Matthews Korea                  13.6       Fontaine Global Growth      -9.3
      Keystone Am. Hart. Em. Gr. A    12.9       Bull & Bear Gold Investors  -8.3
      Invesco Worldwide Cap. Gds.     12.3       Midas                       -6.2
      American Heritage               11.5       Lindner Bulwark Investors   -6.0
      Weitz Hickory                   11.3       Invesco Strategic Gold      -5.9
      
      Leaders                                    Laggards
      52-week total return              %        52-week total return         %
      Morgan Stan. Inst. Lat. Am. A   58.1       Frontier Equity            -53.9
      Morgan Stan. Latin Amer. A      56.4       Steadman Technology Grth.  -44.5
      Davis Financial A               49.4       United Svcs. Gold Shares   -42.6
      Legg Mason Value Primary        48.6       Perkins Opportunity        -37.5
      Fidelity Sel. Home Finance      46.6       Bull & Bear Gold Investors -34.4
      
      EQUITY FUND CATEGORIES
      Leaders                                    Laggards
      Four-week total return           %         Four-week total return       %
      Small-cap Growth                 7.1       Precious Metals             -3.2
      Japan                            6.7       Technology                   1.3
      Small-cap Blend                  6.6       Europe                       1.4
      Health                           6.5       International Hybrid         2.1
      Communications                   6.5       Real Estate                  2.5
      
      Leaders                                    Laggards
      52-week total return              %        52-week total return         %
      Financial                       40.6       Precious Metals            -22.5
      Latin America                   35.9       Small-cap Growth            -4.0
      Real Estate                     30.0       Japan                       -3.4
      Large-cap Blend                 25.5       Pacific/Asia ex-Japan        4.4
      Large-cap Value                 25.4       Diversified Pacific/Asia     4.5
      
      Data: Morningstar, Inc.
      
      All data are as of market close Wednesday, June 11, 1997, unless otherwise 
      indicated. Industry groups include S&P 500 companies only.  Fundamentals, 
      technical indicators, Bloomberg money flow analysis, and mutual fund returns 
      are as of June 10. For a more detailed explanation, write to us or E-mail 
      figures@businessweek.com.  NA=Not available  **Vanguard Index 500 Fund  
      
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