COMMENTARY

Concerns that slower economic growth overseas could drag down corporate profits

in the U.S. kept markets jittery. But the Dow Jones industrial average gained

2.5% and the Standard & Poor's 500-stock index rose 2.6% as the markets--and

investors--recovered from the shock of Oct. 27. The week's stunner came on Nov.

3, when the Dow jumped 232 points, or 3.1%. Among equity mutual funds, the

Prudent Bear fund's short positions in tech and consumer debt stocks helped

keep it the leader in four-week total return (see below).

      
                                             % change
      U.S. MARKETS                Latest   Week    Year
      
      Dow Jones Industrials       7692.6    2.5    24.5
      NASDAQ Combined Composite   1637.3    2.2    33.2
      S&P MidCap 400               327.1    2.9    33.9
      S&P SmallCap 600             184.6    2.7    35.2
      S&P SuperComposite 1500      203.5    2.6    32.3
      
                                             % change
      SECTORS                     Latest   Week   Year
      
      Bloomberg Information Age    289.6    2.7    35.4
      S&P Financials               113.2    2.1    43.5
      S&P Utilities                207.3    0.7     3.6
      PSE Technology               317.6    4.6    43.6
      
                                             % change
      FOREIGN MARKETS             Latest    Week   Year
      
      London (FT-SE 100)          4908.3     0.7   24.7
      Frankfurt (DAX)             3866.7     2.0   41.7
      Tokyo (NIKKEI 225)        16,448.1    -2.4  -21.6
      Hong Kong (Hang Seng)     10,681.8    -0.8  -14.6
      Toronto (TSE 300)           6976.6     1.9   23.2
      Mexico City (IPC)           4823.7     0.6   46.8
      
                                                         Week       Year
      FUNDAMENTALS                            Latest      ago        ago
      
      S&P 500 Dividend Yield                  1.62 %     1.65 %     1.99 %
      S&P 500 P/E Ratio (Last 12 mos.)        23.4       23.0       20.1
      S&P 500 P/E Ratio (Next 12 mos.)*       18.6       18.3        NA
      First Call Earnings Revision*          -1.63 %    -1.81 %      NA
      
                                                         Week
      TECHNICAL INDICATORS                   Latest       ago        Reading
      
      S&P 500 200-day average                 866.0      862.3       Positive
      Stocks above 200-day average             73.0 %     70.0 %     Negative
      Options: Put/call ratio                  0.67       0.69       Neutral
      Insiders: Vickers Sell/buy ratio         3.43       3.45       Negative
      
      BEST-PERFORMING         Last                                    Last 12
      GROUPS                  month%                                  months%
      
      Toys                     13.5        Trucking                    183.0
      Oil-Well Equip. & Svcs.   9.7        Oil & Gas Drilling           93.3
      Airlines                  9.5        Invest. Banking/Brkrge.      87.3
      Broadcasting              9.0        Oil-Well Equip. & Svcs.      83.6
      Drugs                     8.6        Homebuilding                 81.4
      
      WORST-PERFORMING         Last                                    Last 12
      GROUPS                   month%                                  months%
      
      Engineering & Constr.   -28.3        Engineering & Constr.       -36.0
      Gold Mining             -20.8        Gold Mining                 -24.7
      Pollution Control       -20.4        Photography/Imaging         -20.8
      Semiconductors          -16.9        Metals                      -12.6
      Forest Products         -13.7        Pollution Control           -10.0
      
      BLOOMBERG MONEY FLOW ANALYSIS
      Rebound ahead?  Stocks with most                               1-month
      significant buying on price weakness    Price                   change
      
      Telebras-ADR                            114 1/16               -29 9/16
      Microsoft                               134 1/4                    -7/8
      Citicorp                                131                    -8
      IBM                                     101 15/16              -2 7/8
      Chase Manhattan                         118 15/16              -6
      Salomon                                  81 9/16               -3/4
      
      Decline ahead?  Stocks with most                              1-month
      significant selling on price strength     Price                change
      
      Cisco Systems                            83 7/16                3 7/8
      Amgen                                    53 3/16                5 1/2
      Immunex                                  71 1/2                 5 3/8
      Tellabs                                  56 3/8                 1 1/4
      Ciena                                    57 1/4                 2 1/4
      Linear Technology                        67 3/4                 2 1/4
      
      Data: Bloomberg Financial Markets; *First Call Corp.
      
                                     Latest     Week     Year
      KEY RATES                       week%     ago%     ago%
      
      MONEY MARKET FUNDS              5.14      5.14     4.96
      90-DAY TREASURY BILLS           5.25      5.19     5.17
      6-MONTH BANK CDS                5.18      5.19     5.02
      1-YEAR TREASURY BILLS           5.40      5.35     5.43
      10-YEAR TREASURY NOTES          5.92      5.91     6.28
      30-YEAR TREASURY BONDS          6.23      6.23     6.60
      LONG-TERM AA INDUSTRIALS        6.78      6.75     7.06
      LONG-TERM BBB INDUSTRIALS       7.18      7.12     7.50
      LONG-TERM AA TELEPHONES         7.08      7.01     7.26
      
      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      4.57%    4.56%      5.15%     5.14%
      PERCENT OF TREASURIES   77.32    77.50      82.78     82.82
      TAXABLE EQUIVALENT       6.62     6.61       7.46      7.45
      INSURED REVENUE BONDS    4.74     4.70       5.40      5.36
      PERCENT OF TREASURIES   80.19    79.88      86.80     86.36
      TAXABLE EQUIVALENT       6.87     6.81       7.83      7.77
      
      EQUITY FUND CATEGORIES
      
      Leaders                                 Laggards
      Four-week total return         %        Four-week total return         %
      
      Prudent Bear                  7.5       Wright EquiFund-Hong Kong    -28.7
      Gintel                        4.6       Fidelity Hong Kong & China   -28.4
      Rydex Ursa                    3.8       Guinness Flight China        -25.1
      DFA Japanese Small Co.        3.6       Montgomery Emerg. Asia R     -25.0
      Fidelity Sel. Energy Service  3.0       Eaton Vance Grtr. China B    -24.0
      
      Leaders                                 Laggards
      52-week total return           %        52-week total return           %
      
      Lexington Troika Russia      106.1      U.S. Global Investors Gold   -52.4
      Fidelity Sel. Energy Service  94.9      Bull & Bear Gold Investors   -49.3
      Hartford Capital Apprec. A    82.2      Midas                        -47.4
      Fidelity Select Brokerage     71.5      Morgan Stan. Instl. Gold A   -46.6
      American Heritage             71.2      Gabelli Gold                 -44.5
      
      Leaders                                 Laggards
      Four-week total return        %         Four-week total return       %
      
      Utilities                   -2.2        Pacific/Asia ex-Japan      -17.5
      Domestic Hybrid             -2.6        Latin America              -15.4
      Small-cap Value             -3.4        Precious Metals            -14.9
      Financial                   -3.6        Diversified Pacific/Asia   -12.0
      Mid-cap Value               -3.8        Diversified Emerging Mkts. -11.9
      
      Leaders                                 Laggards
      52-week total return          %         52-week total return            %
      
      Financial                   44.7        Precious Metals              -33.1
      Small-cap Value             37.9        Pacific/Asia ex-Japan        -20.8
      Small-cap Blend             34.7        Diversified Pacific/Asia     -16.0
      Real Estate                 33.9        Japan                        -12.1
      Mid-cap Value               33.2        Diversified Emerging Markets   6.3
      
      All data are as of market close Wednesday, Nov. 5, 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 Nov. 4. 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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