COMMENTARY

Ugly aftershocks continued to roil the markets. Hong Kong stocks plunged 4% on

Nov. 12, bringing the week's loss to 10.1%. Japanese stocks skidded as well,

with the Nikkei falling to its lowest level in more than two years. Asian

contagion ravaged Latin markets, too, slicing 10% off prices in Brazil and more

than 4% in Mexico. Given the bloodbath abroad, not even a rising bond market

could cheer U.S. investors. The Dow fell more than 2% on Nov. 12, and was down

3.8% for the week. Technology was the week's worst sector, down more than 9%.

      
                                                % change
      U.S. MARKETS                Latest    Week      Year
      
      Dow Jones Industrials       7401.3    -3.8      18.0
      NASDAQ Combined Composite   1541.7    -5.8      22.3
      S&P MidCap 400               312.0    -4.6      24.3
      S&P SmallCap 600             175.9    -4.7      25.9
      S&P SuperComposite 1500      195.3    -4.0      24.0
      
                                              % change
      SECTORS                     Latest    Week     Year
      
      Bloomberg Information Age   274.9     -5.1     23.8
      S&P Financials              106.6     -5.8     33.9
      S&P Utilities               207.9      0.3      3.0
      PSE Technology              288.8     -9.1     24.6
      
                                               % change
      FOREIGN MARKETS           Latest      Week       Year
      
      London (FT-SE 100)        4720.4      -3.8       20.2
      Frankfurt (DAX)           3659.3      -5.4       31.9
      Tokyo (NIKKEI 225)      15,434.2      -6.2      -26.4
      Hong Kong (Hang Seng)    9,607.9     -10.1      -25.8
      Toronto (TSE 300)         6648.2      -4.7       14.6
      Mexico City (IPC)         4334.8     -10.1       27.5
      
                                                          Week       Year
      FUNDAMENTALS                             Latest     ago        ago
      
      S&P 500 Dividend Yield                  1.65 %     1.62 %     1.99 %
      S&P 500 P/E Ratio (Last 12 mos.)        23.1       23.4       20.2
      S&P 500 P/E Ratio (Next 12 mos.)*       18.2       18.6       16.0
      First Call Earnings Revision*          -1.65 %    -1.63 %      NA
      
                                                         Week
      TECHNICAL INDICATORS                   Latest      ago      Reading
      
      S&P 500 200-day average                870.0      866.0     Positive
      Stocks above 200-day average            70.0 %     73.0 %   Neutral
      Options: Put/call ratio                 0.68       0.67     Neutral
      Insiders: Vickers Sell/buy ratio        3.34       3.43     Negative
      
      BEST-PERFORMING             Last                                Last 12
      GROUPS                      month%                              months%
      
      Toys                         9.6       Trucking                  153.6
      Drug Chains                  8.8       Savings & Loans            68.4
      Broadcasting                 5.3       Oil & Gas Drilling         66.4
      Specialty Appar. Retailers   5.2       Oil-Well Equip. & Svcs.    64.5
      Food Chains                  3.9       Homebuilding               63.6
      
      WORST-PERFORMING            Last                                 Last 12
      GROUPS                     month%                                months%
      
      Engineering & Constr.      -30.7       Engineering & Constr.     -41.4
      Gold                       -28.7       Gold                      -38.6
      Semiconductors             -23.2       Photography/Imaging       -26.2
      Metals                     -17.8       Metals                    -23.8
      Defense Electronics        -17.2       Shoes                     -13.9
      
      BLOOMBERG MONEY FLOW ANALYSIS
      Rebound ahead?  Stocks with most                            1-month
      significant buying on price weakness    Price               change
      
      Telebras-ADR                           93 1/4              -50 11/16
      IBM                                    99                   -5 1/2
      Citicorp                              123 7/16             -17 5/16
      Wells Fargo                           281                  -13 3/8
      Microsoft                             130 5/8               -6 1/8
      Salomon                                80 5/8               -2 3/4
      
      Decline ahead?  Stocks with most                            1-month
      significant selling on price strength   Price               change
      
      Amgen                                  51 1/2                2 9/16
      Philip Morris                          41 9/16                 1/8
      Eli Lilly                              65 1/8                2 3/4
      Qwest Communications                   52 1/2                  1/4
      Monsanto                               44 1/8                4 1/16
      Money Store                            30 1/16               2 3/8
      
                                 Latest   Week   Year
      KEY RATES                  week%    ago%   ago%
      
      MONEY MARKET FUNDS          5.15    5.14   4.94
      90-DAY TREASURY BILLS       5.26    5.25   5.17
      6-MONTH BANK CDS            5.18    5.18   5.01
      1-YEAR TREASURY BILLS       5.39    5.40   5.42
      10-YEAR TREASURY NOTES      5.85    5.92   6.20
      30-YEAR TREASURY BONDS      6.10    6.23   6.46
      LONG-TERM AA INDUSTRIALS    6.71    6.78   6.98
      LONG-TERM BBB INDUSTRIALS   7.08    7.18   7.41
      LONG-TERM AA TELEPHONES     6.97    7.08   7.17
      
      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     4.56%   4.57%     5.14%   5.15%
      PERCENT OF TREASURIES  78.04   77.32     84.31   82.78
      TAXABLE EQUIVALENT      6.61    6.62      7.45    7.46
      INSURED REVENUE BONDS   4.72    4.74      5.38    5.40
      PERCENT OF TREASURIES  80.78   80.19     88.25   86.80
      TAXABLE EQUIVALENT      6.84    6.87      7.80    7.83
      
      EQUITY FUNDS
      EQUITY FUND CATEGORIES
      
      Leaders                                 Laggards
      Four-week total return         %        Four-week total return         %
      
      Prudent Bear                  13.6      Wright EquiFund-Hong Kong    -30.5
      Rydex Ursa                     4.3      Fidelity Hong Kong & China   -27.7
      Caldwell & Orkin Mkt. Opp.     4.2      Montgomery Emerg. Asia R     -27.6
      Smith Barney Telecom. Income   4.0      Govett Latin America A       -26.8
      Lighthouse Growth              3.4      Guinness Flight China        -26.2
      
      Leaders                                 Laggards
      52-week total return           %        52-week total return           %
      
      Lexington Troika Russia       85.6      U.S. Global Investors Gold   -54.7
      Fidelity Sel. Energy Service  83.8      Bull & Bear Gold Investors   -51.5
      Hartford Capital Apprec. A    68.2      Midas                        -51.1
      Mutual Shares II              65.5      DFA Japanese Small Co.       -51.0
      Evergreen U.S. Real Est.Y     64.0      Morgan Stan. Instl. Gold A   -50.1
      
      Leaders                                 Laggards
      Four-week total return         %        Four-week total return          %
      
      Utilities                    -1.6       Latin America                -23.6
      Domestic Hybrid              -2.9       Precious Metals              -20.0
      Financial                    -4.2       Pacific/Asia ex-Japan        -19.6
      Real Estate                  -4.3       Diversified Emerging Mkts.   -17.3
      International Hybrid         -4.4       Diversified Pacific/Asia     -15.1
      
      Leaders                                 Laggards
      52-week total return          %         52-week total return           %
      
      Financial                    38.8       Precious Metals              -37.4
      Small-cap Value              34.4       Pacific/Asia ex-Japan        -26.3
      Small-cap Blend              30.1       Diversified Pacific/Asia     -21.5
      Real Estate                  28.9       Japan                        -20.0
      Mid-cap Value                28.2       Diversified Emerging Mkts.    -0.8
      
      All data are as of market close Wednesday, Nov. 12, 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 11. 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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