STOCKS

COMMENTARY

Japanese stocks went into a tailspin on Nov. 19--a 5% decline that was the

worst one-day drop in three years. Traders were reacting to word that the

government would not spend money to support the nation's financial

institutions. The dollar surged, but U.S. markets shrugged off the woes in

Japan. Expectations of still more merger activity sent the Dow climbing 74

points on Nov. 19, which followed a 126-point gain on Nov. 17. Falling rates

helped spur the rally on Nov. 19.

      
                                                % change
      U.S. MARKETS              Latest      Week      Year
      Dow Jones Industrials       7724.7     4.4      20.1
      NASDAQ Combined Composite   1601.2     3.9      26.6
      S&P MidCap 400               319.1     2.3      25.8
      S&P SmallCap 600             178.5     1.5      26.6
      S&P SuperComposite 1500      203.0     3.9      26.8
      
                                                    % change
      SECTORS                      Latest       Week      Year
      Bloomberg Information Age     293.6        6.8     28.6
      S&P Financials                112.2        5.3     36.4
      S&P Utilities                 212.7        2.3      5.1
      PSE Technology                303.1        5.0     26.6
      
                                              % change
      FOREIGN MARKETS           Latest     Week       Year
      London (FT-SE 100)        4830.1      2.3        21.9
      Frankfurt (DAX)           3834.8      4.8        38.2
      Tokyo (NIKKEI 225)      15,842.5      2.6       -25.2
      Hong Kong (Hang Seng)   10,154.4      5.7       -22.9
      Toronto (TSE 300)         6719.3      1.1        12.6
      Mexico City (IPC)         4679.2      7.9        39.3
      
                                                         Week      Year
      FUNDAMENTALS                            Latest     ago        ago
      S&P 500 Dividend Yield                  1.63 %     1.65 %     1.95 %
      S&P 500 P/E Ratio (Last 12 mos.)        23.7       23.1       20.5
      S&P 500 P/E Ratio (Next 12 mos.)*       18.6       18.2       16.2
      First Call Earnings Revision*          -1.47 %    -1.65 %      NA
      
                                                        Week
      TECHNICAL INDICATORS                   Latest     ago          Reading
      S&P 500 200-day average                873.5      870.0        Positive
      Stocks above 200-day average            69.0 %     70.0 %      Neutral
      Options: Put/call ratio                 0.69       0.68        Neutral
      Insiders: Vickers Sell/buy ratio        2.81       3.34        Negative
      
      BEST-PERFORMING            Last                                      Last 12
      GROUPS                     month%                                    months%
      Drug Chains                 16.3      Trucking                       136.8
      Specialty Appar. Retailers  11.7      Homebuilding                    66.9
      Genl. Merchandise Chains    11.2      Invest. Banking/Brkrge.         66.8
      Regional Telephone Cos.      9.8      Savings & Loans                 66.7
      Entertainment                9.8      Specialty Appar. Retailers      64.3
      
      WORST-PERFORMING            Last                                    Last 12
      GROUPS                     month%                                   months%
      Engineering & Constr.      -29.9      Engineering & Constr.          -41.6
      Gold Mining                -25.5      Gold Mining                    -37.6
      Metals                     -16.5      Photography/Imaging            -27.7
      Trucking                   -16.2      Metals                         -25.0
      Pollution Control          -13.3      Manufactured Housing           -17.2
      
      BLOOMBERG MONEY FLOW ANALYSIS
      
      Rebound ahead?  Stocks with most                              1-month
      significant buying on price weakness    Price                 change
      Telebras-ADR                            99                    -45 5/8
      Wells Fargo                            286 7/8                 -4 13/16
      Citicorp                               122 1/8                -16 3/4
      Texas Instruments                       98 5/8                -23 1/4
      Salomon                                 81 1/8                 -1/16
      Merck                                   90 5/8                 -4 1/16
      
      Decline ahead?  Stocks with most                               1-month
      significant selling on price strength   Price                   change
      Cisco Systems                           82 5/16                   7/8
      Oracle                                  34 3/4                    1/4
      Philip Morris                           42 1/16                 1 3/8
      Amgen                                   52 1/4                  5 3/8
      Coca-Cola                               59 3/4                   15/16
      Sears Roebuck                           46 13/16                1 3/16
      
      INTEREST RATES
      
                                    Latest       Week        Year
      KEY RATES                     week%        ago%        ago%
      MONEY MARKET FUNDS             5.16        5.15        4.94
      90-DAY TREASURY BILLS          5.26        5.30        5.17
      6-MONTH BANK CDS               5.19        5.19        5.03
      1-YEAR TREASURY BILLS          5.44        5.43        5.40
      10-YEAR TREASURY NOTES         5.82        5.89        6.17
      30-YEAR TREASURY BONDS         6.03        6.13        6.44
      LONG-TERM AA INDUSTRIALS       6.68        6.71        6.96
      LONG-TERM BBB INDUSTRIALS      7.00        7.08        7.39
      LONG-TERM AA TELEPHONES        6.88        6.97        7.13
      
      Data: Bloomberg Financial Markets; *First Call Corp.
      
      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
      BLOOMBERG MUNI YIELD
      GENERAL OBLIGATIONS        4.56%    4.56%       5.14%    5.14%
      PERCENT OF TREASURIES     78.44    78.04       85.20    84.31
      TAXABLE EQUIVALENT         6.61     6.61        7.45     7.45
      INSURED REVENUE BONDS      4.67     4.72        5.34     5.38
      PERCENT OF TREASURIES     80.33    80.78       88.51    88.25
      TAXABLE EQUIVALENT         6.77     6.84        7.74     7.80
      
      MUTUAL FUNDS
      
      EQUITY FUND CATEGORIES
      Leaders                                 Laggards
      Four-week total return          %       Four-week total return         %
      Smith Barney Telecom.  Inc.    7.9      Midas                       -32.6
      Prudent Bear                   7.5      U.S. Global Investors Gold  -30.8
      Fidelity Sel. Retailing        5.1      Morgan Stan. Instl. Gold A  -29.1
      Countrywide Utility A          2.7      Gabelli Gold                -28.8
      Rydex Ursa                     2.7      Blanchard Precious Metals   -27.5
      
      Leaders                                 Laggards
      52-week total return             %      52-week total return           %
      Hartford Capital Apprec. A      71.9    U.S. Global Investors Gold   -59.3
      Lexington Troika Russia         63.4    Midas                        -58.3
      Fidelity Sel. Energy Service    62.9    Morgan Stan. Instl. Gold A   -56.1
      Mutual Shares II                61.8    Bull & Bear Gold Investors   -55.1
      Evergreen U.S. Real Est. Y      61.6    Gabelli Gold                 -53.4
      
      Leaders                                 Laggards
      Four-week total return    %             Four-week total return         %
      Utilities               -0.6            Precious Metals              -24.5
      Real Estate             -2.3            Latin America                -23.8
      Domestic Hybrid         -2.3            Diversified Emerging Mkts.   -17.8
      International Hybrid    -3.6            Pacific/Asia ex-Japan        -13.4
      Large-cap Value         -3.8            Diversified Pacific/Asia     -10.9
      
      Leaders                                 Laggards
      52-week total return     %              52-week total return           %
      Financial              38.1             Precious Metals              -42.7
      Small-cap Value        32.9             Pacific/Asia ex-Japan        -28.7
      Real Estate            29.6             Diversified Pacific/Asia     -22.0
      Small-cap Blend        28.8             Japan                        -17.7
      Mid-cap Value          27.1             Diversified Emerging Mkts.    -3.9
      
      All data are as of market close Wednesday, Nov. 19, 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. 18. 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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