COMMENTARY

Financial turmoil continued in the Far East with the collapse of Yamaichi

Securities, one of Japan's leading brokerage firms. Even so, the Nikkei 225

remains about 5% higher than its Nov. 14 low. The fallout from Yamaichi's

failure knocked 113 points off the Dow on Nov. 24, but it recouped 41 of those

points the next day. All told, the Dow industrials and the broader S&P 500

index are still trading slightly higher than they were right before the Oct. 27

minicrash. Steady interest rates helped U.S. stocks keep their footing.

      
                                                  % change
      U.S. MARKETS                Latest       Week       Year
      
      Dow Jones Industrials       7809.0       1.1        19.6
      NASDAQ Combined Composite   1589.0      -0.8        24.0
      S&P MidCap 400               319.7       0.2        25.1
      S&P SmallCap 600             176.4      -1.2        23.6
      S&P SuperComposite 1500      204.1       0.5        25.6
      
                                                 % change
      SECTORS                     Latest      Week        Year
      
      Bloomberg Information Age    294.8       0.4        26.2
      S&P Financials               112.5       0.3        33.2
      S&P Utilities                219.3       3.1         8.8
      PSE Technology               300.9      -0.7        22.7
      
                                                  % change
      FOREIGN MARKETS             Latest      Week       Year
      
      London (FT-SE 100)          4863.5       0.7        19.5
      Frankfurt (DAX)             3849.2       0.4        37.0
      Tokyo (NIKKEI 225)        15,867.5       0.2       -25.9
      Hong Kong (Hang Seng)     10,325.6       1.7       -23.4
      Toronto (TSE 300)           6630.5      -1.3        11.0
      Mexico City (IPC)           4787.1       2.3        46.3
      
                                                       Week       Year
      FUNDAMENTALS                         Latest      ago        ago
      
      S&P 500 Dividend Yield                1.61 %     1.63 %      1.91 %
      S&P 500 P/E Ratio (Last 12 mos.)      23.9       23.7        21.0
      S&P 500 P/E Ratio (Next 12 mos.)*     18.7       18.6        16.6
      First Call Earnings Revision*        -0.98 %    -1.47 %     -0.86
      
                                                        Week
      TECHNICAL INDICATORS                   Latest     ago         Reading
      
      S&P 500 200-day average                876.9      873.5       Positive
      Stocks above 200-day average            68.0 %     69.0 %     Neutral
      Options: Put/call ratio                 0.65       0.69       Neutral
      Insiders: Vickers Sell/buy ratio        2.81       2.81       Negative
      
      BEST-PERFORMING           Last                                    Last 12
      GROUPS                   month%                                   months%
      
      Drug Chains               13.8        Trucking                     151.8
      Genl. Merchandise Chains  13.4        Invest. Banking/Brkrge.       64.7
      Soft Drinks               11.1        Savings & Loans               63.8
      Tobacco                    9.8        Homebuilding                  61.6
      Entertainment              9.2        Specialty Appar. Retailers    57.2
      
      WORST-PERFORMING        Last                                      Last 12
      GROUPS                  month%                                    months%
      
      Engineering & Constr.    -27.4        Engineering & Constr.        -41.9
      Gold Mining              -23.6        Gold Mining                  -36.6
      Metals                   -18.1        Metals                       -27.5
      Aluminum                 -12.2        Photography/Imaging          -25.1
      Oil & Gas Drilling       -11.6        Hospital Management          -13.7
      
      BLOOMBERG MONEY FLOW ANALYSIS
      Rebound ahead?  Stocks with most                            1-month
      significant buying on price weakness    Price               change
      
      Wells Fargo                             293 1/4               -15/16
      Texas Instruments                        49 3/4             -1 5/8
      Citicorp                                122 1/16            -1 1/4
      America Onlline                          72 1/8             -1 7/8
      Chase Manhattan                         110                 -6 15/16
      Burlington Northern Santa Fe             92 5/8               -1/2
      
      Decline ahead?  Stocks with most                            1-month
      significant selling on price strength   Price               change
      
      Intel                                    78 1/8             3 3/8
      Applied Materials                        33 1/8             2 5/8
      WorldCom                                 31 13/16             3/4
      Cisco Systems                            83 1/4            10 3/8
      Sun Microsystems                         35 9/16            1 5/16
      Boeing                                   49 5/8             6 5/8
      
      Data: Bloomberg Financial Markets; *First Call Corp.
      
                                   Latest      Week      Year
      KEY RATES                    week%       ago%      ago%
      
      MONEY MARKET FUNDS            5.17       5.16      4.94
      90-DAY TREASURY BILLS         5.28       5.31      5.16
      6-MONTH BANK CDS              5.19       5.19      5.01
      1-YEAR TREASURY BILLS         5.45       5.48      5.41
      10-YEAR TREASURY NOTES        5.84       5.85      6.13
      30-YEAR TREASURY BONDS        6.05       6.07      6.43
      LONG-TERM AA INDUSTRIALS      6.65       6.70      6.98
      LONG-TERM BBB INDUSTRIALS     7.03       7.07      7.43
      LONG-TERM AA TELEPHONES       6.93       6.92      7.14
      
      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    4.59%   4.56%     5.17%    5.14%
      PERCENT OF TREASURIES 78.65   78.44     85.46    85.20
      TAXABLE EQUIVALENT     6.65    6.61      7.49     7.45
      INSURED REVENUE BONDS  4.69    4.67      5.36     5.34
      PERCENT OF TREASURIES 80.36   80.33     88.60    88.51
      TAXABLE EQUIVALENT     6.80    6.77      7.77     7.74
      
      EQUITY FUNDS
      Leaders                               Laggards
      Four-week total return         %      Four-week total return        %
      
      Berger Balanced              21.1     Matthews Korea              -21.5
      Fidelity Select Retailing    14.7     Lexington Troika Russia     -20.7
      Rydex Nova                   12.5     Midas                       -20.5
      Victory Stock Index          11.6     Blanchard Precious Metals   -19.6
      Smith Barney Telecom. Inc.   10.6     Vontobel Eastern Europ. Eq. -18.3
      
      EQUITY FUNDS
      Leaders                              Laggards
      52-week total return          %      52-week total return          %
      
      Hartford Capital Apprec. A   66.8    U.S. Global Investors Gold  -59.4
      Lexington Troika Russia      61.9    Midas                       -59.0
      Evergreen U.S. Real Est. Y   60.8    Bull & Bear Gold Investors  -56.3
      Mutual Shares II             60.5    Morgan Stan. Instl. Gold A  -55.4
      American Heritage            59.7    Gabelli Gold                -52.7
      
      EQUITY FUND CATEGORIES
      Leaders                              Laggards
      Four-week total return    %          Four-week total return      %
      
      Large-cap Growth         6.3         Precious Metals           -12.4
      Large-cap Blend          6.2         Diversified Emerging Mkts. -7.1
      Utilities                6.1         Japan                      -5.4
      Large-cap Value          5.2         Diversified Pacific/Asia   -4.6
      Communications           4.4         Pacific/Asia ex-Japan      -4.1
      
      EQUITY FUND CATEGORIES
      Leaders                                Laggards
      52-week total return     %             52-week total return        %
      
      Financial               37.7           Precious Metals           -42.4
      Small-cap Value         30.2           Pacific/Asia ex-Japan     -30.0
      Real Estate             30.2           Diversified Pacific/Asia  -23.7
      Small-cap Blend         26.5           Japan                     -16.4
      Mid-cap Value           25.5           Diversified Emerging Mkts. -4.4
      
      All data are as of market close Tuesday, Nov. 25, 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. 24. 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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