STOCKS

COMMENTARY

U.S. stocks bounced back smartly from the lows of last week in thewake of news

that the G-7 would move to spur world growth. Financial stocks led the charge.

The battered Latin equity markets soared after President Clinton called for

the developed countries to help emerging nations. On Tuesday alone the

Brazilian Bovespa jumped 18.7%, while the Mexican Bolsa sprinted 12.9%.

Interest rates declined, and the yield on jumbo six-month CDs dropped below 5%

for the first time in nearly two years.

      
                                                             % change
      U.S. MARKETS                              Latest    Week     Year
      Dow Jones Industrials                     8089.8    2.9       2.6
      NASDAQ Combined Composite                 1689.9    4.0       1.4
      S&P MidCap 400                             311.8    4.2      -5.6
      S&P SmallCap 600                           152.1    2.7     -17.5
      S&P SuperComposite 1500                    220.0    3.9       8.0
      
                                                            %  change
      SECTORS                                   Latest    Week      Year
      Bloomberg Information Age                 352.3     4.7       18.7
      S&P Financials                            115.7     8.2        3.9
      S&P Utilities                             249.2     4.9       21.0
      PSE Technology                            321.2     3.9       -3.8
      
                                                             % change
      FOREIGN MARKETS                           Latest    Week      Year
      London (FT-SE 100)                        5291.7    -0.4        5.6
      Frankfurt (DAX)                           4858.0    -3.6       21.1
      Tokyo (NIKKEI 225)                      14,197.7    -3.8      -19.7
      Hong Kong (Hang Seng)                     7860.7    -0.6      -45.5
      Toronto (TSE 300)                         5906.1     0.6      -14.4
      Mexico City (IPC)                         3414.7     7.8      -31.8
      
                                                         Week      Year
      FUNDAMENTALS                            Latest     ago       ago
      S&P 500 Dividend Yield                  1.52%       1.54%     1.60%
      S&P 500 P/E Ratio (Last 12 mos.)        24.7       24.3      23.9
      S&P 500 P/E Ratio (Next 12 mos.)*       19.9       19.5      18.9
      First Call Earnings Revision*           -5.20%     -4.69%    -0.98%
      
                                                          Week
      TECHNICAL INDICATORS                      Latest    ago        Reading
      S&P 500 200-day average                  1062.0     1061.0     Negative
      Stocks above 200-day average             18.0%      18.0%      Positive
      Options: Put/call ratio                  0.73       0.72r      Positive
      Insiders: Vickers Sell/buy ratio         0.80       0.98       Positive
      
      BEST-PERFORMING          Last                                    Last 12
      GROUPS                   month%                                  months%
      HMOs                     16.2         Broadcasting                 67.3
      Oil Exploration & Prod.  10.0         Drugs                        52.1
      Gold Mining               9.8         Drug Chains                  50.2
      Engineering & Constr.     8.6         Communications Equip.        46.4
      Oil & Gas Drilling        8.2         Specialty Appar. Retailers   45.5
      
      WORST-PERFORMING        Last                                      Last 12
      GROUPS                  month%                                    months%
      Machine Tools           -24.5         Oil & Gas Drilling          -54.7
      Hotels & Motels         -22.8         Metals                      -48.5
      Invest. Banking/Brkrge. -22.5         Leisure Time                -45.9
      Cosmetics               -20.2         Steel                       -41.6
      Defense Electronics     -19.2         Machine Tools               -37.6
      
      BLOOMBERG MONEY FLOW ANALYSIS
      Rebound ahead?  Stocks with most                            1-month
      significant buying on price weakness    Price               change
      Intel                                    85 15/16            -3 5/8
      Citicorp                                103 7/8             -39 7/8
      America Online                           97 1/2              -6 15/16
      BankAmerica                              62 13/16           -19 5/16
      Telebras-ADR                             72 1/8             -22 1/8
      Merrill Lynch                            59 1/16            -29 7/16
      
      Decline ahead?  Stocks with most                        1-month
      significant selling on price strength    Price          change
      Dell Computer                             59 7/8        4 19/32
      Microsoft                                108 5/16       1
      Northwest Airlines                        30 13/16        13/16
      American Home Products                    55 7/8        3 7/8
      Viacom-B                                  62 1/2        1 1/4
      DuPont                                    59 3/16       4 1/8
      
      INTEREST RATES
      
                                              Latest    Week      Year
      KEY RATES                               week%     ago%      ago%
      MONEY MARKET FUNDS                      5.09      5.10      5.15
      90-DAY TREASURY BILLS                   4.72      4.88      5.10
      6-MONTH BANK CDS                        4.97      5.05      5.17
      1-YEAR TREASURY BILLS                   4.77      4.81      5.46
      10-YEAR TREASURY NOTES                  4.87      4.95      6.10
      30-YEAR TREASURY BONDS                  5.22      5.28      6.39
      LONG-TERM AA INDUSTRIALS                6.21      6.27      6.90
      LONG-TERM BBB INDUSTRIALS               6.91      6.80      7.27
      LONG-TERM AA TELEPHONES                 6.67      6.53      7.18
      
      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        4.22%    4.24%        4.88%    4.88%
      PERCENT OF TREASURIES     86.64    86.05        93.41    92.67
      TAXABLE EQUIVALENT         6.12     6.14         7.07     7.07
      INSURED REVENUE BONDS      4.37     4.41         5.05     5.04
      PERCENT OF TREASURIES     89.72    89.50        96.66    95.71
      TAXABLE EQUIVALENT         6.33     6.39         7.32     7.30
      
      MUTUAL FUNDS
      
      EQUITY FUNDS
      Leaders                                    Laggards
      Four-week total return           %         Four-week total return           %
      Guinness Mainland China         24.1       American Heritage              
      -33.3
      Prudent Bear                    22.1       Montgomery Latin Amer.R        
      -33.3
      Newport Greater China A         13.0       Lexington Troika Russia        
      -30.8
      U.S. Global Inv. China Reg.     12.0       Vontobel Eastern Europ. Eq.    
      -30.4
      Lexington Strat. Invmnts.       10.6       Excelsior Latin America        
      -29.8
      
      Leaders                                    Laggards
      52-week total return             %         52-week total return             %
      Smith Barney Telecomm. Inc.     47.7       Lexington Troika Russia        
      -87.8
      Janus Twenty                    36.0       Matthews Korea I               
      -67.5
      Flag Investors Communs. A       33.8       Guinness Flgt. Asia Sm. Cap    
      -67.5
      Fidelity Select Health Care     33.4       Lex. Crosby Sm. Cap Asia       
      -65.6
      Icon Telecomms. & Utilities     33.3       Montgomery Emerg. Asiar        
      -65.1
      
      EQUITY FUND CATEGORIES
      Leaders                                    Laggards
      Four-week total return           %         Four-week total return           %
      Precious Metals                  6.6       Latin America                  
      -22.0
      Pacific/Asia ex-Japan            3.6       Small-cap Growth               
      -14.4
      Natural Resources               -0.7       Diversified Emerging Mkts.     
      -13.6
      Diversified Pacific/Asia        -1.2       Small-cap Blend                
      -13.3
      Japan                           -1.8       Real Estate                    
      -12.8
      
      Leaders                                    Laggards
      52-week total return             %         52-week total return             %
      Utilities                       17.3       Pacific/Asia ex-Japan          
      -52.6
      Communications                  14.9       Latin America                  
      -48.4
      Europe                          11.7       Diversified Emerging Mkts.     
      -46.4
      Large-cap Growth                11.0       Diversified Pacific/Asia       
      -40.7
      Large-cap Blend                  7.9       Precious Metals                
      -36.0
      
      All data are as of market close Wednesday, Sept. 16, 1998, 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 Sept. 15. For a more detailed explanation, write to us or E-mail 
      figures@businessweek.com.  r=revised  **Vanguard Index 500 Fund
      
      
      
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