COMMENTARY

After an incredible five weeks of gains, U.S. stocks ran into resistance. The

Dow Jones industrials raced to 8975.5 on Nov. 6, but gave up 152 points over

the next three trading sessions. The Dow's gain for the week was a slender

0.5%, the S&P 500's even less. Technology stocks, led by the Internet

companies, really zoomed. Market leader Intel also looked smart, gaining over

6% alone on Nov. 11 after announcing higher than expected sales. All told, the

tech-heavy Bloomberg Information Age Index logged a 3.8% increase for the

week.

STOCKS

                                                           % change
      U.S. MARKETS                          Latest      Week      Year
      Dow Jones Industrials                 8823.8      0.5       19.2
      NASDAQ Combined Composite             1862.1      2.1       20.8
      S&P MidCap 400                        344.8      -0.6       10.5
      S&P SmallCap 600                      164.2      -0.5       -6.6
      S&P SuperComposite 1500               236.5       0.1       21.1
      
                                                           % change
      SECTORS                               Latest      Week      Year
      Bloomberg Information Age             397.6       3.8       44.7
      S&P Financials                        119.0      -2.7       11.6
      S&P Utilities                         254.1      -0.2       22.3
      PSE Technology                        376.4       2.2       30.4
      
                                                           % change
      FOREIGN MARKETS                       Latest      Week      Year
      London (FT-SE 100)                    5476.8      -2.6      16.0
      Frankfurt (DAX)                       4717.7      -2.6      28.9
      Tokyo (NIKKEI 225)                    14,428.0    -0.7      -6.5
      Hong Kong (Hang Seng)                 10,137.3    -3.5       5.5
      Toronto (TSE 300)                     6279.3      -1.4      -5.5
      Mexico City (IPC)                     4117.7      -3.5      -5.0
      
                                                      Week      Year
      FUNDAMENTALS                          Latest    ago       ago
      S&P 500 Dividend Yield                1.40%     1.42%     1.65%
      S&P 500 P/E Ratio (Last 12 mos.)      28.8      28.3      23.1
      S&P 500 P/E Ratio (Next 12 mos.)*     21.8      21.8      18.2
      First Call Earnings Revision*         -4.77%    -2.28%    -1.65%
      
                                                       Week
      TECHNICAL INDICATORS                   Latest    ago      Reading
      S&P 500 200-day average               1080.1     1076.0   Positive
      Stocks above 200-day average          34.0%      30.0%    Positive
      Options: Put/call ratio               0.53       0.54     Negative
      Insiders: Vickers Sell/buy ratio      0.45       0.46     Positive
      
      BEST-PERFORMING          Last                                        Last 12
      GROUPS                   month%                                      months%
      Communications Equip.    37.7         Communications Equip.           66.5
      Homebuilding             36.1         Genl. Merchandise Chains        64.9
      Hotels & Motels          35.4         Specialty Appar. Retailers      64.0
      Machine Tools            35.0         Computer Systems                61.8
      Computer Systems         31.3         Drug Chains                     55.0
      
      WORST-PERFORMING         Last                                        Last 12
      GROUPS                   month%                                      months%
      International Oil        -3.5         Oil & Gas Drilling             -62.1
      Gold Mining              -3.3         Oil-Well Equip. & Svcs.        -39.9
      Electric Companies       -3.2         Leisure Time                   -32.9
      Photograohy/Imaging      -3.0         Metals                         -32.0
      Domestic Oil             -2.8         Oil Exploration & Prod.        -31.1
      
      BLOOMBERG MONEY FLOW ANALYSIS
      Rebound ahead?  Stocks with most                         1-month
      significant buying on price weakness        Price        change
      Exxon                                       70 1/8       -1 11/16
      DuPont                                      59 1/4       -11/16
      Eastman Kodak                               78 9/16      -5
      Apple Computer                              35 1/8       -2 5/16
      American Home Products                      49 1/16      -15/16
      Chevron                                     80 1/2       -4 9/16
      
      Decline ahead?  Stocks with most                          1-month
      significant selling on price strength       Price         change
      Dell Computer                               70 5/16       14 1/4
      Cisco Systems                               67            14 5/8
      MCI WorldCom                                55 9/16        8 1/4
      Biogen                                      77 1/8         8 3/8
      eBay                                        130 7/8       99 3/8
      Ciena                                       17 13/16       9 1/4
      
      INTEREST RATES
      
                                       Latest    Week      Year
      KEY RATES                        week%     ago%      ago%
      MONEY MARKET FUNDS               4.84      4.89      5.15
      90-DAY TREASURY BILLS            4.55      4.55      5.30
      6-MONTH BANK CDS                 4.46      4.45      5.19
      1-YEAR TREASURY BILLS            4.53      4.47      5.43
      10-YEAR TREASURY NOTES           4.82      4.88      5.89
      30-YEAR TREASURY BONDS           5.29      5.33      6.13
      LONG-TERM AA INDUSTRIALS         6.34      6.45      6.71
      LONG-TERM BBB INDUSTRIALS        7.30      7.32      7.08
      LONG-TERM AA TELEPHONES          6.64      6.79      6.97
      
      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           4.17%     4.15%     4.87%     4.85%
      PERCENT OF TREASURIES         86.49     84.98     92.12     91.08
      TAXABLE EQUIVALENT            6.04      6.01      7.06      7.03
      INSURED REVENUE BONDS         4.28      4.26      5.10      5.08
      PERCENT OF TREASURIES         88.77     87.23     96.47     95.40
      TAXABLE EQUIVALENT            6.20      6.17      7.39      7.36
      
      MUTUAL FUNDS
      
      EQUITY FUNDS
      Leaders                                 Laggards
      Four-week total return         %        Four-week total return         %
      Frontier Equity               56.3      ProFunds UltraShort OTC Inv.  -34.4
      ProFunds UltraOTC Investor    46.3      Prudent Bear                  -26.0
      Federated Aggress. Grth. A    42.8      ProFunds UltraBear Serv.      -22.3
      Firsthand Tech. Value         42.6      Potomac OTC/Short             -18.6
      Munder NetNet A               42.6      Comstock Part. Cap. Val. B    -16.4
      
      Leaders                                 Laggards
      52-week total return           %        52-week total return           %
      Flag Investors  Communs. A    54.7      Lexington Troika Russia       -84.8
      Transamerica Aggr. Gr. Inv.   54.5      American Heritage             -54.6
      Smith Barney Telecomm. Inc.   50.9      Eaton Vance Wwde. Dv. Res.B   -52.3
      Dreyfus Technology Growth     49.7      Dreyfus Aggressive Growth     -51.5
      Rydex OTC Investor            47.6      Frontier Equity               -49.4
      
      EQUITY FUND CATEGORIES
      Leaders                                 Laggards
      Four-week total return         %        Four-week total return          %
      Technology                    28.1      Precious Metals                -0.4
      Small-cap Growth              26.0      International Hybrid            3.9
      Small-cap Blend               24.2      Utilities                       5.5
      Communications                21.7      Japan                           7.0
      Mid-cap Growth                21.7      Natural Resources               7.6
      
      Leaders                                 Laggards
      52-week total return           %        52-week total return           %
      Communications                25.3      Diversified Emerging Mkts.    -29.7
      Utilities                     23.0      Latin America                 -27.1
      Large-cap Growth              20.6      Natural Resources             -26.5
      Large-cap Blend               16.5      Pacific/Asia ex-Japan         -24.3
      Technology                    13.2      Diversified Pacific/Asia      -19.3
      
      All data are as of market close Wednesday, Nov. 11, 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 Nov. 10. 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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