COMMENTARY

The bull made a return appearance, with U.S. stocks surging to all-time highs.

The Dow Jones industrial average climbed 215 points on Nov. 23, rising to

9374--

smashing the previous record set on July 17. A spate of takeovers, including

Deutsche Bank's agreement to buy Bankers Trust, fueled the market rally.

Internet stocks were particularly strong, aided by America Online's merger

talks

with Netscape. Stocks gave back some of their gains on Nov. 24. Bonds and the

dollar were strong.

STOCKS

      
                                                           % change
      U.S. MARKETS                          Latest      Week      Year
      Investment Figures of the Week
      Dow Jones Industrials                 9301.2      2.9       19.1
      NASDAQ Combined Composite             1965.9      3.6       23.7
      S&P MidCap 400                        355.9       1.2       11.3
      S&P SmallCap 600                      166.6       2.5       -5.6
      S&P SuperComposite 1500               248.8       3.2       21.9
      
                                                           % change
      SECTORS                               Latest      Week      Year
      Bloomberg Information Age             419.1       4.3       42.2
      S&P Financials                        131.4       5.7       16.8
      S&P Utilities                         258.2       0.6       17.7
      PSE Technology                        402.9       3.7       33.9
      
                                                           % change
      FOREIGN MARKETS                       Latest      Week      Year
      London (FT-SE 100)                    5798.3      5.9       19.2
      Frankfurt (DAX)                       4958.8      5.5       28.8
      Tokyo (NIKKEI 225)                    15,164.6    3.9       -4.4
      Hong Kong (Hang Seng)                 10,851.7    6.2       5.1
      Toronto (TSE 300)                     6570.3      3.6       -0.9
      Mexico City (IPC)                     4032.2      -0.7      -15.8
      
                                                       Week      Year
      FUNDAMENTALS                          Latest     ago       ago
      S&P 500 Dividend Yield                1.32%      1.40%     1.61%
      S&P 500 P/E Ratio (Last 12 mos.)      30.8       29.5      23.9
      S&P 500 P/E Ratio (Next 12 mos.)*     23.2       22.2      18.7
      First Call Earnings Revision*         -4.03%     -4.35%    -0.98%
      
                                                       Week
      TECHNICAL INDICATORS                   Latest    ago      Reading
      S&P 500 200-day average               1086.7     1083.6   Positive
      Stocks above 200-day average          37.0%      32.0%    Positive
      Options: Put/call ratio               0.46       0.54     Negative
      Insiders: Vickers Sell/buy ratio      0.62       0.52     Positive
      
      BEST-PERFORMING             Last                                     Last 12
      GROUPS                     month%                                    months%
      Invest. Banking/Brkrge.     34.5        Communications Equip.         77.5
      HMOs                        26.9        Genl. Merchandise Chains      66.3
      Semiconductors              26.5        Specialty Appar. Retailers    65.4
      Transportation Services     24.1        Drugs                         61.5
      Communications Equip.       22.7        Automobiles                   59.5
      
      WORST-PERFORMING            Last                                     Last 12
      GROUPS                      month%                                   months%
      Oil & Gas Drilling          -17.0       Oil & Gas Drilling            -61.2
      Oil Exploration & Prod.     -6.8        Oil-Well Equip. & Svcs.       -35.6
      Oil-Well Equip. & Svcs.     -3.5        Leisure Time                  -34.7
      Domestic Oil                -1.8        Oil Exploration & Prod.       -32.1
      Pollution Control           -1.1        Machine Tools                 -31.1
      
      BLOOMBERG MONEY FLOW ANALYSIS
      Rebound ahead?  Stocks with most                      1-month
      significant buying on price weakness    Price         change
      AT&T                                    63 7/8        -3/8
      Apple Computer                          36 1/4        -1 3/16
      Telefonos de Mexico-ADR                 50 1/4        -3/4
      BEA Systems                             13 3/4        -5 1/4
      Lockheed Martin                         108 3/8       -2 11/16
      Chevron                                 80 5/16       -1/8
      
      Decline ahead?  Stocks with most                      1-month
      significant selling on price strength   Price         change
      Dell Computer                           65 7/8        3 3/8
      Cisco Systems                           76 3/16       14 13/16
      MCI WorldCom                            58 9/16       5 15/16
      Amazon.com                              218           96 9/16
      Biogen                                  82 5/8        12 1/4
      Inktomi                                 146 3/8       61 3/8
      
      INTEREST RATES
      
                                       Latest    Week      Year
      MONEY MARKET FUNDS               4.80      4.83      5.18
      90-DAY TREASURY BILLS            4.61      4.42      5.23
      6-MONTH BANK CDS                 4.47      4.47      5.20
      1-YEAR TREASURY BILLS            4.59      4.52      5.49
      10-YEAR TREASURY NOTES           4.83      4.87      5.82
      30-YEAR TREASURY BONDS           5.21      5.30      6.01
      LONG-TERM AA INDUSTRIALS         6.15      6.28      6.55
      LONG-TERM BBB INDUSTRIALS        7.08      7.27      6.97
      LONG-TERM AA TELEPHONES          6.51      6.59      6.96
      
      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%     4.19%     4.84%     4.86%
      PERCENT OF TREASURIES         86.38     86.33     92.96     92.41
      TAXABLE EQUIVALENT            6.04      6.07      7.01      7.04
      INSURED REVENUE BONDS         4.29      4.31      5.08      5.10
      PERCENT OF TREASURIES         88.87     88.80     97.57     96.97
      TAXABLE EQUIVALENT            6.22      6.25      7.36      7.39
      
      MUTUAL FUNDS
      
      EQUITY FUNDS
      Leaders                                 Laggards
      Four-week total return          %       Four-week total return           %
      Amerindo Technology D         42.9      ProFunds UltraShort OTC Inv.  -26.3
      ProFunds UltraOTC Investor    33.2      ProFunds UltraBear Serv.      -18.6
      Munder NetNet B               31.5      Fidelity Sel. Energy Serv.    -16.5
      Matthews Korea A              27.1      Rydex Energy Svcs. Inv.       -16.2
      TCW/DW Mid-Cap Equity D       25.8      Oppenheimer Real Asset C      -14.4
      
      Leaders                                 Laggards
      52-week total return            %       52-week total return             %
      Amerindo Technology D         65.6      Lexington Troika Russia       -82.0
      Transamerica Aggr. Gr. Inv.   63.2      Eaton Vance Wwde. Dv. Res. B  -49.4
      Flag Investors Communs. A     58.5      Frontier Equity               -48.0
      Dreyfus Technology Growth     56.8      Dreyfus Aggressive Growth     -47.5
      Northern Technology           54.0      Fidelity Sel. Energy Serv.    -47.0
      
      EQUITY FUND CATEGORIES
      Leaders                                 Laggards
      Four-week total return          %       Four-week total return         %
      Technology                    19.1      Natural Resources            -0.9
      Communications                14.8      Real Estate                   1.9
      Mid-cap Growth                12.8      International Hybrid          3.9
      Large-cap Growth              12.6      Utilities                     5.4
      Latin America                 12.2      Domestic Hybrid               5.8
      
      Leaders                                 Laggards
      52-week total return            %       52-week total return             %
      Communications                29.0      Latin America                 -27.5
      Large-cap Growth              24.3      Natural Resources             -25.4
      Utilities                     20.0      Diversified Emerging Mkts.    -24.3
      Technology                    20.0      Pacific/Asia ex-Japan         -16.1
      Large-cap Blend               18.6      Real Estate                   -14.4
      
      All data are as of market close Tuesday, Nov. 24, 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. 23. 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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