COMMENTARY

Bonds rallied as fears that Fed Chairman Alan Greenspan would tighten interest

rates abated, and stocks more than followed suit--breaking into new record

territory. For the week, the Dow industrials jumped 5.4%, or 497 points, while

the Standard & Poor's 500-stock index vaulted 4.8%. Even small-cap stocks

showed vigor, with the Russell 2000 adding 2.3%. Overseas markets responded in

kind. Tokyo was up a stunning 9.2%, aided by the Sony restructuring. And in

Mexico, the rebound in the peso sent the Bolsa soaring 14.6%.

STOCKS

                                                        % change
      U.S. MARKETS                       Latest      Week      Year
      Dow Jones Industrials              9772.8      5.4       12.6
      NASDAQ Combined Composite          2406.1      6.2       37.0
      S&P MidCap 400                      365.5      2.3        1.5
      S&P SmallCap 600                    163.3      2.0      -16.5
      S&P SuperComposite 1500             268.9      4.6       17.3
      
                                                       % change
      SECTORS                             Latest     Week       Year
      Bloomberg Information Age           506.0      5.1        58.2
      S&P Financials                      143.3      6.5        10.6
      S&P Utilities                       239.8      1.0         1.0
      PSE Technology                      481.9      5.6        45.3
      
                                                       % change
      FOREIGN MARKETS                    Latest      Week       Year
      London (FT-SE 100)                 6241.5       3.2        7.1
      Frankfurt (DAX)                    4721.4       0.5       -2.3
      Tokyo (NIKKEI 225)               15,480.0       9.2       -7.6
      Hong Kong (Hang Seng)            10,749.0       8.3       -3.3
      Toronto (TSE 300)                  6572.6       6.3      -10.5
      Mexico City (IPC)                  4728.3      14.6       -0.3
      
                                                     Week       Year
      FUNDAMENTALS                         Latest    ago        ago
      S&P 500 Dividend Yield               1.25%     1.30%      1.44%
      S&P 500 P/E Ratio (Last 12 mos.)     33.7      32.4       26.5
      S&P 500 P/E Ratio (Next 12 mos.)*    24.2      23.2       20.9
      First Call Earnings Revision*       -1.54%    -1.41%     -3.88%
      
                                                     Week
      TECHNICAL INDICATORS                Latest     ago       Reading
      S&P 500 200-day average            1136.4    1132.7      Positive
      Stocks above 200-day average         32.0%     29.0%     Positive
      Options: Put/call ratio              0.49      0.58      Negative
      Insiders: Vickers Sell/buy ratio     1.15      1.21      Positive
      
      Data: Bloomberg Financial Markets; *First Call Corp.
      
      BEST-PERFORMING              Last                                 Last 12
      GROUPS                       month%                               months%
      Invest. Banking/Brkrge.      27.0    Specialty Appar. Retailers   93.0
      Insurance Brokers            26.4    Communications Equip.        90.3
      Oil & Gas Drilling           24.2    Computer Systems             79.6
      Multiline Insurers           19.2    Broadcasting                 67.6
      Oil-Well Equip. & Svcs.      19.0    Long-Dist. Telecomms.        67.6
      
      WORST-PERFORMING            Last                                 Last 12
      GROUPS                      month%                               months%
      Manufactured Housing        -14.2    Oil & Gas Drilling          -46.7
      Homebuilding                -14.1    Metal & Glass Containers    -42.7
      Engineering & Constr.       -13.3    Engineering & Constr.       -42.3
      Steel                        -9.1    Hospital Management         -39.8
      Specialty Printing           -8.5    Machine Tools               -39.2
      
      BLOOMBERG MONEY FLOW ANALYSIS
      Rebound ahead?  Stocks with most                           1-month
      significant buying on price weakness    Price              change
      Micron Technology                       55 1/8              -10 7/8
      Gateway 2000                            71 5/16              -3 5/16
      Exxon                                   69 15/16             -2 5/8
      Hewlett-Packard                         67 11/16             -4 11/16
      DaimlerChrysler                         88 5/16              -6 1/8
      International Paper                     40 13/16             -1 3/8
      
      Decline ahead?  Stocks with most                            1-month
      significant selling on price strength   Price               change
      Microsoft                              161 13/16              1 3/16
      Cisco Systems                          105 5/16               6 3/4
      MCI WorldCom                            85 1/4                9
      Sun Microsystems                       109 7/16              12
      Amgen                                   67 7/16               9 1/16
      eBay                                   166 1/4               95 37/64
      
      INTEREST  RATES
      
                                     Latest     Week       Year
                                     week%      ago%       ago%
      MONEY MARKET FUNDS             4.51       4.53       5.13
      90-DAY TREASURY BILLS          4.57       4.62       5.09
      6-MONTH BANK CDS               4.35       4.35       5.08
      1-YEAR TREASURY BILLS          4.73       4.89       5.37
      10-YEAR TREASURY NOTES         5.19       5.39       5.63
      30-YEAR TREASURY BONDS         5.56       5.68       5.93
      LONG-TERM AA INDUSTRIALS       6.43       6.58       6.51
      LONG-TERM BBB INDUSTRIALS      7.19       7.37       6.98
      LONG-TERM AA TELEPHONES        6.67       6.80       6.82
      
      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       4.24%        4.19%       4.98%         4.98%
      PERCENT OF TREASURIES    81.65        77.85       89.68         87.45
      TAXABLE EQUIVALENT        6.14         6.07        7.22          7.22
      INSURED REVENUE BONDS     4.34         4.31        5.21          5.23
      PERCENT OF TREASURIES    83.57        80.08       93.82         91.84
      TAXABLE EQUIVALENT        6.29         6.25        7.55          7.58
      
      EQUITY FUNDS
      Leaders                                 Laggards
      Four-week total return           %      Four-week total return            %
      Amerindo Technology D         44.3      IAI Emerging Growth           -12.3
      Internet                      25.9      ProFunds UltraShort OTC Inv.  -11.0
      Wright EquiFd.-Mexico         18.0      Monterey Murphy Technology    -11.0
      TCW/DW Mid-Cap Equity A       17.6      Wasatch Mid-Cap               -10.8
      TCW Galileo Aggr. Gr. Eq.     17.3      ProFunds UltraBear Serv.      -10.2
      
      Leaders                                 Laggards
      52-week total return              %     52-week total return              %
      Internet                      297.9     Lexington Troika Russia       -78.6
      Amerindo Technology D         187.9     State St. Res. Glob. Res. B   -54.6
      ProFunds UltraOTC Inv.        158.5     American Heritage             -52.1
      Munder NetNet A               140.1     Vontobel Eastern Europ. Eq.   -51.4
      Grand Prix                    128.8     Potomac OTC/Short             -51.2
      
      EQUITY FUND CATEGORIES
      
      Leaders                                 Laggards
      Four-week total return            %     Four-week total return            %
      Latin America                 10.6      Small-cap Value               -3.5
      Financial                     8.4       Small-cap Blend               -2.5
      Large-cap Growth              6.2       Real Estate                   -1.5
      Communications                6.1       Small-cap Growth              -0.6
      Pacific/Asia ex-Japan         5.9       Europe                        0.1
      
      Leaders                                 Laggards
      52-week total return              %     52-week total return              %
      Technology                    52.5      Latin America                 -37.5
      Communications                41.3      Diversified Emerging Mkts.    -26.5
      Large-cap Growth              31.9      Natural Resources             -26.0
      Large-cap Blend               16.2      Small-cap Value               -18.4
      Mid-cap Growth                11.2      Real Estate                   -17.1
      
      All data are as of market close Wednesday, Mar. 10, 1999, 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 Mar. 9. 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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