COMMENTARY

The market's fixation with 10,000--which the Dow Jones industrial average

briefly touched on Mar. 16--overshadowed a generally buoyant week in the

global markets. The big winner worldwide was Mexico, where the Mexican Bolsa

index is up a currency-adjusted 26% in the year to date. U.S. bond prices fell

on Mar. 17, due to concern that recent corporate debt sales might reduce

demand for Treasury securities. Crude oil prices surged on Mar. 17 to a

five-month high.

STOCKS

                                                              % change
      U.S. MARKETS                          Latest        Week         Year
      Dow Jones Industrials                 9879.4        1.1          12.6
      NASDAQ Combined Composite             2429.0        0.9          35.8
      S&P MidCap 400                         367.2        0.5           0.6
      S&P SmallCap 600                       162.4       -0.5         -17.6
      S&P SuperComposite 1500                271.0        0.8          16.4
      
                                                              % change
      SECTORS                               Latest        Week         Year
      Bloomberg Information Age              512.3        1.2          57.0
      S&P Financials                         141.2       -1.5           5.3
      S&P Utilities                          244.2        1.8           0.8
      PSE Technology                         489.2        1.5          44.1
      
                                                              % change
      FOREIGN MARKETS                       Latest        Week         Year
      London (FT-SE 100)                    6140.6        -1.6          4.0
      Frankfurt (DAX)                       5077.4         7.5          3.2
      Tokyo (NIKKEI 225)                  16,268.1         5.1         -2.1
      Hong Kong (Hang Seng)               10,940.1         1.8         -1.6
      Toronto (TSE 300)                     6593.8         0.3        -11.2
      Mexico City (IPC)                     4855.2         2.7          0.2
      
                                                           Week        Year
      FUNDAMENTALS                          Latest          ago         ago
      S&P 500 Dividend Yield                  1.23%         1.25%       1.43%
      S&P 500 P/E Ratio (Last 12 mos.)        34.3          33.7        27.1
      S&P 500 P/E Ratio (Next 12 mos.)*       24.8          24.2        21.3
      First Call Earnings Revision*          -1.64%        -1.54%      -3.51%
      
                                                             Week
      TECHNICAL INDICATORS                  Latest            ago       Reading
      S&P 500 200-day average               1141.5         1136.4       Positive
      Stocks above 200-day average            32.0%          32.0%      Positive
      Options: Put/call ratio                 0.50           0.49       Negative
      Insiders: Vickers Sell/buy ratio        1.09           1.15       Positive
      
      Data: Bloomberg Financial Markets; *First Call Corp.
      
      BEST-PERFORMING          Last                                    Last 12
      GROUPS                   month%                                  months%
      
      Oil & Gas Drilling        34.2       Computer Systems              82.6
      Invest. Banking/Brkrge.   29.9       Specialty Appar. Retailers    81.0
      Oil-Well Equip. & Svcs.   25.9       Communications Equip.         77.3
      Leisure Time              20.3       Restaurants                   69.1        
              Shoes                     18.2       Genl. Merchandise Chains      
      65.7
      
      WORST-PERFORMING         Last                                    Last 12
      GROUPS                   month%                                  months%
      Toys                     -21.4       Engineering & Constr.         -46.5
      Drug Chains              -15.8       Machine Tools                 -45.1
      Engineering & Constr.    -13.4       Toys                          -43.9
      Homebuilding             -13.1       Oil & Gas Drilling            -42.6
      Manufactured Housing      -9.6       Hospital Management           -41.6
      
      BLOOMBERG MONEY FLOW ANALYSIS
      Rebound ahead?  Stocks with most                       1-month
      significant buying on price weakness    Price           change
      
      Micron Technology                       51 1/16       -10   1/8
      DaimlerChrysler                         93 3/8         -1
      Compaq Computer                         32 3/8         -8   5/8
      Unilever-NYS                            74 1/16          -15/16
      L.M. Ericsson-ADR                       24 13/16         -11/16
      Lexmark International Group             94             -5
      
      Decline ahead?  Stocks with most                          1-month
      significant selling on price strength   Price             change
      
      Dell Computer                            44 3/8           3 19/32
      Microsoft                               169 1/16         19  1/16
      Cisco Systems                           106              10  7/8
      MCI WorldCom                             88 1/8           7  3/4
      Amgen                                    74 1/2          13  1/4
      Sun Microsystems                        110 3/4          16 11/16
      
                                         Latest          Week          Year
      KEY RATES                           week%          ago%          ago%
      MONEY MARKET FUNDS                  4.50           4.51           5.12
      90-DAY TREASURY BILLS               4.50           4.57           5.17
      6-MONTH BANK CDS                    4.35           4.35           5.07
      1-YEAR TREASURY BILLS               4.72           4.73           5.36
      10-YEAR TREASURY NOTES              5.12           5.19           5.58
      30-YEAR TREASURY BONDS              5.50           5.56           5.91
      LONG-TERM AA INDUSTRIALS            6.37           6.43           6.48
      LONG-TERM BBB INDUSTRIALS           7.00           7.19           6.95
      LONG-TERM AA TELEPHONES             6.58           6.67           6.78
      
      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      4.23%           4.24%         4.95%           4.98%
      PERCENT OF TREASURIES    82.62          81.65         89.98           89.68
      TAXABLE EQUIVALENT        6.13           6.14          7.17            7.22
      INSURED REVENUE BONDS     4.32           4.34          5.19            5.21
      PERCENT OF TREASURIES    84.38          83.57         94.34           93.82
      TAXABLE EQUIVALENT        6.26           6.29          7.52            7.55
      
      EQUITY FUNDS                         EQUITY FUND CATEGORIES
      
      Leaders                              Laggards
      Four-week total return       %       Four-week total return          %
      
      Amerindo Technology D        44.6    Pacific Adv. Small Cap A        -13.9
      Internet                     28.3    Frontier Equity                 -13.1
      Lexington Troika Russia      23.6    Munder Fram. Health C           -12.6
      Fidelity Sel. Energy Serv.   19.6    ProFunds UltraShort OTC Inv.    -12.3
      TCW/DW Mid-Cap Equity D      17.9    ProFunds UltraBear Serv.         -9.9
      
      Leaders                              Laggards
      52-week total return        %        52-week total                    %
      
      Internet                    326.7    Lexington Troika Russia         -76.5
      Amerindo Technology D       170.1    American Heritage               -59.2
      ProFunds UltraOTC Inv.      148.8    Vontobel Eastern Europ. Eq.     -52.8
      Munder NetNet A             136.2    State St. Res. Glob. Res. B     -50.0
      Grand Prix                  119.9    Potomac OTC/Short               -50.0
      
      Leaders                              Laggards
      Four-week total return       %       Four-week total return           %
      
      Latin America                13.7    Small-cap Value                 -1.9
      Japan                        12.5    Small-cap Blend                 -1.1
      Diversified Pacific/Asia      9.5    Real Estate                     -0.9
      Natural Resources             7.9    Precious Metals                  0.2
      Communications                7.4    Small-cap Growth                 0.5
      
      Leaders                              Laggards
      52-week total return         %       52-week total return            %
      
      Technology                   49.1    Latin America                  -34.7
      Communications               39.7    Diversified Emerging Mkts.     -25.9
      Large-cap Growth             30.3    Natural Resources              -23.4
      Japan                        16.5    Small-cap Value                -20.2
      Large-cap Blend              15.2    Small-cap Blend                -18.3
      
      All data are as of market close Wednesday, Mar. 17, 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 16. For a more detailed explanation, write to us or E-mail 
      figures@businessweek.com.  NA=Not available  **Vanguard Index 500 Fund
      return
      
      
      
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