COMMENTARY

Another record for the Dow industrials. Powered by a strong move into the more

cyclical stocks, the Dow gained 1.6% for the week to close at 10,581.4. Strong

first-quarter earnings--and greater confidence in the global economy--are

prompting investors to shift to the grittier, more mundane stocks. That's left

the Standard & Poor's 500-stock index, dominated by large-cap growth stocks,

struggling to keep up. And the tech-heavy NASDAQ index plunged 5.6% on Apr.

19, but recovered enough to finish the week down just 0.7%.

STOCKS

                                                        % change
      U.S. MARKETS                       Latest      Week      Year
      Dow Jones Industrials              10,581.4    1.6        15.3
      NASDAQ Combined Composite            2489.1   -0.7        29.8
      S&P MidCap 400                        386.7    3.3         1.6
      S&P SmallCap 600                      170.2    3.6       -17.3
      S&P SuperComposite 1500               279.6    0.8        15.3
      
                                                       % change
      SECTORS                             Latest     Week       Year
      Bloomberg Information Age          514.5      -0.9        45.0
      S&P Financials                     149.8       1.3         7.2
      S&P Utilities                      247.2       4.6         2.3
      PSE Technology                     506.8       0.6        40.5
      
                                                       % change
      FOREIGN MARKETS                    Latest      Week       Year
      London (FT-SE 100)                6311.0      -2.8         6.4
      Frankfurt (DAX)                   5163.3      -0.4        -3.7
      Tokyo (NIKKEI 225)              16,495.0      -1.6         4.7
      Hong Kong (Hang Seng)           12,543.8       6.0        14.3
      Toronto (TSE 300)                 7019.8       1.0       -10.3
      Mexico City (IPC)                 5284.5      -0.2         2.3
      
                                                     Week       Year
      FUNDAMENTALS                         Latest    ago        ago
      S&P 500 Dividend Yield               1.23%     1.19%      1.38%
      S&P 500 P/E Ratio (Last 12 mos.)     33.8      35.4       26.9
      S&P 500 P/E Ratio (Next 12 mos.)*    24.3      25.3       22.2
      First Call Earnings Surprise*        4.54%     5.90%      2.88%
      
                                                    Week
      TECHNICAL INDICATORS                Latest     ago        Reading
      S&P 500 200-day average            1165.3    1160.9       Positive
      Stocks above 200-day average         47.0%     36.0%      Neutral
      Options: Put/call ratio              0.54      0.47       Negative
      Insiders: Vickers Sell/buy ratio     0.84      0.96       Positive
      
      Data: Bloomberg Financial Markets; *First Call Corp.
      
      BEST-PERFORMING              Last                                 Last 12
      GROUPS                       month%                               months%
      Hospital Management          43.3   Specialty Appar. Retailers    86.3
      Engineering & Constr.        29.6   Communications Equip.         66.9
      Furnishings & Appliances     27.5   Long-Dist. Telecomms.         66.5
      Diversified Machinery        25.3   Broadcasting                  63.5
      Machine Tools                24.5   Genl. Merchandise Chains      62.9
      
      WORST-PERFORMING            Last                                 Last 12
      GROUPS                      month%                               months%
      Tobacco                     -16.3   Oil & Gas Drilling           -44.3
      Health-Care Services        -13.2   Manufactured Housing         -43.4
      Food Chains                 -12.1   Machine Tools                -33.8
      Drug Chains                 -11.9   HMOs                         -31.4
      Cosmetics                   -11.9   Metal & Glass Containers     -29.4
      
      BLOOMBERG MONEY FLOW ANALYSIS
      Rebound ahead? Stocks with most                             1-month
      significant buying on price weakness    Price               change
      America Online                          128 11/16           -1 5/16
      Vodapone Grp.-ADR                       170 9/16             - 7/16
      Texas Instruments                       100                  - 3/4
      General Electric                        109 5/16            -1 1/16
      Merrill Lynch                            87 1/2             -2 7/16
      EMC                                     102 3/16           -13 9/16
      
      Decline ahead? Stocks with most                             1-month
      significant selling on price strength   Price               change
      Dell Computer                            38 3/16               5/16
      Qualcomm                                140 5/8             53
      Knight/Trimark Group                     86 3/4             27 3/4
      Inktomi                                 115                 42 1/4
      Doubleclick                             128 3/16            39 11/16
      Yahoo!                                  171                  6
      
      INTEREST RATES
      
                                     Latest     Week       Year
      KEY RATES                      week%      ago%       ago%
      MONEY MARKET FUNDS             4.45       4.46       5.10
      90-DAY TREASURY BILLS          4.34       4.30       5.09
      6-MONTH BANK CDS               4.35       4.33       5.08
      1-YEAR TREASURY BILLS          4.65       4.65       5.41
      10-YEAR TREASURY NOTES         5.16       5.13       5.68
      30-YEAR TREASURY BONDS         5.52       5.51       5.96
      LONG-TERM AA INDUSTRIALS       6.46       6.43       6.55
      LONG-TERM BBB INDUSTRIALS      7.09       7.09       7.01
      LONG-TERM AA TELEPHONES        6.69       6.66       6.80
      
      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        4.25%       4.24%       4.96%         4.95%
      PERCENT OF TREASURIES     82.07       82.74       89.82         89.91
      TAXABLE EQUIVALENT         6.16        6.14        7.19          7.17
      INSURED REVENUE BONDS      4.35        4.35        5.17          5.17
      PERCENT OF TREASURIES     84.00       84.89       93.62         93.90
      TAXABLE EQUIVALENT         6.30        6.30        7.49          7.49
      
      EQUITY FUNDS
      Leaders                                 Laggards
      Four-week total return           %      Four-week total return            %
      Matthews Korea I               31.8     Eaton Vance Grtr. India B      -9.4
      Templeton Latin America A      22.3     ProFunds UltraShort OTC Inv.   -8.9
      HomeState Sel. Bnkg. & Fin.    22.1     Countrywide Aggressive Gr.     -6.9
      Standish Sm. Cap Eq. Asset     21.6     ProFunds UltraBear Serv.       -6.6
      Ivy Developing Nations A       20.9     Fidelity Sel. Biotechnology    -6.5
      
      Leaders                                 Laggards
      52-week total return              %     52-week total return              %
      Internet                      298.8     Lex. Troika Dialog Russia     -73.7
      Amerindo Technology D         161.3     American Heritage             -60.0
      Munder NetNet A               115.1     Vontobel Eastern Europ. Eq.   -50.0
      Van Wagoner Technology        111.1     Potomac OTC/Short             -46.7
      Berkshire Cap. Gr. & Val.     110.5     Safeco Sm. Co. Stock Adv. B   -45.3
      
      EQUITY FUND CATEGORIES
      
      Leaders                                 Laggards
      Four-week total return           %      Four-week total return           %
      Latin America                  17.3     Health                         -3.0
      Pacific/Asia ex-Japan          14.3     Europe                          0.8
      Natural Resources              12.9     Large-cap Growth                1.5
      Diversified Emerging Mkts.     12.5     International Hybrid            2.1
      Real Estate                    10.8     Domestic Hybrid                 3.0
      
      Leaders                                 Laggards
      52-week total return             %      52-week total return              %
      Technology                     42.3     Latin America                 -28.5
      Communications                 35.4     Small-cap Value               -20.5
      Japan                          27.5     Diversified Emerging Mkts.    -19.7
      Large-cap Growth               21.7     Precious Metals               -18.5
      Large-cap Blend                11.8     Small-cap Blend               -18.2
      
      All data are as of market close Wednesday, Apr. 21, 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 Apr. 20. 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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