COMMENTARY
      A generally mixed week in the financial markets, with computer stocks showing 
      particular strength. The NASDAQ Composite climbed 40 points on July 14 to set 
      its seventh record performance in the past ten trading days. Intel led the 
      list of gainers, because of strong profit news. The euro fell to a record 
      against the dollar on July 12 because of a drop in German industrial 
      production.
      
                                                 % change
      U.S. MARKETS               July 14        Week     Year
      Dow Jones Industrials     11,148.1       -0.4      20.6
      NASDAQ Composite            2817.9        2.7      43.2
      NASDAQ 100                  2416.8        3.3      70.4
      S&P MidCap 400               423.9        1.4      14.6
      S&P SmallCap 600             188.1        1.4      -2.8
      S&P SuperComposite 1500      294.0        0.3      17.6
      
                                                   % change
      SECTORS                    July 14       Week      Year
      S&P/BARRA Growth             791.8        0.9      25.2
      S&P/BARRA Value              628.6       -0.6      11.5
      S&P Basic Materials          137.4        0.0      11.0
      S&P Capital Goods           1040.2       -0.4      16.9
      S&P Energy                   875.2        0.2      17.7
      S&P Financials               144.3       -2.5      -2.3
      S&P REIT                      83.9       -0.5     -18.9
      S&P Transportation           739.0       -2.1       3.1
      S&P Utilities                258.3       -0.8       6.1
      GSTI Internet                500.9       -2.4     197.9
      Morgan Stanley Cyclical      599.8        0.1      14.9
      PSE Technology               631.3        3.5      76.9
      
                                                    % change
      GLOBAL MARKETS              July 14      Week      Year
      S&P Euro Plus               1360.3       -0.5      -0.3
      London (FT-SE 100)          6473.1       -1.9       6.1
      Frankfurt (DAX)             5610.9        0.4      -7.9
      Tokyo (NIKKEI 225)        18,357.9        2.2      11.3
      Hong Kong (Hang Seng)     13,575.6       -4.8      66.0
      Toronto (TSE 300)           7253.1        1.1      -1.8
      Mexico City (IPC)           5834.9       -1.4      26.1
      
                                                        Week    Year
      FUNDAMENTALS                           July 13     ago     ago
      S&P 500 Dividend Yield                  1.17%     1.17%    1.32%
      S&P 500 P/E Ratio (Trailing 12 mos.)    35.1      34.7     27.8
      S&P 500 P/E Ratio (Next 12 mos.)*       24.9      24.8     22.7
      First Call Earnings Surprise*           3.51%     11.34%   2.40%
      
                                                       Week
      TECHNICAL INDICATORS                 July 13      ago      Reading
      S&P 500 200-day average               1238.7    1229.7     Positive
      Stocks above 200-day average            59.0%     60.0%    Neutral
      Options: Put/call ratio                 0.45      0.40     Negative
      Insiders: Vickers Sell/buy ratio        1.44      1.56     Positive
      
                                                Week   Year
      KEY RATES                      July 14    ago     ago
      MONEY MARKET FUNDS               4.55%    4.53%   5.10%
      90-DAY TREASURY BILLS            4.69     4.67    5.14
      1-YEAR TREASURY BILLS            4.97     5.06    5.35
      10-YEAR TREASURY NOTES           5.73     5.92    5.48
      30-YEAR TREASURY BONDS           5.92     6.08    5.70
      30-YEAR FIXED MORTGAGE*******    7.60     7.69    7.05
      
      BEST-PERFORMING            Last                             Last 12
      GROUPS                     month%                           months%
      Health-Care Services       30.6    Semiconductors            96.8
      Computer Systems           23.9    Computer Systems          85.7
      Computer Software          22.6    Communications Equip.     81.6
      Communications Equip.      21.6    Instrumentation           64.5
      Semiconductors             20.6    Broadcasting              58.5
      
      WORST-PERFORMING           Last                            Last 12
      GROUPS                   month%                             months%
      Pollution Control         -28.7    Manufactured Housing     -42.0
      Machine Tools             -21.7    Metal & Glass Containers  33.9
      HMOs                      -13.1    Apparel Manufacturing    -32.9
      Hospital Management       -11.1    Hospital Management      -28.0
      Metal & Glass Containers   -9.0    Pollution Control        -26.2
        % change
      *First Call Corp.
      
      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
      
      GENERAL OBLIGATIONS         4.73%               5.22%
      TAXABLE EQUIVALENT          6.86                7.57
      INSURED REVENUE BONDS       4.87                5.46
      TAXABLE EQUIVALENT          7.06                7.91
      *******BanxQuote, Inc.
      
      EQUITY FUND CATEGORIES
      Leaders                                  Laggards
      Four-week total           return%        Four-week total    return%
      BW PRODUCTION INDEX
      Technology                15.9           Precious Metals      -2.5
      Japan                     13.1           Real Estate          -2.0
      Small-cap Growth          11.7           Utilities             1.0
      Pacific/Asia ex-Japan     10.6           Europe                1.1
      Mid-cap Growth             9.7           Natural Resources     1.1
      
      Leaders                 Laggards
      52-week total           return  %        52-week total     return  %
      Pacific/Asia ex-Japan     74.5           Latin America       -13.5
      Technology                69.8           Precious Metals     -10.5
      Japan                     55.5           Real Estate          -9.3
      Diversified Pacific/Asia  52.4           Europe               -7.0
      Communications            47.7           Small-cap Value      -4.6
      
      
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