COMMENTARY
      With all major indexes in the stratosphere, stocks suddenly developed a bad 
      nosebleed. On July 20, the Dow Industrials drooped 1.7%, while the Standard & 
      Poor's 500-stock index fell 2.1% and the NASDAQ swooned 3.5%--despite terrific 
      earnings from the likes of Microsoft, General Motors, and General Electric. 
      Still, year-to-date, the Dow is up 19.4%, the S&P 12.2%, and the NASDAQ a 
      blistering 25.9%.
      
      STOCKS
                                                                     % CHANGE
      U.S. MARKETS                                     JULY 21     WEEK    YEAR
      Dow Jones Industrials                           11,002.8     -1.3    19.7
      NASDAQ Composite                                  2761.7     -2.0    39.5
      NASDAQ 100                                        2363.6     -2.2    65.1
      S&P MidCap 400                                     421.0     -0.7    14.3
      S&P SmallCap 600                                   185.7     -1.3    -2.8
      S&P SuperComposite 1500                            290.2     -1.3    17.3
      
                                                                     % CHANGE
      SECTORS                                          JULY 21     WEEK     YEAR
      S&P/BARRA Growth                                   778.4     -1.7    23.7
      S&P/BARRA Value                                    622.5     -1.0    12.3
      S&P Basic Materials                                135.0     -1.7     9.5
      S&P Capital Goods                                 1041.0      0.1    19.5
      S&P Energy                                         859.7     -1.8    17.9
      S&P Financials                                     142.3     -1.4     0.1
      S&P REIT                                            83.4     -0.6   -18.5
      S&P Transportation                                 735.3     -0.5     7.4
      S&P Utilities                                      259.2      0.4     7.9
      GSTI Internet                                      471.1     -6.0   159.8
      Morgan Stanley Cyclical                            595.1     -0.8    16.6
      PSE Technology                                     611.2     -3.2    67.1
      
                                                                     % CHANGE
      GLOBAL MARKETS                                   JULY 21     WEEK     YEAR
      S&P Euro Plus                                     1348.0     -0.9    -2.9
      London (FT-SE 100)                                6329.8     -2.2     3.2
      Frankfurt (DAX)                                   5414.2     -3.5   -12.2
      Tokyo (NIKKEI 225)                              18,257.5     -0.5    10.3
      Hong Kong (Hang Seng)                           13,419.7     -1.1    56.7
      Toronto (TSE 300)                                 7136.4     -1.6    -3.7
      Mexico City (IPC)                                 5857.6      0.4    28.7
      
                                                                   WEEK    YEAR
      FUNDAMENTALS                                      JULY 20    AGO     AGO
      S&P 500 Dividend Yield                              1.19%    1.17%   1.34%
      S&P 500 P/E Ratio (Trailing 12 mos.)                34.0     35.1    27.8
      S&P 500 P/E Ratio (Next 12 mos.)*                   24.6     24.9    22.4
      First Call Earnings Surprise*                       4.28%    3.51%   2.32%
      *First Call Corp.
      
                                                                  WEEK
      TECHNICAL INDICATORS                             JULY 20    AGO      READING
      S&P 500 200-day average                           1248.1   1238.7    Positive
      Stocks above 200-day average                        57.0%    59.0%   Neutral
      Options: Put/call ratio                             0.45     0.45    Negative
      Insiders: Vickers Sell/buy ratio                    1.50     1.44    Positive
      
      BEST-PERFORMING               LAST                                    LAST 12
      GROUPS                        MONTH%                                  MONTHS%
      Health-Care Services           26.3       Semiconductors               83.1
      Defense Electronics            12.1       Computer Systems             71.8
      Specialty Chemicals            11.3       Instrumentation              65.4
      Semiconductors                  8.9       Broadcasting                 58.2
      Furnishings & Appliances        8.8       Specialty Appar. Retailers   57.7
      
      WORST-PERFORMING              LAST                                    LAST 12
      GROUPS                        MONTH%                                  MONTHS%
      Pollution Control             -31.8       Manufactured Housing        -39.9
      Machine Tools                 -20.3       Metal & Glass Containers    -37.7
      Transportation Services       -17.0       Apparel Manufacturing       -31.6
      Metal & Glass Containers      -16.4       Pollution Control           -29.6
      Leisure Time                  -10.9       Toys                        -28.2
      
      MUTUAL FUNDS
      EQUITY FUND CATEGORIES
      
      LEADERS                                   LAGGARDS
      FOUR-WEEK TOTAL RETURN           %        FOUR-WEEK TOTAL RETURN         %
      Japan                          11.4       Precious Metals              -3.5
      Small-cap Growth                7.2       Latin America                -2.6
      Technology                      6.6       Real Estate                  -2.3
      Diversified Pacific/Asia        5.3       Pacific/Asia ex-Japan         0.3
      Health                          5.2       Financial                     0.7
      
      LEADERS                                   LAGGARDS
      52-WEEK TOTAL RETURN             %        52-WEEK TOTAL RETURN           %
      Pacific/Asia ex-Japan          62.5       Precious Metals             -16.8
      Technology                     60.9       Latin America               -15.3
      Japan                          56.0       Real Estate                  -9.5
      Diversified Pacific/Asia       48.8       Europe                       -8.5
      Communications                 41.0       Small-cap Value              -5.2
      
      INTEREST RATES
                                                                   WEEK    YEAR
      KEY RATES                                          JULY 21    AGO     AGO
      MONEY MARKET FUNDS                                  4.58%    4.55%   5.10%
      90-DAY TREASURY BILLS                               4.55     4.72    5.07
      1-YEAR TREASURY BILLS                               4.92     5.01    5.37
      10-YEAR TREASURY NOTES                              5.65     5.74    5.46
      30-YEAR TREASURY BONDS                              5.90     5.92    5.68
      30-YEAR FIXED MORTGAGE*******                       7.62     7.60    7.04
      
      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                                    4.69%        5.19%
      TAXABLE EQUIVALENT                                     6.80         7.52
      INSURED REVENUE BONDS                                  4.84         5.43
      TAXABLE EQUIVALENT                                     7.01         7.87
      *******BanxQuote, Inc.
      
      
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