COMMENTARY
      Traders continued to focus on the Federal Reserve, watching for signs of 
      another rate hike. U.S. stocks rose sharply on Sept. 3, when employment data 
      suggested that inflation was under control. But the market slipped slightly 
      afterward because of continuing fears that the Federal Reserve may again raise 
      rates to control inflation. Oil prices rose to a two-year high on Sept. 7.
      
      Data: Bloomberg Financial Markets
      
      STOCKS
      
                                                 % change
      U.S. MARKETS             Sept. 8       Week       Year
      Dow Jones Industrials    11,036.3      0.9        37.6
      Nasdaq Composite           2808.7      2.1        69.1
      Nasdaq 100                 2454.7      2.1        90.8
      S&P MidCap 400              401.8      0.9        31.7
      S&P SmallCap 600            180.0      1.2        18.1
      S&P SuperComposite 1500     282.3      1.0        31.0
      
                                               % change
      SECTORS                   Sept. 8     Week       Year
      S&P/BARRA Growth            772.4      1.2        36.5
      S&P/BARRA Value             594.5      0.8        25.4
      S&P Basic Materials         129.2     -0.4        19.4
      S&P Capital Goods          1043.5      3.2        38.7
      S&P Energy                  885.8      2.3        27.8
      S&P Financials              130.6     -0.4        19.0
      S&P REIT                     80.3     -0.1        -5.0
      S&P Transportation          638.1      0.2         9.1
      S&P Utilities               253.6     -1.1         7.2
      GSTI Internet               417.4      3.8       211.1
      Morgan Stanley Cyclical     585.8      1.5        40.5
      
                                                 % change
      GLOBAL MARKETS            Sept. 8     Week        Year
      PSE Technology              647.6      2.9       104.9
      S&P Euro Plus              1363.1      1.0        16.2
      London (FT-SE 100)         6253.6     -0.4        17.0
      Frankfurt (DAX)            5400.7      1.6         5.8
      Tokyo (NIKKEI 225)       17,641.4     -0.9        18.3
      Hong Kong (Hang Seng)    13,356.6     -1.4        63.1
      Toronto (TSE 300)          7055.0      1.1        18.0
      Mexico City (IPC)          4854.3     -4.6        50.0
      
                                                           Week      Year
      FUNDAMENTALS                              Sept. 7    ago       ago
      S&P 500 Dividend Yield                     1.25%     1.24%     1.54%
      S&P 500 P/E Ratio (Trailing 12 mos.)       33.7      31.1      24.3
      S&P 500 P/E Ratio (Next 12 mos.)*          23.6      23.2      19.5
      First Call Earnings Revision*             -0.58%    -0.32%    -4.69%
      *First Call Corp.
      
                                                          Week
      TECHNICAL INDICATORS                    Sept. 7     ago       Reading
      S&P 500 200-day average                  1293.2     1289.1    Positive
      Stocks above 200-day average               40.0%    38.0%     Positive
      Options: Put/call ratio                    0.61     0.56      Neutral
      Insiders: Vickers Sell/buy ratio           1.34     1.36      Positive
      
      BEST-PERFORMING             Last                             Last 12
      GROUPS                      month%                           months%
      Semiconductors              16.7    Semiconductors           145.3
      Instrumentation             13.6    Instrumentation          142.9
      Drugs                       13.4    Communictions Equip.      88.3
      Electrical Equipment        11.7    Computer Systems          88.2
      Medical Prods. & Supplies   10.3    Diversified Manufacturing 72.9
      
      WORST-PERFORMING            Last                             Last 12
      GROUPS                      month%                           months%
      Housewares                 -20.0    Pollution Control        -45.9
      Apparel Manufacturing      -16.0    Manufactured Housing     -40.3
      Pollution Control          -12.7    Toys                     -25.8
      Airlines                   -11.1    Apparel Manufacturing    -24.0
      Regional Telephone Cos.    -10.2    Homebuilding             -22.0
      
      INTEREST RATES
      
                                                    Week           Year
      KEY RATES                     Sept. 8         ago            ago
      MONEY MARKET FUNDS             4.80%          4.77%          5.10%
      90-DAY TREASURY BILLS          4.80           4.97           4.88
      1-YEAR TREASURY BILLS          5.25           5.30           4.81
      10-YEAR TREASURY NOTES         5.93           5.99           4.95
      30-YEAR TREASURY BONDS         6.07           6.08           5.28
      30-YEAR FIXED MORTGAGE**       8.00           8.00           6.76
      
      **BanxQuote, Inc.
      
      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           4.88%         5.52%
      TAXABLE EQUIVALENT            7.07          8.00
      INSURED REVENUE BONDS         5.08          5.80
      TAXABLE EQUIVALENT            7.36          8.41
      
      MUTUAL FUNDS
      
      EQUITY FUND CATEGORIES
      Leaders                               Laggards
      Four-week total return      %         Four-week total return     %
      Technology               15.1         Precious Metals          -0.4
      Japan                    11.8         Natural Resources         0.2
      Health                    9.9         Mid-cap Value             1.1
      Small-cap Growth          9.6         Small-cap Value           1.2
      Mid-cap Growth            9.4         Real Estate               1.2
      
      Leaders                               Laggards
      52-week total return        %         52-week total return        %
      Technology              128.6         Precious Metals           3.3
      Pacific/Asia ex-Japan    89.3         Real Estate               6.8
      Japan                    86.5         Europe                   14.5
      Diversified Pacific/Asia 78.4         International Hybrid     14.9
      Communications           74.0         Small-cap Value          16.1
      
      BW PRODUCTION INDEX
      The production index hit a record 150 in the week ended Aug. 28. The monthly 
      index for August also soared to 150 from July's index of 147.4. The unaveraged 
      index, however, dipped to 149.9, from 150.3 in the previous week. After 
      seasonal adjustment, production of trucks, coal, and rail-freight traffic 
      increased. Crude oil output fell 4.3%, with operating capacity at only 93.4%. 
      Output of steel, autos, electric power, and lumber were also down.
      
      
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