COMMENTARY
      Stocks took it on the chin this week, despite favorable news on the inflation 
      front. Both the consumer and producer price indexes for August showed scant 
      price pressures. But investors focused instead on the 1.2% jump in retail 
      sales, which showed that the economy was continuing to race ahead. The market 
      is fearful that the Fed will raise interest rates in October to slow the 
      economy.
      
      Data: Bloomberg Financial Markets
      
      STOCKS
      
                                                 % change
      U.S. MARKETS             Sept. 15       Week       Year
      Dow Jones Industrials   10,801.4        -2.1       34.6
      Nasdaq Composite          2814.2         0.2       67.7
      Nasdaq 100                2463.1         0.3       86.0
      S&P MidCap 400             401.1        -0.2       30.0
      S&P SmallCap 600           180.0         0.0       18.8
      S&P SuperComposite 1500    275.7        -2.4       26.3
      
                                                % change
      SECTORS                   Sept. 15      Week       Year
      S&P/BARRA Growth           759.0        -1.7       32.9
      S&P/BARRA Value            581.5        -2.2       20.3
      S&P Basic Materials        128.3        -0.7       15.8
      S&P Capital Goods         1009.1        -3.3       36.6
      S&P Energy                 861.9        -2.7       18.4
      S&P Financials             125.8        -3.7       11.2
      S&P REIT                    78.6        -2.1       -4.1
      S&P Transportation         635.2        -0.5        4.1
      S&P Utilities              253.5        -0.1        2.6
      GSTI Internet              421.5         1.0      211.0
      Morgan Stanley Cyclical    571.9        -2.4       36.8
      PSE Technology             643.9        -0.6      102.9
      
                                                 % change
      GLOBAL MARKETS            Sept. 15     Week        Year
      S&P Euro Plus             1359.6        -0.3       22.8
      London (FT-SE 100)        6067.7        -3.0       14.9
      Frankfurt (DAX)           5387.2        -0.3       11.5
      Tokyo (NIKKEI 225)      17,777.2         0.4       25.0
      Hong Kong (Hang Seng)   13,430.6         0.6       73.7
      Toronto (TSE 300)         7063.5         0.1       20.6
      Mexico City (IPC)         4970.2         2.4       45.6
      
                                                           Week      Year
      FUNDAMENTALS                            Sept. 14     ago       ago
      S&P 500 Dividend Yield                  1.26%        1.25%      1.52%
      S&P 500 P/E Ratio (Trailing 12 mos.)    31.5         33.7       24.7
      S&P 500 P/E Ratio (Next 12 mos.)*       23.4         23.6       19.9
      First Call Earnings Revision*           5.80%       -0.58%     -5.20%
      *First Call Corp.
      
                                                          Week
      TECHNICAL INDICATORS                    Sept. 14    ago       Reading
      S&P 500 200-day average                 1297.4     1293.2     Positive
      Stocks above 200-day average            37.0%      40.0%      Positive
      Options: Put/call ratio                 0.54       0.61       Negative
      Insiders: Vickers Sell/buy ratio        1.11       1.34       Positive
      
      BEST-PERFORMING              Last                               Last 12
      GROUPS                       month%                             months%
      Defense Electronics          11.1      Semiconductors            129.1
      Computer Systems             8.4       Instrumentation           117.2
      Computer Software            6.6       Communications Equip.     101.7
      Electrical Equipment         6.6       Computer Systems           84.3
      Communications Equip.        6.4       Diversified Manufacturing  65.4
      
      WORST-PERFORMING            Last                                Last 12
      GROUPS                      month%                              months%
      Furnishings & Appliances   -21.4       Pollution Control         -49.7
      Apparel Manufacturing      -17.9       Manufactured Housing      -33.9
      Housewares                 -16.6       Toys                      -22.2
      Pollution Control          -14.8       Metal & Glass Containers  -21.5
      Specialty Appar. Retailers -12.3       Apparel Manfuacturing     -20.2
      
      INTEREST RATES
      
                                                    Week           Year
      KEY RATES                     Sept. 15        ago            ago
      MONEY MARKET FUNDS            4.83%           4.80%          5.09%
      90-DAY TREASURY BILLS         4.72            4.83           4.74
      1-YEAR TREASURY BILLS         5.23            5.28           4.78
      10-YEAR TREASURY NOTES        5.92            5.93           4.88
      30-YEAR TREASURY BONDS        6.10            6.07           5.23
      30-YEAR FIXED MORTGAGE**      7.85            8.00           6.78
      
      **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           4.92%          5.58%
      TAXABLE EQUIVALENT            7.13           8.09
      INSURED REVENUE BONDS         5.07           5.82
      TAXABLE EQUIVALENT            7.35           8.43
      
      MUTUAL FUNDS
      
      EQUITY FUND CATEGORIES
      Leaders                               Laggards
      Four-week total return      %         Four-week total return     %
      Japan                     13.9        Financial                -6.8
      Diversified Pacific/Asia  10.0        Precious Metals          -3.3
      Technology                 9.0        Mid-cap Value            -2.9
      Pacific/Asia ex-Japan      6.9        Large-cap Value          -2.8
      Small-cap Growth           4.7        Real Estate              -1.7
      
      Leaders                               Laggards
      52-week total return        %         52-week total return        %
      Technology               120.7        Precious Metals           0.9
      Japan                    105.3        Real Estate               8.2
      Pacific/Asia ex-Japan     86.7        Financial                10.0
      Diversified Pacific/Asia  85.5        Europe                   10.8
      Communications            66.7        Small-cap Value          13.7
      
      BW PRODUCTION INDEX
      The production index dipped in the week ended Sept. 4. Before calculation of 
      the four-week moving average, the index fell 0.2%, to 149.6, from 149.9. Truck 
      and coal production dropped after seasonal adjustment. Output of steel, autos, 
      electric power, crude oil, and lumber were up. Rail-freight traffic also rose, 
      and the Association of American Railroads noted that railroads recorded their 
      third-largest weekly volume ever for intermodal freight.
      
      
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