COMMENTARY
      Financial stocks shook off the interest-rate blues as Congress finally agreed 
      to repeal the Glass-Steagall Act, a move that will set off further 
      consolidation in financial services. That sent the S&P Financials Index up 
      7.4% for the week. Gold closed at $294 on Oct. 27, slipping below $300 an 
      ounce for the first time in the month since European central banks agreed to 
      limit sales of gold.
      
      STOCKS
      
                                                    % change
      U.S. MARKETS                  Oct. 27      Week      12 mos.
      Dow Jones Industrials         10,394.9     0.0       24.3
      Nasdaq Composite              2802.5       0.5       63.2
      Nasdaq 100                    2457.5      -0.4       81.6
      S&P MidCap 400                380.1        0.7       18.0
      S&P SmallCap 600              171.2        0.4       10.0
      S&P SuperComposite 1500       271.9        0.6       21.1
      
                                                    % change
      SECTORS                       Oct. 27      Week      12 mos.
      S&P/BARRA Growth              753.6       -0.5       27.4
      S&P/BARRA Value               566.1        1.8       15.4
      S&P Basic Materials           123.3        0.0       11.6
      S&P Capital Goods             989.9        1.8       25.7
      S&P Energy                    803.7       -3.2       13.1
      S&P Financials                133.8        7.4       17.8
      S&P REIT                      73.0        -1.1      -14.8
      S&P Transportation            608.4        5.7      -0.7
      S&P Utilities                 241.8        2.3      -2.8
      GSTI Internet                 449.4       -4.0       170.9
      Morgan Stanley Cyclical       519.0        0.1       19.4
      PSE Technology                615.0       -0.5       81.1
      
                                                    % change
      GLOBAL MARKETS                Oct. 27      Week      12 mos.
      S&P Euro Plus                 1298.6      -2.5       18.7
      London (FT-SE 100)            6045.7       0.6       13.4
      Frankfurt (DAX)               5363.9       1.4       14.6
      Tokyo (NIKKEI 225)            17,382.4    -0.9       25.8
      Hong Kong (Hang Seng)         12,709.1     1.7       28.0
      Toronto (TSE 300)             7011.4       1.2       16.9
      Mexico City (IPC)             5142.2       0.4       31.3
      
                                                           Week      Year
      FUNDAMENTALS                               Oct. 26   ago       ago
      S&P 500 Dividend Yield                     1.32%     1.34%     1.48%
      S&P 500 P/E Ratio (Trailing 12 mos.)       29.0      29.3      26.6
      S&P 500 P/E Ratio (Next 12 mos.)*          22.3      22.0      21.1
      First Call Earnings Surprise*              2.86%     3.25%     0.94%
      *First Call Corp.
      
                                                           Week
      TECHNICAL INDICATORS                       Oct. 26   ago       Reading
      S&P 500 200-day average                    1311.4    1310.8    Negative
      Stocks above 200-day average               26.0%     25.0%     Positive
      Options: Put/call ratio                    0.54      0.70      Negative
      Insiders: Vickers Sell/buy ratio           1.12      1.07      Positive
      
      BEST-PERFORMING               Last                                  Last 12
      GROUPS                        month%                                months%
      Savings & Loans               19.1         Communications Equip.    98.9
      Publishing                    15.9         Semiconductors           90.7
      Transportation Services       13.9         Invest. Banking/Brkrge.  78.9
      Financial Services            12.2         Instrumentation          75.4
      Major Regional Banks          12.0         Broadcasting             71.8
      
      WORST-PERFORMING              Last                                  Last 12
      GROUPS                        month%                                months%
      Office Equip. & Supplies      -34.0        Pollution Control        -54.2
      Toys                          -32.3        Toys                     -52.7
      Tobacco                       -24.8        Tobacco                  -46.5
      HMOs                          -20.0        Manufactured Housing     -39.5
      Gold Mining                   -19.7        Office Equip. & Supplies -39.0
      
      INTEREST RATES
      
                                                 Week         Year
      KEY RATES                     Oct. 27      ago          ago
      MONEY MARKET FUNDS            5.02%        4.98%        4.89%
      90-DAY TREASURY BILLS         5.13         5.15         4.28
      1-YEAR TREASURY BILLS         5.51         5.49         4.07
      10-YEAR TREASURY NOTES        6.18         6.19         4.60
      30-YEAR TREASURY BONDS        6.32         6.34         5.13
      30-YEAR FIXED MORTGAGE!       8.05         8.02         6.80
      !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           5.15%        5.90%
      TAXABLE EQUIVALENT            7.46         8.55
      INSURED REVENUE BONDS         5.33         6.20
      TAXABLE EQUIVALENT            7.72         8.99
      
      MUTUAL FUNDS
      
      EQUITY FUND CATEGORIES
      
      Leaders                                    Laggards
      Four-week total return        %            Four-week total return     %
      Japan                         3.8          Precious Metals            -15.8
      Communications                3.6          Real Estate                -3.7
      Diversified Pacific/Asia      3.5          Latin America              -3.3
      Small-cap Growth              3.3          Natural Resources          -3.2
      Financial                     3.1          Small-cap Value            -3.0
      
      Leaders                                    Laggards
      52-week total return          %            52-week total return       %
      Technology                    110.4        Real Estate               -5.7
      Japan                         95.5         Precious Metals            2.0
      Communications                66.9         Small-cap Value            3.8
      Diversified Pacific/Asia      66.4         Mid-cap Value              6.6
      Pacific/Asia ex-Japan         49.0         Financial                  8.0
      
      
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