COMMENTARY
      The technology-heavy Nasdaq composite index was again the star of the week, 
      posting record highs on four consecutive trading days. Yahoo! was a driving 
      force behind the gains, rising over 67 points to 348 on Dec. 7, when the stock 
      was added to the S&P 500. But profit-taking on Dec. 8 led both the Nasdaq and 
      Dow Jones industrial average to lower ground.
      
      STOCKS
      
                                                          % change
      U.S. MARKETS                            Dec. 8    Week      12 mos.
      Dow Jones Industrials                   11068.1    0.6      22.6
      Nasdaq Composite                        3586.1     6.9      76.2
      Nasdaq 100                              3164.1     5.6      89.7
      S&P MidCap 400                          422.5     -0.1      17.7
      S&P SmallCap 600                        187.2      2.4      11.5
      S&P SuperComposite 1500                 295.0      0.5      18.6
      
                                                          % change
      SECTORS                                 Dec. 8    Week      12 mos.
      S&P/BARRA Growth                        843.4      1.1      27.0
      S&P/BARRA Value                         588.8     -0.3      9.8
      S&P Basic Materials                     128.1      2.3      14.5
      S&P Capital Goods                       1039.0     2.2      25.2
      S&P Energy                              838.4     -2.0      18.2
      S&P Financials                          131.7     -2.8      4.4
      S&P REIT                                70.7      -2.2     -18.1
      S&P Transportation                      607.2      0.1     -9.3
      S&P Utilities                           219.8     -2.1     -14.6
      GSTI Internet                           667.9      14.5     170.8
      Morgan Stanley Cyclical                 543.3      1.5      15.3
      PSE Technology                          828.2      7.5      94.7
      
                                                           % change
      GLOBAL MARKETS                          Dec. 8     Week     12 mos.
      S&P Euro Plus                           1458.3     2.4      26.0
      London (FT-SE 100)                      6619.4    -0.4      17.9
      Frankfurt (DAX)                         6115.6     3.1      30.1
      Tokyo (NIKKEI 225)                      18401.2   -0.5      24.3
      Hong Kong (Hang Seng)                   15989.4    3.7      54.5
      Toronto (TSE 300)                       7820.1     3.0      22.2
      Mexico City (IPC)                       6665.0     7.5      76.3
      
                                                         Week      Year
      FUNDAMENTALS                            Dec. 7     ago       ago
      S&P 500 Dividend Yield                  1.20%      1.22%    1.31%
      S&P 500 P/E Ratio (Trailing 12 mos.)    31.2       30.6     30.6
      S&P 500 P/E Ratio (Next 12 mos.)*       24.3       24.1     23.0
      First Call Earnings Revision*          -1.16%     -0.66%   -1.81%
      
      *First Call Corp.
      
                                                         Week
      TECHNICAL INDICATORS                    Dec. 7     ago      Reading
      S&P 500 200-day average                 1332.3     1328.1   Positive
      Stocks above 200-day average            28.0%      29.0%    Positive
      Options: Put/call ratio                 0.46       0.46     Negative
      Insiders: Vickers Sell/buy ratio        0.63       0.64     Positive
      
      BEST-PERFORMING               Last                              Last 12
      GROUPS                        month%                            months%
      Instrumentation               29.7   Communications Equip.      124.3
      Computer Systems              25.0   Instrumentation            100.9
      Specialty Appar. Retailers    24.2   Broadcasting               86.7
      Communications Equip.         23.6   Semiconductors             69.5
      Aluminum                      18.2   Aluminum                   66.5
      
      WORST-PERFORMING              Last                              Last 12
      GROUPS                        month%                            months%
      Food Chains                  -23.3   Pollution Control         -58.7
      Savings & Loans              -22.8   Tobacco                   -51.7
      Building Materials           -17.2   Office Equip. & Supplies  -46.1
      Pollution Control            -16.7   Food Chains               -43.8
      Money Center Banks           -16.4   Manufactured Housing      -42.9
      
      MUTUAL FUNDS
      
      EQUITY FUND CATEGORIES
      
      Leaders                                 Laggards
      Four-week total return          %       Four-week total return     %
      Technology                   131.0      Real Estate              -9.3
      Japan                        103.4      Precious Metals           1.1
      Diversified Pacific/Asia      77.3      Financial                 1.3
      Communications                75.4      Small-cap Value           2.7
      Small-cap Growth              63.7      Mid-cap Value             3.8
      
      Leaders                                 Laggards
      52-week total return            %       52-week total return       %
      Technology                    19.5      Financial                -4.8
      Pacific/Asia ex-Japan         14.3      Real Estate              -3.6
      Communications                12.5      Natural Resources        -3.2
      Mid-cap Growth                12.3      Precious Metals          -2.9
      Small-cap Growth              12.1      Mid-cap Value            -0.3
      
      INTEREST RATES
      
                                               Week      Year
      KEY RATES                     Dec. 8     ago       ago
      MONEY MARKET FUNDS            5.22%      5.18%    4.77%
      90-DAY TREASURY BILLS         5.21       5.27     4.43
      1-YEAR TREASURY BILLS         5.67       5.73     4.49
      10-YEAR TREASURY NOTES        6.13       6.21     4.60
      30-YEAR TREASURY BONDS        6.23       6.30     5.00
      30-YEAR FIXED MORTGAGE+       7.88       7.99     6.81
      
      +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        5.00%                5.79%
      TAXABLE EQUIVALENT         7.25                 8.39
      INSURED REVENUE BONDS      5.22                 6.09
      TAXABLE EQUIVALENT         7.57                 8.83
      
      
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