COMMENTARY
      A generally upbeat week in the financial markets, which saw the Dow Jones
      industrial average and Nasdaq Composite Index both rising to new highs. Led by
      Microsoft, the Nasdaq index climbed to a record on Jan. 18. But the Dow, which
      had climbed to a record 11,723 on Jan. 14, fell in the two subsequent trading
      days. Bonds fell because of inflation fears.
      Data: Bloomberg Financial Markets
      
      STOCKS
      
                                                        % change
                                                        Year to   Last 12
      U.S. MARKETS                  Jan. 19   Week      date      months
      Dow Jones Industrials         11,489.4  -0.2      -0.1      22.8
      Nasdaq Composite              4151.3    5.9       2.0       72.4
      Nasdaq 100                    3790.9    7.0       2.2       86.4
      S&P MidCap 400                452.0     3.4       1.6       17.2
      S&P SmallCap 600              203.4     5.4       2.8       15.2
      S&P SuperComposite 1500       306.9     1.5       -0.6      16.3
      
      SECTORS
      S&P/BARRA Growth              875.7     0.9       -1.3      23.7
      S&P/BARRA Value               607.7     1.5       -0.5      7.8
      S&P Basic Materials           133.5     -4.5      -3.4      18.8
      S&P Capital Goods             1081.7    -0.5      -2.6      24.7
      S&P Energy                    867.1     0.8       3.9       24.1
      S&P Financials                128.3     2.8       -3.5      -2.0
      S&P REIT                      75.9      -0.4      3.2       -10.1
      S&P Transportation            586.7     -4.3      -1.7      -13.1
      S&P Utilities                 238.6     2.1       5.0       -4.9
      GSTI Internet                 694.8     1.8       -2.5      70.2
      Morgan Stanley Cyclical       573.1     -2.2      -2.2      19.4
      PSE Technology                1001.3    6.1       3.0       103.5
      
                                                        % change
                                                        Year to   Last 12
      GLOBAL MARKETS                Jan. 19   Week      date      months
      S&P Euro Plus                 1507.2    1.4       -2.9      19.8
      London (FT-SE 100)            6445.4    -1.3      -7.0      6.9
      Frankfurt (DAX)               7091.0    2.6       1.9       39.8
      Tokyo (NIKKEI 225)            18,897.8  1.2       -0.2      37.2
      Hong Kong (Hang Seng)         15,275.3  -2.8      -9.9      48.4
      Toronto (TSE 300)             8635.1    3.3       2.6       27.8
      Mexico City (IPC)             7171.2    0.0       0.6       99.0
      
                                                        Week      Year
      FUNDAMENTALS                            Jan. 18   ago       ago
      S&P 500 Dividend Yield                  1.16%     1.17%     1.26%
      S&P 500 P/E Ratio (Trailing 12 mos.)    32.1      31.9      33.1
      S&P 500 P/E Ratio (Next 12 mos.)*       24.9      24.7      24.3
      First Call Earnings Surprise*           7.21%     17.14%    6.93%
      
      *First Call Corp.
      
                                                        Week
      TECHNICAL INDICATORS                    Jan. 18   ago       Reading
      S&P 500 200-day average                 1353.9    1350.9    Positive
      Stocks above 200-day average            30.0%     29.0%     Positive
      Options: Put/call ratio                 0.40      0.45      Negative
      Insiders: Vickers Sell/buy ratio        0.67      0.68      Positive
      
      BEST-PERFORMING               Last                                    Last 12
      GROUPS                        month%                                  months%
      Instrumentation               53.1      Instrumentation               218.5
      Health-Care Services          44.3      Health-Care Services          87.3
      Oil-Well Equip. & Svcs.       26.4      Communications Equip.         78.2
      Oil and Gas Drilling          24.0      Semiconductors                77.0
      Entertainment                 20.8      Metals                        73.8
      
      WORST-PERFORMING              Last                                    Last 12
      GROUPS                        month%                                  months%
      Conglomerates                 -11.5     Pollution Control             -61.4
      Regional Telephone Cos.       -10.2     Tobacco                       -49.1
      Furnishings & Appliances      -8.4      Office Equip. & Supplies      -48.4
      Savings & Loans               -8.1      Manufactured Housing          -48.0
      Long-Dist. Telephone Cos.     -6.6      Toys                          -39.9
      
      INTEREST RATES
      
                                              Week      Year
      KEY RATES                     Jan. 19   ago       ago
      MONEY MARKET FUNDS            5.37%     5.39%     4.69%
      90-DAY TREASURY BILLS         5.50      5.43      4.37
      1-YEAR TREASURY BILLS         6.09      6.12      4.51
      10-YEAR TREASURY NOTES        6.73      6.70      4.75
      30-YEAR TREASURY BONDS        6.72      6.71      5.17
      30-YEAR FIXED MORTGAGE!       8.30      8.29      6.84
      !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           5.22%               5.97%
      TAXABLE EQUIVALENT            7.57                8.65
      INSURED REVENUE BONDS         5.36                6.24
      TAXABLE EQUIVALENT            7.77                9.04
      
      MUTUAL FUNDS
      
      EQUITY FUND CATEGORIES
      Leaders                                 Laggards
      Four-week total return        %         Four-week total return        %
      Health                        18.6      Financial                     -1.2
      Diversified Emerging Mkts.    11.2      Precious Metals               -0.9
      Natural Resources             9.4       Japan                         0.2
      Small Growth                  9.0       Domestic Hybrid               1.5
      Mid-cap Growth                8.6       International Hybrid          2.0
      
      Leaders                                 Laggards
      52-week total return          %         52-week total return          %
      Technology                    119.6     Financial                     -4.9
      Japan                         101.0     Precious Metals               -2.0
      Latin America                 92.2      Real Estate                   -1.6
      Diversified Emerging Mkts.    87.1      Large Value                   5.1
      Diversified Pacific/Asia      84.8      Mid-cap Value                 5.4
      
      
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