Midday Market View for December 27, 2001

Charles Schwab & Co., Inc.
Email Alert

Midday Market View(TM)
for Thursday, December 27, 2001
as of 12:30PM EST
Information provided by Schwab Center for Investment Research
and Bridge

U.S. INDICES
(12:30 p.m. EST)

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Market Value Change

DJIA 10,115.25 + 27.11
Nasdaq Comp. 1,977.52 + 16.82
S&P 500 1,154.47 + 5.10
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NYSE Advancing Issues 1,929
NYSE Declining Issues 1,058
NYSE Trading Volume 400 mln
NASDAQ Advancing Issues 1,894
NASDAQ Declining Issues 1,517
NASDAQ Trading Volume 560 mln

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U.S. TREASURIES
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Value Yield Change

6-month bill 1.84% n/a
5-year note 4.52% + 2/32
10-year note 5.16% + 8/32
30-year bond 5.53% + 5/32

The tables above look best when viewed in a fixed-width font,
such as "Courier."

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MARKETS HOLD MARGINAL GAINS

U.S. equities are higher midday amid a lack of substantial
market-moving equity or economic news. Chip stocks like Advanced
Micro Devices (AMD,16.34,f2) are helping to pace the advancers
while the economic slate is empty today. U.S. Treasuries and
European markets are higher.

As of 11:48 a.m. EST, the Dow Jones Industrial Average is up
0.4% while the Nasdaq Composite Index is 0.8% higher. The S&P
500 Index is up 0.5%. Semiconductor and utility shares are
pacing the advancers while oil and construction issues are
leading the decliners.

Semiconductor issues are higher as a Merrill Lynch analyst
raised 4Q earnings estimates for Advanced Micro Devices to a
loss of $0.15 per share from a loss of $0.23 per share, citing
better-than-expected demand for the Athlon processor. Atmel
(ATML,7.35,f1) is also trading higher after an AG Edwards
analyst raised his rating on the stock from buy to strong buy.

Shares of TMP Worldwide (TMPW,44,f1) are higher after the
provider of the popular Monster.com web site reported that it
would not increase its bid for competitor HotJobs.com
(HOTJ,10.36,f1), saying it had offered "full and fair value" for
the entity. On Monday, HotJobs said that it would accept
Yahoo!'s (YHOO,17.75,f1) $436 million competing offer if TMP did
not increase its proposal, which has shrunk since June given
declines in the company's stock.

Apple Computer (AAPL,22,f1) is up slightly following news that
it expects to incur a fiscal 2002 loss at its retail stores,
contrary to previous forecasts, citing the slowdown in the U.S.
economy and PC market, exacerbated by the terrorist attacks. In
an SEC filing, the California-based computer maker also stated
it plans capital expenditures for 2002 of $200 million.

Following yesterday's positive Internet-related news, Amazon.com
(AMZN,10.96,f1) is benefiting from a report that customers at
its web sites ordered 37.9 million items during the holiday
season as of Dec. 21, including over 10 million orders at sites
outside the U.S.

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TREASURY AND ECONOMIC SUMMARY

U.S. Treasury prices are higher toward the long-end ahead of the
record $23 billion 2-year note auction. Friday's economic plate
is full as initial jobless claims, originally scheduled for
release this morning, will be released tomorrow. In addition,
consumer confidence figures, the Chicago Purchasing Managers'
Index, new and existing home sales, and durable goods orders
will be reported.

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WORLD MARKETS

European markets are higher with the Bloomberg European 500
index up 1.3% as of 11:48 a.m. EST, led by manufacturing and
auto shares. In economic news, French business confidence rose
to 90.0 in December, higher than the 89.5 estimate per Bloomberg
and November's 89.0 reading. On the corporate front, Nestle SA
(NSRGY,52,f1) paid $641 million to General Mills (GIS,52,f2) in
a joint venture giving it the rights to Haagen-Dazs in the U.S.
and Canada. The euro is trading higher versus the U.S. dollar.
Despite overnight gains in European oil-related issues, crude is
trading lower in the U.S. ahead of tomorrow's expected 1.5
million barrel per day production cut by OPEC.

Jeffrey Reeve, Market Analyst

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