Charles Schwab & Co., Inc.
Email Alert

Morning Market View(TM) 
for Monday, December 31, 2001
as of 9:30AM EST
Information provided by Schwab Center for Investment Research


FUTURES POINT TO SLIGHTLY LOWER OPEN

Equity index futures were trading slightly higher, but below 
fair value, as most international stock exchanges were closed 
ahead of New Year's Day. Shares of ImClone Systems 
(IMCL,55.25,f1) fell on concerns over its new colon cancer 
treatment and Treasuries were virtually flat.

The Dow Jones Industrial Average is down 6.0% or 650 points 
year-to-date and the Nasdaq Composite Index is down 19.6% or 483 
points. The S&P 500 Index has shed 12.1% or 159 points. Look for 
volume and liquidity to dry up this afternoon as traders get a 
head start on the New Year's Day holiday.

Shares of ImClone Systems are getting shredded in premarket 
trading after the company said on Friday that the release of its 
colon cancer treatment, Erbitux, would be delayed until at least 
3Q02. ImClone had planned to release the treatment in May 2002, 
but the release will be delayed because the FDA has questions 
about the drug's clinical data.

America West Holdings (AWA,2.47), parent of America West 
Airlines, became the first airline to receive a loan guarantee 
from the U.S. government. America West received a $380 million 
guarantee in exchange for options on one-third of the company 
stock and a commitment to control labor costs.

The Wall Street Journal reported that Lucent Technologies 
(LU,6.18,f2) did not give bonuses to any of its top executives 
in 2001. Lucent said it withheld bonuses because its performance 
"fell short of our objectives in fiscal 2001," as the telecom 
industry suffered through massive layoffs and sluggish demand.

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TREASURY AND ECONOMIC SUMMARY 

Bonds are trading near unchanged in the absences of any economic 
data. The Bond Market Association has recommended a 2:00 p.m. 
EST close for the U.S. Treasury market.

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WORLD MARKETS 

Most European bourses were closed today with the notable 
exception of the United Kingdom. The Bloomberg European 500 
index closed Friday down 15.1% for the year. The FTSE 100 index 
finished an abbreviated session down 0.5% with weakness in 
financial and oil-related shares and strength in technology 
stocks. Financial shares with exposure to Argentina fell 
following the resignation of Interim President Adolfo Rodriguez 
Saa. The euro was little changed versus the dollar as 12 
countries prepare for the introduction of euro cash at midnight 
tonight.

Japanese markets were also closed with the Nikkei 225 index 
finishing the year down 23.5% on Friday. Hong Kong's Hang Seng 
index fell 0.3% today. The yen was little changed versus the 
dollar.

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FUTURES WATCH 

In the March Globex futures contract as of 8:35 a.m. EST, the 
S&P 500 Index was up 2 points (1 point below fair value) while 
the Nasdaq 100 Index was unchanged (3 points below fair value). 
The March DJIA futures contract was up 17 points (6 points below 
fair value), and the February crude oil futures traded on the 
NYMEX were up $0.30 at $21.20/barrel.

Isaia Carucci, Market Analyst

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