Midday Market View for May 29, 2001 ,
 Charles Schwab & Co., Inc.

Midday Market View(TM) for Tuesday, May 29, 2001
as of 1:00PM EDT
Information provided by Standard & Poor's

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U.S. INDICES
(1:00p.m. EDT)

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Market            Value     Change

DJIA          11,013.50     + 8.20
Nasdaq Comp.   2,189.40    - 61.63
S&P 500        1,269.70     - 8.19
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NYSE Advancing Issues        1,404
NYSE Declining Issues        1,520
NYSE Trading Volume        520 mln
NASDAQ Advancing Issues      1,281
NASDAQ Declining Issues      2,280
NASDAQ Trading Volume      852 mln

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U.S. TREASURIES
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Value            Yield      Change

1-year bill       3.66%        n/a
5-year note       5.01%       unch
10-year note      5.49%     + 1/32
30-year bond      5.83%     + 8/32

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

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U.S. TRADING SUMMARY

Technology shares continued to bear the brunt of investor scorn
after a duo of technology downgrades from investment bank Goldman
Sachs smacked the tech sector. The NASDAQ consolidated its
initial losses at the low end of its intraday range before
heading down again. Sectors under-performing read like a who's
who of technology with software makers, networkers, storage and
semiconductor manufacturers all under-performing. Defensive areas
such as chemicals, metals and papers were outperforming.
Elsewhere, the Dow continued to resist the downdraft and held in
the green, though the selloff in the tech index dropped the Dow
off higher levels. By midday, the Dow hovered just to the plus
side of unchanged while the NASDAQ skidded 2.7% and the S&P 500
lost 0.6%.

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U.S. TREASURY SUMMARY

The bond moved off its highs of the session by midday in a mild
bout of profit-taking. Economic data released earlier in the
session supported the view that another weak employment report is
coming on Friday. Not only did the bond get a boost on the
anticipation of further evidence of economic weakness, but the
contract benefited from the view that the door remains open for
further rate cuts from the Federal Reserve. Indeed, despite
profit-taking, the long bond was outperforming the shorter-dated
issues, which were slightly in the red by midday.

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CURRENCY SUMMARY

The euro has stabilized around the 0.854 dollar per euro level
after dropping sharply overnight. Ongoing concerns that rising
inflation and slowing growth will hamstring the European Central
Bank have pulled the euro lower in recent weeks. After
strengthening overnight and this morning, the yen has settled
around the 120 yen per dollar level.

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MAJOR COMPANY / INDUSTRY NEWS
(All prices as of 1:05 p.m. EDT)

** Oil producer Conoco (COCa: 31.70, + 0.24) announced on Tuesday
that it will acquire Gulf Canada Resources Ltd. (GOU: 7.92, +
2.00) for about $4.3 billion in cash and roughly $2 billion in
debt. The merger is expected to be finished by the end of the
third quarter and will also include a $220 million breakup fee
that Gulf Canada will be liable to pay Conoco, should the deal
collapse. Conoco is acquiring Gulf Canada to expand its energy
production capabilities and build its North American and
Southeast Asian reserves.

** EMC Corp. (EMC: 34.11, - 2.99) announced on Tuesday that it
will cut 1,100 positions, which equates to about 4% of its total
work force. Further, the company will take a $0.01 charge against
its current earnings as a result of the restructuring. EMC also
stated that it will cut additional costs by downsizing its use of
contractors and consultants along with reducing travel-related
expenses.

** Florida-based LaserSight (LASE: 2.53, + 0.25) is settling its
patent suit with Visx (EYE: 20.50, - 1.01). Visx agreed to
license various patents for lasers used in laser eye surgery to
LaserSight. LaserSight, which performs corrective laser eye
surgeries, agreed to pay Visx a royalty for each procedure it
performs in the U.S. A trial had been slated for June but will
now be avoided.

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RESEARCH SPOTLIGHTS

** Goldman Sachs upgraded shares of INCO Ltd. (N: 19.72, + 0.46)
from a market performer to a market outperformer rating.

** UBS Warburg upgraded shares of Midway Games (MWY: 10.61, +
1.56) from a hold to a strong buy rating.

** Goldman Sachs upgraded shares of Lyondell Petrochemical (LYO:
16.65, + 0.24) from a market performer to a market outperformer
rating.

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