424B3 1 f424b3_021706-retail.txt PROSPECTUS SUPPLEMENT REGISTRATION NO. 333-54662 (To Prospectus dated February 17, 2006) Filed Pursuant to Rule 424(b)(3) [GRAPHIC OMITTED][GRAPHIC OMITTED] 1,000,000,000 Depositary Receipts Retail HOLDRS (SM) Trust This prospectus supplement supplements information contained in the prospectus dated February 17, 2006 relating to the sale of up to 1,000,000,000 depositary receipts by the Retail HOLDRS (SM) Trust. The share amounts specified in the table in the "Highlights of Retail HOLDRS" section of the base prospectus shall be replaced with the following: Share Primary Name of Company Ticker Amounts Trading Market ---------------------------- ------ ------- -------------- Amazon.com, Inc. AMZN 7 NASDAQ Best Buy Co., Inc. BBY 9 NYSE Costco Wholesale Corporation COST 8 NASDAQ CVS Corporation CVS 14 NYSE Federated Department Stores FD 11.738 NYSE Kohl's Corporation KSS 6 NYSE Limited Brands, Inc. LTD 8 NYSE Lowe's Companies, Inc. LOW 28 NYSE RadioShack Corporation RSH 3 NYSE Safeway Inc. SWY 9 NYSE SUPERVALU INC. SVU 1.456 NYSE Target Corporation TGT 16 NYSE The Gap, Inc. GPS 16 NYSE The Home Depot, Inc. HD 40 NYSE The Kroger Co. KR 15 NYSE The TJX Companies, Inc. TJX 10 NYSE Walgreen Co. WAG 19 NYSE Wal-Mart Stores, Inc. WMT 36 NYSE The share amounts listed in the table above reflect all previous stock splits, dividends and business combination transactions. The date of this prospectus supplement is December 31, 2006.