Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Tue, Jul 28 1992 Date: Tue, 28 Jul 92 04:32:03 EDT Message-ID: 07-28 0000 DECISIONLINE: Personal Investing USA TODAY Update July 28, 1992 Source: USA TODAY:Gannett National Information Network MORTGAGE BUSINESS IMPROVES: Mortgage banks, which specialize in making home loans that can be held or sold as investments to institutions, are seeing a dramatic pickup in business. Among the companies expected to shine: Top mortgage banker Countrywide Credit Industries and newcomers Margaretten Financial, North American Mortgage and Farragut Mortgage. All three went public early this year. COMPANY TAPS INTO NATIONSBANK: Margaretten Financial Monday said it would pay $134 million for NationsBank's residential mortgage-servicing business, which services $7.6 billion in mortgages. Analyst Peter Treadway increased his 1993 earnings estimate to $2 a share, up from $1.85. For mortgage banks in general, "the environment is favorable," says Lorraine Maxfield with Paulson Investment. MARVEL'S DEAL BOOSTS STOCK: Marvel Entertainment shares rose 1 3:4 to close at an all-time high of $35 1:8 Monday as investors cheered the comic-book company's deal to buy Fleer, a major manufacturer of baseball cards and candy. Marvel said Friday that it would pay $265 million, or $28 a share. Some analysts envision broad crossover possibilities. WELLCOME DEAL LEAVES STOCK FLAT: Shares of British drug giant Wellcome were unchanged at $15 1:4 Monday in heavy trading after the company completed its worldwide initial public stock offering of 270 million shares worth $4.1 billion. But investors bought other drug stocks, apparently relieved that the huge Wellcome deal was over. Many drug stocks have been recovering recently. BOEING EARNINGS FLAT: Aircraft manufacturing giant Boeing reported flat earnings Monday, mainly due to higher research and development costs. Net income was $453 million, or $1.33 a share, vs. $454 million, or $1.32 a share, last year. Revenue also was flat at $7.8 billion. Boeing said its commercial and foreign government order backlog was down slightly to $92 billion, about 45% of which is scheduled for after 1994. OIL COMPANY REPORTS MIXED: Reports Monday showed Atlantic Richfield with net income of $309 million including gains vs. $246 million, up 26% from second quarter 1991. Phillips Petroleum also had gains, with net income of $104 million including gain vs. $16 million, up 550%. Chevron reported $350 million including charge vs. $384 million, down 9%. Mobil reported $255 million vs. $445 million including gain, down 43%. JAPAN CUTS KEY RATE: The Japanese economy is facing struggles not dissimilar to that of the United States, and central bankers are taking similar measures, including slashing interest rates. Monday, the Bank of Japan - that nation's Federal Reserve - cut its discount rate to 3.25% from 3.75%. The BOJ charges that to commercial banks for short-term loans and is a base for all sorts of short-term loans. NIKKEI IGNORES RATE CUT: The Bank of Japan Monday cuts its discount rate to 3.25%, from 3.75%, the fifth cut in 13 months. But the 225-share Nikkei average fell 124.45 points Monday, or 0.8%, to 15,373.34. The Nikkei has plunged about 60% from its December 1989 peak and 35% in 1992. That 60% drop would slash a $10,000 investment to $4,000. Many familiar Japanese companies have seen stocks plunge in Japan and New York. U.S. MARKET IGNORES JAPAN: Stocks edged lower Monday despite gains among drug-company stocks. The Dow Jones industrial average lost 3.51 points to 3282.20. Broader indexes also fell. Winners beat losers 928 to 804 on the New York Stock Exchange, where volume was light at 165 million shares. A cut in a key Japanese interest rate had no effect on U.S. markets Monday. BUY STOCK IN SUMMER: Summer stock items such as ice cream, golfing, camping, baseball, and play are showing up as buy recommendations at the height of summer, according to market columnist Jim Lawless. Analyst George Novello's top picks include Eskimo Pie, $22 1:8; Callaway, maker of best-selling golf club Big Bertha, $25 1:8; and Coleman, camping equipment manufacturer, $21 7:8. TREASURY SELLS BILLS: The Treasury Department Monday sold $11.6 billion in three-month bills at an average discount rate of 3.18%, vs. 3.16% last week. Another $11.6 billion was sold in six-month bills at an average discount rate of 3.27%, vs. 3.24% last week. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Tuesday at 3282.20 after closing down 3.51 points Monday. The New York Stock Exchange composite opens at 226.50, up 0.02. The American Stock Exchange market value opens at 382.06, down 0.47. The NASDAQ OTC composite opens at 564.73, down 0.88. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Tuesday. It opens at 0.5215 British pounds, down from 0.5280; 5.0010 French francs, down from 5.0775; 1.4825 German marks, down from 1.5042; and 127.70 Japanese yen, down from 127.73. (As of 3 p.m. Monday. Source: First American Bank of New York.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Personal Investing editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM