Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Thu, May 7 1992 Date: Thu, 7 May 92 05:31:39 EDT Message-ID: 05-07 0000 DECISIONLINE: Personal Investing USA TODAY Update May 7, 1992 Source: USA TODAY:Gannett National Information Network DOW RISES ON TREASURY AUCTION: Stocks gained Wednesday after a strong Treasury-bond auction suggested that interest rates won't rise soon. The Dow Jones industrial average gained 10.06 points to 3369.41. Broader indexes were marginally higher. Gainers outnumbered decliners 1,041 to 693 on the New York Stock Exchange, where volume was 199 million shares. YIELDS RISE AT TREASURY AUCTION: Investor interest was strong Wednesday during the second stage of the Treasury's quarterly sale, traders said. Yields on 10-year notes averaged 7.53%, up from 7.29% at the last auction Feb. 12. That was the highest yield since 10-year notes averaged 7.94% at the Aug. 7 auction. A total of $11.1 billion in notes were sold. Demand was strong: Bids totaled $33.4 billion. ANNOUNCED BUY BACK BOOSTS STOCK: Containership company American President said Wednesday it will buy back 2 million shares of stock, or 14% of shares outstanding, for $39 to $44 a share. Investors cheered the buy back, boosting American President shares 2 5:8 to $42 1:2 Wednesday. American President shares have risen almost 30% since the end of March even though the company reported a first-quarter loss of $3.8 million. PILOT DEAL LIFTS USAIR GROUP: Shares of USAir Group jumped 1 1:2 to $14 5:8 Wednesday on expectations that its 5,600 pilots will take a one-year pay cut in exchange for three years of pay increases later in an attempt to stem the airline's short-term losses. Neither USAir nor the Air Lines Pilots Association would disclose details of Wednesday's tentative agreement. TOY TAKEOVER MOVES MATCHBOX: Tyco Toys announced Wednesday it will take over Universal Matchbox Group, the maker of miniature cars and trucks. Tyco, the USA's fourth-largest toymaker, will pay $10.75 a share or about $135 million for Matchbox. Matchbox jumped 3 5:8 to $10 a share Wednesday. Tyco's other recent acquisitions include Viewmaster-Ideal Group and Playtime Products. CATERPILLAR HAS WAYS TO GO: Analysts agree Caterpillar should soon end a string of five quarterly losses - perhaps as soon as this quarter. But they aren't ready to say the heavy-equipment maker has shoved aside all its troubles. "We're not recommending the stock," says analyst Mitchell Quain of Wertheim Schroder. He says the company needs more volume. "I'm neutral on the stock," adds analyst Larry Hollis. SMALL GAINS SEEN: What to expect the rest of this year, after the first quarter's $132 million, or $1.31-a-share, loss: Caterpillar will break even or eke out a miniscule profit this quarter, analyst Larry Hollis says, then post earnings of 75 cents a share next quarter and $1.25 a share the fourth. Caterpillar's stock, which closed Wednesday up 2 1:2 at $56, hit a high of $68 1:2 in 1988. NASDAQ TRADING EXTENDED: The NASDAQ over-the-counter stock market will keep its computerized Select Net service open an extra hour and a half by mid-June, closing at 5:30 p.m. instead of 4 p.m. The service allows the exchange's designated market makers, who buy and sell stocks to keep the market smooth and for their own accounts, to trade among themselves. Private investors do not trade through the system. GOLD PRICES SAG: Gold prices declined Wednesday following a mixed performance overseas. On the Commodity Exchange, gold bullion for current delivery settled at $337.20, down 30 cents. Republic National Bank quoted a late bid of $336.60, off 35 cents. Gold fell in London and rose in Zurich. On the Comex, silver bullion for current delivery settled at $4.066, up from $4.054. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Thursday at 3369.41, after closing up 10.06 points Wednesday. The New York Stock Exchange composite opens at 229.56, up 0.06. The American Stock Exchange market value opens at 393.77, up 0.60. The NASDAQ OTC composite opens at 589.36, up 1.29. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Thursday. It opens at 0.5559 British pounds, down from 0.5602; 5.4775 French francs, down from 5.5195; 1.6263 German marks, down from 1.6383; and 132.55 Japanese yen, down from 133.09. (As of 3 p.m. Wednesday. 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: William Snoddy. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution 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