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 Thu, May 28 1992 Date: Thu, 28 May 92 05:21:26 EDT Message-ID: 05-28 0000 DECISIONLINE: Personal Investing USA TODAY Update May 28, 1992 Source: USA TODAY:Gannett National Information Network STOCKS REBOUND FROM OIL SLICK: The stock market staged a small upswing Wednesday, recovering from a slide as traders reappraised the outlook for oil prices. The Dow Jones average of 30 industrials, down 22.56 points the day before, rose 6.23 points to 3,370.44. Prices of most stocks tumbled Tuesday on a report that Saudi Arabia had shifted its oil strategy to encourage higher prices - seen as an economic recovery stopper. ECONOMISTS EXPECT HIGHER GDP: The National Association of Business Economists said Wednesday that a panel of 44 of its members projects gross domestic product to grow at a 2.6% annual rate this quarter. Three months ago, the panel forecast 2.1% growth. Last quarter, GDP grew at a 2% annual rate, according to the government's first estimate. Commerce will revise that estimate Friday. OIL STOCKS ACTIVE: The strongest activity on Wall Street Wednesday was in oil stocks, which have been rising for two months and surged Tuesday as crude prices rose. Wednesday, investors sold oil shares to lock in profits. Exxon sank 2 1:4 to $61 3:4, Texaco lost 2 1:8 to $64 5:8, and Chevron dropped 1 5:8 to $71. Atlantic Richfield dipped 2 1:2 to $115 1:4 even though Oppenheimer and Dean Witter rated it a buy. CML REPORTS FAT PROFITS: CML Group's stock jumped 2 3:4 to $43 1:4 Wednesday after the company reported healthy quarterly earnings. CML, which makes NordicTrack fitness equipment, said earnings for its latest quarter soared 120%. CML's operating earnings jumped to $7.6 million, or 44 cents a share, the quarter ended May 2 from $2.8 million, or 20 cents a share, a year earlier. Revenue soared 80% to $138 million. STOCK SHOULD REACH $50 IN A YR.: The last 12 months, CML stock has run up 116% - from around $20. But analysts say consumers' obsession with getting fit should keep CML in top condition well into the 1990s. Boyd Poston, analyst at A.G. Edwards, raised his earnings estimates for this year to $2.10 a share from $1.95, vs. $1.47 last year. Next year: $2.50 to $2.70 a share. He says CML's stock should reach $50 in a year. HOME DEPOT TO SPLIT AGAIN: Atlanta-based Home Depot announced Wednesday a three-for-two stock split - its ninth split in 11 years - and plans to nearly triple its number of home-improvement stores by the end of 1996. The company, whose stock rose 1 1:4 to $67 5:8, expects to have 533 stores in four years and will move into the Midwest in 1994, spokesman Lonnie Fogel says. POPPA DEFENDS EXECUTIVES: Storage Technology Chairman Ryal Poppa Wednesday rejected a shareholder proposal that company executives who sold shares before the announcement of a product delay put their money in an escrow account until the stock returned to its highs. Storage Tech hit the high $70s in January when it introduced its Iceberg product. It tumbled when Iceberg was delayed. Wednesday's close: $35 1:4. CONTROL DATA TO SPLIT: Control Data shares rose 1 3:8 to $13 3:8 Wednesday after it said it will split into two companies and computer maker Silicon Graphics will take a 10% stake in one of them. Control Data says NEC of Japan is considering a 5% stake in the same company. The deal involves forming a company called Control Data Systems and distributing its stock as a dividend to Control Data stockholders. AMGEN SHARES RISE: Biotechnology-industry leader Amgen jumped 1 1:8 to $58 7:8 after its chairman said sales of its drug Neupogen would remain strong this year. U.S. Bioscience sank 7:8 to $11 1:4 after the Food and Drug Administration said its drug Ethyol would not be approved based on the data submitted. GOLD, SILVER DOWN: Gold and silver were lower in New York Wednesday. On the Commodity Exchange, gold bullion for current delivery settled at $338 a troy ounce, off 20 cents. Republic National Bank said gold slipped 30 cents to $337.55. The metal rose in Europe and Asia. On the Comex, silver bullion for current delivery settled at $4.082, down from $4.087. In London the metal slipped to $4.09 from $4.10. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Thursday at 3370.44 after closing up 6.23 points Wednesday. The New York Stock Exchange composite opens at 227.15, up 0.29. The American Stock Exchange market value opens at 391.85, down 0.04. The NASDAQ OTC composite opens at 577.35, up 1.70. DOLLAR OPENS UP OVERSEAS: The dollar opens up on Thursday. It opens at 0.5573 British pounds, up from 0.5483; 5.4785 French francs, up from 5.4205; 1.6375 German marks, up from 1.6127; and 130.36 Japanese yen, up from 129.40. (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