Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.ibd From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: NASDAQ Amex Market Date: Thu, 12 Nov 92 13:00:17 EST Message-ID: <2.1992Nov12.130018@AmeriCast.com> 11/12/92 TITLE NASDAQ Amex Market Nasdaq Drives Higher On Record Turnover Some Techs Churn, But Medicals, Retailers Pick Up Slack Lance Ig- non Aided by medical and retail stocks, the Nasdaq market surged to its sixth straight gain yesterday on a record tide of volume even though some leading technology issues began to sputter. The Nasdaq composite index gained 7.16 points, or 1.1%, to 634.92 - 10 points from its all-time high. The index has risen 5% in the past six outings. Despite the Veterans Day holiday, turnover bal- looned 4% to 272 million shares, just above the previous record of 270 million set Feb. 5. Advances pummeled declines better than 3-to-2 as 207 stocks closed at new highs. Only 28 set new lows. The lagging listed exchanges began to catch up. The New York Stock Exchange composite index climbed 0.83%, and the Ameri- can Stock Exchange market value index rose 0.82% as winners led 3-to-2. In trading, an upbeat earnings report sent Nordstrom Inc. up 31/2 to 351/4. Trading expanded to nearly four times its average turnover of 450,000 shares. Following four quarters of slower growth, the department store chain checked in with a 21% profit gain. After Tuesday's close, Nordstrom reported a profit of 29 cents a share for the fiscal third quarter, a nickel higher than a year ago and three cents above expectations collected by Zacks Invest- ment Research Inc. "(The report) shows that they have done a good job of controlling inventories and expenses," said analyst William Smith of Smith Barney, Harris Upham & Co. Smith changed his recommendation to buy from hold. He also upped his fiscal 1993 estimate by a dime to $1.65 a share. Nordstrom earned $1.66 a share last year. For fiscal 1994, Smith is now looking for $1.90 a share, up frm his previous estimate of $1.80. Analysts at Merrill Lynch Capital Markets, Prudential Securities Inc. and Alex. Brown & Sons Inc. also upgraded their recommendations and/or their earnings esti- mates. A limited number of other retail stocks rode Nordstrom's coat- tails. Designs Inc. added 11/2 to 231/2 and Clothestime Inc. a point to 11. United Retail Group Inc., which rose 21/8 Tuesday after reporting a 50% increase in third-quarter earnings, gained another 13/8 to 263/4. Natural Wonders Inc., up 11/4 Tuesday, climbed another 21/2 to 231/4. Stock in the chain of nature and science gift shops came public at $12.50 a share in May. Analysts expect earnings to increase 83% to 77 cents share for the year ending in January. Eagle Hardware & Garden Inc., on steep ascent since coming public at $14 a share in July, shot up 13/4 to 405/8. At that price, the stock is trading at 102 times its estimated earnings of 40 cents share for fiscal 1993 ending January. However, its growth rate is expected to climb 205% in 1993 and another 125% in fiscal 1994. Fort Worth, Texas-based Bombay Co. added 13/8 to 40. On Tuesday, the furniture retailer, which trades on the Amex, announced a 3- for-2 split scheduled for Dec. 4. On the downside, Goody's Fami- ly Clothing Inc.- , ahead a point Tuesday, retreated a point to 331/4 after its fiscal third-quarter earnings failed to dazzle. The clothing store chain earned 37 cents a share for the period, two cents better than a year ago and in line with expectations. Biotechnology stocks continued to rebound from what some analysts say was an oversold position. Only six weeks ago, Investor's Business Daily's Medical - Biomed/Genetics index was rated 177th among 197 industry group's tacked for trailing six-month price performance. As of last week it was rated 76th. The index surged 6% during the first two days of trading this week. Nonetheless, it is still down about 25% for the year. Ahead 25/8 Monday, Amgen Inc. gained another 21/8 to 727/8 in heavy trading. Anergen Inc. rose 11/2 to 131/4, Isis Pharmaceuticals Inc. 13/4 to 131/2, Liposome Co. a point to 121/2 and Neozyme Corp.- 11/2 to 281/2. With the exception of Amgen, most of the bigger names faded toward the end of the session. A few leaders from the the Medical -Instruments index, up 3.6% on Monday and Tues- day, advanced. St. Jude Medical Inc. rose 11/4 to 371/8, Stryker Corp. 11/8 to 331/2, Biomet Inc. 3/4 to 161/4 and Scimed Life Systems Inc. 3/4 to 521/4. Among health maintenance organiza- tions, whose index has risen about 40% in the past six months, United Wisconsin Services Inc. jumped 31/2 to 311/4, U.S. Health- care Inc.- 11/2 to 471/4 and Qual Med Inc. a point to 183/4. In technology trading, Pyxis Corp., which makes electronically controlled ca- binets for storing hospital drugs, vaulted 3 to 411/2. Quoting estimates from Merrill Lynch, a company spokeswoman said Pyxis is expected to earn 14 cents a share in the fourth quarter - up 300% from a year earlier. Although the big-name network stocks closed with marginal gains, their prices faded significantly from early-session levels. SynOptics Communications Inc. advanced 7/8 to 663/4 and Cisco Systems Inc. gained 1/2 to 701/2 after being up as much as 23/4. Wellfleet Communications Inc., up as much as 21/2, closed unchanged. In the booming new-issues market, Mediva Vision Inc. opened four points above its offering price of $15 a share and closed the session at 22, up 3. The company makes pro- ducts to improve the sound and pictures of personal computers. Demand for initial public offerings has picked up in step with the growth-stock rally. Investor's Buiness Daily's New Issues in- dex, a weighted collection of all common stocks issued during the past year, has risen more than 12% since the beginning of Oc- tober. On the downside, Adobe Systems Inc. fell 23/4 to 34. On Tuesday, Oppenheimer & Co. downgraded the stock to a short-term sell. Also, Borland International Inc. lost 13/4 to 301/2. Citing com- petition from Microsoft Corp., Montgomery Securities inc. down- graded its recommendation to sell from hold. In Amex action, Da- taram Corp. returned from the dead, shooting up 27/8 to 111/4. The maker of computer memory devices reported a fiscal second- quarter profit of 23 cents share, up 64% from a year earlier. DWG Corp. climbed 13/4 to 131/2. The company said it had made no announcements but added that an analyst made bullish comments on cable station CNBC. This article is copyright 1992 Investors Business Daily. Redis- tribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM