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Subject: Inside The market
Date: Tue, 27 Oct 92 16:00:26 EST
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10/27/92

TITLE Inside The market P&G Leads 36-Point Rally In Blue Chips,

But IBM, Now Down To 671/2, Sits It Out

#m#Picture ....nothing....#m# Leo Fasciocco The stock market rose
sharply yesterday due to brisk afternoon buying of blue chips
that helped boost the rest of the list.  The Dow Jones industrial
average surged 36.47 points, or 1.14%, to close at 3244.11. The
Dow was up 4 at midday and then came on to gain 32 points the
rest of the session. Trading declined 13% to 188 million shares.
Gainers led losers 1,090- to-695.  "The market's rise was due to
a combination of a short squeeze, buy programs, excess liquidity
and a better outlook on the economy," said market analyst Michael
Metz of Oppenheimer & Co.  "I think the shorts were getting ner-
vous," said Metz. "I am looking for a rally into midweek and then
a return to Dullsville as the market heads into the election next
week. The volume and breadth Monday was not that convincing. How-
ever, the bond market acted much better." Metz, who manages
several million dollars, was a buyer of stocks three weeks ago
when the Dow fell 104 points intraday. He said he would consider
lightening up a bit in the mid-3200 area.  "I see a trading-range
stock market well into 1993," said Metz. "I think investors
should stop trying to time the market but instead look for good
stocks and try to pick them up at the right entry point. They
should try to avoid worrying about the general market averages.
"What's making the market hard is that one has to be very selec-
tive. There is fierce competition out there. An investor needs
not only to pick the right industry group, but also the right
stock."

The Standard & Poor's 500 index rose 0.98%, but the Nasdaq compo-
site index gained only 0.27%.  Giving the blue chips a lift was
Procter & Gamble Co., which jumped 21/2 to 531/2. It reported a
17% gain in fiscal first-quarter earnings from operations of 89
cents a share. That topped consensus Street estimates of 86 cents
a share. The latest quarter excluded a special charge.  P&G's
stock is emerging from a four-month base betwee 52 to 46. Its Re-
lative Strength has improved to 65 from 47. It has a bullish "B"
accumulation distribution rating from Investor's Business Daily.
Also powering the Dow was Goodyear Tire Rubber Co., up 2 to
695/8, Merck & Co. 17/8 to 43, J.P. Morgan & Co. 11/8 to 623/8,
Minnesota Mining & Manufacturing Co. 15/8 to 1043/4, McDonald's
Co. 13/8 to 443/8 and American Telephone & Telegraph Co. 11/8 to
441/4.

General Motors Corp. was up 5/8 to 341/8 after its chairman
resigned. Lehman Brothers raised its opinion on GM and the other
auto stocks. GM has been a laggard with a Relative Strength of
30. Ford Motor Co. rose 1 to 401/4 and Chrysler Corp. 11/8 to 27.
International Business Machines Corp. continued to be a drag,
falling 15/8 to an 11-year low of 671/2. The stock's Relative
Strength has crumbled from 41 two months ago to 15.  Property and
casualty insurers extended their rally.  American International
Group Inc.-
 moved ahead 15/8 to 1111/8. Its leasing unit agreed to lease six
737 jets to British Airways. Progressive Corp. rose 21/4 to
771/4, General Re. Corp. 13/4 to 1161/2, Cigna Corp. 15/8 to
523/8 and Continental Corp. 11/4 to 167/8. ITT Corp.- , which
owns Hartford Insurance, was up 13/8 at 663/8.  International
Flavors & Fragrances Inc. pushed ahead 25/8 to 1105/8, near its
high of 1111/4. Last week, the company confirmed that earnings
for the year will be up around 13% to $5 a share.  Computer Sci-
ences Corp.-
 leaped 3 to 691/2 after reporting a 21% increase in fiscal
second- quarter earnings to $1.03 a share, exceeding the 97 cents
expected by analysts. The stock has been a mediocre performer
with a Relative Strength of 52.  Computer software firm Policy
Management Systems Corp.-
 added 11/4 to 761/4. It came in with an 18% increase in third-
quarter earnings, in line with analysts' estimates.  Texas In-
struments Inc. tacked on 11/2 to 501/4. It introduced four 486-
based notebook computers. Logicon Corp. added 11/8 to 171/8. It
reported a 17% gain in second-quarter earnings and set plans to
buy back $10 million worth of its stock.  General Dynamics Corp.
spurted 3 to 100. There was speculation the company was trying to
sell or arrange a joint venture for its Fort Worth, Tex., unit,
which makes F-16 fighters. Possible buyers were thought to be
Lockheed Corp. or Boeing Co.  Lockheed-
 was unchanged at 455/8, while Boeing retreated 1 to 353/4, due
mainly to lower third-quarter earnings. Among other aerospace
stocks, Northrop Corp. advanced 1 to 261/4 and McDonnell Douglas
Corp. 15/8 to 473/8.  Comic book publisher Marvel Entertainment
Group Inc. zipped ahead 23/4 to 401/4. It reported a 37% increase
in third-quarter earnings from operations. The stock is a leader
with a Relative Strength of 90 and Earnings Per Share rank of 95.
Health maintenance stocks were weak after U.S. Healthcare Corp.
tumbled 63/8 to 433/8 in OTC trading due to earnings coming in at
the lower-end of the range of Street estimates and concern about
profit margins. United Healthcare Corp. lost 23/4 to 507/8 and
Foundation Health Corp. 25/8 to 391/4.  Israeli telecommunica-
tions firm, Tadiran Ltd. jumped 13/4 for the second session in a
row and closed at 241/2.

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