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: Inside The Market Date: Wed, 4 Nov 92 12:45:02 EST Message-ID: <13.1992Nov4.124502@AmeriCast.com> 11/4/92 TITLE Inside The Market Dow Declines 10 As Oil Stocks Take Hit; Arco Falls 27/8, Chevron 13/4, Texaco 13/8 #m#Picture ...Ralph Bloch..#m# Leo Fasciocco A sell-off among oil issues sparked by concern over lower petroleum prices helped drive the stock market lower yesterday in more active trading. The Dow Jones industrial average lost 9.73 points, or 0.3%, to close at 3252.48. Losers edged gainers 935 to 835. Trading rose 3% to 208 million shares. Among the Dow oils, Chevron Corp. fell 13/4 to 681/4, Texaco Inc. 13/8 to 583/4 and Exxon Corp. 3/4 to 591/2. Oppenheimer & Co. removed its buy rating on Chevron and lowered its earnings estimate. Elsewhere in the oil patch, Atlantic Richfield Co. dropped 27/8 to 1131/8, Amoco Inc. 17/8 to 501/4 and Pennzoil Corp. 11/2 to 55. Prudential Securities Inc. downgraded its rating on the stocks. It said oil prices should fall because of rising produc- tion by the OPEC countries. The Standard & Poor's 500-stock in- dex was down 0.67% and the Nasdaq composite index 0.49%. Although the slump in oil stocks was the leading reason for the decline, sell programs and anxiety over the election also held prices lower, said market analyst Ralph Bloch of Raymond James & Associates of St. Petersburg, Fla. "I see the market as being in a choppy advance," said Bloch. "There is heavy overhead supply in the Dow 3250 to 3400 area. But I think the market is slowly eating its way through it." The analyst noted that the market's choppy behavior is best illus- trated by lagging breadth on days when the Dow advances and, con- versely, a firming of breadth on down days. As a result, he said, the market is not in a full fledged uptrend. "When I get confused about the market," he said, "I always go back to square one and ask myself what are the individual stock chart patterns looking like. Right now I am seeing good stock price patterns, breakouts and stocks following through on those breakouts. So, the market is looking better." In other trading, property and casualty insurance stocks turned in a mixed perfor- mance. Lincoln National Corp. jumped 13/8 to 681/8 - a new clos- ing high. It reported a 53% increase in third- quarter earnings. Institutions have moved into the stock aggressively. As of mid- year, 70 mutual funds held the stock, up from 35 a year before. Orion Capital Corp. climbed 1 to 39 after posting a 40% improve- ment in third-quarter earnings. The stock, which is near a five- year high, has a large short interest outstanding, equal to 42 times its normal volume. Most other casualty stocks, which have had a good run-up, yielded to profit-taking. CNA Financial Corp. declined 13/8 to 935/8, American International Group Inc. 11/4 to 1091/4 and Progressive Corp. 11/2 to 791/4. Elsewhere, Nike Inc. sprinted ahead 23/8 to reach a new closing high of 821/4 on dou- ble its normal volume. Analysts expect a 17% increase in Nike's earnings for the fiscal year ending May 30. Sanifill Inc., an operator of landfills, gained 1 to 15. Alex. Brown & Sons Inc. issued a buy. It's expecting earnings of 65 cents a share for Sanifill this year, in line with most estimates. The brokerage raised its forecast to 80 cents a share from 75 cents for 1993. General Instrument Corp. drove ahead 13/8 to 197/8, a breakout from a six-week base. The maker of communications equipment went public at $15 a share in June. The company moved into the black in the second quarter. Eight mutual funds own General Instru- ment, four with an Investor's Business Daily rating of "A." Janus Fund, a division of Janus Group of Mutual Funds and a top per- former, is a major holder with one million shares. Motorola Co. advanced 11/8 to 961/2. It declared a 2-for-1 split and voted to increase its quarterly dividend. The stock has been a leader. Its Relative Strength is 84 and Earnings Per Share rank 87. Diagnos- tic Products Corp. bounced up 11/8 to 233/4 on five times normal volume. The stock fell from 36 to 20 the past five months. Im- perial Chemical Industries PLC picked up 13/8 to 661/2. It will cut costs by closing two chlorine plants in Britain. Tommy Hil- figer Corp., a marketer of men's apparel, moved ahead 13/8 to 233/8. The stock was offered at $15 a share seven weeks ago. Analysts are projecting a 25% improvement in earnings for the fiscal year ending March 30. Air Products & Chemicals Inc. tacked on 7/8 to 483/4. It bought a controlling interest in a Czechoslovakian firm with annual sales of $20 million. Nalco Chemical Co. added 5/8 to 33 after setting plans to buy back two million shares. Mirage Resorts Inc. gained 3/4 to 281/2. C.J. Lawrence Inc. put out a buy on the stock, which has a large short position outstanding. Mirage's earnings are expected to be down 40% this year but up 79% next year. Berlitz International Inc. tumbled 25/8 to 195/8. Fukutake Publishing Co. wants to renego- tiate its deal to buy a 67% stake in Berlitz after the company reported of a 77% drop in third-quarter earnings. The deal was entered into in August. 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