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 Fri, Jul 17 1992 Date: Fri, 17 Jul 92 05:16:17 EDT Message-ID: 07-17 0000 DECISIONLINE: Energy USA TODAY Update July 17-19, 1992 Source: USA TODAY:Gannett National Information Network PEROT NEWS BRIEFLY JOLTS MARKET: The end of near-candidate Ross Perot's bid for the presidency Thursday was welcome news for investors. But that hardly means the stock and bond markets will be placid as the election continues. Although the Dow quickly rose 20 points after Perot's announcement, it dropped again on concerns over corporate earnings and signs of a weakening economy. The average closed at 3361.63, up 16.21. TIME WARNER INCOME IMPROVES: Time Warner says operating income improved at all five divisions in the second quarter. Net income was $9 million vs. a $32 million loss a year earlier. But the media giant lost $1.59 a share after paying dividends on preferred stock. A year earlier, Time Warner lost $3.10 a share. Thursday, the stock rose 1 3:8 to close at $116 1:4. FORD PRICE HIKES CAUSE FROWNS: Financial analysts are souring slightly on price increases Ford announced Wednesday for most of its 1993 cars and trucks, out in September. But none found the prices harsh enough to advise dumping the company's stock. Shares slipped 1:4 Thursday to close at $45 5:8 on a day the Dow Jones industrial average rose 16 points. Key issue: "How much of the increase will stick," says one analyst. ELI LILLY DEAL BOOSTS CENTOCOR: Stock of Centocor jumped 1 3:4 to close at $16 1:4 Thursday after drug giant Eli Lilly agreed to buy almost 5% of the biotechnology company for $50 million, or $25 a share. Lilly also gets marketing rights to Centocor's anti-bacteria drug, Centoxin, for 15 years. Analysts say the deal keeps Centocor alive - barely. The deal lets it "keep its head above water," says one analyst. DIGITAL PRESIDENT TO RETIRE: Ken Olsen, founder and president of Digital Equipment, decided late Thursday to leave the company Oct. 1. Olsen made his announcement after the market closed Thursday. Olsen's dismissal of the personal computer as a "toy" has hurt DEC and its shareholders. Since hitting a high of $199 1:2 in the fall of 1987, shares have fallen 80% to close at $41 Thursday, up 2 5:8. SHORT SELLING MAY BE BACK: One of Wall Street's riskiest games - short selling - may be back in vogue after a bloody 1991. Short selling is a bet stocks will go down in price. Several short players as well as Palm Beach, Fla., investment consultant Harry Strunk believe the fun is back. Stocks may soon "start trading on fundamentals," says Strunk. His index of short-sellers shows an average 11% gain in the first half. SHORT-TERM EXPERT LIKES BA: Short-investments expert Michael Murphy's top short is British Airways. He sees European deregulation next year spawning a flood of rivals. Also, UAL, Delta and AMR could present tougher North Atlantic competition. Murphy predicts losses in the current fiscal year and the year after. "It'll take the company three to four years to pull out of its earnings nosedive," he says. TOY GIANTS REPORT GAINS: Two top fun-makers showed gains in second-quarter earnings reports issued Thursday. Hasbro reported a net income of $22.7 million, compared to losses of $31.1 million. That translates to a per-share income of 26 cents, compared to a loss of 36 cents for the second quarter 1991. Mattel reported a net income of $23.4 million vs. $17.9 million; per-share 23 cents vs. 17 cents. H-P STOCK DIVES, RECOVERS: Executive moves at Hewlett Packard sent its stock on a roller coaster ride Wednesday. The company has announced that President and CEO John Young and Chief Operating Officer Dean Morton will retire Oct. 31. David Wu, analyst at S.G. Warburg, called the succession "no surprise." But rumors drove stock down $2 a share. The stock recovered to close down 1:2 to $69 5:8 Thursday. NEW YORK MERC CEO TO TAKE LEAVE: The chairman and CEO of the New York Mercantile Exchange says he will take a leave of absence because of recent press accounts saying he might face charges of illegal trading, the Merc said Thursday. Z. Lou Guttman says he will begin his leave July 31. He says the news reports have cast a cloud over the exchange. The accounts "have served as a distraction," he says. GOLD, SILVER DOWN: Precious metals fell Thursday on the German Bundesbank's hike in its discount rate. Gold fell to $352.60, off $1.40 on the Commodity Exchange. Republic National Bank quoted gold at $352.30, off 85 cents. Gold rose in London to $352.75, up from $351.85. Silver bullion fell in London to $3.92 from $3.95. On the Comex, silver fell to $3.908 from $3.940. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Friday at 3361.63 after closing up 16.21 Thursday. The New York Stock Exchange composite opens at 229.49, up 0.29. The American Stock Exchange market value opens at 388.34, up 1.47. The NASDAQ OTC composite opens at 576.19, up 0.72. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Friday. It opens at 0.5168 British pounds, down from 0.5200; 4.9880 French francs, down from 5.0005; 1.4775 German marks, down from 1.4800; and 125.26 Japanese yen, up from 125.12. (As of 3 p.m. Thursday. 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: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes violates federal law. 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