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 Tue, Jul 21 1992 Date: Tue, 21 Jul 92 06:06:53 EDT Message-ID: 07-21 0000 DECISIONLINE: Personal Investing USA TODAY Update July 21, 1992 Source: USA TODAY:Gannett National Information Network TELMEX COULD BE START OF TREND: Telefonos de Mexico stock is fading, but the stocks of a handful of other foreign telephone companies are burning up the wires. Telmex soared 118%, from its initial offering price of $27 3:8 in May 1991, to its recent high of $59 5:8 four months ago. Since then, however, Telmex's line has gone dead: The stock closed at 48 5:8 Monday, down 18.4% from its most recent high. BRAZIL COULD BE HOT: Brazil's Telebras phone company could be like Mexico's Telemex, says portfolio manager James Lyle. "It's got old infrastructure, but strong demand," Lyle says. Not to mention room to grow: Brazil has 6.3 telephone lines per 100 people, vs. 51.4 in the USA. Another good bet is Telefonica de Espana. It is not an emerging firm, Lyle says, but it has finished much of its spending program. BANKAMERICA FINISHES UP: BankAmerica's second-quarter earnings first disappointed, then dazzled Wall Street Monday. After sliding in early trading, shares of the USA's second-biggest bank company ended the day up 2 7:8 to $44 3:8. The company earned 63 cents a share last quarter, but said the results - first since it acquired Security Pacific - were not comparable to past quarters. WORLD'S MARKETS TUMBLE: Stocks tumbled around the world Monday, as investors fretted about a plunging dollar and other global economic problems. The Dow Jones industrial average ended Monday down 29 points at 3303. In Tokyo, the Nikkei average fell 4%. Hong Kong's main index fell 2%. The main German stock index sank 3%. The Milan stock index ended the day down 6%, its lowest closing this year. DOLLAR IS WEAK: Analysts say various economic problems are behind worldwide stock market plunges. Investors are worried about the weakening dollar, at post-World War II lows against other major currencies. A weaker dollar generally makes foreign goods more expensive when bought with dollars. Investors in foreign stocks are worried that a weaker dollar will reduce U.S. imports of foreign goods. BELL EARNINGS MIXED: Southwestern Bell Corp. earned $305 million, $1.01 a share, up 76% from $173 million or 57 cents a share for 1991's second quarter, according to earnings reports out Monday. The earnings in the quarter a year ago were depressed by a one-time charge for debt refinancing. Bell Atlantic Corp. earned $298 million, or 70 cents a share, compared with $325 million, or 77 cents a share. GREENSPAN WILL BE GRIM: Analysts predict that Federal Reserve Chairman Alan Greenspan Tuesday will "emphasize that he is trying to ease credit enough to keep the economy from going into a nosedive," economist David Jones said Monday. Many analysts said they expect Greenspan to predict that the recovery will strengthen but economic growth will remain at rates less than half of normal for a typical upturn. FIDELITY MAGELLAN GROWS: The Fidelity Magellan Fund is the USA's largest stock fund. As it has grown, so has the revenue it generates for its parent, Fidelity Investments. Its newsletter says that Magellan's assets for fiscal year 1992, ended March 31, were $19.7 billion, with $237 million revenue from Magellan. That's up from $14.8 billion last fiscal year on $163 million revenue from Magellan. COKE SHARE REPURCHASE APPROVED: Soft-drink giant Coca-Cola says its board has authorized the repurchase of as many as 100 million of its common shares through 2000. Since 1984, Coke has repurchased more than 400 million shares, or 25% of its common stock outstanding. TREASURY SECURITIES RATES FALL: Interest rates on six-month Treasury securities fell in Monday's auction to the lowest in 29 years, while rates on three-month securities dipped to a 20-year low. The Treasury Department sold $11.7 billion in six-month bills at an average discount rate of 3.24% vs. from 3.31% last week. And $11.6 billion in three-month bills were sold at an average discount rate of 3.16% vs. 3.22%. FOREIGN MARKETS SPOOK WALL ST.: Stocks tumbled Monday as weak foreign markets spooked Wall Street. The Dow Jones industrial average dipped 28.64 points to 3303.00. Broader indexes also fell. Losers trounced winners 1,111 to 605 on the New York Stock Exchange, where volume was light at 166 million shares. Stocks opened lower in reaction to poor showings abroad. GOLD, SILVER MIXED: Gold and silver prices were mixed Tuesday. Gold prices rose $1.60 to $359.10 a troy ounce on the Commodity Exchange in New York. Gold fell in London to a late bid price of $358.25 a troy ounce from $358.50 late Friday. On the New York Commodity Exchange, silver prices fell to $3.963 a troy ounce from $3.971 late Friday. Silver was unchanged in London at $3.97. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Tuesday at 3303.00 after closing down 28.64 Monday. The New York Stock Exchange composite opens at 227.51, down 1.00. The American Stock Exchange market value opens at 384.52, down 2.03. The NASDAQ OTC composite opens at 564.28, down 6.24. DOLLAR OPENS UP OVERSEAS: The dollar opens up overseas on Tuesday. It opens at 0.5253 British pounds, up from 0.5130; 5.0520 French francs, up from 4.9290; 1.4950 German marks, up from 1.4575; and 125.46 Japanese yen, up from 124.32. (As of 3 p.m. Monday. 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. 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