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 Wed, Jul 22 1992 Date: Wed, 22 Jul 92 04:31:58 EDT Message-ID: 07-22 0000 DECISIONLINE: Personal Investing USA TODAY Update July 22, 1992 Source: USA TODAY:Gannett National Information Network IBM A GOOD SHORT-TERM BET: IBM, for years the darling of long-term investors, now is behaving like a small high-tech stock. It jumps around at the slightest departure from Wall Street earnings expectations. Analysts say IBM looks good for the next six to nine months. IBM shares recovered a bit Tuesday from Friday, closing up 7:8 at $93 3:4. RESULTS WERE NEAR ESTIMATES: When quarterly results for IBM came in Friday 8 cents a share below what most analysts expected, investors sold. IBM shares dropped 8% in two days. They closed up 7:8 Tuesday at $93 3:4. Since Friday, analysts have been lowering their 1992 estimates for IBM. But William Milton, Brown Brothers Harriman, still rates IBM a buy. Analyst Stephen Dube thinks it could hit $100 again this year. UNITED TECHNOLOGIES CLIMBS: Shares of United Technologies climbed 2 1:4 to close at $53 1:2 Tuesday after the company reported better-than-expected earnings late Monday. "No one believed" a major restructuring announced last summer would work, says analyst Michael Lauer. But skeptics have become believers. The conglomerate's second-quarter net income of $1.18 a share was higher than the $1.07 most analysts estimated. AUTO STOCKS SPUTTER: Auto stocks dipped Tuesday after Furman Selz analyst Maryann Keller downgraded Ford and General Motors to hold from buy. Ford closed at $44, down 1 1:4. GM fell 3:8 to $39 7:8. Chrysler, down most of the day, was unchanged at $19 1:8. Keller was unavailable for comment, but other analysts remain optimistic on auto stocks. BA WILL GET 44% OF COMMON STOCK: The alliance of USAir and British Airways announced Tuesday gives BA a 21% voting share in USAir and eventually 44% of the company's common stock. Under the deal, BA will buy USAir convertible preferred stock that pays 7% interest and can convert those preferred shares to common stock after four years at $20 1:2 a share. USAir stock closed Tuesday at $14 1:8. OPPENHEIMER RECOMMENDS A&W: Oppenheimer recommends buying stock in A&W Brands, which makes and distributes soft-drink brands including A&W, Squirt, Vernors and Country Time Lemonade. The weak stock market has knocked the shares 13% off their 52-week high of $40 1:2, but the brokerage says the company's outlook remains strong. It predicts A&W Brands' 1993 earnings will rise 19%. INVESTORS LIKE STRONGER DOLLAR: Stocks bounced back Tuesday after two days of heavy losses. The Dow Jones industrial average gained 5.41 points to 3308.41. Broader indexes also rose. Winners beat losers 901 to 844 on the New York Stock Exchange, where volume was 174 million shares. Investors applauded the strengthening of the dollar and gains on foreign markets. Stocks rose modestly at the open and stayed positive. CITICORP EARNINGS JUMP: Citicorp, the USA's largest bank, joined several other large banks in reporting sharply higher second-quarter earnings Tuesday. Citicorp earned $171 million last quarter, up from $11 million a year earlier. Boosting its results: cost cutting and a $101 million gain from reducing reserves against Third World loans. "We are where we expected to be," says Chairman John Reed. GREENSPAN INSISTS ON RECOVERY: Federal Reserve Chairman Alan Greenspan Tuesday tried to convince Congress during his semi-annual report that a "hesitant" recovery continues. Greenspan insisted the "expansion will soon, again, gain momentum." Greenspan conceded that economic growth is "subnormal" and said forces holding down growth include the federal budget deficit. GOLD, SILVER TUMBLE: Gold and silver prices tumbled. Gold fell to $357.60 on the Commodity Exchange, down $1.50. Republic National Bank quoted a late bid of $357.50, off $1.20. Gold fell in London to $357.85 from $358.25. Silver bullion fell in London to $3.95 a troy ounce from $3.97. On the Comex, silver closed at $3.937, down from $3.963. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Wednesday at 3308.41 after closing up 5.41 Tuesday. The New York Stock Exchange composite opens at 227.47, down 0.04. The American Stock Exchange market value opens at 384.82, up 0.30. The NASDAQ OTC composite opens at 586.63, up 4.35. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Wednesday. It opens at 0.5231 British pounds, down from 0.5253; 5.0190 French francs, down from 5.0520; 1.4852 German marks, down from 1.4950; and 125.20 Japanese yen, down from 125.46. (As of 3 p.m. Tuesday. 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