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 29 1992 Date: Wed, 29 Jul 92 04:32:50 EDT Message-ID: 07-29 0000 DECISIONLINE: Personal Investing USA TODAY Update July 29, 1992 Source: USA TODAY:Gannett National Information Network WHEEL SUPPLIER A STRONG BET: Value Line Investment Survey recommends stock in Superior Industries, which supplies aluminum wheels to auto and light-truck makers. It's had solid growth the past two years as lighter-weight aluminum wheels have been used more to replace steel wheels, the newsletter says, and is well-positioned to benefit more now that the auto industry is recovering from the recession. COMPANY CAN HANG ON TO GM: While there has been concern Superior Industries will be hurt as its customer General Motors slashes costs, the company should be able to retain GM's business by reducing wheel prices, Value Line Investment Survey says. It predicts the company's stock will turn in a strong performance during the next 12 months. CALDOR'S STORE, STOCK IMPROVE: Caldor's new prototype store in Leominster, Mass., has benches, a play area and a new computer system. Analyst Karen Sacks says the moves are a "good example of Caldor's improvement." Also improved: Caldor stock. The chain of discount stores went public in 1991 at $21 a share and had sunk as low as $12 5:8. Changes upped the stock; it closed up 3:8 Tuesday at $19 3:8. CHRYSLER STOCK JUMPS ON REPORT: Chrysler reported stronger-than-expected second-quarter earnings and sparked a rally in U.S. auto stocks Tuesday. Chrysler's net income totaled $178 million, or 54 cents a share - nearly double what analysts estimated and an improvement over last year, when Chrysler lost 95 cents a share. Chrysler stock jumped 1 11:16 to close at $21 3:4 Tuesday. GERBER SHARES DROP ON NEWS: Gerber Products shares fell 1 1:2 to $67 1:8 Tuesday after the company reported only a modest pickup in earnings and revenue. For the second quarter, Gerber's net income was $34.4 million, or 93 cents a share, vs. $33.6 million, or 90 cents a share, last year, the company reported. Revenue edged up 7% to $315 million. Analyst John McMillin reiterated a buy recommendation on the stock. SUMMER SALES BOOST KODAK: A midsummer surge in color film and paper sales helped Eastman Kodak earnings edge up 1% the second quarter. Kodak Tuesday reported earnings of $361 million, or $1.11 a share, vs. $357 million, or $1.10 a share, last year. Kodak announced its earnings after the stock market closed. Analysts say they expect the stock, which rose 1 1:8 to $42 3:4 Tuesday, to add to that gain. THREE NEW FUND TYPES POSSIBLE: The Securities and Exchange Commission is giving the public 90 days to comment on proposed rules that would allow three new types of mutual funds. Interval funds would let investors sell shares only at regular intervals. Extended-payment funds could take longer than seven days to pay investors who redeem shares. The third would be closed-end and would regularly buy back a portion of shares. LONG-TERM BOND RATES PLUNGE: Interest rates on long-term bonds tumbled Tuesday, propelled by a gloomy report on consumer confidence. The yield on the bellwether 30-year Treasury bond plunged to 7.43% from 7.51% Monday. It was at 7.66% just a week ago. Bond yields have fallen sharply in the past week because of economic reports that the economy may be weakening. Tuesday's drop means mortgage rates will continue to slide. MORTGAGE RATES DROP: Typically, 30-year fixed mortgage rates move in tandem with the 10-year Treasury-note yield, which fell to 6.62% from 6.68% Monday and 6.88% a week ago. Last week, the average 30-year fixed mortgage rate was 8.08%. Some are offering rates as low as 7 3:4%. "It could be a week, it could be a few hours, but we'll start seeing some banks offering 30-year mortgages at 7 1:2," says one broker. STOCKS SOAR TUESDAY: Stocks rose dramatically Tuesday in an across-the-board rally. The Dow Jones industrial average climbed 51.87 points to 3334.07. Broader indexes also gained. Winners beat losers 1,373 to 444 on the New York Stock Exchange, where volume was heavy at 218 million shares. Investors shrugged off a disappointing report on consumer confidence, focusing on good earnings news, notably Chrysler's. RETURN OF THE JUNK BOND: Junk bonds are back after a lapse early last year when none were issued. Nearly $12 billion of high-yield corporate junk bonds were issued last quarter, setting a record over the $11 billion dollars of junk bonds issued in the third quarter of 1987. GOLD UP, SILVER DOWN: Gold rose worldwide, but silver was down Tuesday. On the Commodity Exchange, gold bullion for current delivery settled at $358.90, up $1. Republic National Bank said gold rose $1.45 to $359.25. Gold rose in London to $358.45 from $358.00. On the Comex, silver bullion for current delivery settled at $3.943, down from $3.947. In London, the metal fell to $3.95 from $3.96. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Wednesday at 3334.07 after closing up 51.87 points Tuesday. The New York Stock Exchange composite opens at 229.54, up 3.03. The American Stock Exchange market value opens at 384.55, up 2.49. The NASDAQ OTC composite opens at 571.63, up 6.90. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Wednesday. It opens at 0.5188 British pounds, down from 0.5215; 4.9735 French francs, down from 5.0010; 1.4740 German marks, down from 1.4825; and 127.40 Japanese yen, down from 127.70. (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