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 Mon, Aug 10 1992 Date: Mon, 10 Aug 92 04:17:59 EDT Message-ID: 08-10 0000 DECISIONLINE: Personal Investing USA TODAY Update Aug. 10, 1992 Source: USA TODAY:Gannett National Information Network ANALYST WARNS ON DELTA SHARES: Salomon Bros. analyst Julius Maldutis is advising clients to look for a crash landing on Delta shares. The stock already is wobbly after three straight quarterly losses. Maldutis is telling some money managers he wouldn't buy Delta until it reaches $35. That's a 34% decline from Friday's close of $53 3:8 and less than half its 1992 high of $75 1:4. FARE CUTS CAUSE FOR CONCERN: Delta Air Lines cut its domestic fares an average 30% and recently slashed European fares as much as 40%. Those moves concern Salomon Bros. analyst Julius Maldutis, who is worried about fare wars' effect on earnings. Delta has reported three consecutive quarterly losses. Maldutis has predicted "the mother of all fare wars" later this year. INVESTORS WARM TO SAVINGS BONDS: Investors fleeing low rates on certificates of deposit and money-market funds are discovering the beauty of U.S. Savings Bonds. Sales of Uncle Sam's best-known bonds are 35% ahead of last year's pace. Through July, sales of bonds topped $7.7 billion, vs. $5.7 billion through the first seven months of 1991, according to the Treasury Department. LOW CD YIELDS HELP BOND SALES: The surge in sales of U.S. Savings Bonds is building. July sales were $1.1 billion, up 43% from $769 million in July 1991. "Low CD rates are a driving force behind the sales," says Don Pederson, president of Detroit-based Savings Bond Informer, which provides rate information to bond holders. Savings Bonds pay a minimum 6% if held five years. Five-year Treasury notes are yielding 5.63%. H-P STOCK TAKES A DIVE: Hewlett-Packard stock plunged 12 5:88 to close at $58 7:8 Friday after the computer maker warned quarterly earnings will be sharply lower than analysts have estimated. Hewlett-Packard says it expects to report net income of $192 million to $220 million for the quarter ended July 31. Analysts had estimated $284 million. During the same period in 1991, Hewlett-Packard earned $192 million. CHRYSLER, KERKORIAN TO MEET: Chrysler Corp. Friday said its directors will meet "in the very near future" with billionaire investor Kirk Kerkorian, who said he may seek representation on the automaker's board, according to Bloomberg Business News. Kerkorian holds a 9.8% stake in the automaker, which is now valued at $577.5 million. Kerkorian has invested about $300 million in Chrysler since December 1990. BRENER, CONTINENTAL WILL TALK: Continental Airlines said Friday it will begin merger talks with Alfredo Brener, a Houston business executive who bid $385 million for the bankrupt airline. Brener has formed Houston Air to invest cash in Continental in exchange for $325 million in notes and $60 million of stock. The bid tops a previous offer of $350 million from Maxxam Inc. for 72%. Talks with Maxxam are continuing. DOLLAR DOWN DESPITE FED ACTION: The dollar fell Friday despite repeated intervention in the market by the Federal Reserve, as traders worried July employment data meant lower interest rates were on the way. The central bank intervened at least three times, buying dollars in an attempt to bolster the sagging currency. The intervention worked the first time, but later moves didn't stop the dollar's slide, traders said. JOBLESS FIGURES BOOST TEMPORARY: The Labor Department Friday reported that the civilian unemployment rate eased to 7.7% in July, down from June's 7.8%. Analysts said the news fulfilled some hopes manifested in last week's market rally for a reversal of the weakening in the job market. The dollar fell despite the news. Economists and traders said the figures were boosted by a temporary federal jobs program. NORWEST, FFCB SELL BONDS: Norwest Financial Inc. and Federal Farm Credit Banks sold $580 million of bonds Friday, bringing total sales last week to $3.5 billion, Bloomberg Business News said. Bond sales could remain steady as issuers take advantage of low interest rates to refinance outstanding debt, investment bankers said. The Treasury sale of $36 billion of securities could keep some issuers out. GOLD, SILVER UP: Gold and silver prices were higher Friday. On the Commodity Exchange, gold bullion for current delivery settled at $350.30, up $1.30. Republic National Bank said gold finished at $351, up $1.65. Gold rose in London to $351.15, up from $348.85. Also on the Comex, silver bullion for current delivery settled at $3.962, up from $3.906. In London, silver bullion rose to $3.93 from $3.92. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Monday at 3332.18 after closing down 8.38 points Friday. The New York Stock Exchange composite opens at 230.79, down 0.71. The American Stock Exchange market value opens at 390.13, up 0.36. The NASDAQ OTC composite opens at 573.74, down 0.28. 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