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, Aug 14 1992 Date: Fri, 14 Aug 92 04:30:56 EDT Message-ID: 08-14 0000 DECISIONLINE: Personal Investing USA TODAY Update Aug. 14-16, 1992 Source: USA TODAY:Gannett National Information Network CHEMICAL NOW A GOOD BET: Analyst George Salem once recommended investors sell Chemical Banking. A year ago, however, the bank merged with Manufacturers Hanover to create an "above-average bank," he says. Since the deal was completed Dec. 31, Chemical stock is up 59% to $33 3:4 Thursday. Most analysts figure it could go even higher; UBS Securities' Brent Erensel says it will hit $45. GOLD SHOULD CONTINUE TO SLIDE: Analysts say the recent drop in gold prices won't end anytime soon. Gold continued its slide Thursday, falling $4.50 to $334.10 an ounce - its lowest level in more than six years. There is "no economic justification for buying gold," says James Nevler, analyst at Commodity Research Bureau. "I don't see any reason why gold cannot fall to $300." CRB REBOUNDS AFTER DROP: The CRB commodities index rebounded Thursday after hitting its third consecutive six-year low Wednesday. The CRB is a key inflation indicator, and analysts say weakness in the index has investors worried deflation is on the way. A report on consumer prices during June confirmed inflation is almost nonexistent. AMERICAN SOFTWARE DOWN: Shares of American Software slumped 4 3:8 to close at $9 1:4 after the maker of IBM-compatible software warned its first-quarter earnings will be 8 to 12 cents a share, far below analysts' expectations. The company blamed the shortfall on lower-than-expected new license software sales. Analyst Charles Philips had predicted earnings of 18 cents a share in the first quarter. WALL STREET WARMS TO CLINTON: Democratic presidential candidate Bill Clinton is starting to win corporate America's respect. Some analysts and economists Thursday - after Clinton spoke to USA TODAY Wednesday - said they were impressed. Clinton was confident, saying he won't be the tax-and-spend presidents many executives fear. FAR EAST WINS WITH PROS: Serm Suk, Toto and the South China Morning Post popped up among top picks by six market pros surveyed by USA TODAY. Thailand's Serm Suk has that country's Pepsi franchise. Toto is a Japanese maker of bathroom fixtures. The South China Morning Post is Hong Kong's leading English-language newspaper. Also picked: British Airways, Compania de Telefonos de Chile and Bangkok Bank. T-BOND SALE A SUCCESS: The Treasury's $10 billion sale of 30-year bonds was dubbed a success by traders Thursday as the government's three-day quarterly refunding ended. The 30-year bonds sold for 7.29%, the lowest rate since regular auctions of the bonds began in 1977. The rate was also lower than Wednesday's yield of 7.32% on existing 30-year T-bonds. At the previous auction May 7, 30-year bonds yielded 8%. BOND DEMAND `FAIRLY STRONG': The Treasury auction of 30-year bonds went well Thursday, says financial consulting researcher Mike Englund. The demand for the bonds was "fairly strong," Englund said. Investors who sold late Thursday may have been squaring their investment portfolios, he said, pulling back and taking profits. CONSUMER PRICES INCH UP: Consumer prices edged up only 0.1% last month, an even smaller increase than June's 0.3% rise and the smallest since May, the Labor Department said Thursday. Held in check by a weak economy, inflation, as measured by the government's consumer price index, has risen at a 2.7% annual rate this year. Last year, inflation was 3.1%. The pace could slow to 2.5% by year's end, economists say. LATE SLUMP HURTS STOCK MARKET: Stocks fell Thursday, hurt in part by a bond market slump. The Dow Jones industrial average dropped 7.56 points to 3313.27. Broader indexes, excluding the NASDAQ composite, were also down. Losers outnumbered winners 915 to 820 on the New York Stock Exchange, where volume was 186 million shares. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Friday at 3313.27 after closing down 7.56 points Thursday. The New York Stock Exchange composite opens at 229.95, down 0.04. The American Stock Exchange market value opens at 386.73, up 0.27. The NASDAQ OTC composite opens at 570.99, up 0.14. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Friday. It opens at 0.5173 British pounds, down from 0.5178; 4.9350 French francs, down from 4.9565; 1.4551 German marks, down from 1.4625; and 126.50 Japanese yen, down from 127.46. (As of 3 p.m. Wednesday. 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