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 17 1992 Date: Mon, 17 Aug 92 04:19:44 EDT Message-ID: 08-17 0000 DECISIONLINE: Personal Investing USA TODAY Update Aug. 17, 1992 Source: USA TODAY:Gannett National Information Network STOCKS IDLE AFTER RALLY: For the second year in a row, stocks are taking a long siesta after a phenomenal January rally. In 1991, the Dow Jones industrial average idled between 2850 and just over 3000 until late August, following a mid-January burst that started with the Dow about 2500. Now it's August again. The Dow has been stuck between 3200 and 3400 since a two-month rally that ended in late January. AVERAGE IS HIGHER THIS TIME: The Dow Jones industrial average is idling following a January rally, just as it did last year. But this year, stocks are about 12% higher. Analysts say that may be key to whether the market can shake what they call a trading range, as it did a year ago. But even healthy earnings gains would only sustain stocks where they are, analysts say. INVESTORS TO READ BUSH'S LIPS: Investors looking for reasons to get optimistic about stocks will have a keen eye on this week's Republican convention. President Bush's campaign chief, James Baker, has raised the possibility of tax cuts, sure to be a popular topic at the convention in Houston. But investors don't believe everything politicians say about taxes. BELARUS BETTER; UKRAINE SLIPS: Since the attempted Soviet coup last August, Russia has suffered political fits and starts and widespread crime. But it has become a better business venue, thanks to economic reforms and an influx of Western businesses. Ukraine has slipped since its factories have been cut off from low-cost supplies. And Belarus, an also-ran a year ago, is considered a coming business attraction in the region. FIRM BULLISH ON OFFICE DEPOT: Southern brokerage firm Robinson Humphrey stands firmly behind shares of Office Depot, the USA's largest chain of office products superstores. The firm says investors could score profits up to 40% in 12 months and maybe 200% in four years. The firm bucks an increasing number of short sellers, who fear surging competition and a ritzy stock valuation. REAL ESTATE LESS CYCLICAL: The real estate industry isn't as cyclical as it used to be. In the old days, when the interest rates on bank deposits were capped by law, market interest rates would sometimes rise above that cap. When that happened, many depositors would invest their savings in bonds or other investments, forcing banks to cut back on loans to home builders and buyers. Result: A sharp slowdown. DEREGULATION ALTERED INDUSTRY: When interest rates on bank deposits were capped by law, deposit habits would force banks to cut back on homebuyer loans, slowing down the real estate industry. When interest rates fell, banks would lend again. Deregulation in 1982 altered the cyclical nature of the industry. And the growth of a secondary market for mortgages guarantees that money for loans is always available. WWPC FILES TO SELL STOCK: Washington Water Power Company filed Friday with the Securities and Exchange Commission to sell as much as $15 million of preferred stock. Together with a previous offering, that filing lets the Spokane-based company issue up to $35 million of preferred shares periodically, on terms to be released at the time of the sale. No underwriters were named. WWPC sells electricity and natural gas. FED TO CHECK ON CITICORP MORE: Citicorp said Friday it has agreed to let federal regulators increase their oversight of its actions as it works to raise capital by selling stock and assets. The nation's largest bank also is struggling with $9.3 billion in troubled loans. Citicorp also reduced its second-quarter earnings by 16% from results it reported on July 21, following a regulatory examination of its U.S. mortgage business. DAILY NEWS PLAN DUE MONDAY: A New York Daily News reorganization plan must be presented to a bankruptcy court Monday. Over the weekend, unions and creditors for the troubled newspaper studied details of bids by Mortimer Zuckerman, the owner of U.S. News & World Report, and Canadian publisher Conrad Black. JOINT VENTURE TO FACE IBM: German company Siemens AG and Thomson-CSF of France have undertaken a joint venture to compete against IBM for a contract to build an air traffic control system. Bloomberg Business News reported Sunday that the contract is for 10 to 15 years for a $2 billion to $4 billion European air traffic control system. Thomson on its own has recently won contracts for Greece and the CIS. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Monday at 3328.94 after closing up 15.67 points Friday. The New York Stock Exchange composite opens at 231.06, up 1.11. The American Stock Exchange market value opens at 386.82, up 0.09. The NASDAQ OTC composite opens at 573.18, up 2.19. 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