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 Tue, Aug 18 1992 Date: Tue, 18 Aug 92 04:30:58 EDT Message-ID: 08-18 0000 DECISIONLINE: Personal Investing USA TODAY Update Aug. 18, 1992 Source: USA TODAY:Gannett National Information Network BUYS ARE HALF OF INSIDE TRADES: Executives are buying more of their own companies' stock, but that may not mean the market is running up. The Insiders newsletter reports that about half of all insider stock trades were buys. That's the heaviest insider buying since late 1990, when the market was depressed and executives were buying cheap. Heavy insider buying usually signifies a bullish market. ANALYST PANS SYSTEMIX: Biotech firm SyStemix tumbled 9 1:4 to close at $23 3:4 Monday after a Merrill Lynch analyst hit the company's stock with below-average intermediate and long-term ratings. After participating Friday in a conference call with SyStemix president Linda Sonntag, Merrill analyst Stuart Weisbrod said he considers the Palo Alto, Calif., company to be falling behind in product development. TOYS R US EXECS SELL: Three top Toys R Us executives sold more than $16 million of stock last month. The executives dramatically reduced their direct holdings of Toys R Us stock, but still have huge amounts of options. "No one's bailing out," says analyst Sean McGowan. On Monday, the retailer announced second-quarter earnings rose to 11 cents a share, from 8 cents last year. The stock rose 1 1:8 to $37. TRIM NOW DESPITE FALLING RATES: Falling interest rates have a growing number of professional investors bullish on an already high stock market. But some experts say now is the time for individuals to start trimming their stock portfolio. Low interest rates are about the only thing supporting stocks now. If rates head higher or stop falling, the pros may begin dumping shares suddenly. INDICATORS WORRY MARKET EXPERT: Arnold Kaufman, editor of S&P's Outlook newsletter, says three indicators have him worried: Treasury-bond yields, gold prices and a commodities index all crashed last week to their lowest levels in years. "This could mean we're headed for further disinflation, or even deflation, and the economy is going to be much worse than people expect," Kaufman says. K MART BLAMES IT ON THE RAIN: K Mart, the nation's second-largest retailer, reported Monday that cool weather in May and June were responsible for the company's poor second-quarter performance. Earnings rose just 2.9% as spring sales of apparel and outdoor:garden-shop merchandise was down. Net income was $168 million for the three months ended July 29, while earnings per share slipped to 37 cents from 40 cents. TROUBLED WANG STILL SLIDES: Wang Laboratories stock closed at 75 cents a share Monday, down 87 1:2 cents. IBM refused to confirm a Wall Street Journal report that it will withhold a $75 million cash infusion for Wang. Wang has delayed reporting results for the fiscal year that ended June 30. Also, Reuters reported that Wang's board met Monday to consider the company's future. Wang may file for Chapter 11 Wednesday. BANKRUPTCY RUMORS: A former president of Wang Laboratories, John Cunningham, told Bloomberg Business News Monday that people at the company told him Wang would file for Chapter 11 bankruptcy Wednesday. In the three previous years, Wang lost a total of $1.3 billion. It has yet to report results for fiscal year 1991. Some question whether the firm will survive. TREASURY SELLS SHORT BILLS: The Treasury Department Monday sold $11.6 billion in three-month bills at an average discount rate of 3.10%, down from 3.13% last week and the lowest auction rate since 3.07% on Feb. 14, 1972. It also sold $11.6 billion in six-month bills at 3.18%, down from 3.19% last week and the lowest since 3.09% on July 1, 1963. STOCKS SLIP DOWNWARD: Stocks drifted lower Monday as investors turned their attention to the Republican convention. The Dow Jones industrial average dropped 4.05 points to 3324.89. Broader indexes were mixed. Winners beat losers 971 to 780 on the New York Stock Exchange, where volume was light at 153 million shares. Stocks traded narrowly. Many investors have questions about President Bush's economic plans. GOLD UP, SILVER DOWN: Gold was up sharply from last week's fall, but silver was down Monday. Gold for August delivery rose $2.10 to $336.90 a troy ounce on the Commodity Exchange. Republic National Bank quoted a bid of $337.25, up $1.95. Gold rose in London to $337.20 from $335.75. Silver traded in London at $3.79, down from $3.82. On the Comex, silver was $3.780, down 0.4 cent. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Tuesday at 3324.89 after closing down 4.05 points Monday. The New York Stock Exchange composite opens at 231.60, up 0.54. The American Stock Exchange market value opens at 386.94, up 0.12. The NASDAQ OTC composite opens at 572.47, down 0.71. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Tuesday. It opens at 0.5187 British pounds, down from 0.5214; 4.9565 French francs, down from 4.9670; 1.4618 German marks, down from 1.4675; and 125.60 Japanese yen, down from 126.10. (As of 3 p.m. Monday. 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