Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.invest,americast.usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Wed, Sep 23 1992 Date: Wed, 23 Sep 92 04:36:28 EDT Message-ID: 09-23 0000 DECISIONLINE: Personal Investing USA TODAY Update Sept. 23, 1992 Source: USA TODAY:Gannett National Information Network TURMOIL COULD BOOST EARNINGS: Europe's currency crisis could give some big banks a surprise earnings kick this quarter by boosting activity in foreign currency trading operations. As prices on most anything swing wider and wider, and volume goes up, those who make markets - in this case, the big banks - can widen margins. So not only do they make more money on the increased volume, but the money per trade is higher. BANK STOCKS AREN'T JUMPING: Although the European currency crisis could give some big banks an earnings kick by boosting activity, banks stocks aren't reflecting that possibility. "It's the kind of development that presents banks with tremendous opportunity," says analyst Richard Stillinger. But top currency-trading banks such as J.P. Morgan, Citicorp and Chemical are no higher. Only BankAmerica is up. IMF WANTS FED TO STOP CUTS: World leaders are calling on the Federal Reserve to help stabilize currencies in Europe. In a speech Tuesday, International Monetray Fund managing director Michel Camdessus called on the Fed to stop cutting interest rates - and raise them when the economic recovery picks up a little. The goal: Close the gap between rates so investors stop globetrotting in search of higher yields. INSIDERS ARE DUMPING SHARES: A rising number of executives are dumping shares of the company they work for - and, most alarming, many of the insiders doing the selling are the highest-ranking managers: The chairman, chief executive or president. The implication is that stock prices generally are too high, and may be ready for a tumble. Analysts note that insiders are buying small-company stocks. APPLE BOSS DROPS STOCKS: Analysts say a large number of executives are dumping shares of their own company. Most notable about top-manager selling in August: John Sculley at Apple; William Schreyer at Merrill Lynch; James Preston at Avon; Harold Sells at Woolworth. This trend seems to apply most to large companies. Insiders know the overall direction of the company and sells mean stocks are priced to high. VISTA HAS BEEN MOST SUCCESSFUL: Wednesday is Vista Growth & Income Fund's fifth birthday. And at the end of the month when mutual fund trackers issue their end-of-quarter results, Vista will be the top stock fund for the past five years. Its return: 271% through Friday. That compares with 48% for the average fund. Part of Vista's investment style: Find stocks that are inexpensive compared to the market or historical levels. GM CUTS PRODUCTION: General Motors, saying it expects lower fleet sales and a continued weak economy, plans to cut North American production by 100,000 cars and trucks this year. The automaker blamed part of the cutback on a strike at a parts plant in Lordstown, Ohio, which shut down production at seven GM plants. Analysts say the reductions will mean larger-than-expected losses for GM in the second half. ANALYSTS BLAME DROP ON BONDS: Stocks dropped sharply Tuesday as computerized trades weakened stocks across the board. What triggered the selling was unclear. Most Wall Street analysts think stock investors were taking their cue from the bond market, which sold off on news that housing starts were unusually strong in August. The bond market often falls on positive economic news because growth may raise inflation. INVESTORS READY FOR CLINTON: Many analysts believe investors are adjusting their portfolios in anticipation of a Bill Clinton presidency. Dreyfus economist Richard Hoey says a Clinton presidency is less bullish for stocks because his proposed spending plans to stimulate the economy could result in a higher federal deficit. Clinton-sensitive stocks to watch: Medical companies and heavy construction stocks. GOLD, SILVER RISE: Gold prices settled mostly higher Tuesday. On the New York Commodity Exchange, gold bullion for current delivery settled at $348.80 a troy ounce, up $1.30 from Monday. Republic National Bank said gold added $1.10 an ounce to a late bid price of $348.60. On New York's Comex, silver bullion settled at $3.822 a troy ounce from $3.807. In London, silver rose to $3.84 from $3.81. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3280.85 Wednesday after closing down 39.98 Tuesday. The New York Stock Exchange composite opens at 229.48, down 2.41. The American Stock Exchange market value opens at 380.99, down 1.73. The NASDAQ OTC composite opens at 583.99, down 5.58. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly up on Tuesday. It opens at 0.587 British pounds, up from 0.586; 5.100 French francs, up from 5.076; 1.493 German marks, up from 1.484; and 121.45 Japanese yen, up from 123.6. (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: Martin Baucom. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes violates federal law. 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