Path: bloom-picayune.mit.edu!snorkelwacker.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 Tue, Nov 3 1992 Date: Tue, 3 Nov 92 04:59:46 EST Message-ID: 11-03 0000 DECISIONLINE: Personal Investing USA TODAY Update Nov. 3, 1992 Source: USA TODAY:Gannett National Information Network SAVINGS BOND RATE DROPS: The variable rate paid on Series EE Savings Bonds fell with a thud Monday. The Treasury Department cut the rate to 5.04% from 5.58%. The market-based rate is changed twice a year, Nov. 1 and May. 1. The drop was expected. The rate is set at 85% of the average market yield of five-year Treasury securities the previous six months, and that yield has been falling. GM CUTS DIVIDEND: General Motors figured out an easy way to save a half billion dollars: Stiff shareholders. Overwhelmed by big losses and other bad news, GM slashed its quarterly common stock dividend to 20 cents a share from 40 cents, saving it $550 million a year. But GM's shareholders took the news in stride. GM's shares rose 1 1:8 to $31 7:8 on the New York Stock Exchange. MARKET COULD STAY FLAT: Stocks jumped Monday on hopes that the economy will get stronger after the election. But if history is any guide on how stocks perform after a presidential election, the market between now and year-end could be ho-hum. History shows more year-end rallies following a Republican or incumbent party win. A clinton win could be a dud: The Dow fell an average 1.9% when Democrats won. MUTUAL FUND YIELDS ARE LOW: Money market mutual fund yields are in the cellar. When fund's charge too much for expenses they often wind up in the basement. The average yield was 2.74% the week ended Wednesday. That's the lowest ever. But some funds are delivering shockingly low yields - as low as 1.13%, in the case of the Van Eck U.S. Government Money Market Fund. Van Eck takes 1.84% of assets in expenses. EXPENSES HURT YIELDS: Some money market mutual funds are better at keeping expenses down than others - and shareholders benefit. Case in point: United Services U.S. Government Securities, the nation's top-yielding fund this week. The fund's minimum investment requirement is $1,000. Last quarter, the fund's management paid all expenses. Shareholders now pay 0.16% in expenses. Its yield: 3.89%. Call 800-873-8637. MARKET EXPECTS CLINTON WIN: After months of speculation, investors Tuesday night or Wednesday will know who is running the government. Monday, stocks and interest rates rose on the continued belief that Bill Clinton will prevail. Traders are convinced Clinton's programs will help stocks by boosting the economy and may rekindle inflation. A Bush win, though not impossible, would take Wall Street by surprise. INVESTORS LOOK TO INDICATORS: If Bill Clinton does win the election Tuesday, the markets will focus on his cabinet and economic appointments. Even if President Bush wins, the markets will have a fair amount of sorting out to do. About 125 new members of Congress will be elected. Traders will watch them as well as the U.S. economy. Politics and the economy aside, the markets will look overseas. BUSH STOCKS CATCH UP: Analysts say portfolios of stocks Bill Clinton would help if elected president have done better than those helped by Bush. A model stock market bet in Clinton consists of HMO, construction and waste-control stocks. A Bush bet would include computer-chip stocks. COMPUTER EXECS BACK CLINTON: Business has long embraced the Republican party. But this year, many execs who traditionally vote Republican are backing Clinton. Apple Computer's John Sculley, Hewlett-Packard's John Young and Compaq Computer's Ben Rosen say Democratic presidential candidate Bill Clinton has a better plan than President Bush for reviving the economy and the computer industry. All three are Republicans. DUAL-TRADING FACES VOTE: Members of the Chicago Mercantile Exchange Thursday will vote on a proposal to repeal a 2-year-old exchange rule banning dual-trading on most futures contracts. The controversial practice was sanctioned by legislation that reauthorizes the Commodity Futures Trading Commission. Chicago's exchange is the only one that forbids brokers from simultaneously trading for themselves and clients. GOLD UP, SILVER MIXED: On the New York Commodity Exchange, gold bullion for current delivery rose 50 cents Monday to a $339.90 troy ounce. But Republic National Bank said gold slipped 70 cents an ounce to a late bid price of $338.80. Silver prices were mixed. On New York's Comex, silver bullion for current delivery settled at $3.781 a troy ounce, up from $3.751 on Friday. In London it was unchanged at $3.77. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3262.21 Tuesday after closing up 35.93 Monday. The New York Stock Exchange composite opens at 232.48, up 1.91. The American Stock Exchange market value opens at 382.70, up 0.98. The NASDAQ OTC composite opens at 607.57, up 2.40. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly up on Tuesday. It opens at 0.6538 British pounds, up from 0.6408; 5.3170 French francs, up from 5.2205; 1.5698 German marks, up from 1.5385; and 123.64 Japanese yen, down from 123.87. (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: Martin Baucom. (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