Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Thu, Feb 27 1992 Date: Thu, 27 Feb 92 06:04:26 EST Message-ID: DECISIONLINE: Personal Investing USA TODAY Update Feb. 27, 1992 Source: USA TODAY:Gannett National Information Network STOCKS SCRAMBLE TO NEW HIGH: The Commerce Department's report that durable goods orders rose 1.5% in January gave the stock market a boost Wednesday. The Dow Jones average of 30 industrials, down 24.59 points, rose 25.49 points to 3,283.32, surpassing the record close of 3,282.42 reached Monday. January's rise in durables orders reversed their 5.1% drop in December. BE CAREFUL IN BIOTECH BATTLE: Investors betting on a winner in the biotechnology battle between Xoma and Centocor better beware. The advantage can swing quickly, and so can the stocks. Those two firms are headed for a photo finish in their race to market a drug aimed at treating Gram-negative sepsis, a trauma disorder in surgical patients that kills roughly 80,000 in the USA annually. (For more, see special Biotech package below.) ITT MAY SPLIT TO LIFT STOCK: ITT, the quintessential conglomerate, looks headed for an overhaul. In a story in Wednesday's Financial Times, ITT Chairman Rand Araskog said he's willing to split ITT into smaller pieces if it will boost ITT's lackluster stock. Araskog said one option ITT has is to split its service companies from its manufacturing companies. ITT's stock surged 5 3:8 to $65 3:8 Wednesday. STOCK SPLITS ON THE GROW: Stock splits are in vogue these days. And they're giving stocks a boost. Wednesday, insurance company GEICO climbed 10 to $219 after it proposed a five-for-one stock split and upped its dividend 32% on a presplit basis. Raytheon rose 2 1:2 to $89 1:4 after announcing a two-for-one split. Stock splits make shares more affordable for individual investors. IPOS STRIKE A CHORD: Investors snapped up a quartet of initial public offerings - outdoor-equipment maker Coleman, recorded-music chain Musicland Stores, software designer Synopsys and I-Stat, a developer of blood-analysis products. Coleman, offered at 19 1:2, closed at $25 1:8. Synopsys shares rose to $31 1:2 from $18. Musicland rose to $16 from $14 1:2. I-Stat opened at $19 1:4, but closed at $18 1:4. WAL-MART IS RESILIENT: The recession hasn't held back Wal-Mart. The discount-store giant posted record earnings and revenue for the year ended Jan. 31. Net income at the USA's largest retailer soared 25% to $1.61 billion, or $1.40 a share, from $1.29 billion, or $1.14 a share, a year earlier. Revenue jumped 35% to $43.9 billion from $32.6 billion. Wal-Mart stock rose 2 3:8 to $53 7:8 Wednesday. TREASURY AUCTION SUCCESSFUL: Wednesday's Treasury auction of $9.8 billion in five-year T-notes went over well. The Treasury received $31.8 billion in bids for the offering, more than three times the amount offered. "It was the first good auction all month," says David Blitzer, chief economist at Standard & Poor's. The five-year T-notes yielded an average 6.75%, up from 6.28% at the last auction a month ago. GOLD DOWN, SILVER MIXED: Gold prices were mostly lower worldwide. On the New York Commodity Exchange, gold bullion for current delivery settled at $349.60 a troy ounce, off 20 cents from Tuesday. Republic National Bank said gold was unchanged at a late bid price of $349.50 an ounce. Gold fell in London. On the Comex, silver bullion for current delivery settled at $4.061 a troy ounce, off from $4.065. SPECIAL PACKAGE ON BIOTECH: CENTOCOR LOSES ITS EDGE: In September, Centocor had the advantage over Xoma. A Food and Drug Administration advisory panel recommended its drug, Centoxin, for full approval, while at the same time declining to recommend approval for Xoma's E5. Centocor's stock rose sharply; Xoma's fell. But last week, Centocor stock fell 20% after it said the FDA had raised issues about its drug that could delay its full approval. XOMA GAINING GROUND: Centocor's stock now is 40% below its high of last fall. Meanwhile, Xoma is back in the race and may be pulling ahead. Wednesday, it's stock climbed 1:2 to $22 1:2. It was one of the few biotech stocks resisting a group sell-off since mid-January. Thursday, it will announce 1991 earnings - another loss. But that is common for biotech companies still developing products. ANALYSTS SEE E5 BEING OK'D: Analysts now say Xoma seems to have satisfactorily provided the FDA with additional data, and they expect E5 to win full approval. That could come as early as next month. David Stone, analyst at Cowen & Co., expects Centoxin to hit the market at the same time as E5. But that favors Xoma, he says, because of its agreement with drug giant Pfizer to sell E5. XOMA HAS ANOTHER PROSPECT: Then there's the outside chance that E5 is approved before Centoxin. In that case, Xoma will have the market all to itself - a huge head start. "If that happens, and there is a chance of that, then Xoma's stock would be worth a lot more," says analyst Jay Silverman. Analysts are bullish on another Xoma drug, CD5+, which analysts say will receive full approval within months. (End of package.) DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Thursday at 3283.32, after closing up 25.49 Wednesday. The New York Stock Exchange composite opens at 229.23, up 2.55. The American Stock Exchange market value opens at 413.97, up 4.19. The NASDAQ OTC composite opens at 632.40, up 11.00. DOLLAR OPENS MOSTLY DOWN: The dollar opens mixed on foreign markets Thursday. It opens at 0.5721 British pounds, down from 0.5742; 5.6389 French francs, up from 5.6178; 129.35 Japanese yen, down from 129.82; and 1.6495 German marks, down from 1.6565. (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: William Snoddy. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002270000D0227 REAL- R N Demand-causes-rates-to-dive........... A D0227 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