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, Mar 5 1992 Date: Thu, 5 Mar 92 05:55:52 EST Message-ID: 03-05 0000 DECISIONLINE: Personal Investing USA TODAY Update March 5, 1992 Source: USA TODAY:Gannett National Information Network EXEC MOVES AFFECT STOCKS: There's more to investing than researching earnings. Recent spurts in shares of Time Warner and car painter Earl Scheib bear this out. Monday, ghoulish investors bid shares of Scheib up 4 to $12 1:2 Monday, apparently cheered by news of the CEO's death. Ten days before, Time Warner rose 1 7:8 to $99 3:4 after its Co-CEO Nicholas J. Nicholas Jr. was ousted. Wednesday's close: $106 1:4. (For more, see special Changes package below.) STOCKS DROP 21.69: Stocks tumbled in a late sell-off Wednesday as investors waited for more signs that the economy is recovering. The Dow Jones industrial average lost 21.69 points to 3268.56. Other broader market indexes also fell. Losing stocks beat winners 1,065 to 613 on the New York Stock Exchange, where volume was 208.91 million shares. IBM DEBT DOWNGRADED: Shares of IBM took a small hit Wednesday after Moody's, a leading bond-rating agency, downgraded about $18 billion in IBM long-term debt, citing concern about IBM's competitiveness and profitability. IBM fell 7:8 to $87 3:8. Its debt rating was lowered two notches from the top Aaa to Aa2. The lower rating is considered a psychological blow and could also raise IBM's borrowing costs. TIFFANY UP ON SALES SURGE: Tiffany Chairman William Chaney Wednesday suggested that his customers think now's the time to buy an end of recession gift. He told analysts that same-store February revenue surged more than 10% from a year ago - in line with an optimistic company sales plan. Several Wall Street analysts and their clients concluded it was time to buy Tiffany shares. The stock added 4 to $50 3:4. MERCK RUMOR IS WRONG: Drug giant Merck dipped 2 5:8 to $151 1:4 Wednesday but generally shook off rumors that a study in a British medical journal raised safety questions about its blockbuster anti-cholesterol drug, Mevacor. Trading in the stock was halted near lunchtime as sell orders piled up. Merck then issued a statement saying there are no new findings questioning Mevacor's safety. DRUG STOCKS OFF: Investors continued to sell drug and other recession-resistant stocks Wednesday to buy stocks more sensitive to the economy. Glaxo dipped 3:4 to $27 5:8, SmithKline Beecham lost 7:8 to $79, Pfizer fell 1 1:4 to $73 5:8. These days, "all it takes is a rumor" to knock the drug stocks lower, says Neil Sweig, analyst at Brenner Securities. GOLD, SILVER MIXED: Gold and silver prices were narrowly mixed Wednesday. On the Commodity Exchange, gold bullion for current delivery settled at $350.60 a troy ounce, up 20 cents. Republic National Bank said gold gained 5 cents an ounce to a late bid price of $350.40. Gold fell in London and Zurich. On the Comex, silver bullion settled at $4.110 a troy ounce, up from $4.101. SPECIAL PACKAGE ON CHANGES: SHAKE-UPS SPARK RALLIES: Investors often vote with their pocketbooks when there's change at the top of publicly held companies. When an elderly corporate founder dies, investors figure the company stands an improved chance of being sold by the estate of the deceased. That means the possibility of a premium takeover price. And even shake-ups that open no doors to selling the company can lead to brisk rallies. GM, IBM, CHRYSLER ON LIST: Ousters that lead to stock gains or losses can happen at any company. But Wall Street analysts and big investors seem to focus on the same small group when they put together their lists of stocks that would gain - or lose - if the top guy took off. Most talked-about firms from an unscientific survey of market watchers Wednesday: General Motors, Chrysler, IBM, American Express. STEMPEL'S DEPARTURE WOULD HURT: Should GM Chairman Robert Stempel quit or die, the stock could fall 4 points or 5 points from its current $37 3:8 "because there would be a lot of confusion in the middle of this restructuring," says William LeFevre of Tucker Anthony. The departure of Chrysler's Lee Iacocca would be trouble if he were replaced "with a bean counter" rather than a strong automotive executive, LeFevre says. DIVIDEND STANCE AFFECTS IBM: Although not well liked by analysts, IBM CEO John Akers' departure wouldn't necessarily lift the company's stock. Akers is committed to keeping the $4.84 annual dividend, IBM watchers say, and a newcomer might not be so generous. News of Akers being out could drop IBM to less than $80 from Wednesday's $87 3:8. AmEx shares could soar up to 5-10 points on news its CEO was out. (End of package.) DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Thursday at 3268.56, after closing down 21.69 Wednesday. The New York Stock Exchange composite opens at 226.66, down 1.77. The American Stock Exchange market value opens at 413.39, down 2.10. The NASDAQ OTC composite opens at 630.29, down 3.96. DOLLAR OPENS UP: The dollar opens up on foreign markets Thursday. It opens at 0.5804 British pounds, up from 0.5755; 5.6370 French francs, up from 5.5617; 131.90 Japanese yen, up from 130.87; and 1.6702 German marks, up from 1.6580. (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. 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