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 Tue, Mar 17 1992 Date: Tue, 17 Mar 92 05:44:53 EST Message-ID: 03-17 0000 DECISIONLINE: Personal Investing USA TODAY Update March 17, 1992 Source: USA TODAY:Gannett National Information Network WORLD STOCK MARKETS LOOK BLEAK: Investors looking for a hot international stock market don't have a world of choices. That's because there aren't many sizzling overseas markets these days. Monday, the Japanese stock market - the largest outside the U.S. - fell to its lowest level since February 1987. "It's not a good time to be a contrarian in Japan," says Christian Wignall of GT Global Mutual funds. (For more, see special Global package below.) STOCKS STAGE LATE RALLY: Wall Street shook off early worries Monday that a sharp decline in the Tokyo stock market overnight would affect U.S. markets. The Dow Jones average of 30 industrials, down much of the day, rallied late to close up 0.45 at 3,236.36. The Nikkei Stock Average fell 3.03% to 19,837.16 on the Tokyo Stock Exchange. That left the Nikkei below the psychologically important 20,000 point level. NIKE EARNINGS UP 17%: Nike's announcement Monday that its earnings jumped 17% didn't benefit the sneaker giant's stock, which stumbled 3 5:8 to $70 1:2 Monday. Though net income climbed to a record high, results were slightly below analysts' expectations of $1.12 to $1.15 a share. Net income for the quarter ended Feb. 29 rose to $82.5 million or $1.08 a share. Analysts still rate Nike a long-term buy. MICROSOFT SHARES JUMP: Microsoft jumped 3 1:4 to 124 1:4 Monday on news it has scheduled a news conference Wednesday regarding the release of Windows 3.1. In the software business, volume production is always an important hurdle. Microsoft apparently has eliminated any bugs that could derail the April 6 introduction of Windows 3.1, the successor to Windows 3.0, the best-selling PC software. KODAK SHARES SLIP: Eastman Kodak said in its annual report that investors shouldn't expect a rebound for the company in the first quarter, sending its shares down 1 7:8 to $40 3:4 Monday. During January and February, Kodak says, revenue fell 5% to 10% in its business products segment and lost 2% to 4% in its camera and film business, vs. the same months last year. Revenue from health products rose 8% to 10%. UNISYS TO POST PROFIT: Opinions about Unisys may be about to change. Monday, the computer company said it will post a first quarter profit, again surprising Wall St. Unisys stock closed up 1 to $10 1:8. Analysts had been saying that rise in Unisys shares from about $3 to $11 in recent weeks was unwarranted because of a still cloudy outlook. Analyst Rick Martin predicts Unisys will earn 65 cents this year. RATES UP AT TREASURY AUCTION: The Treasury Department sold $11.4 billion in three-month bills at an average discount rate of 4.09%, up from 4.02% last week. Another $11.4 billion was sold in six-month bills at an average discount rate of 4.27%, up from 4.13% last week. GOLD, SILVER FALL: Gold and silver were mostly down Monday in worldwide trading. Gold was quoted on the New York Commodity Exchange at $343.30 a troy ounce, down $3.40. Republic National Bank later quoted a price of $343.40, off $3.35. The metal also fell in London and Zurich. Silver was quoted in New York at $4.062 a troy ounce, down 3.7 cents from late Friday. In London silver fell to $4.08 from $4.12. SPECIAL PACKAGE ON GLOBAL: EUROPEAN MARKETS ALSO HAGGARD: European markets have been disappointing too, despite the enormous hype about the European Community agreement. High interest rates are among the pressures holding back Europe. The Bundesbank, Germany's central bank, has raised its key Lombard Rate to 9.75% - its highest since May 1980. Also, the increasing number of cash-strapped nations wanting to join the EC is having an effect. ELECTIONS SLOW OTHERS: France and the United Kingdom will be holding elections soon. Fears that the ruling parties will lose the elections has kept both countries' markets off balance. A few companies in Europe are worth buying, says George Evans, associate portfolio manager at the Oppenheimer Group of mutual funds. Evans likes some European pharmaceutical companies, such as Astra and Roche Holdings. MEXICO, HONG KONG ARE FAVORITES: Eliminate Europe and Japan from an international portfolio and "Hong Kong and Mexico are the two lone beacons," Wignall says. The Mexican market, up about 23% this year, still offers cheap stocks and earnings growth. Many investors have pulled out of Hong Kong fearing China will nationalize its businesses when it takes control in 1998. Those fears are overdone, money managers say. (End of package.) DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Tuesday at 3236.36, after closing up 0.45 Monday. The New York Stock Exchange composite opens at 224.44, up 0.14. The American Stock Exchange market value opens at 402.88, down 1.18. The NASDAQ OTC composite opens at 617.94, down 0.68. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Tuesday. It opens at 0.5807 British pounds, down from 0.5855; 5.6610 French francs, down from 5.6685; 1.6617 German marks, down from 1.6670; and 133.84 Japanese yen, up from 133.57. (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: 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. 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