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 Mon, Mar 30 1992 Date: Mon, 30 Mar 92 05:43:33 EST Message-ID: 03-30 0000 DECISIONLINE: Personal Investing USA TODAY Update March 30, 1992 Source: USA TODAY:Gannett National Information Network RECORDS SET IN FIRST QUARTER: The first quarter, which ends in two days, has been a record-setting quarter for stock markets. The Dow Jones industrial average has set 14 records. And with two days to go, first-quarter average daily volume on the New York Stock Exchange is a record 219.3 million shares. The previous record was 212.7 million the last quarter of 1987. (For more, see special Quarter package below.) BOEING CHIEF'S SALARY JUMPS: Boeing Chairman Frank Shrontz's salary increased to $1.2 million last year, according to a proxy statement sent to the aerospace giant's shareholders. Shrontz earned $1 million in 1990. He also got 31,875 options to buy shares at $48.125 last year, but didn't exercise those options. Shrontz exercised options in 1990, buying 182,046 shares worth about $853,000. TOKYO SLUMP HURTS USA: The slump in Tokyo's stock market may be dragging down the U.S. market. Japan's Nikkei index has dipped lately, falling below 20,000 for the first time in five years two weeks ago. Friday, the Nikkei fell 248.50 points or 1.3% to 19,636.99, blamed by some as one reason for the Dow's 36-point slide. "I think it will dampen the tone in U.S. markets," economist Maria Ramirez says. IRA MONEY GOES TO FUNDS: Mutual fund companies have taken over the battle for individual-retirement-account investments due to lower rates for bank certificates of deposit. The average national rate on six-month CDs is 3.92%, vs. 6.1% on five-year CDs. When rates started going down, people began transferring their maturing IRA CDs to stock and bond mutual funds, which offer higher returns but more risk. FUNDS SURGE: Mutual funds are benefiting from a surge in new IRAs. Examples: IRA purchases at Kemper Financial Services have jumped about 70% from last year, as IRA investors put money into Kemper's growth-stock funds; Stock funds at Vanguard Group also are swollen with IRA money - through March 20, total new accounts were up 86% from last year. ANALYSTS DOWN ON STAPLES: Two analysts (David Childe of San Francisco's Robertson Stephens & Co. and Jack Seibald of New York's Seibald Report) are down on office-products chain Staples, says USA TODAY's Dan Dorfman. The problem, as they see it: Big competition in the Northeast and mid-Atlantic markets - which are about 75% of Staples' revenue. Staples' CEO Tom Stemberg says they'll beat the competition. BIG PROFITS FROM MEXICAN FIRM: Boston's Capital Growth Management had $135 million in profits last year buying 4.5 million shares of Telefonos de Mexico, the Mexican telephone firm, at an average $25 to $30 a share. The stock recently hit $60 1:8. But USA TODAY's Dan Dorfman reports that CGM money manager Ken Heebner says it's not a sell. Heebner sees earnings growing 20% to 25% a year the next three to four years. LESS TIME ASKED FOR: Michael Milken's lawyers asked a judge to reduce the jailed financier's sentence, citing Milken's cooperation with investigators and his agreement to testify against former colleague, Alan Rosenthal, in May. Milken was sentenced to 10 years after pleading guilty to six securities-related felonies committed as head of the junk bond department at Drexel Burnham Lambert. SPECIAL PACKAGE ON QUARTER: STOCK INDEXES STUCK: Despite record volume and 14 new highs for the Dow, the first quarter has not been a good one for stock indexes. For the quarter, which has two days left: The Dow, which fell 36.23 points to 3231.44 Friday, is up only 1.5%; the Standard & Poor's 500 is down 3.3% this year; the NASDAQ composite index, which tracks the hottest segment of the market - small stocks - is up 3.1%. INVESTORS WAIT FOR ANSWERS: Following December's stock rally, investors have been cautious. They went into stock heavily in December and in mid-January they began to bet on a recovery - selling growth stocks and buying stocks that are sensitive to the economy. Now, investors are "waiting to see if they were right" about the economic recovery, says Yale Hirsch, editor of newsletter Smart Money. VOLUME SLOWS ON WALL STREET: As investors judge whether an economic recovery is under way, Wall Street has settled down. In March, volume on the NYSE dropped off to 190 million shares a day. And the Dow is now caught in a tight trading range between 3200 and 3250. What comes next depends on the recover. Analysts say the key for investors now is first quarter earnings, which may be disappointing. (End of package.) DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Monday at 3231.44, after closing down 36.23 Friday. The New York Stock Exchange composite opens at 223.31, down 2.18. The American Stock Exchange market value opens at 394.36, down 4.50. The NASDAQ OTC composite opens at 604.67, down 10.73. 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Personal Investing Editor: Jason Smith. (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