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 Fri, Apr 3 1992 Date: Fri, 3 Apr 92 05:43:48 EST Message-ID: 04-03 0000 DECISIONLINE: Personal Investing USA TODAY Update April 3-5, 1992 Source: USA TODAY:Gannett National Information Network HEALTH, BIOTECH FUNDS FLOP: Investors learned a good lesson from last quarter's stock-mutual-fund results: Investing in last year's winner can make you a loser. Funds that specialize in health and biotechnology stocks were the worst-performing funds the first three months of the year, according to data reported Thursday by Lipper Analytical Services. They were among the top stock-mutual-fund performers last year. (For more, see special Funds package below.) STOCKS OFF AHEAD OF JOBS REPORT: Stocks skidded Thursday in a day of uneasy trading. The NASDAQ composite index tumbled 8.27 points to 593.82 - the first close below 600 since Jan. 6. The Dow Jones industrial average slid 15.21 points to 3234.12. The market was weak all day as investors worried about the March jobless report. The report will give investors their first peek at the health of the economy last month. IMMUNEX PLUNGES: Immunex plunged 10 1:2 to $31 1:2 Thursday after it accused its marketing partner, Hoechst of Germany, of undercutting its market for the LEUKINE white-blood-cell stimulant. In a lawsuit, Immunex charged that Hoechst was giving the drug free to Immunex's customers. As a result, Immunex says it will post a first-quarter loss instead of the 8 cents-a-share profit analysts had expected. EARNINGS WIPEOUT SEEN: Immunex notes that its expected first quarter loss will be smaller than the loss of 33 cents a share it posted the first quarter last year. But it also says the impact of Hoechst's giveaway of Immunex's white-blood-cell stimulant will likely be felt well into the year. Joseph Edelman of Prudential Securities, thinks the problem will wipe out all of Immunex's 1992 earnings. PRICE'S SHARE PRICE NOSEDIVES: Price plummeted 10 3:4 to $35 Thursday after the San Diego-based pioneer in warehouse retailing reported earnings sharply lower than analysts had predicted. Net income for the quarter that ended March 15 was $20.6 million, or 42 cents a share, down from $27.9 million, or 56 cents a share, last year. Analysts had predicted earnings of about 55 cents a share. Price blamed the weak California economy. ECONOMISTS SAY RECESSION OVER: The latest USA TODAY:CNBC quarterly survey of 50 economists, out Thursday, shows increased optimism that the recession is over and a recovery has begun. Among findings: Forty-six economists, 92%, say the recession has ended, up from 59% in December; the economists expect a growth in the gross domestic product of 1.1% in the first quarter; interest rates will be nearly flat the next six months. METALS RETREAT ON WORLD MARKETS: Precious metal prices fell Thursday. On the Commodity Exchange, gold for current delivery closed at $340.90 per troy ounce, down $2.00. A late bid at New York Republic National Bank quoted gold at $340.30, off $2.15. Silver bullion was also lower on the Comex, closing at $4.074 a troy ounce, down 1.6 cents. April platinum fell $2.40 to $353.70 a troy ounce on the Mercantile Exchange. SPECIAL PACKAGE ON FUNDS: NO REPEAT OF LAST YEAR: Health funds fell 9.5% last quarter while the average diversified fund was virtually unchanged. That's a big change from last year, when health funds rose an average 74%, vs. 36% for the average stock fund. Diversified stock funds gave investors smaller returns than money-market funds, which now have an average annual yield of 3.7%. Diversified stock funds lost 0.2% last quarter. FINANCIAL-SERVICES FUNDS TOPS: While last year's stars fell, another leader continued to rise. Financial-services funds, which invest in the stocks of banks, savings and loans, brokerages and insurers, were the quarter's top performers, rising 6%. They're up 38% for the past 12 months and 100% since the Dow Jones industrial average hit its most recent low of 2365 in October 1990. LEAD EXPECTED TO CHANGE HANDS: "There are some great financial stocks, even at these levels," says Bruce Herring, portfolio manager at Fidelity Select Financial Services fund - up 10% last quarter. "But the easy money is behind us. It's not time to bet the farm on them." In fact, it's a good bet that some other specialized fund will eventually lead the pack. To avoid having to choose one stick with fully diversified funds. (End of package.) DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Friday at 3234.12, after closing down 15.21 Thursday. The New York Stock Exchange composite opens at 221.51, down 1.91. The American Stock Exchange market value opens at 390.48, down 2.67. The NASDAQ OTC composite opens at 593.82, down 8.27. DOLLAR OPENS DOWN: The dollar opens down on foreign markets Friday. It opens at 0.5780 British pounds, down from 0.5799; 5.840 French francs, down from 5.6075; 133.75 Japanese yen, down from 134.52; and 1.6440 German marks, down from 1.6510. (As of 3 p.m. Thursday. 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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