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 Wed, Apr 8 1992 Date: Wed, 8 Apr 92 05:46:40 EDT Message-ID: 04-08 0000 DECISIONLINE: Personal Investing USA TODAY Update April 8, 1992 Source: USA TODAY:Gannett National Information Network DOW SHEDS 61.94 POINTS: The Dow Jones industrial average plunged 61.94 points, 1.8%, to 3213.55 Tuesday as large and small stocks tumbled on worries about the economy and interest rates. Broader stock measures fared worse. The NASDAQ over-the-counter market index, which measures small company stocks, fell 14.68 points, 2.5%, to 581.61. INVESTOR WORRIES KEY TO DROP: Economic growth, rising oil prices and Japanese stock are chief among investors' worries. Investors aren't sure if the economy is growing fast enough to keep stocks moving higher. The Nikkei average was down 478.22 points to 17,313.33 in early trading Wednesday after falling 644.82 points Tuesday. There's a fear that Japanese investors will sell U.S stocks to raise cash. CHANGES WON'T LEAD TO GAINS: Analysts say the shake-up among top executives at General Motors, while warmly received by Wall Street Tuesday, is not necessarily bullish for GM's stock. GM shares rose 1 1:4 to $37 7:8, an impressive gain considering the stock market's slide. Analysts say investors shouldn't expect a new and better era for GM and its stock. Fundamental troubles remain in the auto business. TRANSPOS INDEX FALLS: Transportation-company stocks were hit hard Tuesday on fears that rising oil prices would boost operating expenses - even though the price of light sweet crude oil slipped. The Dow Jones transportation index dropped 41.11 points, 3%, to 1312.22. UAL, parent of United, plunged 10 3:4 to $129. AMR, parent of American Airlines, dropped 4 to $67 1:2. And Delta lost 1 3:4 to $58 7:8. BIZMART CEO SELLS BIG STAKE: James Berk, president and chief executive officer of BizMart, a retailing unit of Intelligent Electronics, isn't smarting from last week's one-day, 34% drop in his parent company's stock. Thirteen days before the stock plunged 7 to $13 1:2, Berk sold nearly all the stock he owned - 50,000 shares - outright for $22 a share. The stock closed Tuesday at $14. GOTTSCHALKS DISAPPOINTS: After two months of watching stocks move sideways, investors are in no mood for bad earnings news. Tuesday, Gottschalks dropped 6 1:8 to $12 1:2. The California retailer said late Monday that net income for the three months ended Feb. 1 fell 63% to 27 cents a share from 73 cents a year earlier. Stock analysts had been expecting Gottschalks to earn 60 cents a share for the quarter. RIGHT MANAGEMENT A WEAK HOLD: Right Management Consultants plunged 9 1:2 to $8 Tuesday after the consulting firm said it earned only 8 cents to 13 cents per share in the quarter ended a week ago. The company will report more exact earnings later. That's far below the 40 cents a share analysts had been expecting. Advest Group analyst Andrew Beja cut his rating on Right Management Consultants to weak hold from buy. AMD FALLS DESPITE RESULTS: Tuesday was a bad day for stocks, even those with good news. Computer-microprocessor maker Advanced Micro Devices fell 1 1:4 to $17 5:8. The computer-chip maker said Tuesday that net income soared to 90 cents a share in the first quarter, up from 2 cents a share a year earlier. The earnings surpassed the consensus of analysts' estimates of what the company would earn - 69 cents. U.S. INVESTORS WON'T BAIL OUT: Despite troubles in the Japanese stock market, analysts say foreign investors, who have a big impact on the Tokyo market, are not ready to bail out. Some foreign investors are hanging on because they believe the Japanese government's plan to stimulate the economy will work, says analyst Kenzo Doi of Kokusai Securities. European investors are increasing their holdings. GOLD, SILVER DOWN: Gold and silver were lower Tuesday. On the Commodity Exchange, gold for current delivery closed at $338.70 a troy ounce, down $1.70. A late bid at New York Republic National Bank quoted the metal at $338.30 an ounce, off $1.45. On the Comex, silver for current delivery was quoted at $4.072 per troy ounce, down from $4.099. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Wednesday at 3213.55, after closing down 61.94 Tuesday. The New York Stock Exchange composite opens at 220.00, up 3.79. The American Stock Exchange market value opens at 385.38, down 6.19. The NASDAQ OTC composite opens at 581.61, down 14.68. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mixed on foreign markets Wednesday. It opens at 0.5716 British pounds, down from 0.5719; 5.5125 French francs, up from 5.4948; 133.00 Japanese yen, up from 132.81; and 1.6240 German marks, unchanged. (As of 3 p.m. Tuesday. 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