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 10 1992 Date: Fri, 10 Apr 92 05:43:42 EDT Message-ID: 04-10 0000 DECISIONLINE: Personal Investing USA TODAY Update April 10-12, 1992 Source: USA TODAY:Gannett National Information Network STOCKS BOUNCE BACK ON FED MOVE: The stock market shook worries about Japan's diving stock market Thursday, surging after the Federal Reserve nudged the federal funds rate to 3.75% from 4%. The Dow Jones industrial average recouped nearly half its Tuesday and Wednesday loss of 94.14 points, rising 43.61 points to 3224.96. The NASDAQ over-the-counter index, down 12.61 points those days, rose 13.07 points to 586.75. BOND YIELDS LOWER: Bond investors reacted to the Federal Reserve's action on the federal funds rate Thursday by pushing down bond yields. Discount rates on three-month Treasury bills fell to 3.66% from 3.84%. The yield on 30-year Treasury bonds fell to 7.86% from 7.91%. DEC'S EARNINGS DIP: Digital Equipment Thursday reported a big loss for its latest quarter, blaming the worldwide recession for its shortfall. DEC lost $294 million, or $2.36 a share, last quarter, vs. income of $116 million, or 94 cents a share, a year earlier. DEC says the computer slump may force it to launch its third cost-cutting plan since 1990. DEC shares plunged 5 1:4 to $48 1:4. CHARGES HURT INTEL'S EARNINGS: Intel Thursday said its first-quarter earnings fell 10%, mostly because of one-time charges. Net income, including charges, dropped to $184 million, or 86 cents a share, from $197 million, or 95 cents a share, a year earlier. Without the one-time charges, net income would have risen 3% to $202 million. Intel shares fell 1:4 to $57 1:4. SEARS, PENNEY HAVE GOOD MONTH: The tables turned last month as long-suffering general merchandisers posted same-store revenue gains while some hot specialty retailers stumbled. Retailers selling home furnishings and durable goods had a good month. Sears, Roebuck posted a 3.2% revenue gain over March 1991, and its stock rose 7:8 to $45 1:2. J.C. Penney revenue jumped 8.6%, and its stock added 2 5:8 to $65. GAP, LIMITED STOCKS FALL: Specialty retailers Gap and Limited posted rare revenue drops. Their stocks also fell - Gap's 3:4 to $40 3:8, Limited's 2 to $24 1:4. Analysts cited the later Easter this year as the main reason for the declines among clothing retailers. Easter is the traditional kickoff for spring apparel buying, and sales pick up substantially in the month Easter falls in. DOW SEEN FALLING 5% TO 10%: Sandi Sweeney, portfolio manager for Seneca Capital, a $1 billion investment firm, says the next six months could see the Dow Jones industrial average skidding at least another 5% to 10%. There's also a one-in-five shot the Dow could sink 20% to about 2550. "I'm concerned," says Sweeney. "The correction has started. It's time to move from the offense to defense." SEC TO VOTE ON RULES: In an effort to crack down on fraud in the penny-stock market, the Securities and Exchange Commission will vote Friday on rules that would give investors a better idea about the risks of investing in such stocks. Penny stocks are highly speculative shares that generally sell for less than $1. TWO CHARGED WITH INSIDE TRADING: The Securities and Exchange commission charged two former Treasury Department officials Thursday with illegal trading on inside information. The SEC said the two former federal employees - John Acree and John Flattery - and two other investors made more than $170,000 from illegal trading in bank shares. They worked in the Office of the Comptroller of the Currency. GOLD, SILVER MIXED: Gold and silver prices moved in opposite directions in world trading. On the Commodity Exchange, gold for current delivery closed at $339.50 a troy ounce, up $1.60 from $337.90. Republic National Bank quoted an ounce of gold bullion at $339.40, or $1.85 higher. Silver on the Comex settled at $4.105 a troy ounce, up from $4.078. Silver fell in London. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Friday at 3224.96, after closing up 43.61 Thursday. The New York Stock Exchange composite opens at 221.10, up 3.18. The American Stock Exchange market value opens at 385.94, up 5.04. The NASDAQ OTC composite opens at 586.75, up 13.07. DOLLAR OPENS MOSTLY DOWN: The dollar opens mixed on foreign markets Friday. It opens at 0.5656 British pounds, down from 0.5722; 5.5345 French francs, up from 5.5018; 132.20 Japanese yen, down from 132.77; and 1.6150 German marks, down from 1.6260. (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. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM