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 29 1992 Date: Wed, 29 Apr 92 05:41:23 EDT Message-ID: 04-29 0000 DECISIONLINE: Personal Investing USA TODAY Update April 29, 1992 Source: USA TODAY:Gannett National Information Network GM ANNOUNCES PROFIT: General Motors Tuesday announced its first quarter profit in six quarters. GM said it had net income of $179 million in the first quarter, vs. a $1.1 billion loss in last year's first quarter when you exclude one-time gains. Chairman Robert Stempel says the first-quarter net income - though tiny - shows that GM's gut-wrenching restructuring is working. Shares rose 3:8 to $40 3:8. DOW RISES TUESDAY: A late surge in computerized buying lifted the Dow into positive territory Tuesday, but stocks in general were down. The Dow Jones industrial average gained 3.36 points to 3307.92. Other indexes were mixed. Losing issues outnumbered winners 961 to 724 on the New York Stock Exchange, where volume was 189 million shares. TRADING LACKS DIRECTION: Despite positive economic reports out Tuesday, trading lacked direction on Wall Street. The Dow meandered most of the day, never really establishing strong momentum one way or another. Investors seem to lack direction, said strategist Marvin Roffman, and are being cautious. Traders and analysts say investors seem to be awaiting next week's release of the monthly employment report. SOFTWARE STOCKS DOWN: Software-company stocks tumbled Tuesday. Microsoft plunged 4 1:4 to $109 after company officials repeated predictions of slower earnings growth next year. Novell fell 1 3:4 to $49 3:4 after Merrill Lynch downgraded its opinion of the stock. BMC Software sank 1 3:4 to $48 on weak earnings. Knowledgeware declined 2 1:8 to $11 3:4 on a weak earnings report. ACTIVITY IN HEALTH, BIOTECH: Health-care and biotechnology stocks were active Tuesday. St. Jude Medical rose 1 to $41 1:2 after it announced a joint venture with Hancock Jaffe Laboratories to develop an artificial heart valve. Marsam Pharmaceuticals gained 1 to $9 1:4 after it received government approval to market a new antibiotic. Bio-Technology General climbed 7:8 to $6 3:8 after confirming joint venture talks. ENERGY STOCKS UP: Energy stocks were active Tuesday. Unocal gained 1 1:8 to $25 1:4 after Dean Witter made positive comments about the company's restructuring plans. Amoco added 1 3:8 to $47 after it said it planned to slash costs and business conditions were improving. British Petroleum rose 1 1:4 to $56 3:4. CENTOCOR ANNOUNCES CHANGES: Centocor Tuesday announced an executive shake up in an effort to recover from the government's recent decision not to approve its flagship drug, Centoxin. The stock, as high as $60 1:4 this year, dropped 1 3:8 to $13. The company said President and co-chief Executive James Wavle resigned, and an executive committee headed by Michael Wall, who founded the company, has been formed. FLEER RECOMMENDED: Fleer, a Philadelphia-based marketer of sports picture cards, scored big after Smith Barney repeated a buy rating on the company's stock, which rose 1 3:4 to $22 3:4. Smith Barney analyst Ron Morrow says profit margins are widening and the company may soon announce a 50% dividend hike and a share-buyback plan. Analysts also like Fleer's recent price increase on its cards. STAR STOCKS BURN OUT: Many of last year's star stocks are burning out this year. Stocks of biotechnology, retailing, drug, high tech and other companies that soared last year now are plunging. One reason: The typical star last year rose on expectations of big earnings gains. When earnings can't live up to those fast-rising expectations, stocks can get creamed, says Compu-Val Investments' James Kalil. NEWSLETTER SAYS AVOID CD: Personal Finance, a leading investment newsletter, lists a one-year certificate of deposit as the worst investment for the next 12 months, reports USA TODAY columnist Dan Dorfman. In the newsletter's third annual "must avoid" investments list, editor Stephen Leeb says that after inflation and taxes, an average one-year CD at 4% will put the investor behind about 1%. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Wednesday at 3307.92, after closing up 3.36 Tuesday. The New York Stock Exchange composite opens at 225.12, up 0.18. The American Stock Exchange market value opens at 383.04, down 1.94. The NASDAQ OTC composite opens at 560.33, down 6.61. DOLLAR OPENS MOSTLY UP: The dollar opens mixed on foreign markets Wednesday. It opens at 0.5635 British pounds, up from 0.5627; 5.5790 French francs, up from 5.5755; 133.10 Japanese yen, down from 133.11; and 1.6544 German marks, up from 1.6535. (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: 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