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, May 8 1992 Date: Fri, 8 May 92 05:31:37 EDT Message-ID: 05-08 0000 DECISIONLINE: Personal Investing USA TODAY Update May 8-10, 1992 Source: USA TODAY:Gannett National Information Network STOCKS OFF IN QUIET TRADING: The stock market eased in slow trading Thursday as investors waited for Friday's report on April employment. The Dow Jones industrial average dropped 6.04 points to 3363.37. Broader indexes also fell slightly. Analysts blamed the lackluster trading on the fact that there has been nothing in recent economic reports to change investors' outlook on the economy. STOCKS MOVE ON REVENUE RESULTS: Retail stocks were active Thursday after many companies reported April revenue. Sears, Roebuck dropped 1 3:8 to $42 after it said same-store sales dropped 2.1%; U.S. Shoe fell 1 1:8 to $15 3:8 after it reported that same-store sales fell 0.7%. But Gap rose 1 5:8 to $42 1:8 on news that same-store sales rose 13%. PENNEY SHARES UP ON SALES: J.C. Penney's stock closed up 7:8 at $68 3:8, a 52-week high, Thursday after the retailer reported that it posted a strong 14.5% increase in sales last month at stores open a year or more. But unlike most retailers, Penney also had a strong March performance: Same-store sales rose 8.6%. Analyst Janet Mangano of Burnham Securities predicts the stock will hit $75 by year's end. INVESTORS EXPRESS CONCERN: Federal Express shares slumped 1 1:2 Thursday to $40 3:4 on fears of a price war among parcel-delivery companies. News reports Thursday that Federal Express was cutting rates for large-volume customers shook up investors. Analysts say its no big deal because aggressive pricing has been going on for months, "maybe over a year," says Wheat First Butcher & Singer analyst T. Richard Holt. ANALYSTS LIKE CARTER-WALLACE: Carter-Wallace, the diversified health and personal-care products company, is on analysts lips. Thursday, the company closed at $28 1:8, down 3:4. It posted worse-than-expected fourth-quarter earnings: Net income of $8.5 million, or 19 cents a share, up from $8.4 million, or 18 cents a share. Now, some analysts believe Carter-Wallace shares are attractive again. NEW DRUG SEEN GIVING BOOST: Carter-Wallace is developing a promising new anti-epilepsy drug, called felbamate. Most analysts say felbamate is on track to meet regulatory approval and has huge potential. It could boost Carter-Wallace revenue $200 million to $400 million a year in the USA; $600 million to $800 million worldwide. "This is what makes the stock very attractive," says Diana Temple with Salomon Bros. DISNEY DEAL NIXED: Pinelands says it terminated a previously announced agreement to be bought by Walt Disney and will instead merge with BHC Communications for $18 a share. Pinelands, announcing the deal after the market closed, ended at $12 a share Thursday. Chris-Craft Industries owns a 61.5% stake in BHC, which operates seven TV stations. Pinelands owns independent station WWOR-TV in New Jersey. BIOTECH STOCKS FALL: Several biotech stocks fell again Thursday after a brief rise. Medimmune sank 5 3:4 to $22 3:4 on news that the company will halt shipment of a product used in kidney transplants for the rest of this year. Chiron lost 1 1:8 to $45 1:2 after it reported a first-quarter loss of $1.41 a share, vs. net income of 25 cents a year earlier. The loss includes a $1.38-a-share charge. RATES UP AT TREASURY AUCTION: The final day of the Treasury's quarterly sale of securities to finance the federal deficit was successful, traders say. The average yield on 30-year bonds sold Thursday was 8%, up from 7.91% at the last auction Feb. 13. Demand was good: The Treasury was offering $10 billion in 30-year bonds, and bids totaled nearly $25 billion. GOLD FALLS WORLDWIDE: Gold prices lost ground in New York and abroad Thursday. On the New York Commodity Exchange, gold bullion for current delivery closed at $335.60 a troy ounce, down $1.60 from Wednesday. Republic National Bank of New York quoted a late bid for gold of $335.15 an ounce, off $1.45. Gold fell in London and Zurich. On the Comex, silver bullion settled at $4.034 a troy ounce, down from $4.066. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Friday at 3363.37 after closing down 6.04 points Thursday. The New York Stock Exchange composite opens at 229.08, down 0.48. The American Stock Exchange market value opens at 394.12, up 0.35. The NASDAQ OTC composite opens at 587.16, down 2.20. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mixed on Friday. It opens at 0.5567 British pounds, up from 0.5559; 5.5130 French francs, up from 5.4775; 1.6361 German marks, down from 1.6383; and 132.75 Japanese yen, up from 132.55. (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