Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!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 15 1992 Date: Fri, 15 May 92 05:12:19 EDT Message-ID: 05-15 0000 DECISIONLINE: Personal Investing USA TODAY Update May 15-17, 1992 Source: USA TODAY:Gannett National Information Network JOBLESS DATA DRIVES MARKET DOWN: The stock market declined broadly Thursday after the government released an unfavorable report on new claims for unemployment benefits. The Dow Jones average of 30 industrials fell 23.10 points to 3,368.88. The Labor Department said the number of new claims for unemployment benefits rose 10,000 for the second straight week to 424,000 for the week ending May 2. MONEY SUPPLY GROWTH TROUBLING: Many investors are waiting to see if the Federal Reserve will lower interest rates. Low inflation figures released this week did not spur Fed action. Attention has shifted to the nation's money supply, which economists say has been growing too slowly to meet Fed targets. "The failure of the money supply to grow (quicker) is very troubling," says Hugh Johnson, analyst at First Albany. DON'T PLUG INTO APPLIANCE FIRMS: Although recent surveys show that shoppers have begun to look for new washers, dryers and refrigerators, now may not be the time to buy appliance stocks. The economic recovery for appliance makers won't be as robust as it was coming out of the 1982 recession, analysts warn. So such stocks as Whirlpool and Maytag, which have been rising lately, may be as high as they can go for a while. PRICE WAR HURTING CHIP MAKERS: A nasty price war among computer chip makers is likely to cut into profits, and that's hurting shares of the companies. Intel shares dropped 2 1:4 to $49 Thursday as Texas Instruments announced its entry into the chip market. Advanced Micro Devices shares fell 1 7:8 to $15 5:8 in reaction to Intel's announcement late Wednesday that it was slashing prices on its next-generation 486 chip. GAP HITS 1992 LOW: Gap hit a 1992 low Thursday, closing down 3 5:8 to $37 1:4 after the specialty retailer warned stock analysts not to go overboard with earnings estimates for the rest of 1992. The warning came with Gap's first-quarter earnings report: Net income of $45 million, or 32 cents a share, up 10% from $41 million, or 29 cents a share, last year. The results were in line with analysts' expectations. RETAIL STOCKS SLIDE: Retail stocks were lower Thursday. Limited fell 1 1:8 to $21, Nordstrom lost 1 to $32 and Kmart slipped 1 5:8 to $48 1:4. Tiffany tumbled 4 1:2 to $37 5:8. Its first-quarter earnings were below expectations at 20 cents per share vs. 28 cents last year. The boutique retailer said a slowing economy in Japan hurt sales at affiliate stores there. MCDONNELL DOWN ON C-17 NEWS: McDonnell Douglas plunged 5 5:8 to $47 1:8 Thursday. McDonnell has been under scrutiny as the Pentagon studies possible manufacturing flaws in the company's C-17 cargo plane. The Wall Street Journal also reported that Pentagon investigators say McDonnell got extraordinary financial aid from the Air Force. COORS SPINOFF FAVORABLE: Adolph Coors, the USA's third-largest brewery, plans to spin off its non-beer businesses to shareholders in a tax-free distribution. Coors stock rose 1 1:2 to $19 7:8 after the company announced it will group its ceramics, aluminum, packaging and other non-beer operations into AC Technologies. If Coors' board approves the plan, shareholders will get stock in the new company later this year. SEC TO UNVEIL PROPOSED CHANGES: The Securities and Exchange Commission's staff next week unveils proposed changes to the Investment Company Act of 1940, governs the way mutual funds are managed and sold. Among the changes: A provision that would let investors negotiate sales charges. The SEC probably will release the changes during the annual meeting of the Investment Company Institute, which begins Wednesday. GOLD, SILVER CLOSE HIGHER: Gold prices ended higher Thursday after rising overseas. On the New York Commodity Exchange, gold bullion for current delivery settled at $338 a troy ounce, up $2.40. Republic National Bank of New York quoted a late bid for gold of $337.35 an ounce, up $1.75. Gold rose in London and Zurich. On the Comex, silver bullion for current delivery settled at $4.107 a troy ounce, up from $4.086. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Friday at 3368.88 after closing down 23.10 points Thursday. The New York Stock Exchange composite opens at 227.72, down 1.72. The American Stock Exchange market value opens at 391.79, down 1.96. The NASDAQ OTC composite opens at 576.46, down 5.92. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Tuesday. It opens at 0.5481 British pounds, down from 0.5501; 5.4015 French francs, down from 5.4210; 1.6012 German marks, down from 1.6160; and 130.05 Japanese yen, down from 129.98. (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