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, Jun 5 1992 Date: Fri, 5 Jun 92 05:20:08 EDT Message-ID: 06-05 0000 DECISIONLINE: Personal Investing USA TODAY Update June 5-7, 1992 Source: USA TODAY:Gannett National Information Network AUTO STOCKS RALLY: Shares of the Big Three U.S. automakers hit 1992 highs Thursday on continued talk of a recovery and the previous day's report of healthy May car and truck sales. General Motors shares jumped 1 7:8 to $43 5:8, Ford rose 1 3:8 to $48 1:8, and Chrysler was up 3:4 at $20 5:8. More than 13 million shares of the trio, which have been on a roll all week, changed hands in Thursday trading. (For more, see special Autos package below.) STOCKS DECLINE SLIGHTLY: The stock market pulled back a bit Thursday, still wavering uncertainly around the 3400 level in the Dow Jones industrial average. The average of 30 blue chips, which had risen 10.89 points Wednesday, dropped 7.26 to 3399.73. Losing stocks outnumbered winners 942 to 762 on the New York Stock Exchange, where volume was 204 million shares. FED'S MONEY SUPPLY MEASURE DOWN: The Federal Reserve says its closely watched measure of the money supply, M-2, fell $10.7 billion the week of May 25 to $3.5 trillion. M-2 is cash, deposits in checking and savings accounts and money market mutual funds. The Fed says continued weak money supply growth is a drag on the economic recovery. SEVEN CHARGED IN SEC SCANDAL: The Securities and Exchange Commission Thursday charged seven prominent financial figures with making millions by trading on non-public tips in one of the biggest insider trading cases ever. The SEC says the men made at least $13 million on the scheme from 1987 to 1989. The case centers on Edward Downe Jr., an ex-Bear Stearns executive. Downe allegedly exchanged information with friends. BANC ONE HAS `DISCIPLINE': Banc One officials say they won't be so willing to make acquisitions at any cost. Banc One has been criticized for paying too much for recent bank acquisitions - in April it paid $1.2 billion for Arizona's Vally National. "We do have the discipline to walk away from deals," Treasurer George Meiling told investors gathered at a conference sponsored by Alex. Brown & Sons. HARLEY FALLS DESPITE BUY RATING: Harley-Davidson shares skidded 4 1:4 to $52 1:8. The motorcycle maker appeared at a Morgan Stanley stock conference Thursday. Morgan repeated its strong buy rating on the stock but lowered estimates for Harley's 1992 earnings from $3 to $2.90 a share. MEDICAL STOCKS RISE: U.S. Surgical gained 1 1:4 to $114 3:4 Thursday. The surgical-products company briefed analysts on the progress of its less-invasive hysterectomy device, and Alex. Brown & Sons and Oppenheimer repeated buy ratings. SciMed Life Systems rose 1 1:4 to $59 1:2 after Bear Stearns repeated its buy rating on the maker of disposable medical products. WAL-MART SHAREHOLDERS TO MEET: Wal-Mart shareholders meet Friday for the first annual meeting without founder Sam Walton. Walton, who built Wal-Mart into the USA's largest retailer, died of bone cancer in April. David Glass, president and CEO, and Rob Walton, chairman of the board and Sam Walton's son, will preside over the meeting. A tribute to Sam Walton is planned. GOLD DOWN, SILVER MIXED: Gold fell, but silver was mixed Thursday. On the Commodity Exchange, gold bullion for current delivery settled at $338.60, off 10 cents. Republic National Bank quoted a bid of $338.40, also down 10 cents. Gold fell in London and Zurich. On the Comex, silver bullion for current delivery settled at $4.075, up from $4.058, but in London, silver fell to $4.06 from $4.08. SPECIAL PACKAGE ON AUTOS: STOCKS UP 9% TO 14% THIS WEEK: In the past week, Big Three stock prices are up 9% to 14%. Fueling the gains, on top of huge run-ups earlier this year: The Big Three carmakers are grabbing market share back from Japanese companies; truck sales are strong, a good sign for profits; GM accelerated its cutback plans. Bear Stearns analyst Douglas Laughlin reiterated a buy recommendation on GM. FORD SEEN APPROACHING $70: And there are widespread hopes that the shares can go even higher. Within a year, some Wall Street investors are betting, Ford could approach $70, GM $60 and Chrysler $30. However, says analyst Joseph Phillippi of Shearson Lehman Bros, don't look for dividends, cut in half last year, to be restored soon. Carmakers need to be solidly profitable first, the analyst says. (End of package.) DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Friday at 3399.73 after closing down 7.26 Thursday. The New York Stock Exchange composite opens at 227.90, down 0.75. The American Stock Exchange market value opens at 397.18, up 1.53. The NASDAQ OTC composite opens at 588.26, down 1.67. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Friday. It opens at 0.5491 British pounds, down from 0.5502; 5.3935 French francs, down from 5.4005; 1.6020 German marks, down from 1.6042; and 127.68 Japanese yen, up from 127.65. (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