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1 Norfolk Southern Corp. directors authorized the railroad company to buy back as many as 45 million of its shares, which would have a current value of more than $1.7 billion. 2 The buy-back, coupled with a nearly completed earlier purchase of 20 million shares, would reduce shares outstanding by more than 26%. 3 The Norfolk, Va., company has 172.2 million shares outstanding. 4 In a statement, Arnold B. McKinnon, chairman and chief executive officer, noted that the new repurchase program 'should serve to enhance shareholder value.' A spokeswoman said the company will finance the buy-back with cash on hand, borrowing and 'cash Norfolk expects to generate.' 5 Analysts said they expected the action, and investors applauded the move. 6 In composite trading on the New York Stock Exchange, Norfolk Southern shares closed at $37.875, up $1.125. 7 Still, analysts don't expect the buy-back to significantly affect per-share earnings in the short term. 'The impact won't be that great,' said Graeme Lidgerwood of First Boston Corp. 8 That is in part because of the effect of having to average the number of shares outstanding, she said. 9 In addition, Mrs. Lidgerwood said, Norfolk is likely to draw down its cash initially to finance the purchases and thus forfeit some interest income. 10 Longer term, however, the buy-back is expected to increase earnings, especially after 1990, Mrs. Lidgerwood said. 11 Moreover, the extensive program in effect establishes a floor for the stock price, said Joel Price, analyst for Donaldson, Lufkin & Jenrette. 12 The buy-back 'is really a comfort to those who want to buy the stock that there is a {price} floor,' he said. 'At a certain price, if the management thinks {the stock} is cheap, they can go in and buy it.' 13 Under the program, Norfolk plans to acquire shares in the open market. 14 Under the earlier plan, Norfolk was authorized in 1987 to buy up to 20 million shares. 15 It has purchased about 19 million of them.

In a statement , Arnold B . McKinnon , chairman and chief executive officer , noted that the new repurchase program " should serve to enhance shareholder value . " A spokeswoman said the company will finance the buy - back with cash on hand , borrowing and " cash Norfolk expects to generate . "

borrowing

How much will the borrowing increase the long term debt of the company?

1 Norfolk Southern Corp. directors authorized the railroad company to buy back as many as 45 million of its shares, which would have a current value of more than $1.7 billion. 2 The buy-back, coupled with a nearly completed earlier purchase of 20 million shares, would reduce shares outstanding by more than 26%. 3 The Norfolk, Va., company has 172.2 million shares outstanding. 4 In a statement, Arnold B. McKinnon, chairman and chief executive officer, noted that the new repurchase program 'should serve to enhance shareholder value.' A spokeswoman said the company will finance the buy-back with cash on hand, borrowing and 'cash Norfolk expects to generate.' 5 Analysts said they expected the action, and investors applauded the move. 6 In composite trading on the New York Stock Exchange, Norfolk Southern shares closed at $37.875, up $1.125. 7 Still, analysts don't expect the buy-back to significantly affect per-share earnings in the short term. 'The impact won't be that great,' said Graeme Lidgerwood of First Boston Corp. 8 That is in part because of the effect of having to average the number of shares outstanding, she said. 9 In addition, Mrs. Lidgerwood said, Norfolk is likely to draw down its cash initially to finance the purchases and thus forfeit some interest income. 10 Longer term, however, the buy-back is expected to increase earnings, especially after 1990, Mrs. Lidgerwood said. 11 Moreover, the extensive program in effect establishes a floor for the stock price, said Joel Price, analyst for Donaldson, Lufkin & Jenrette. 12 The buy-back 'is really a comfort to those who want to buy the stock that there is a {price} floor,' he said. 'At a certain price, if the management thinks {the stock} is cheap, they can go in and buy it.' 13 Under the program, Norfolk plans to acquire shares in the open market. 14 Under the earlier plan, Norfolk was authorized in 1987 to buy up to 20 million shares. 15 It has purchased about 19 million of them.

Analysts said they expected the action , and investors applauded the move .

applauded

why did they applaud?

1 Norfolk Southern Corp. directors authorized the railroad company to buy back as many as 45 million of its shares, which would have a current value of more than $1.7 billion. 2 The buy-back, coupled with a nearly completed earlier purchase of 20 million shares, would reduce shares outstanding by more than 26%. 3 The Norfolk, Va., company has 172.2 million shares outstanding. 4 In a statement, Arnold B. McKinnon, chairman and chief executive officer, noted that the new repurchase program 'should serve to enhance shareholder value.' A spokeswoman said the company will finance the buy-back with cash on hand, borrowing and 'cash Norfolk expects to generate.' 5 Analysts said they expected the action, and investors applauded the move. 6 In composite trading on the New York Stock Exchange, Norfolk Southern shares closed at $37.875, up $1.125. 7 Still, analysts don't expect the buy-back to significantly affect per-share earnings in the short term. 'The impact won't be that great,' said Graeme Lidgerwood of First Boston Corp. 8 That is in part because of the effect of having to average the number of shares outstanding, she said. 9 In addition, Mrs. Lidgerwood said, Norfolk is likely to draw down its cash initially to finance the purchases and thus forfeit some interest income. 10 Longer term, however, the buy-back is expected to increase earnings, especially after 1990, Mrs. Lidgerwood said. 11 Moreover, the extensive program in effect establishes a floor for the stock price, said Joel Price, analyst for Donaldson, Lufkin & Jenrette. 12 The buy-back 'is really a comfort to those who want to buy the stock that there is a {price} floor,' he said. 'At a certain price, if the management thinks {the stock} is cheap, they can go in and buy it.' 13 Under the program, Norfolk plans to acquire shares in the open market. 14 Under the earlier plan, Norfolk was authorized in 1987 to buy up to 20 million shares. 15 It has purchased about 19 million of them.

Analysts said they expected the action , and investors applauded the move .

Analysts

Who are these 'analysts'?

1 Norfolk Southern Corp. directors authorized the railroad company to buy back as many as 45 million of its shares, which would have a current value of more than $1.7 billion. 2 The buy-back, coupled with a nearly completed earlier purchase of 20 million shares, would reduce shares outstanding by more than 26%. 3 The Norfolk, Va., company has 172.2 million shares outstanding. 4 In a statement, Arnold B. McKinnon, chairman and chief executive officer, noted that the new repurchase program 'should serve to enhance shareholder value.' A spokeswoman said the company will finance the buy-back with cash on hand, borrowing and 'cash Norfolk expects to generate.' 5 Analysts said they expected the action, and investors applauded the move. 6 In composite trading on the New York Stock Exchange, Norfolk Southern shares closed at $37.875, up $1.125. 7 Still, analysts don't expect the buy-back to significantly affect per-share earnings in the short term. 'The impact won't be that great,' said Graeme Lidgerwood of First Boston Corp. 8 That is in part because of the effect of having to average the number of shares outstanding, she said. 9 In addition, Mrs. Lidgerwood said, Norfolk is likely to draw down its cash initially to finance the purchases and thus forfeit some interest income. 10 Longer term, however, the buy-back is expected to increase earnings, especially after 1990, Mrs. Lidgerwood said. 11 Moreover, the extensive program in effect establishes a floor for the stock price, said Joel Price, analyst for Donaldson, Lufkin & Jenrette. 12 The buy-back 'is really a comfort to those who want to buy the stock that there is a {price} floor,' he said. 'At a certain price, if the management thinks {the stock} is cheap, they can go in and buy it.' 13 Under the program, Norfolk plans to acquire shares in the open market. 14 Under the earlier plan, Norfolk was authorized in 1987 to buy up to 20 million shares. 15 It has purchased about 19 million of them.

Analysts said they expected the action , and investors applauded the move .

Analysts said they expected the action ,

Do the analysts expect any future buy backs from the company in the short term?

1 New orders for durable goods fell back slightly in September after shooting up the month before, reflecting weakening auto demand after a spurt of orders for new 1990 models, the Commerce Department reported. 2 Orders for military equipment, household appliances, machinery and other goods expected to last at least three years dipped 0.1% last month, to $126.68 billion, after leaping 3.9% in August, the department said. 3 Most analysts had expected a sharper decline after the steep rise in August. 4 Moreover, a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a crawl. 5 But many economists pointed to a 1.8% September rise in orders outside the volatile transportation category. 6 That 'suggests the manufacturing sector is not falling apart,' said Sally Kleinman, an economist at Manufacturers Hanover Securities Corp. in New York. 7 She added, however: 'It is not robust by any means.' 8 While a decline in orders for cars and civilian airplanes pulled down the orders total, an enormous jump in orders for heavy military equipment propped it up. 9 Orders for capital defense goods skyrocketed 56%, and a government analyst said nearly all areas saw increases, including airplanes, missiles, ships, tanks and communications equipment. 10 Orders for military goods usually catapult in September, government officials say, as the Pentagon scrambles to spend its money before the new fiscal year begins Oct. 1. 11 While all the numbers in the durable goods report were adjusted for seasonal fluctuations, a Commerce Department analyst said that the adjustment probably didn't factor out all of the wide-ranging surge in defense orders. 12 Without the increase in defense bookings, September orders would have plummeted 3.9%. 13 Analysts were most unsettled by evidence the backlog of orders at factories is slipping. 14 Unfilled orders for durable goods rose 0.4% in September, to $476.14 billion, after declining for the first time in 2 1/2 years in August. 15 In July unfilled orders grew 1%. 16 But analysts noted that excluding transportation-where what they believe was a temporary surge in auto demand pushed up the figures-order backlogs have declined for three months in a row. 17 'It means we're eating into the bread that keeps us going. 18 That is a little disturbing,' Ms. Kleinman said. 'It also means if you have a real drop-off in orders, production will likely fall off very quickly because there is less to keep things going.' 19 Capital goods orders outside of the defense sector tumbled for the second month in a row, posting a 5.6% drop after a 10.3% decline. 20 Such steep drops in a category seen as a barometer of business investment would customarily be grave news for the economy. 21 But a Commerce Department analyst said that in both months orders would have risen had it not been for a drop in civilian aircraft bookings, a category that is showing declines only after a huge surge earlier this year. 22 Still, Milton Hudson, senior economic adviser at Morgan Guaranty Trust Co. in New York, said: 'If you look back a half-year or so the evidence was pretty good of affirmative strength in the capital-goods sector. 23 Now at least there are question marks about that, and without any question the pace of growth has slowed.'

New orders for durable goods fell back slightly in September after shooting up the month before , reflecting weakening auto demand after a spurt of orders for new 1990 models , the Commerce Department reported .

weakening auto demand after

Why is there weakening auto demand?

1 New orders for durable goods fell back slightly in September after shooting up the month before, reflecting weakening auto demand after a spurt of orders for new 1990 models, the Commerce Department reported. 2 Orders for military equipment, household appliances, machinery and other goods expected to last at least three years dipped 0.1% last month, to $126.68 billion, after leaping 3.9% in August, the department said. 3 Most analysts had expected a sharper decline after the steep rise in August. 4 Moreover, a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a crawl. 5 But many economists pointed to a 1.8% September rise in orders outside the volatile transportation category. 6 That 'suggests the manufacturing sector is not falling apart,' said Sally Kleinman, an economist at Manufacturers Hanover Securities Corp. in New York. 7 She added, however: 'It is not robust by any means.' 8 While a decline in orders for cars and civilian airplanes pulled down the orders total, an enormous jump in orders for heavy military equipment propped it up. 9 Orders for capital defense goods skyrocketed 56%, and a government analyst said nearly all areas saw increases, including airplanes, missiles, ships, tanks and communications equipment. 10 Orders for military goods usually catapult in September, government officials say, as the Pentagon scrambles to spend its money before the new fiscal year begins Oct. 1. 11 While all the numbers in the durable goods report were adjusted for seasonal fluctuations, a Commerce Department analyst said that the adjustment probably didn't factor out all of the wide-ranging surge in defense orders. 12 Without the increase in defense bookings, September orders would have plummeted 3.9%. 13 Analysts were most unsettled by evidence the backlog of orders at factories is slipping. 14 Unfilled orders for durable goods rose 0.4% in September, to $476.14 billion, after declining for the first time in 2 1/2 years in August. 15 In July unfilled orders grew 1%. 16 But analysts noted that excluding transportation-where what they believe was a temporary surge in auto demand pushed up the figures-order backlogs have declined for three months in a row. 17 'It means we're eating into the bread that keeps us going. 18 That is a little disturbing,' Ms. Kleinman said. 'It also means if you have a real drop-off in orders, production will likely fall off very quickly because there is less to keep things going.' 19 Capital goods orders outside of the defense sector tumbled for the second month in a row, posting a 5.6% drop after a 10.3% decline. 20 Such steep drops in a category seen as a barometer of business investment would customarily be grave news for the economy. 21 But a Commerce Department analyst said that in both months orders would have risen had it not been for a drop in civilian aircraft bookings, a category that is showing declines only after a huge surge earlier this year. 22 Still, Milton Hudson, senior economic adviser at Morgan Guaranty Trust Co. in New York, said: 'If you look back a half-year or so the evidence was pretty good of affirmative strength in the capital-goods sector. 23 Now at least there are question marks about that, and without any question the pace of growth has slowed.'

Orders for military equipment , household appliances , machinery and other goods expected to last at least three years dipped 0 . 1 % last month , to $ 126 . 68 billion , after leaping 3 . 9 % in August , the department said .

and other goods

Which other goods?

1 New orders for durable goods fell back slightly in September after shooting up the month before, reflecting weakening auto demand after a spurt of orders for new 1990 models, the Commerce Department reported. 2 Orders for military equipment, household appliances, machinery and other goods expected to last at least three years dipped 0.1% last month, to $126.68 billion, after leaping 3.9% in August, the department said. 3 Most analysts had expected a sharper decline after the steep rise in August. 4 Moreover, a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a crawl. 5 But many economists pointed to a 1.8% September rise in orders outside the volatile transportation category. 6 That 'suggests the manufacturing sector is not falling apart,' said Sally Kleinman, an economist at Manufacturers Hanover Securities Corp. in New York. 7 She added, however: 'It is not robust by any means.' 8 While a decline in orders for cars and civilian airplanes pulled down the orders total, an enormous jump in orders for heavy military equipment propped it up. 9 Orders for capital defense goods skyrocketed 56%, and a government analyst said nearly all areas saw increases, including airplanes, missiles, ships, tanks and communications equipment. 10 Orders for military goods usually catapult in September, government officials say, as the Pentagon scrambles to spend its money before the new fiscal year begins Oct. 1. 11 While all the numbers in the durable goods report were adjusted for seasonal fluctuations, a Commerce Department analyst said that the adjustment probably didn't factor out all of the wide-ranging surge in defense orders. 12 Without the increase in defense bookings, September orders would have plummeted 3.9%. 13 Analysts were most unsettled by evidence the backlog of orders at factories is slipping. 14 Unfilled orders for durable goods rose 0.4% in September, to $476.14 billion, after declining for the first time in 2 1/2 years in August. 15 In July unfilled orders grew 1%. 16 But analysts noted that excluding transportation-where what they believe was a temporary surge in auto demand pushed up the figures-order backlogs have declined for three months in a row. 17 'It means we're eating into the bread that keeps us going. 18 That is a little disturbing,' Ms. Kleinman said. 'It also means if you have a real drop-off in orders, production will likely fall off very quickly because there is less to keep things going.' 19 Capital goods orders outside of the defense sector tumbled for the second month in a row, posting a 5.6% drop after a 10.3% decline. 20 Such steep drops in a category seen as a barometer of business investment would customarily be grave news for the economy. 21 But a Commerce Department analyst said that in both months orders would have risen had it not been for a drop in civilian aircraft bookings, a category that is showing declines only after a huge surge earlier this year. 22 Still, Milton Hudson, senior economic adviser at Morgan Guaranty Trust Co. in New York, said: 'If you look back a half-year or so the evidence was pretty good of affirmative strength in the capital-goods sector. 23 Now at least there are question marks about that, and without any question the pace of growth has slowed.'

Orders for military equipment , household appliances , machinery and other goods expected to last at least three years dipped 0 . 1 % last month , to $ 126 . 68 billion , after leaping 3 . 9 % in August , the department said .

dipped 0 . 1 %

Why did the goods dip?

1 New orders for durable goods fell back slightly in September after shooting up the month before, reflecting weakening auto demand after a spurt of orders for new 1990 models, the Commerce Department reported. 2 Orders for military equipment, household appliances, machinery and other goods expected to last at least three years dipped 0.1% last month, to $126.68 billion, after leaping 3.9% in August, the department said. 3 Most analysts had expected a sharper decline after the steep rise in August. 4 Moreover, a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a crawl. 5 But many economists pointed to a 1.8% September rise in orders outside the volatile transportation category. 6 That 'suggests the manufacturing sector is not falling apart,' said Sally Kleinman, an economist at Manufacturers Hanover Securities Corp. in New York. 7 She added, however: 'It is not robust by any means.' 8 While a decline in orders for cars and civilian airplanes pulled down the orders total, an enormous jump in orders for heavy military equipment propped it up. 9 Orders for capital defense goods skyrocketed 56%, and a government analyst said nearly all areas saw increases, including airplanes, missiles, ships, tanks and communications equipment. 10 Orders for military goods usually catapult in September, government officials say, as the Pentagon scrambles to spend its money before the new fiscal year begins Oct. 1. 11 While all the numbers in the durable goods report were adjusted for seasonal fluctuations, a Commerce Department analyst said that the adjustment probably didn't factor out all of the wide-ranging surge in defense orders. 12 Without the increase in defense bookings, September orders would have plummeted 3.9%. 13 Analysts were most unsettled by evidence the backlog of orders at factories is slipping. 14 Unfilled orders for durable goods rose 0.4% in September, to $476.14 billion, after declining for the first time in 2 1/2 years in August. 15 In July unfilled orders grew 1%. 16 But analysts noted that excluding transportation-where what they believe was a temporary surge in auto demand pushed up the figures-order backlogs have declined for three months in a row. 17 'It means we're eating into the bread that keeps us going. 18 That is a little disturbing,' Ms. Kleinman said. 'It also means if you have a real drop-off in orders, production will likely fall off very quickly because there is less to keep things going.' 19 Capital goods orders outside of the defense sector tumbled for the second month in a row, posting a 5.6% drop after a 10.3% decline. 20 Such steep drops in a category seen as a barometer of business investment would customarily be grave news for the economy. 21 But a Commerce Department analyst said that in both months orders would have risen had it not been for a drop in civilian aircraft bookings, a category that is showing declines only after a huge surge earlier this year. 22 Still, Milton Hudson, senior economic adviser at Morgan Guaranty Trust Co. in New York, said: 'If you look back a half-year or so the evidence was pretty good of affirmative strength in the capital-goods sector. 23 Now at least there are question marks about that, and without any question the pace of growth has slowed.'

Orders for military equipment , household appliances , machinery and other goods expected to last at least three years dipped 0 . 1 % last month , to $ 126 . 68 billion , after leaping 3 . 9 % in August , the department said .

dipped

why did it dip?

1 New orders for durable goods fell back slightly in September after shooting up the month before, reflecting weakening auto demand after a spurt of orders for new 1990 models, the Commerce Department reported. 2 Orders for military equipment, household appliances, machinery and other goods expected to last at least three years dipped 0.1% last month, to $126.68 billion, after leaping 3.9% in August, the department said. 3 Most analysts had expected a sharper decline after the steep rise in August. 4 Moreover, a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a crawl. 5 But many economists pointed to a 1.8% September rise in orders outside the volatile transportation category. 6 That 'suggests the manufacturing sector is not falling apart,' said Sally Kleinman, an economist at Manufacturers Hanover Securities Corp. in New York. 7 She added, however: 'It is not robust by any means.' 8 While a decline in orders for cars and civilian airplanes pulled down the orders total, an enormous jump in orders for heavy military equipment propped it up. 9 Orders for capital defense goods skyrocketed 56%, and a government analyst said nearly all areas saw increases, including airplanes, missiles, ships, tanks and communications equipment. 10 Orders for military goods usually catapult in September, government officials say, as the Pentagon scrambles to spend its money before the new fiscal year begins Oct. 1. 11 While all the numbers in the durable goods report were adjusted for seasonal fluctuations, a Commerce Department analyst said that the adjustment probably didn't factor out all of the wide-ranging surge in defense orders. 12 Without the increase in defense bookings, September orders would have plummeted 3.9%. 13 Analysts were most unsettled by evidence the backlog of orders at factories is slipping. 14 Unfilled orders for durable goods rose 0.4% in September, to $476.14 billion, after declining for the first time in 2 1/2 years in August. 15 In July unfilled orders grew 1%. 16 But analysts noted that excluding transportation-where what they believe was a temporary surge in auto demand pushed up the figures-order backlogs have declined for three months in a row. 17 'It means we're eating into the bread that keeps us going. 18 That is a little disturbing,' Ms. Kleinman said. 'It also means if you have a real drop-off in orders, production will likely fall off very quickly because there is less to keep things going.' 19 Capital goods orders outside of the defense sector tumbled for the second month in a row, posting a 5.6% drop after a 10.3% decline. 20 Such steep drops in a category seen as a barometer of business investment would customarily be grave news for the economy. 21 But a Commerce Department analyst said that in both months orders would have risen had it not been for a drop in civilian aircraft bookings, a category that is showing declines only after a huge surge earlier this year. 22 Still, Milton Hudson, senior economic adviser at Morgan Guaranty Trust Co. in New York, said: 'If you look back a half-year or so the evidence was pretty good of affirmative strength in the capital-goods sector. 23 Now at least there are question marks about that, and without any question the pace of growth has slowed.'

Most analysts had expected a sharper decline after the steep rise in August .

Most analysts had expected a sharper decline

Why did the analyst expect a sharper decline?

1 New orders for durable goods fell back slightly in September after shooting up the month before, reflecting weakening auto demand after a spurt of orders for new 1990 models, the Commerce Department reported. 2 Orders for military equipment, household appliances, machinery and other goods expected to last at least three years dipped 0.1% last month, to $126.68 billion, after leaping 3.9% in August, the department said. 3 Most analysts had expected a sharper decline after the steep rise in August. 4 Moreover, a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a crawl. 5 But many economists pointed to a 1.8% September rise in orders outside the volatile transportation category. 6 That 'suggests the manufacturing sector is not falling apart,' said Sally Kleinman, an economist at Manufacturers Hanover Securities Corp. in New York. 7 She added, however: 'It is not robust by any means.' 8 While a decline in orders for cars and civilian airplanes pulled down the orders total, an enormous jump in orders for heavy military equipment propped it up. 9 Orders for capital defense goods skyrocketed 56%, and a government analyst said nearly all areas saw increases, including airplanes, missiles, ships, tanks and communications equipment. 10 Orders for military goods usually catapult in September, government officials say, as the Pentagon scrambles to spend its money before the new fiscal year begins Oct. 1. 11 While all the numbers in the durable goods report were adjusted for seasonal fluctuations, a Commerce Department analyst said that the adjustment probably didn't factor out all of the wide-ranging surge in defense orders. 12 Without the increase in defense bookings, September orders would have plummeted 3.9%. 13 Analysts were most unsettled by evidence the backlog of orders at factories is slipping. 14 Unfilled orders for durable goods rose 0.4% in September, to $476.14 billion, after declining for the first time in 2 1/2 years in August. 15 In July unfilled orders grew 1%. 16 But analysts noted that excluding transportation-where what they believe was a temporary surge in auto demand pushed up the figures-order backlogs have declined for three months in a row. 17 'It means we're eating into the bread that keeps us going. 18 That is a little disturbing,' Ms. Kleinman said. 'It also means if you have a real drop-off in orders, production will likely fall off very quickly because there is less to keep things going.' 19 Capital goods orders outside of the defense sector tumbled for the second month in a row, posting a 5.6% drop after a 10.3% decline. 20 Such steep drops in a category seen as a barometer of business investment would customarily be grave news for the economy. 21 But a Commerce Department analyst said that in both months orders would have risen had it not been for a drop in civilian aircraft bookings, a category that is showing declines only after a huge surge earlier this year. 22 Still, Milton Hudson, senior economic adviser at Morgan Guaranty Trust Co. in New York, said: 'If you look back a half-year or so the evidence was pretty good of affirmative strength in the capital-goods sector. 23 Now at least there are question marks about that, and without any question the pace of growth has slowed.'

Most analysts had expected a sharper decline after the steep rise in August .

expected a sharper

why did they expect that?

1 New orders for durable goods fell back slightly in September after shooting up the month before, reflecting weakening auto demand after a spurt of orders for new 1990 models, the Commerce Department reported. 2 Orders for military equipment, household appliances, machinery and other goods expected to last at least three years dipped 0.1% last month, to $126.68 billion, after leaping 3.9% in August, the department said. 3 Most analysts had expected a sharper decline after the steep rise in August. 4 Moreover, a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a crawl. 5 But many economists pointed to a 1.8% September rise in orders outside the volatile transportation category. 6 That 'suggests the manufacturing sector is not falling apart,' said Sally Kleinman, an economist at Manufacturers Hanover Securities Corp. in New York. 7 She added, however: 'It is not robust by any means.' 8 While a decline in orders for cars and civilian airplanes pulled down the orders total, an enormous jump in orders for heavy military equipment propped it up. 9 Orders for capital defense goods skyrocketed 56%, and a government analyst said nearly all areas saw increases, including airplanes, missiles, ships, tanks and communications equipment. 10 Orders for military goods usually catapult in September, government officials say, as the Pentagon scrambles to spend its money before the new fiscal year begins Oct. 1. 11 While all the numbers in the durable goods report were adjusted for seasonal fluctuations, a Commerce Department analyst said that the adjustment probably didn't factor out all of the wide-ranging surge in defense orders. 12 Without the increase in defense bookings, September orders would have plummeted 3.9%. 13 Analysts were most unsettled by evidence the backlog of orders at factories is slipping. 14 Unfilled orders for durable goods rose 0.4% in September, to $476.14 billion, after declining for the first time in 2 1/2 years in August. 15 In July unfilled orders grew 1%. 16 But analysts noted that excluding transportation-where what they believe was a temporary surge in auto demand pushed up the figures-order backlogs have declined for three months in a row. 17 'It means we're eating into the bread that keeps us going. 18 That is a little disturbing,' Ms. Kleinman said. 'It also means if you have a real drop-off in orders, production will likely fall off very quickly because there is less to keep things going.' 19 Capital goods orders outside of the defense sector tumbled for the second month in a row, posting a 5.6% drop after a 10.3% decline. 20 Such steep drops in a category seen as a barometer of business investment would customarily be grave news for the economy. 21 But a Commerce Department analyst said that in both months orders would have risen had it not been for a drop in civilian aircraft bookings, a category that is showing declines only after a huge surge earlier this year. 22 Still, Milton Hudson, senior economic adviser at Morgan Guaranty Trust Co. in New York, said: 'If you look back a half-year or so the evidence was pretty good of affirmative strength in the capital-goods sector. 23 Now at least there are question marks about that, and without any question the pace of growth has slowed.'

Moreover , a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a crawl .

slowed to a crawl

How bad is the manufacturing industry specifically if it has slowed to a crawl?

1 New orders for durable goods fell back slightly in September after shooting up the month before, reflecting weakening auto demand after a spurt of orders for new 1990 models, the Commerce Department reported. 2 Orders for military equipment, household appliances, machinery and other goods expected to last at least three years dipped 0.1% last month, to $126.68 billion, after leaping 3.9% in August, the department said. 3 Most analysts had expected a sharper decline after the steep rise in August. 4 Moreover, a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a crawl. 5 But many economists pointed to a 1.8% September rise in orders outside the volatile transportation category. 6 That 'suggests the manufacturing sector is not falling apart,' said Sally Kleinman, an economist at Manufacturers Hanover Securities Corp. in New York. 7 She added, however: 'It is not robust by any means.' 8 While a decline in orders for cars and civilian airplanes pulled down the orders total, an enormous jump in orders for heavy military equipment propped it up. 9 Orders for capital defense goods skyrocketed 56%, and a government analyst said nearly all areas saw increases, including airplanes, missiles, ships, tanks and communications equipment. 10 Orders for military goods usually catapult in September, government officials say, as the Pentagon scrambles to spend its money before the new fiscal year begins Oct. 1. 11 While all the numbers in the durable goods report were adjusted for seasonal fluctuations, a Commerce Department analyst said that the adjustment probably didn't factor out all of the wide-ranging surge in defense orders. 12 Without the increase in defense bookings, September orders would have plummeted 3.9%. 13 Analysts were most unsettled by evidence the backlog of orders at factories is slipping. 14 Unfilled orders for durable goods rose 0.4% in September, to $476.14 billion, after declining for the first time in 2 1/2 years in August. 15 In July unfilled orders grew 1%. 16 But analysts noted that excluding transportation-where what they believe was a temporary surge in auto demand pushed up the figures-order backlogs have declined for three months in a row. 17 'It means we're eating into the bread that keeps us going. 18 That is a little disturbing,' Ms. Kleinman said. 'It also means if you have a real drop-off in orders, production will likely fall off very quickly because there is less to keep things going.' 19 Capital goods orders outside of the defense sector tumbled for the second month in a row, posting a 5.6% drop after a 10.3% decline. 20 Such steep drops in a category seen as a barometer of business investment would customarily be grave news for the economy. 21 But a Commerce Department analyst said that in both months orders would have risen had it not been for a drop in civilian aircraft bookings, a category that is showing declines only after a huge surge earlier this year. 22 Still, Milton Hudson, senior economic adviser at Morgan Guaranty Trust Co. in New York, said: 'If you look back a half-year or so the evidence was pretty good of affirmative strength in the capital-goods sector. 23 Now at least there are question marks about that, and without any question the pace of growth has slowed.'

But many economists pointed to a 1 . 8 % September rise in orders outside the volatile transportation category .

volatile transportation category

Why is the transportation category so volatile?

1 New orders for durable goods fell back slightly in September after shooting up the month before, reflecting weakening auto demand after a spurt of orders for new 1990 models, the Commerce Department reported. 2 Orders for military equipment, household appliances, machinery and other goods expected to last at least three years dipped 0.1% last month, to $126.68 billion, after leaping 3.9% in August, the department said. 3 Most analysts had expected a sharper decline after the steep rise in August. 4 Moreover, a recent government report showing widespread layoffs in manufacturing had contributed to perceptions that the manufacturing sector of the economy had slowed to a crawl. 5 But many economists pointed to a 1.8% September rise in orders outside the volatile transportation category. 6 That 'suggests the manufacturing sector is not falling apart,' said Sally Kleinman, an economist at Manufacturers Hanover Securities Corp. in New York. 7 She added, however: 'It is not robust by any means.' 8 While a decline in orders for cars and civilian airplanes pulled down the orders total, an enormous jump in orders for heavy military equipment propped it up. 9 Orders for capital defense goods skyrocketed 56%, and a government analyst said nearly all areas saw increases, including airplanes, missiles, ships, tanks and communications equipment. 10 Orders for military goods usually catapult in September, government officials say, as the Pentagon scrambles to spend its money before the new fiscal year begins Oct. 1. 11 While all the numbers in the durable goods report were adjusted for seasonal fluctuations, a Commerce Department analyst said that the adjustment probably didn't factor out all of the wide-ranging surge in defense orders. 12 Without the increase in defense bookings, September orders would have plummeted 3.9%. 13 Analysts were most unsettled by evidence the backlog of orders at factories is slipping. 14 Unfilled orders for durable goods rose 0.4% in September, to $476.14 billion, after declining for the first time in 2 1/2 years in August. 15 In July unfilled orders grew 1%. 16 But analysts noted that excluding transportation-where what they believe was a temporary surge in auto demand pushed up the figures-order backlogs have declined for three months in a row. 17 'It means we're eating into the bread that keeps us going. 18 That is a little disturbing,' Ms. Kleinman said. 'It also means if you have a real drop-off in orders, production will likely fall off very quickly because there is less to keep things going.' 19 Capital goods orders outside of the defense sector tumbled for the second month in a row, posting a 5.6% drop after a 10.3% decline. 20 Such steep drops in a category seen as a barometer of business investment would customarily be grave news for the economy. 21 But a Commerce Department analyst said that in both months orders would have risen had it not been for a drop in civilian aircraft bookings, a category that is showing declines only after a huge surge earlier this year. 22 Still, Milton Hudson, senior economic adviser at Morgan Guaranty Trust Co. in New York, said: 'If you look back a half-year or so the evidence was pretty good of affirmative strength in the capital-goods sector. 23 Now at least there are question marks about that, and without any question the pace of growth has slowed.'

But many economists pointed to a 1 . 8 % September rise in orders outside the volatile transportation category .

volatile transportation category

is it really volatile?

1 Xerox Corp. 's third-quarter net income grew 6.2% on 7.3% higher revenue, earning mixed reviews from Wall Street analysts. 2 Quarter net for the business-machines and financial-services company rose to $155 million, or $1.41 a share, from $146 million, or $1.37 a share, in the year-earlier period. 3 Revenue rose to $4.45 billion from $4.15 billion. 4 In New York Stock Exchange composite trading, Xerox closed at $62.75 a share, up $1. 5 Sales growth and profit in business products and systems -- Xerox's main business -- were 'disappointing,' said B. Alex Henderson, who follows the company for Prudential-Bache Securities Inc. 6 Sales of Xerox copiers and other office products grew 1.6%; 'we expected growth of 6% to 7%,' Mr. Henderson said. 7 Operating-profit margins slipped almost 18%, to 4.3% of sales, the analyst noted. 8 Still, with competitors such as Eastman Kodak Co. faltering in copier sales, Xerox's sales increases 'were encouraging,' says Eugene Glazer of Dean Witter Reynolds Inc. 'They are holding their own in a weak market, and the restructuring is working,' he says. 9 David T. Kearns, Xerox chairman and chief executive officer, cited the restructuring and 'strong' cost controls for the 13% growth in profit from business products and systems operations. 10 Mr. Glazer expects Xerox to experience tough sledding, though, in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains. 11 In the quarter, the Crum & Forster insurance unit reported $200 million before tax of capital gains from property and casualty operations. 12 The subsidiary also increased reserves by $140 million, however, and set aside an additional $25 million for claims connected with Hurricane Hugo. 13 For the nine months, Xerox earned $492 million, or $4.55 a share, up 5.8% from $465 million, or $4.32 a share. 14 Revenue rose 7.6% to $12.97 billion from $12.05 billion.

Xerox Corp . ' s third - quarter net income grew 6 . 2 % on 7 . 3 % higher revenue , earning mixed reviews from Wall Street analysts .

grew

What contributed to the growth?

1 Xerox Corp. 's third-quarter net income grew 6.2% on 7.3% higher revenue, earning mixed reviews from Wall Street analysts. 2 Quarter net for the business-machines and financial-services company rose to $155 million, or $1.41 a share, from $146 million, or $1.37 a share, in the year-earlier period. 3 Revenue rose to $4.45 billion from $4.15 billion. 4 In New York Stock Exchange composite trading, Xerox closed at $62.75 a share, up $1. 5 Sales growth and profit in business products and systems -- Xerox's main business -- were 'disappointing,' said B. Alex Henderson, who follows the company for Prudential-Bache Securities Inc. 6 Sales of Xerox copiers and other office products grew 1.6%; 'we expected growth of 6% to 7%,' Mr. Henderson said. 7 Operating-profit margins slipped almost 18%, to 4.3% of sales, the analyst noted. 8 Still, with competitors such as Eastman Kodak Co. faltering in copier sales, Xerox's sales increases 'were encouraging,' says Eugene Glazer of Dean Witter Reynolds Inc. 'They are holding their own in a weak market, and the restructuring is working,' he says. 9 David T. Kearns, Xerox chairman and chief executive officer, cited the restructuring and 'strong' cost controls for the 13% growth in profit from business products and systems operations. 10 Mr. Glazer expects Xerox to experience tough sledding, though, in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains. 11 In the quarter, the Crum & Forster insurance unit reported $200 million before tax of capital gains from property and casualty operations. 12 The subsidiary also increased reserves by $140 million, however, and set aside an additional $25 million for claims connected with Hurricane Hugo. 13 For the nine months, Xerox earned $492 million, or $4.55 a share, up 5.8% from $465 million, or $4.32 a share. 14 Revenue rose 7.6% to $12.97 billion from $12.05 billion.

Xerox Corp . ' s third - quarter net income grew 6 . 2 % on 7 . 3 % higher revenue , earning mixed reviews from Wall Street analysts .

mixed reviews

Were the reviews leaning more towards the positive?

1 Xerox Corp. 's third-quarter net income grew 6.2% on 7.3% higher revenue, earning mixed reviews from Wall Street analysts. 2 Quarter net for the business-machines and financial-services company rose to $155 million, or $1.41 a share, from $146 million, or $1.37 a share, in the year-earlier period. 3 Revenue rose to $4.45 billion from $4.15 billion. 4 In New York Stock Exchange composite trading, Xerox closed at $62.75 a share, up $1. 5 Sales growth and profit in business products and systems -- Xerox's main business -- were 'disappointing,' said B. Alex Henderson, who follows the company for Prudential-Bache Securities Inc. 6 Sales of Xerox copiers and other office products grew 1.6%; 'we expected growth of 6% to 7%,' Mr. Henderson said. 7 Operating-profit margins slipped almost 18%, to 4.3% of sales, the analyst noted. 8 Still, with competitors such as Eastman Kodak Co. faltering in copier sales, Xerox's sales increases 'were encouraging,' says Eugene Glazer of Dean Witter Reynolds Inc. 'They are holding their own in a weak market, and the restructuring is working,' he says. 9 David T. Kearns, Xerox chairman and chief executive officer, cited the restructuring and 'strong' cost controls for the 13% growth in profit from business products and systems operations. 10 Mr. Glazer expects Xerox to experience tough sledding, though, in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains. 11 In the quarter, the Crum & Forster insurance unit reported $200 million before tax of capital gains from property and casualty operations. 12 The subsidiary also increased reserves by $140 million, however, and set aside an additional $25 million for claims connected with Hurricane Hugo. 13 For the nine months, Xerox earned $492 million, or $4.55 a share, up 5.8% from $465 million, or $4.32 a share. 14 Revenue rose 7.6% to $12.97 billion from $12.05 billion.

Quarter net for the business - machines and financial - services company rose to $ 155 million , or $ 1 . 41 a share , from $ 146 million , or $ 1 . 37 a share , in the year - earlier period .

Quarter net

what is a quarter net?

1 Xerox Corp. 's third-quarter net income grew 6.2% on 7.3% higher revenue, earning mixed reviews from Wall Street analysts. 2 Quarter net for the business-machines and financial-services company rose to $155 million, or $1.41 a share, from $146 million, or $1.37 a share, in the year-earlier period. 3 Revenue rose to $4.45 billion from $4.15 billion. 4 In New York Stock Exchange composite trading, Xerox closed at $62.75 a share, up $1. 5 Sales growth and profit in business products and systems -- Xerox's main business -- were 'disappointing,' said B. Alex Henderson, who follows the company for Prudential-Bache Securities Inc. 6 Sales of Xerox copiers and other office products grew 1.6%; 'we expected growth of 6% to 7%,' Mr. Henderson said. 7 Operating-profit margins slipped almost 18%, to 4.3% of sales, the analyst noted. 8 Still, with competitors such as Eastman Kodak Co. faltering in copier sales, Xerox's sales increases 'were encouraging,' says Eugene Glazer of Dean Witter Reynolds Inc. 'They are holding their own in a weak market, and the restructuring is working,' he says. 9 David T. Kearns, Xerox chairman and chief executive officer, cited the restructuring and 'strong' cost controls for the 13% growth in profit from business products and systems operations. 10 Mr. Glazer expects Xerox to experience tough sledding, though, in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains. 11 In the quarter, the Crum & Forster insurance unit reported $200 million before tax of capital gains from property and casualty operations. 12 The subsidiary also increased reserves by $140 million, however, and set aside an additional $25 million for claims connected with Hurricane Hugo. 13 For the nine months, Xerox earned $492 million, or $4.55 a share, up 5.8% from $465 million, or $4.32 a share. 14 Revenue rose 7.6% to $12.97 billion from $12.05 billion.

Quarter net for the business - machines and financial - services company rose to $ 155 million , or $ 1 . 41 a share , from $ 146 million , or $ 1 . 37 a share , in the year - earlier period .

rose

What caused the rise in the year earlier period?

1 Xerox Corp. 's third-quarter net income grew 6.2% on 7.3% higher revenue, earning mixed reviews from Wall Street analysts. 2 Quarter net for the business-machines and financial-services company rose to $155 million, or $1.41 a share, from $146 million, or $1.37 a share, in the year-earlier period. 3 Revenue rose to $4.45 billion from $4.15 billion. 4 In New York Stock Exchange composite trading, Xerox closed at $62.75 a share, up $1. 5 Sales growth and profit in business products and systems -- Xerox's main business -- were 'disappointing,' said B. Alex Henderson, who follows the company for Prudential-Bache Securities Inc. 6 Sales of Xerox copiers and other office products grew 1.6%; 'we expected growth of 6% to 7%,' Mr. Henderson said. 7 Operating-profit margins slipped almost 18%, to 4.3% of sales, the analyst noted. 8 Still, with competitors such as Eastman Kodak Co. faltering in copier sales, Xerox's sales increases 'were encouraging,' says Eugene Glazer of Dean Witter Reynolds Inc. 'They are holding their own in a weak market, and the restructuring is working,' he says. 9 David T. Kearns, Xerox chairman and chief executive officer, cited the restructuring and 'strong' cost controls for the 13% growth in profit from business products and systems operations. 10 Mr. Glazer expects Xerox to experience tough sledding, though, in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains. 11 In the quarter, the Crum & Forster insurance unit reported $200 million before tax of capital gains from property and casualty operations. 12 The subsidiary also increased reserves by $140 million, however, and set aside an additional $25 million for claims connected with Hurricane Hugo. 13 For the nine months, Xerox earned $492 million, or $4.55 a share, up 5.8% from $465 million, or $4.32 a share. 14 Revenue rose 7.6% to $12.97 billion from $12.05 billion.

Revenue rose to $ 4 . 45 billion from $ 4 . 15 billion .

$ 4 . 45 billion from $ 4 . 15 billion

300 extra million were made?

1 Xerox Corp. 's third-quarter net income grew 6.2% on 7.3% higher revenue, earning mixed reviews from Wall Street analysts. 2 Quarter net for the business-machines and financial-services company rose to $155 million, or $1.41 a share, from $146 million, or $1.37 a share, in the year-earlier period. 3 Revenue rose to $4.45 billion from $4.15 billion. 4 In New York Stock Exchange composite trading, Xerox closed at $62.75 a share, up $1. 5 Sales growth and profit in business products and systems -- Xerox's main business -- were 'disappointing,' said B. Alex Henderson, who follows the company for Prudential-Bache Securities Inc. 6 Sales of Xerox copiers and other office products grew 1.6%; 'we expected growth of 6% to 7%,' Mr. Henderson said. 7 Operating-profit margins slipped almost 18%, to 4.3% of sales, the analyst noted. 8 Still, with competitors such as Eastman Kodak Co. faltering in copier sales, Xerox's sales increases 'were encouraging,' says Eugene Glazer of Dean Witter Reynolds Inc. 'They are holding their own in a weak market, and the restructuring is working,' he says. 9 David T. Kearns, Xerox chairman and chief executive officer, cited the restructuring and 'strong' cost controls for the 13% growth in profit from business products and systems operations. 10 Mr. Glazer expects Xerox to experience tough sledding, though, in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains. 11 In the quarter, the Crum & Forster insurance unit reported $200 million before tax of capital gains from property and casualty operations. 12 The subsidiary also increased reserves by $140 million, however, and set aside an additional $25 million for claims connected with Hurricane Hugo. 13 For the nine months, Xerox earned $492 million, or $4.55 a share, up 5.8% from $465 million, or $4.32 a share. 14 Revenue rose 7.6% to $12.97 billion from $12.05 billion.

Revenue rose to $ 4 . 45 billion from $ 4 . 15 billion .

Revenue rose

What caused revenue to rise?

1 Xerox Corp. 's third-quarter net income grew 6.2% on 7.3% higher revenue, earning mixed reviews from Wall Street analysts. 2 Quarter net for the business-machines and financial-services company rose to $155 million, or $1.41 a share, from $146 million, or $1.37 a share, in the year-earlier period. 3 Revenue rose to $4.45 billion from $4.15 billion. 4 In New York Stock Exchange composite trading, Xerox closed at $62.75 a share, up $1. 5 Sales growth and profit in business products and systems -- Xerox's main business -- were 'disappointing,' said B. Alex Henderson, who follows the company for Prudential-Bache Securities Inc. 6 Sales of Xerox copiers and other office products grew 1.6%; 'we expected growth of 6% to 7%,' Mr. Henderson said. 7 Operating-profit margins slipped almost 18%, to 4.3% of sales, the analyst noted. 8 Still, with competitors such as Eastman Kodak Co. faltering in copier sales, Xerox's sales increases 'were encouraging,' says Eugene Glazer of Dean Witter Reynolds Inc. 'They are holding their own in a weak market, and the restructuring is working,' he says. 9 David T. Kearns, Xerox chairman and chief executive officer, cited the restructuring and 'strong' cost controls for the 13% growth in profit from business products and systems operations. 10 Mr. Glazer expects Xerox to experience tough sledding, though, in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains. 11 In the quarter, the Crum & Forster insurance unit reported $200 million before tax of capital gains from property and casualty operations. 12 The subsidiary also increased reserves by $140 million, however, and set aside an additional $25 million for claims connected with Hurricane Hugo. 13 For the nine months, Xerox earned $492 million, or $4.55 a share, up 5.8% from $465 million, or $4.32 a share. 14 Revenue rose 7.6% to $12.97 billion from $12.05 billion.

In New York Stock Exchange composite trading , Xerox closed at $ 62 . 75 a share , up $ 1 .

composite trading ,

what is composite trading?

1 Xerox Corp. 's third-quarter net income grew 6.2% on 7.3% higher revenue, earning mixed reviews from Wall Street analysts. 2 Quarter net for the business-machines and financial-services company rose to $155 million, or $1.41 a share, from $146 million, or $1.37 a share, in the year-earlier period. 3 Revenue rose to $4.45 billion from $4.15 billion. 4 In New York Stock Exchange composite trading, Xerox closed at $62.75 a share, up $1. 5 Sales growth and profit in business products and systems -- Xerox's main business -- were 'disappointing,' said B. Alex Henderson, who follows the company for Prudential-Bache Securities Inc. 6 Sales of Xerox copiers and other office products grew 1.6%; 'we expected growth of 6% to 7%,' Mr. Henderson said. 7 Operating-profit margins slipped almost 18%, to 4.3% of sales, the analyst noted. 8 Still, with competitors such as Eastman Kodak Co. faltering in copier sales, Xerox's sales increases 'were encouraging,' says Eugene Glazer of Dean Witter Reynolds Inc. 'They are holding their own in a weak market, and the restructuring is working,' he says. 9 David T. Kearns, Xerox chairman and chief executive officer, cited the restructuring and 'strong' cost controls for the 13% growth in profit from business products and systems operations. 10 Mr. Glazer expects Xerox to experience tough sledding, though, in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains. 11 In the quarter, the Crum & Forster insurance unit reported $200 million before tax of capital gains from property and casualty operations. 12 The subsidiary also increased reserves by $140 million, however, and set aside an additional $25 million for claims connected with Hurricane Hugo. 13 For the nine months, Xerox earned $492 million, or $4.55 a share, up 5.8% from $465 million, or $4.32 a share. 14 Revenue rose 7.6% to $12.97 billion from $12.05 billion.

In New York Stock Exchange composite trading , Xerox closed at $ 62 . 75 a share , up $ 1 .

up

What caused the increase?

1 Xerox Corp. 's third-quarter net income grew 6.2% on 7.3% higher revenue, earning mixed reviews from Wall Street analysts. 2 Quarter net for the business-machines and financial-services company rose to $155 million, or $1.41 a share, from $146 million, or $1.37 a share, in the year-earlier period. 3 Revenue rose to $4.45 billion from $4.15 billion. 4 In New York Stock Exchange composite trading, Xerox closed at $62.75 a share, up $1. 5 Sales growth and profit in business products and systems -- Xerox's main business -- were 'disappointing,' said B. Alex Henderson, who follows the company for Prudential-Bache Securities Inc. 6 Sales of Xerox copiers and other office products grew 1.6%; 'we expected growth of 6% to 7%,' Mr. Henderson said. 7 Operating-profit margins slipped almost 18%, to 4.3% of sales, the analyst noted. 8 Still, with competitors such as Eastman Kodak Co. faltering in copier sales, Xerox's sales increases 'were encouraging,' says Eugene Glazer of Dean Witter Reynolds Inc. 'They are holding their own in a weak market, and the restructuring is working,' he says. 9 David T. Kearns, Xerox chairman and chief executive officer, cited the restructuring and 'strong' cost controls for the 13% growth in profit from business products and systems operations. 10 Mr. Glazer expects Xerox to experience tough sledding, though, in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains. 11 In the quarter, the Crum & Forster insurance unit reported $200 million before tax of capital gains from property and casualty operations. 12 The subsidiary also increased reserves by $140 million, however, and set aside an additional $25 million for claims connected with Hurricane Hugo. 13 For the nine months, Xerox earned $492 million, or $4.55 a share, up 5.8% from $465 million, or $4.32 a share. 14 Revenue rose 7.6% to $12.97 billion from $12.05 billion.

Sales growth and profit in business products and systems - - Xerox ' s main business - - were " disappointing , " said B . Alex Henderson , who follows the company for Prudential - Bache Securities Inc .

B . Alex Henderson ,

who is he?

1 Xerox Corp. 's third-quarter net income grew 6.2% on 7.3% higher revenue, earning mixed reviews from Wall Street analysts. 2 Quarter net for the business-machines and financial-services company rose to $155 million, or $1.41 a share, from $146 million, or $1.37 a share, in the year-earlier period. 3 Revenue rose to $4.45 billion from $4.15 billion. 4 In New York Stock Exchange composite trading, Xerox closed at $62.75 a share, up $1. 5 Sales growth and profit in business products and systems -- Xerox's main business -- were 'disappointing,' said B. Alex Henderson, who follows the company for Prudential-Bache Securities Inc. 6 Sales of Xerox copiers and other office products grew 1.6%; 'we expected growth of 6% to 7%,' Mr. Henderson said. 7 Operating-profit margins slipped almost 18%, to 4.3% of sales, the analyst noted. 8 Still, with competitors such as Eastman Kodak Co. faltering in copier sales, Xerox's sales increases 'were encouraging,' says Eugene Glazer of Dean Witter Reynolds Inc. 'They are holding their own in a weak market, and the restructuring is working,' he says. 9 David T. Kearns, Xerox chairman and chief executive officer, cited the restructuring and 'strong' cost controls for the 13% growth in profit from business products and systems operations. 10 Mr. Glazer expects Xerox to experience tough sledding, though, in financial services because of rate pressures and uncertainty surrounding tax treatment of capital gains. 11 In the quarter, the Crum & Forster insurance unit reported $200 million before tax of capital gains from property and casualty operations. 12 The subsidiary also increased reserves by $140 million, however, and set aside an additional $25 million for claims connected with Hurricane Hugo. 13 For the nine months, Xerox earned $492 million, or $4.55 a share, up 5.8% from $465 million, or $4.32 a share. 14 Revenue rose 7.6% to $12.97 billion from $12.05 billion.

Sales growth and profit in business products and systems - - Xerox ' s main business - - were " disappointing , " said B . Alex Henderson , who follows the company for Prudential - Bache Securities Inc .

" disappointing , "

What were the original expectations?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

This is in response to George Melloan ' s Business World column " The Housing Market Is a Bigger Mess Than You Think " ( op - ed page , Sept . 26 ) .

This

What does 'this' refer to?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

This is in response to George Melloan ' s Business World column " The Housing Market Is a Bigger Mess Than You Think " ( op - ed page , Sept . 26 ) .

column

Where is this column published?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

In Houston , we have seen how bad the housing problem can become .

Houston ,

Why is this related to only Houston?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

In Houston , we have seen how bad the housing problem can become .

the housing problem

What housing problem?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

In Houston , we have seen how bad the housing problem can become .

problem can become

how bad is it?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

Unused houses deteriorate rapidly , affecting the value of nearby homes ; in a domino effect , the entire neighborhood can fall victim .

deteriorate

How do the houses deteriorate?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

Unused houses deteriorate rapidly , affecting the value of nearby homes ; in a domino effect , the entire neighborhood can fall victim .

entire neighborhood

How big might a neighborhood be here?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

Unused houses deteriorate rapidly , affecting the value of nearby homes ; in a domino effect , the entire neighborhood can fall victim .

deteriorate rapidly ,

Why are the homes not taken care of by the owners?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

Unused houses deteriorate rapidly , affecting the value of nearby homes ; in a domino effect , the entire neighborhood can fall victim .

domino effect ,

how do the dominoes work?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

At this stage some people just " walk away " from homes where the mortgage exceeds current market value .

some people

Who are 'some people' as they relate to this issue?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

At this stage some people just " walk away " from homes where the mortgage exceeds current market value .

mortgage exceeds current market value

What are some examples of a mortgage exceeding current market value here?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

At this stage some people just " walk away " from homes where the mortgage exceeds current market value .

" walk away "

Do they just stop paying or leave altogether?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

At this stage some people just " walk away " from homes where the mortgage exceeds current market value .

" walk away "

why is it quoted?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

At this stage some people just " walk away " from homes where the mortgage exceeds current market value .

" walk away "

Why do they walk away?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

But most of them could have afforded to keep up their payments - - they chose not to do so .

them

Who are 'them' in this case?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

But most of them could have afforded to keep up their payments - - they chose not to do so .

payments

What kind of payments?

1 This is in response to George Melloan's Business World column 'The Housing Market Is a Bigger Mess Than You Think' (op-ed page, Sept. 26). 2 In Houston, we have seen how bad the housing problem can become. 3 Unused houses deteriorate rapidly, affecting the value of nearby homes; in a domino effect, the entire neighborhood can fall victim. 4 At this stage some people just 'walk away' from homes where the mortgage exceeds current market value. 5 But most of them could have afforded to keep up their payments -- they chose not to do so. 6 The problem is so vast that we need to try innovative solutions -- in small-scale experiments. 7 Here are some ideas: 8 1) Foreclosed homes could be sold by the FHA for no down payment (the biggest obstacle to young buyers), but with personal liability for the mortgage (no walking away by choice). 9 2) Encourage long-term occupancy by forgiving one month's payment (off the tail end of the mortgage) for every six months paid; or perhaps have the down payment deferred to the end of the mortgage (balloon), but 'forgiven' on a monthly pro-rata basis as long as the owner remains the occupant. 10 3) Develop rental agreements with exclusive purchase options for the renter. 11 An occupant will, in most every case, be better for the home and neighborhood than a vacant house. 12 In this way, the house is not dumped on to a glutted market. 13 John F. Merrill 14 Houston 15 The Federal Housing Administration, Veterans Administration and the Department of Housing and Urban Development further aggravate the problem of affordable housing stock by 'buying in' to their foreclosed properties (of which there are, alas, many) at an inflated 'balance due' -- say $80,000 on a house worth $55,000 -- instead of allowing a free market to price the house for what it's really worth. 16 Worse, the properties then sit around deteriorating for maybe a year or so, but are resold eventually (because of the attractiveness of the low down payment, etc.) to a marginal buyer who can't afford both the mortgage and needed repairs; and having little vested interest that buyer will walk away and the vicious cycle repeats itself all over again. 17 Paul Padget 18 Cincinnati

But most of them could have afforded to keep up their payments - - they chose not to do so .

they chose not to do so

Why did they make this choice?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

CHICAGO - Sears , Roebuck & Co . is struggling as it enters the critical Christmas season .

Sears , Roebuck & Co . is struggling

Why is Sears struggling?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

CHICAGO - Sears , Roebuck & Co . is struggling as it enters the critical Christmas season .

Sears , Roebuck & Co . is struggling

Why is Sears struggling so much when they were a childhood staple?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

CHICAGO - Sears , Roebuck & Co . is struggling as it enters the critical Christmas season .

is struggling

Why is it struggling?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

CHICAGO - Sears , Roebuck & Co . is struggling as it enters the critical Christmas season .

struggling

why are they struggling?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

Yesterday , the retailing and financial services giant reported a 16 % drop in third - quarter earnings to $ 257 . 5 million , or 75 cents a share , from a restated $ 305 million , or 80 cents a share , a year earlier .

a 16 % drop

Why was there a 16% drop yesterday?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

Yesterday , the retailing and financial services giant reported a 16 % drop in third - quarter earnings to $ 257 . 5 million , or 75 cents a share , from a restated $ 305 million , or 80 cents a share , a year earlier .

or 75 cents a share ,

How much is one of their shares?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

But the news was even worse for Sears ' s core U . S . retailing operation , the largest in the nation .

the news was even worse for Sears ' s core

Why was the news even worse for Sear's core retailing?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

But the news was even worse for Sears ' s core U . S . retailing operation , the largest in the nation .

even worse

How was the news even worse for Sears core US retailing operations?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

But the news was even worse for Sears ' s core U . S . retailing operation , the largest in the nation .

But the news was even worse

What was the news?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

But the news was even worse for Sears ' s core U . S . retailing operation , the largest in the nation .

even worse

why was it worse?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

Sears said its U . S . stores had a loss of $ 6 . 9 million , their first deficit for the period in more than five years .

its U . S . stores had a loss of $ 6 . 9 million ,

Why did its US stores have a 6.9 million loss?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

Sears said its U . S . stores had a loss of $ 6 . 9 million , their first deficit for the period in more than five years .

had a loss of $ 6 . 9 million ,

How did such a big loss come out of the blue?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

Sears said its U . S . stores had a loss of $ 6 . 9 million , their first deficit for the period in more than five years .

their first deficit

What does first deficit mean?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

Analysts estimated that sales at U . S . stores declined in the quarter , too .

estimated

How did analysts estimate the declining sales?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

Analysts estimated that sales at U . S . stores declined in the quarter , too .

U . S . stores declined in the quarter ,

What was the cause of the decline?

1 CHICAGO - Sears, Roebuck & Co. is struggling as it enters the critical Christmas season. 2 Yesterday, the retailing and financial services giant reported a 16% drop in third-quarter earnings to $257.5 million, or 75 cents a share, from a restated $305 million, or 80 cents a share, a year earlier. 3 But the news was even worse for Sears's core U.S. retailing operation, the largest in the nation. 4 Sears said its U.S. stores had a loss of $6.9 million, their first deficit for the period in more than five years. 5 Analysts estimated that sales at U.S. stores declined in the quarter, too. 6 The results underscore Sears's difficulties in implementing the 'everyday low pricing' strategy that it adopted in March as part of a broad attempt to revive its retailing business. 7 Under the new approach, Sears set prices that were somewhere between its old 'regular' and 'sale' prices. 8 The company said it would resort far less often to slashing prices to woo shoppers. 9 Sears officials insist they don't intend to abandon the everyday pricing approach in the face of the poor results. 10 Instead, a spokesman blames the dismal third-quarter showing on 'an environment that is being distorted by a very harsh climate for sales of durable goods,' which account for roughly two-thirds of Sears's annual merchandise volume. 11 The new pricing strategy 'is working,' the spokesman asserted. 12 He added that, after an initial surge triggered by an advertising blitz in March, Sears expected that the pricing program wouldn't have any effect on revenue. 13 Sears has been counting on growth coming from the large displays of brand-name merchandise it is adding to its stores over the next two years in what it calls 'power formats.' 14 But analysts say Sears faces an especially daunting challenge on the eve of the Christmas shopping season. 'I believe everyday pricing in the current environment doesn't work,' says Walter Loeb of Morgan Stanley & Co., pointing to soft durable-goods sales. 'Sears is likely to be unsuccessful if it continues with its pricing policy when everyone else is offering unusual values.' 15 In what amounts to an admission that the transition hasn't gone as smoothly as Sears had hoped, the giant retailer is now trying new ways to drum up business without appearing to abandon its seven-month-old strategy. 16 The company is highlighting more special deals in its advertising and stores, and it's offering to defer finance charges on certain big-ticket items. 17 Sears is also stepping up its television ads and changing its message. 18 In a new TV ad, for instance, a woman going through the Sunday newspaper brands as hype claims by other stores that they are offering goods for '50%, 60% and 70% off.' By lowering prices throughout its stores, she says, 'Sears has the right idea.' 19 But the ad also mentions Sears's sales -- a topic that the retailer has avoided since switching to everyday pricing. 'When Sears has a sale at a special price,' the woman in the ad declares, 'it's something you don't want to miss.' 20 Recent surveys by Leo J. Shapiro & Associates, a market research firm in Chicago, suggest that Sears is having a tough time attracting shoppers because it hasn't yet done enough to improve service or its selection of merchandise. 21 The number of people who said they were more likely to shop at Sears fell in September to 37% from 66% in March, when Sears blanketed the airwaves with ads about its new pricing strategy. 22 Moreover, the number of people who spontaneously cited lower prices as the reason for their interest in Sears declined to 16% in September from 33% in March. 23 Just 5% of the respondents mentioned brands in September, up slightly from 2% in March. 24 Only 2% of the people in September cited Sears's 'friendly personnel.' 25 'The power of price as an appeal, which was very considerable in driving traffic in March and April, has diminished,' says George Rosenbaum, president of Shapiro & Associates. 'You see some improvement in these other areas, but it's a very small and slow process.' 26 For the third quarter, Sears said its total revenue rose 4.8% to $13.18 billion from $12.57 billion a year earlier. 27 Net income at Sears's merchandise group, which includes international and credit card operations, as well as U.S. stores, fell 25%. 28 Profit at Sears's Allstate insurance unit fell 38% to $126.1 million because of Hurricane Hugo, which inflicted the greatest single storm damage loss in the company's history. 29 Sears said claims from the storm, as expected, reduced its third-quarter net by $80 million, or 23 cents a share. 30 Allstate is expected to absorb another big hit in the fourth quarter as claims pour in from the San Francisco earthquake. 31 But a spokesman said the quake won't have as big a financial impact on Allstate as Hurricane Hugo did. 32 Net income at Sears's Dean Witter Financials Services group, meanwhile, rose nearly 32% to $35.7 million, reflecting improvements in its basic stock brokerage and Discover credit card businesses. 33 Profit at Sears's Coldwell Banker Real Estate Group nearly quadrupled to $81.2 million because of gains on sales of property. 34 In New York Stock Exchange composite trading yesterday, Sears shares closed at $40.50, up 87.5 cents.

Analysts estimated that sales at U . S . stores declined in the quarter , too .

Analysts

which analysts?

1 Boston Co., the upper-crust financial services concern that was rocked by a management scandal late last year, has had a sharp drop in profitability -- mainly because a high-risk bet on interest rates backfired. 2 Boston Co. 's fall from grace is bad news for its parent, Shearson Lehman Hutton Holdings Inc., which has relied heavily on the banking and money management unit's contributions in recent years. 3 In 1988, for example, Boston Co. had an estimated pretax profit of at least $110 million, while Shearson managed net income of just $96 million. 4 Shearson doesn't break out the earnings of its subsidiaries. 5 But people familiar with Boston Co. 's performance say the unit had profit of around $17 million for the third quarter, after barely breaking even for the first six months. 6 Shearson, meanwhile, posted net income of $106 million for the first nine months of the year, down slightly from $110 million for the year-ago period. 7 Moody's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary, to single-A-1 from double-A-3, citing problems in the company's 'aggressively managed securities portfolio.' 8 John Kriz, a Moody's vice president, said Boston Safe Deposit's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities. 9 The mismatch exposed the company to a high degree of interest-rate risk, and when rates moved unfavorably -- beginning late last year and continuing into this year -- 'it cost them,' Mr. Kriz said. 10 Mr. Kriz noted that Boston Safe Deposit 'has taken some actions to better control asset-liability management and improve controls in general, and we think these will serve to improve credit quality.' As some securities mature and the proceeds are reinvested, the problems ought to ease, he said. 11 But he also cited concerns over the company's mortgage exposure in the troubled New England real estate market. 12 Boston Co. officials declined to comment on Moody's action or on the unit's financial performance this year -- except to deny a published report that outside accountants had discovered evidence of significant accounting errors in the first three quarters' results. 13 An accounting controversy at the end of last year forced Boston Co. to admit it had overstated pretax profits by some $44 million. 14 The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company's chief financial officer and treasurer. 15 The executives were accused of improperly deferring expenses and booking revenue early, in an effort to dress up results -- and perhaps bolster performance-related bonuses. 16 Mr. von Germeten, in turn, attributed the controversy to judgmental errors by accountants and accused Shearson of conducting a 'witch hunt.' 17 Mr. Kriz of Moody's said the problems in the securities portfolio stem largely from positions taken last year. 18 The company's current management found itself 'locked into this,' he said.

Boston Co . , the upper - crust financial services concern that was rocked by a management scandal late last year , has had a sharp drop in profitability - - mainly because a high - risk bet on interest rates backfired .

scandal

What was the scandal?

1 Boston Co., the upper-crust financial services concern that was rocked by a management scandal late last year, has had a sharp drop in profitability -- mainly because a high-risk bet on interest rates backfired. 2 Boston Co. 's fall from grace is bad news for its parent, Shearson Lehman Hutton Holdings Inc., which has relied heavily on the banking and money management unit's contributions in recent years. 3 In 1988, for example, Boston Co. had an estimated pretax profit of at least $110 million, while Shearson managed net income of just $96 million. 4 Shearson doesn't break out the earnings of its subsidiaries. 5 But people familiar with Boston Co. 's performance say the unit had profit of around $17 million for the third quarter, after barely breaking even for the first six months. 6 Shearson, meanwhile, posted net income of $106 million for the first nine months of the year, down slightly from $110 million for the year-ago period. 7 Moody's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary, to single-A-1 from double-A-3, citing problems in the company's 'aggressively managed securities portfolio.' 8 John Kriz, a Moody's vice president, said Boston Safe Deposit's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities. 9 The mismatch exposed the company to a high degree of interest-rate risk, and when rates moved unfavorably -- beginning late last year and continuing into this year -- 'it cost them,' Mr. Kriz said. 10 Mr. Kriz noted that Boston Safe Deposit 'has taken some actions to better control asset-liability management and improve controls in general, and we think these will serve to improve credit quality.' As some securities mature and the proceeds are reinvested, the problems ought to ease, he said. 11 But he also cited concerns over the company's mortgage exposure in the troubled New England real estate market. 12 Boston Co. officials declined to comment on Moody's action or on the unit's financial performance this year -- except to deny a published report that outside accountants had discovered evidence of significant accounting errors in the first three quarters' results. 13 An accounting controversy at the end of last year forced Boston Co. to admit it had overstated pretax profits by some $44 million. 14 The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company's chief financial officer and treasurer. 15 The executives were accused of improperly deferring expenses and booking revenue early, in an effort to dress up results -- and perhaps bolster performance-related bonuses. 16 Mr. von Germeten, in turn, attributed the controversy to judgmental errors by accountants and accused Shearson of conducting a 'witch hunt.' 17 Mr. Kriz of Moody's said the problems in the securities portfolio stem largely from positions taken last year. 18 The company's current management found itself 'locked into this,' he said.

Boston Co . , the upper - crust financial services concern that was rocked by a management scandal late last year , has had a sharp drop in profitability - - mainly because a high - risk bet on interest rates backfired .

a management scandal late last year ,

What happened in the scandal?

1 Boston Co., the upper-crust financial services concern that was rocked by a management scandal late last year, has had a sharp drop in profitability -- mainly because a high-risk bet on interest rates backfired. 2 Boston Co. 's fall from grace is bad news for its parent, Shearson Lehman Hutton Holdings Inc., which has relied heavily on the banking and money management unit's contributions in recent years. 3 In 1988, for example, Boston Co. had an estimated pretax profit of at least $110 million, while Shearson managed net income of just $96 million. 4 Shearson doesn't break out the earnings of its subsidiaries. 5 But people familiar with Boston Co. 's performance say the unit had profit of around $17 million for the third quarter, after barely breaking even for the first six months. 6 Shearson, meanwhile, posted net income of $106 million for the first nine months of the year, down slightly from $110 million for the year-ago period. 7 Moody's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary, to single-A-1 from double-A-3, citing problems in the company's 'aggressively managed securities portfolio.' 8 John Kriz, a Moody's vice president, said Boston Safe Deposit's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities. 9 The mismatch exposed the company to a high degree of interest-rate risk, and when rates moved unfavorably -- beginning late last year and continuing into this year -- 'it cost them,' Mr. Kriz said. 10 Mr. Kriz noted that Boston Safe Deposit 'has taken some actions to better control asset-liability management and improve controls in general, and we think these will serve to improve credit quality.' As some securities mature and the proceeds are reinvested, the problems ought to ease, he said. 11 But he also cited concerns over the company's mortgage exposure in the troubled New England real estate market. 12 Boston Co. officials declined to comment on Moody's action or on the unit's financial performance this year -- except to deny a published report that outside accountants had discovered evidence of significant accounting errors in the first three quarters' results. 13 An accounting controversy at the end of last year forced Boston Co. to admit it had overstated pretax profits by some $44 million. 14 The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company's chief financial officer and treasurer. 15 The executives were accused of improperly deferring expenses and booking revenue early, in an effort to dress up results -- and perhaps bolster performance-related bonuses. 16 Mr. von Germeten, in turn, attributed the controversy to judgmental errors by accountants and accused Shearson of conducting a 'witch hunt.' 17 Mr. Kriz of Moody's said the problems in the securities portfolio stem largely from positions taken last year. 18 The company's current management found itself 'locked into this,' he said.

Boston Co . , the upper - crust financial services concern that was rocked by a management scandal late last year , has had a sharp drop in profitability - - mainly because a high - risk bet on interest rates backfired .

sharp drop in profitability

How much of a drop in profitability?

1 Boston Co., the upper-crust financial services concern that was rocked by a management scandal late last year, has had a sharp drop in profitability -- mainly because a high-risk bet on interest rates backfired. 2 Boston Co. 's fall from grace is bad news for its parent, Shearson Lehman Hutton Holdings Inc., which has relied heavily on the banking and money management unit's contributions in recent years. 3 In 1988, for example, Boston Co. had an estimated pretax profit of at least $110 million, while Shearson managed net income of just $96 million. 4 Shearson doesn't break out the earnings of its subsidiaries. 5 But people familiar with Boston Co. 's performance say the unit had profit of around $17 million for the third quarter, after barely breaking even for the first six months. 6 Shearson, meanwhile, posted net income of $106 million for the first nine months of the year, down slightly from $110 million for the year-ago period. 7 Moody's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary, to single-A-1 from double-A-3, citing problems in the company's 'aggressively managed securities portfolio.' 8 John Kriz, a Moody's vice president, said Boston Safe Deposit's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities. 9 The mismatch exposed the company to a high degree of interest-rate risk, and when rates moved unfavorably -- beginning late last year and continuing into this year -- 'it cost them,' Mr. Kriz said. 10 Mr. Kriz noted that Boston Safe Deposit 'has taken some actions to better control asset-liability management and improve controls in general, and we think these will serve to improve credit quality.' As some securities mature and the proceeds are reinvested, the problems ought to ease, he said. 11 But he also cited concerns over the company's mortgage exposure in the troubled New England real estate market. 12 Boston Co. officials declined to comment on Moody's action or on the unit's financial performance this year -- except to deny a published report that outside accountants had discovered evidence of significant accounting errors in the first three quarters' results. 13 An accounting controversy at the end of last year forced Boston Co. to admit it had overstated pretax profits by some $44 million. 14 The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company's chief financial officer and treasurer. 15 The executives were accused of improperly deferring expenses and booking revenue early, in an effort to dress up results -- and perhaps bolster performance-related bonuses. 16 Mr. von Germeten, in turn, attributed the controversy to judgmental errors by accountants and accused Shearson of conducting a 'witch hunt.' 17 Mr. Kriz of Moody's said the problems in the securities portfolio stem largely from positions taken last year. 18 The company's current management found itself 'locked into this,' he said.

Boston Co . , the upper - crust financial services concern that was rocked by a management scandal late last year , has had a sharp drop in profitability - - mainly because a high - risk bet on interest rates backfired .

high - risk bet on interest rates

What was the bet, how high-risk?

1 Boston Co., the upper-crust financial services concern that was rocked by a management scandal late last year, has had a sharp drop in profitability -- mainly because a high-risk bet on interest rates backfired. 2 Boston Co. 's fall from grace is bad news for its parent, Shearson Lehman Hutton Holdings Inc., which has relied heavily on the banking and money management unit's contributions in recent years. 3 In 1988, for example, Boston Co. had an estimated pretax profit of at least $110 million, while Shearson managed net income of just $96 million. 4 Shearson doesn't break out the earnings of its subsidiaries. 5 But people familiar with Boston Co. 's performance say the unit had profit of around $17 million for the third quarter, after barely breaking even for the first six months. 6 Shearson, meanwhile, posted net income of $106 million for the first nine months of the year, down slightly from $110 million for the year-ago period. 7 Moody's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary, to single-A-1 from double-A-3, citing problems in the company's 'aggressively managed securities portfolio.' 8 John Kriz, a Moody's vice president, said Boston Safe Deposit's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities. 9 The mismatch exposed the company to a high degree of interest-rate risk, and when rates moved unfavorably -- beginning late last year and continuing into this year -- 'it cost them,' Mr. Kriz said. 10 Mr. Kriz noted that Boston Safe Deposit 'has taken some actions to better control asset-liability management and improve controls in general, and we think these will serve to improve credit quality.' As some securities mature and the proceeds are reinvested, the problems ought to ease, he said. 11 But he also cited concerns over the company's mortgage exposure in the troubled New England real estate market. 12 Boston Co. officials declined to comment on Moody's action or on the unit's financial performance this year -- except to deny a published report that outside accountants had discovered evidence of significant accounting errors in the first three quarters' results. 13 An accounting controversy at the end of last year forced Boston Co. to admit it had overstated pretax profits by some $44 million. 14 The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company's chief financial officer and treasurer. 15 The executives were accused of improperly deferring expenses and booking revenue early, in an effort to dress up results -- and perhaps bolster performance-related bonuses. 16 Mr. von Germeten, in turn, attributed the controversy to judgmental errors by accountants and accused Shearson of conducting a 'witch hunt.' 17 Mr. Kriz of Moody's said the problems in the securities portfolio stem largely from positions taken last year. 18 The company's current management found itself 'locked into this,' he said.

Boston Co . ' s fall from grace is bad news for its parent , Shearson Lehman Hutton Holdings Inc . , which has relied heavily on the banking and money management unit ' s contributions in recent years .

contributions in recent years

Did they profit from the high risk bet before it stopped working?

1 Boston Co., the upper-crust financial services concern that was rocked by a management scandal late last year, has had a sharp drop in profitability -- mainly because a high-risk bet on interest rates backfired. 2 Boston Co. 's fall from grace is bad news for its parent, Shearson Lehman Hutton Holdings Inc., which has relied heavily on the banking and money management unit's contributions in recent years. 3 In 1988, for example, Boston Co. had an estimated pretax profit of at least $110 million, while Shearson managed net income of just $96 million. 4 Shearson doesn't break out the earnings of its subsidiaries. 5 But people familiar with Boston Co. 's performance say the unit had profit of around $17 million for the third quarter, after barely breaking even for the first six months. 6 Shearson, meanwhile, posted net income of $106 million for the first nine months of the year, down slightly from $110 million for the year-ago period. 7 Moody's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary, to single-A-1 from double-A-3, citing problems in the company's 'aggressively managed securities portfolio.' 8 John Kriz, a Moody's vice president, said Boston Safe Deposit's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities. 9 The mismatch exposed the company to a high degree of interest-rate risk, and when rates moved unfavorably -- beginning late last year and continuing into this year -- 'it cost them,' Mr. Kriz said. 10 Mr. Kriz noted that Boston Safe Deposit 'has taken some actions to better control asset-liability management and improve controls in general, and we think these will serve to improve credit quality.' As some securities mature and the proceeds are reinvested, the problems ought to ease, he said. 11 But he also cited concerns over the company's mortgage exposure in the troubled New England real estate market. 12 Boston Co. officials declined to comment on Moody's action or on the unit's financial performance this year -- except to deny a published report that outside accountants had discovered evidence of significant accounting errors in the first three quarters' results. 13 An accounting controversy at the end of last year forced Boston Co. to admit it had overstated pretax profits by some $44 million. 14 The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company's chief financial officer and treasurer. 15 The executives were accused of improperly deferring expenses and booking revenue early, in an effort to dress up results -- and perhaps bolster performance-related bonuses. 16 Mr. von Germeten, in turn, attributed the controversy to judgmental errors by accountants and accused Shearson of conducting a 'witch hunt.' 17 Mr. Kriz of Moody's said the problems in the securities portfolio stem largely from positions taken last year. 18 The company's current management found itself 'locked into this,' he said.

In 1988 , for example , Boston Co . had an estimated pretax profit of at least $ 110 million , while Shearson managed net income of just $ 96 million .

just $ 96 million

Is that considered a small amount in this industry?

1 Boston Co., the upper-crust financial services concern that was rocked by a management scandal late last year, has had a sharp drop in profitability -- mainly because a high-risk bet on interest rates backfired. 2 Boston Co. 's fall from grace is bad news for its parent, Shearson Lehman Hutton Holdings Inc., which has relied heavily on the banking and money management unit's contributions in recent years. 3 In 1988, for example, Boston Co. had an estimated pretax profit of at least $110 million, while Shearson managed net income of just $96 million. 4 Shearson doesn't break out the earnings of its subsidiaries. 5 But people familiar with Boston Co. 's performance say the unit had profit of around $17 million for the third quarter, after barely breaking even for the first six months. 6 Shearson, meanwhile, posted net income of $106 million for the first nine months of the year, down slightly from $110 million for the year-ago period. 7 Moody's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary, to single-A-1 from double-A-3, citing problems in the company's 'aggressively managed securities portfolio.' 8 John Kriz, a Moody's vice president, said Boston Safe Deposit's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities. 9 The mismatch exposed the company to a high degree of interest-rate risk, and when rates moved unfavorably -- beginning late last year and continuing into this year -- 'it cost them,' Mr. Kriz said. 10 Mr. Kriz noted that Boston Safe Deposit 'has taken some actions to better control asset-liability management and improve controls in general, and we think these will serve to improve credit quality.' As some securities mature and the proceeds are reinvested, the problems ought to ease, he said. 11 But he also cited concerns over the company's mortgage exposure in the troubled New England real estate market. 12 Boston Co. officials declined to comment on Moody's action or on the unit's financial performance this year -- except to deny a published report that outside accountants had discovered evidence of significant accounting errors in the first three quarters' results. 13 An accounting controversy at the end of last year forced Boston Co. to admit it had overstated pretax profits by some $44 million. 14 The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company's chief financial officer and treasurer. 15 The executives were accused of improperly deferring expenses and booking revenue early, in an effort to dress up results -- and perhaps bolster performance-related bonuses. 16 Mr. von Germeten, in turn, attributed the controversy to judgmental errors by accountants and accused Shearson of conducting a 'witch hunt.' 17 Mr. Kriz of Moody's said the problems in the securities portfolio stem largely from positions taken last year. 18 The company's current management found itself 'locked into this,' he said.

Shearson doesn ' t break out the earnings of its subsidiaries .

subsidiaries

Who are the subsidiaries?

1 Boston Co., the upper-crust financial services concern that was rocked by a management scandal late last year, has had a sharp drop in profitability -- mainly because a high-risk bet on interest rates backfired. 2 Boston Co. 's fall from grace is bad news for its parent, Shearson Lehman Hutton Holdings Inc., which has relied heavily on the banking and money management unit's contributions in recent years. 3 In 1988, for example, Boston Co. had an estimated pretax profit of at least $110 million, while Shearson managed net income of just $96 million. 4 Shearson doesn't break out the earnings of its subsidiaries. 5 But people familiar with Boston Co. 's performance say the unit had profit of around $17 million for the third quarter, after barely breaking even for the first six months. 6 Shearson, meanwhile, posted net income of $106 million for the first nine months of the year, down slightly from $110 million for the year-ago period. 7 Moody's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary, to single-A-1 from double-A-3, citing problems in the company's 'aggressively managed securities portfolio.' 8 John Kriz, a Moody's vice president, said Boston Safe Deposit's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities. 9 The mismatch exposed the company to a high degree of interest-rate risk, and when rates moved unfavorably -- beginning late last year and continuing into this year -- 'it cost them,' Mr. Kriz said. 10 Mr. Kriz noted that Boston Safe Deposit 'has taken some actions to better control asset-liability management and improve controls in general, and we think these will serve to improve credit quality.' As some securities mature and the proceeds are reinvested, the problems ought to ease, he said. 11 But he also cited concerns over the company's mortgage exposure in the troubled New England real estate market. 12 Boston Co. officials declined to comment on Moody's action or on the unit's financial performance this year -- except to deny a published report that outside accountants had discovered evidence of significant accounting errors in the first three quarters' results. 13 An accounting controversy at the end of last year forced Boston Co. to admit it had overstated pretax profits by some $44 million. 14 The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company's chief financial officer and treasurer. 15 The executives were accused of improperly deferring expenses and booking revenue early, in an effort to dress up results -- and perhaps bolster performance-related bonuses. 16 Mr. von Germeten, in turn, attributed the controversy to judgmental errors by accountants and accused Shearson of conducting a 'witch hunt.' 17 Mr. Kriz of Moody's said the problems in the securities portfolio stem largely from positions taken last year. 18 The company's current management found itself 'locked into this,' he said.

But people familiar with Boston Co . ' s performance say the unit had profit of around $ 17 million for the third quarter , after barely breaking even for the first six months .

barely breaking even

What lead to this surge of profit when they were otherwise even?

1 Boston Co., the upper-crust financial services concern that was rocked by a management scandal late last year, has had a sharp drop in profitability -- mainly because a high-risk bet on interest rates backfired. 2 Boston Co. 's fall from grace is bad news for its parent, Shearson Lehman Hutton Holdings Inc., which has relied heavily on the banking and money management unit's contributions in recent years. 3 In 1988, for example, Boston Co. had an estimated pretax profit of at least $110 million, while Shearson managed net income of just $96 million. 4 Shearson doesn't break out the earnings of its subsidiaries. 5 But people familiar with Boston Co. 's performance say the unit had profit of around $17 million for the third quarter, after barely breaking even for the first six months. 6 Shearson, meanwhile, posted net income of $106 million for the first nine months of the year, down slightly from $110 million for the year-ago period. 7 Moody's Investors Service Inc. last week downgraded the long-term deposit rating of Boston Co. 's Boston Safe Deposit & Trust Co. subsidiary, to single-A-1 from double-A-3, citing problems in the company's 'aggressively managed securities portfolio.' 8 John Kriz, a Moody's vice president, said Boston Safe Deposit's performance has been hurt this year by a mismatch in the maturities of its assets and liabilities. 9 The mismatch exposed the company to a high degree of interest-rate risk, and when rates moved unfavorably -- beginning late last year and continuing into this year -- 'it cost them,' Mr. Kriz said. 10 Mr. Kriz noted that Boston Safe Deposit 'has taken some actions to better control asset-liability management and improve controls in general, and we think these will serve to improve credit quality.' As some securities mature and the proceeds are reinvested, the problems ought to ease, he said. 11 But he also cited concerns over the company's mortgage exposure in the troubled New England real estate market. 12 Boston Co. officials declined to comment on Moody's action or on the unit's financial performance this year -- except to deny a published report that outside accountants had discovered evidence of significant accounting errors in the first three quarters' results. 13 An accounting controversy at the end of last year forced Boston Co. to admit it had overstated pretax profits by some $44 million. 14 The resulting scandal led to the firing of James N. von Germeten as Boston Co. 's president and to the resignations of the company's chief financial officer and treasurer. 15 The executives were accused of improperly deferring expenses and booking revenue early, in an effort to dress up results -- and perhaps bolster performance-related bonuses. 16 Mr. von Germeten, in turn, attributed the controversy to judgmental errors by accountants and accused Shearson of conducting a 'witch hunt.' 17 Mr. Kriz of Moody's said the problems in the securities portfolio stem largely from positions taken last year. 18 The company's current management found itself 'locked into this,' he said.

But people familiar with Boston Co . ' s performance say the unit had profit of around $ 17 million for the third quarter , after barely breaking even for the first six months .

people familiar with

Who are the people familiar with their performance?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

The dollar finished lower yesterday , after tracking another rollercoaster session on Wall Street .

finished

What does this word mean in terms of the stock market?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

The dollar finished lower yesterday , after tracking another rollercoaster session on Wall Street .

dollar finished lower yesterday ,

Why did the dollar finished lower?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

The dollar finished lower yesterday , after tracking another rollercoaster session on Wall Street .

rollercoaster session

Why is there another roller coaster session?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

Concern about the volatile U . S . stock market had faded in recent sessions , and traders appeared content to let the dollar languish in a narrow range until tomorrow , when the preliminary report on third - quarter U . S . gross national product is released .

volatile

Why is the US stock market volatile?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

Concern about the volatile U . S . stock market had faded in recent sessions , and traders appeared content to let the dollar languish in a narrow range until tomorrow , when the preliminary report on third - quarter U . S . gross national product is released .

the volatile U . S . stock market

Why is the US stock market volatile?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U . S . unit lower .

Dow Jones

What is the Dow Jones?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U . S . unit lower .

seesaw gyrations

What is seesaw gyrations?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U . S . unit lower .

to bid the U . S . unit lower

Why are they bidding lower?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

UAL ' s decision to remain an independent company sent share prices tumbling .

UAL ' s

What is UAL?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

UAL ' s decision to remain an independent company sent share prices tumbling .

UAL ' s decision

Why is UAL's decision seems significant at this point?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

By midmorning , the DJIA had plunged 80 points and foreign - exchange dealers quickly drove the dollar down .

80 points

What does this mean in terms of business?

1 The dollar finished lower yesterday, after tracking another rollercoaster session on Wall Street. 2 Concern about the volatile U.S. stock market had faded in recent sessions, and traders appeared content to let the dollar languish in a narrow range until tomorrow, when the preliminary report on third-quarter U.S. gross national product is released. 3 But seesaw gyrations in the Dow Jones Industrial Average yesterday put Wall Street back in the spotlight and inspired market participants to bid the U.S. unit lower. 4 UAL's decision to remain an independent company sent share prices tumbling. 5 By midmorning, the DJIA had plunged 80 points and foreign-exchange dealers quickly drove the dollar down. 6 When the DJIA modestly rebounded, the dollar bounced back in choppy dealings but ended the day below the levels of late Monday. 7 Stock prices, meanwhile, posted significant gains in later trading and closed down by only 3.69 points on the day. 8 Some dealers said that the market's strong reaction to Wall Street reflects a general uneasiness about the dollar. 9 They added that the DJIA's swift drop proved an easy excuse for the market to drive the U.S. currency in the direction it was already headed. 10 In late New York trading yesterday, the dollar was quoted at 1.8355 marks, down from 1.8470 marks Monday, and at 141.45 yen, down from 141.90 yen late Monday. 11 Sterling was quoted at $1.6055, up from $1.6030 late Monday. 12 In Tokyo Wednesday, the U.S. currency opened for trading at 141.57 yen, down from Tuesday's Tokyo close of 142.10 yen. 13 Tom Trettien, a vice president with Banque Paribas in New York, sees a break in the dollar's long-term upward trend, a trend that began in January 1988. 14 He argues that the dollar is now 'moving sideways,' adding that 'the next leg could be the beginning of a longer term bearish phase.' 15 Analysts peg the dollar's recent weakness to an underlying slowdown in the U.S. economy, highlighted by recent economic data, particularly a surprisingly sharp widening in the August U.S. trade gap. 16 They also point out that narrowing interest-rate differentials between the U.S. and its major trading partners tend to make the U.S. currency less attractive to foreign investors. 17 Despite several spurts of dollar trading, it was noted that mark-yen cross trade grabbed much of the market's attention. 18 Following the dive in U.S. stocks, the mark has strengthened more than its major counterparts. 19 Traders attribute the mark's surge to a robust West German economy and higher rate differentials. 20 But, they add that the mark's strength is in part a reflection of a shift away from U.S. assets by Japanese investors into West German investments. 21 'The question remains: how much can the West German market absorb?' says one senior dealer. 22 Some dealers say that Bank of Japan Governor Satoshi Sumita's reassurance that Japanese monetary policy won't be changed for the time being has given investors an added excuse to push the yen down even further against the mark. 23 Despite the yen's weakness with respect to the mark, Tokyo traders say they don't expect the Bank of Japan to take any action to support the Japanese currency on that front. 24 Meanwhile, sterling slumped on news that the United Kingdom posted a wider-than-expected trade deficit in September. 25 The news also knocked the British unit to below 2.95 marks in London, but a bout of short-covering helped sterling recoup some of its earlier losses. 26 On the Commodity Exchange in New York, gold for current delivery jumped $3.20 to $370.20 an ounce. 27 The close was the highest since Aug. 15. 28 Estimated volume was a light two million ounces. 29 In early trading in Hong Kong Wednesday, gold was quoted at $368.25 an ounce.

By midmorning , the DJIA had plunged 80 points and foreign - exchange dealers quickly drove the dollar down .

DJIA

What is DJIA stands for?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism , and thus to persuade the U . S . to break off talks with the group .

new effort to prove

How will it prove this?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism , and thus to persuade the U . S . to break off talks with the group .

practice terrorism ,

In what way does Israel claim that the Palestine Liberation Org continues to practice terrorism?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism , and thus to persuade the U . S . to break off talks with the group .

U

will the talks continue?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism , and thus to persuade the U . S . to break off talks with the group .

practice terrorism ,

Why does Israel feel the Palestinians practice terrorism?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

U . S . officials , however , said they aren ' t buying the Israeli argument .

aren ' t buying

Why aren't they buying it?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

U . S . officials , however , said they aren ' t buying the Israeli argument .

aren ' t buying

Why does the US not believe?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

U . S . officials , however , said they aren ' t buying the Israeli argument .

aren ' t buying

why arent they buying?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

U . S . officials , however , said they aren ' t buying the Israeli argument .

aren ' t buying

Why is the U.S. not buying Israel's argument?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

Israeli counterterrorism officials provided the State Department with a 20 - page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat .

they attribute directly

How are these events directly attributed to the PLO chairman?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

Israeli counterterrorism officials provided the State Department with a 20 - page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat .

PLO

what is plo?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

Mr . Arafat publicly renounced terrorism Dec . 15 , satisfying the U . S . precondition for a direct " dialogue " with the PLO .

precondition

Why was this a precondition of the dialogue?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

A U . S . counterterrorism official said experts are studying the Israeli list . " We have no independent evidence linking Fatah to any acts of terrorism since Dec . 15 , 1988 , " he said , referring to the specific PLO group that Mr . Arafat heads . " So far , this list doesn ' t change our view .

studying

Does studying mean investigating?

1 Israel has launched a new effort to prove the Palestine Liberation Organization continues to practice terrorism, and thus to persuade the U.S. to break off talks with the group. 2 U.S. officials, however, said they aren't buying the Israeli argument. 3 Israeli counterterrorism officials provided the State Department with a 20-page list of recent terrorist incidents they attribute directly to forces controlled by PLO Chairman Yasser Arafat. 4 Mr. Arafat publicly renounced terrorism Dec. 15, satisfying the U.S. precondition for a direct 'dialogue' with the PLO. 5 A U.S. counterterrorism official said experts are studying the Israeli list. 'We have no independent evidence linking Fatah to any acts of terrorism since Dec. 15, 1988,' he said, referring to the specific PLO group that Mr. Arafat heads. 'So far, this list doesn't change our view. 6 Israel wants to end the dialogue, but our analysts take a different view than theirs.' 7 Israeli Prime Minister Yitzhak Shamir's top adviser on counterterrorism, Yigal Carmon, was here Monday to present the report to members of Congress, reporters and others. 8 Mr. Carmon said he also presented the list last week to William Brown, U.S. Ambassador to Israel. 9 Separately, the New York Times reported that the Israeli government had provided its correspondent in Jerusalem with different documents that Israel said prove the PLO has been conducting terrorism from the occupied Arab territories. 10 The State Department said it hasn't yet seen copies of those papers. 11 'If the dialogue was based on the assumption that Arafat or the PLO would stop terrorism, and we have evidence of continued terrorism, what would be the logical conclusion?' Mr. Carmon asked. 12 Israel has long claimed Mr. Arafat never meant to renounce terrorism, particularly because he and his lieutenants reserved the right to press 'armed struggle' against the Jewish state. 13 Now, Jerusalem says it is backing up its contention with detailed accounts of alleged terrorist acts and plans linked to Mr. Arafat. 14 It blames most of these on Fatah. 15 The new accusations come at a delicate time in U.S. efforts to bring about talks between Israel and Palestinian representatives. 16 The State Department said it had received a new letter on the subject from Israeli Foreign Minister Moshe Arens, restating Israel's previous objection to negotiating with any Palestinian tied to the PLO. 17 Deciding what constitutes 'terrorism' can be a legalistic exercise. 18 The U.S. defines it as 'premediated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine state agents.' To meet the U.S. criteria, Israel contended it only listed incidents that involved civilians and occurred inside its pre-1967 borders. 19 At the heart of Israel's report is a list of a dozen incidents Jerusalem attributes to Fatah, including the use of bombs and Molotov cocktails. 20 But U.S. officials say they aren't satisfied these incidents constitute terrorism because they may be offshoots of the intifadah, the Palestinian rebellion in the occupied territories, which the U.S. doesn't classify as terrorism. 21 In addition, the officials say Israel hasn't presented convincing evidence these acts were ordered by Fatah or by any group Mr. Arafat controls. 22 U.S. terrorism experts also say they are highly uncertain about the veracity of the separate documents leaked to the New York Times. 23 The papers, which Israel says were discovered in Israeli-occupied Gaza, refer to terrorist acts to be carried out in the name of a group called 'the Revolutionary Eagles.' 24 Some supporters of Israel say U.S. policy on Palestinian terrorism is colored by an intense desire to maintain the dialogue with the PLO. 25 But State Department officials accuse Israel of leaking questionable claims to embarrass the U.S.

A U . S . counterterrorism official said experts are studying the Israeli list . " We have no independent evidence linking Fatah to any acts of terrorism since Dec . 15 , 1988 , " he said , referring to the specific PLO group that Mr . Arafat heads . " So far , this list doesn ' t change our view .

view

what list would?

1 A group of investors led by Giant Group Ltd. and its chairman, Burt Sugarman, said it filed with federal antitrust regulators for clearance to buy more than 50% of the stock of Rally's Inc., a fast-food company based in Louisville, Ky. 2 Rally's operates and franchises about 160 fast-food restaurants throughout the U.S. 3 The company went public earlier this month, offering 1,745,000 shares of common stock at $15 a share. 4 Giant has interests in cement making and newsprint. 5 The investor group includes Restaurant Investment Partnership, a California general partnership, and three Rally's directors: Mr. Sugarman, James M. Trotter III and William E. Trotter II. 6 The group currently holds 3,027,330 Rally's shares, or 45.2% of its commmon shares outstanding. 7 Giant Group owned 22% of Rally's shares before the initial public offering. 8 A second group of three company directors, aligned with Rally's founder James Patterson, also is seeking control of the fast-food chain. 9 It is estimated that the Patterson group controls more than 40% of Rally's stock. 10 Rally officials weren't available to comment late yesterday. 11 For the year ended July 2, Rally had net income of $2.4 million, or 34 cents a share, on revenue of $52.9 million.

A group of investors led by Giant Group Ltd . and its chairman , Burt Sugarman , said it filed with federal antitrust regulators for clearance to buy more than 50 % of the stock of Rally ' s Inc . , a fast - food company based in Louisville , Ky .

Giant Group Ltd

who are giant group ltd?

1 A group of investors led by Giant Group Ltd. and its chairman, Burt Sugarman, said it filed with federal antitrust regulators for clearance to buy more than 50% of the stock of Rally's Inc., a fast-food company based in Louisville, Ky. 2 Rally's operates and franchises about 160 fast-food restaurants throughout the U.S. 3 The company went public earlier this month, offering 1,745,000 shares of common stock at $15 a share. 4 Giant has interests in cement making and newsprint. 5 The investor group includes Restaurant Investment Partnership, a California general partnership, and three Rally's directors: Mr. Sugarman, James M. Trotter III and William E. Trotter II. 6 The group currently holds 3,027,330 Rally's shares, or 45.2% of its commmon shares outstanding. 7 Giant Group owned 22% of Rally's shares before the initial public offering. 8 A second group of three company directors, aligned with Rally's founder James Patterson, also is seeking control of the fast-food chain. 9 It is estimated that the Patterson group controls more than 40% of Rally's stock. 10 Rally officials weren't available to comment late yesterday. 11 For the year ended July 2, Rally had net income of $2.4 million, or 34 cents a share, on revenue of $52.9 million.

A group of investors led by Giant Group Ltd . and its chairman , Burt Sugarman , said it filed with federal antitrust regulators for clearance to buy more than 50 % of the stock of Rally ' s Inc . , a fast - food company based in Louisville , Ky .

filed

Why did the group of investors have to file with federal antitrust regulators in order to buy stock?

1 A group of investors led by Giant Group Ltd. and its chairman, Burt Sugarman, said it filed with federal antitrust regulators for clearance to buy more than 50% of the stock of Rally's Inc., a fast-food company based in Louisville, Ky. 2 Rally's operates and franchises about 160 fast-food restaurants throughout the U.S. 3 The company went public earlier this month, offering 1,745,000 shares of common stock at $15 a share. 4 Giant has interests in cement making and newsprint. 5 The investor group includes Restaurant Investment Partnership, a California general partnership, and three Rally's directors: Mr. Sugarman, James M. Trotter III and William E. Trotter II. 6 The group currently holds 3,027,330 Rally's shares, or 45.2% of its commmon shares outstanding. 7 Giant Group owned 22% of Rally's shares before the initial public offering. 8 A second group of three company directors, aligned with Rally's founder James Patterson, also is seeking control of the fast-food chain. 9 It is estimated that the Patterson group controls more than 40% of Rally's stock. 10 Rally officials weren't available to comment late yesterday. 11 For the year ended July 2, Rally had net income of $2.4 million, or 34 cents a share, on revenue of $52.9 million.

Rally ' s operates and franchises about 160 fast - food restaurants throughout the U . S .

160 fast - food

Which fast food restaurants?

1 A group of investors led by Giant Group Ltd. and its chairman, Burt Sugarman, said it filed with federal antitrust regulators for clearance to buy more than 50% of the stock of Rally's Inc., a fast-food company based in Louisville, Ky. 2 Rally's operates and franchises about 160 fast-food restaurants throughout the U.S. 3 The company went public earlier this month, offering 1,745,000 shares of common stock at $15 a share. 4 Giant has interests in cement making and newsprint. 5 The investor group includes Restaurant Investment Partnership, a California general partnership, and three Rally's directors: Mr. Sugarman, James M. Trotter III and William E. Trotter II. 6 The group currently holds 3,027,330 Rally's shares, or 45.2% of its commmon shares outstanding. 7 Giant Group owned 22% of Rally's shares before the initial public offering. 8 A second group of three company directors, aligned with Rally's founder James Patterson, also is seeking control of the fast-food chain. 9 It is estimated that the Patterson group controls more than 40% of Rally's stock. 10 Rally officials weren't available to comment late yesterday. 11 For the year ended July 2, Rally had net income of $2.4 million, or 34 cents a share, on revenue of $52.9 million.

The company went public earlier this month , offering 1 , 745 , 000 shares of common stock at $ 15 a share .

public

Why did the company go public?

1 A group of investors led by Giant Group Ltd. and its chairman, Burt Sugarman, said it filed with federal antitrust regulators for clearance to buy more than 50% of the stock of Rally's Inc., a fast-food company based in Louisville, Ky. 2 Rally's operates and franchises about 160 fast-food restaurants throughout the U.S. 3 The company went public earlier this month, offering 1,745,000 shares of common stock at $15 a share. 4 Giant has interests in cement making and newsprint. 5 The investor group includes Restaurant Investment Partnership, a California general partnership, and three Rally's directors: Mr. Sugarman, James M. Trotter III and William E. Trotter II. 6 The group currently holds 3,027,330 Rally's shares, or 45.2% of its commmon shares outstanding. 7 Giant Group owned 22% of Rally's shares before the initial public offering. 8 A second group of three company directors, aligned with Rally's founder James Patterson, also is seeking control of the fast-food chain. 9 It is estimated that the Patterson group controls more than 40% of Rally's stock. 10 Rally officials weren't available to comment late yesterday. 11 For the year ended July 2, Rally had net income of $2.4 million, or 34 cents a share, on revenue of $52.9 million.

The company went public earlier this month , offering 1 , 745 , 000 shares of common stock at $ 15 a share .

at $ 15 a share

is that high or low?

1 A group of investors led by Giant Group Ltd. and its chairman, Burt Sugarman, said it filed with federal antitrust regulators for clearance to buy more than 50% of the stock of Rally's Inc., a fast-food company based in Louisville, Ky. 2 Rally's operates and franchises about 160 fast-food restaurants throughout the U.S. 3 The company went public earlier this month, offering 1,745,000 shares of common stock at $15 a share. 4 Giant has interests in cement making and newsprint. 5 The investor group includes Restaurant Investment Partnership, a California general partnership, and three Rally's directors: Mr. Sugarman, James M. Trotter III and William E. Trotter II. 6 The group currently holds 3,027,330 Rally's shares, or 45.2% of its commmon shares outstanding. 7 Giant Group owned 22% of Rally's shares before the initial public offering. 8 A second group of three company directors, aligned with Rally's founder James Patterson, also is seeking control of the fast-food chain. 9 It is estimated that the Patterson group controls more than 40% of Rally's stock. 10 Rally officials weren't available to comment late yesterday. 11 For the year ended July 2, Rally had net income of $2.4 million, or 34 cents a share, on revenue of $52.9 million.

Giant has interests in cement making and newsprint .

cement making and newsprint

how did you get this info?

1 A group of investors led by Giant Group Ltd. and its chairman, Burt Sugarman, said it filed with federal antitrust regulators for clearance to buy more than 50% of the stock of Rally's Inc., a fast-food company based in Louisville, Ky. 2 Rally's operates and franchises about 160 fast-food restaurants throughout the U.S. 3 The company went public earlier this month, offering 1,745,000 shares of common stock at $15 a share. 4 Giant has interests in cement making and newsprint. 5 The investor group includes Restaurant Investment Partnership, a California general partnership, and three Rally's directors: Mr. Sugarman, James M. Trotter III and William E. Trotter II. 6 The group currently holds 3,027,330 Rally's shares, or 45.2% of its commmon shares outstanding. 7 Giant Group owned 22% of Rally's shares before the initial public offering. 8 A second group of three company directors, aligned with Rally's founder James Patterson, also is seeking control of the fast-food chain. 9 It is estimated that the Patterson group controls more than 40% of Rally's stock. 10 Rally officials weren't available to comment late yesterday. 11 For the year ended July 2, Rally had net income of $2.4 million, or 34 cents a share, on revenue of $52.9 million.

The investor group includes Restaurant Investment Partnership , a California general partnership , and three Rally ' s directors : Mr . Sugarman , James M . Trotter III and William E . Trotter II .

Rally ' s

Was it the Rally's directors that wanted to buy so many stocks?

1 A group of investors led by Giant Group Ltd. and its chairman, Burt Sugarman, said it filed with federal antitrust regulators for clearance to buy more than 50% of the stock of Rally's Inc., a fast-food company based in Louisville, Ky. 2 Rally's operates and franchises about 160 fast-food restaurants throughout the U.S. 3 The company went public earlier this month, offering 1,745,000 shares of common stock at $15 a share. 4 Giant has interests in cement making and newsprint. 5 The investor group includes Restaurant Investment Partnership, a California general partnership, and three Rally's directors: Mr. Sugarman, James M. Trotter III and William E. Trotter II. 6 The group currently holds 3,027,330 Rally's shares, or 45.2% of its commmon shares outstanding. 7 Giant Group owned 22% of Rally's shares before the initial public offering. 8 A second group of three company directors, aligned with Rally's founder James Patterson, also is seeking control of the fast-food chain. 9 It is estimated that the Patterson group controls more than 40% of Rally's stock. 10 Rally officials weren't available to comment late yesterday. 11 For the year ended July 2, Rally had net income of $2.4 million, or 34 cents a share, on revenue of $52.9 million.

The investor group includes Restaurant Investment Partnership , a California general partnership , and three Rally ' s directors : Mr . Sugarman , James M . Trotter III and William E . Trotter II .

California general partnership ,

what do they do?

1 We are deeply disturbed that a recent editorial stated that the 'Americans With Disabilities Act of 1989' was 'crafted primarily by Democratic Senators Kennedy and Harkin' with a premise 'based on the presumption that most Americans are hostile to the disabled. . . .' Perhaps even more offensive is the statement, 'It is surprising that George Bush and the White House inner circle would ally themselves with this crabby philosophy.' 2 This legislation was not drafted by a handful of Democratic 'do-gooders.' Quite the contrary -- it results from years of work by members of the National Council on the Handicapped, all appointed by President Reagan. 3 You depict the bill as something Democratic leaders 'hoodwinked' the administration into endorsing. 4 The opposite is true: It's the product of many meetings with administration officials, Senate staffers, advocates, and business and transportation officials. 5 Many congressmen are citing the compromise on the 'Americans With Disabilities Act of 1989' as a model for bipartisan deliberations. 6 Most National Council members are themselves disabled or are parents of children with disabilities. 7 We know firsthand the discrimination addressed by the act: to be told there's no place for your child in school; to spend lonely hours at home because there is no transportation for someone in a wheelchair; to be denied employment because you are disabled. 8 Your editorial mockingly entitles this legislation the 'Lawyers' Employment Act.' For the 43 million people with disabilities and their families, this legislation is the 'Emancipation Proclamation.' 9 Sandra Swift Parrino 10 Chairperson 11 National Council on the Handicapped 12 Washington

We are deeply disturbed that a recent editorial stated that the " Americans With Disabilities Act of 1989 " was " crafted primarily by Democratic Senators Kennedy and Harkin " with a premise " based on the presumption that most Americans are hostile to the disabled . . . . " Perhaps even more offensive is the statement , " It is surprising that George Bush and the White House inner circle would ally themselves with this crabby philosophy . "

recent editorial

Which recent editorial is being quoted?

1 We are deeply disturbed that a recent editorial stated that the 'Americans With Disabilities Act of 1989' was 'crafted primarily by Democratic Senators Kennedy and Harkin' with a premise 'based on the presumption that most Americans are hostile to the disabled. . . .' Perhaps even more offensive is the statement, 'It is surprising that George Bush and the White House inner circle would ally themselves with this crabby philosophy.' 2 This legislation was not drafted by a handful of Democratic 'do-gooders.' Quite the contrary -- it results from years of work by members of the National Council on the Handicapped, all appointed by President Reagan. 3 You depict the bill as something Democratic leaders 'hoodwinked' the administration into endorsing. 4 The opposite is true: It's the product of many meetings with administration officials, Senate staffers, advocates, and business and transportation officials. 5 Many congressmen are citing the compromise on the 'Americans With Disabilities Act of 1989' as a model for bipartisan deliberations. 6 Most National Council members are themselves disabled or are parents of children with disabilities. 7 We know firsthand the discrimination addressed by the act: to be told there's no place for your child in school; to spend lonely hours at home because there is no transportation for someone in a wheelchair; to be denied employment because you are disabled. 8 Your editorial mockingly entitles this legislation the 'Lawyers' Employment Act.' For the 43 million people with disabilities and their families, this legislation is the 'Emancipation Proclamation.' 9 Sandra Swift Parrino 10 Chairperson 11 National Council on the Handicapped 12 Washington

We are deeply disturbed that a recent editorial stated that the " Americans With Disabilities Act of 1989 " was " crafted primarily by Democratic Senators Kennedy and Harkin " with a premise " based on the presumption that most Americans are hostile to the disabled . . . . " Perhaps even more offensive is the statement , " It is surprising that George Bush and the White House inner circle would ally themselves with this crabby philosophy . "

crabby

What about the philosophy is blatantly \"crabby? Why the unusual choice of descriptive word?