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Show ' r Financial Markets B5 Mutual Funds B6-B- 7 Local Business B7 -- x 0j J 2. fCl 10 OlCcCT U 1 11 D J J4 lr)l ILllrnV) 11 Thursday, March 21, 1996 The Daily Herald , M March 20, 1996 DOW (Industrials) NYSE AMEX r s&p MldCap. NYSE Diary S&P 500 Advances: 1,153 Declines: 132 123 748 Unchanged: Total issues: 3,103 1995 avg. comp. vol.: 422,909,640 Jew lov 11 Voume. 493,430,51 Q national niflhlifjht s NEW YORK (AP) HMOs that steer their patients to cheaper prescription drugs are actually increasing the cost of care in the long run because some of these people are getting sicker, a new study says. The study challenges a key principle of health maintenance that cheaper medorganizations icines such as generics or older formulations reduce costs without degrading the quality of care. As restrictions on drug choices increase, "researchers found more patient visits to physicians, more emergency room visits and more hospitalizations, all of which would likely lead to an increase in medical costs," the study said. It was published in the American Journal of Managed Care. Amid WASHINGTON (AP) from small a questions regulators, New York brewer is suspending an .innovative trading system that allows its stockholders buy and 'sell the company's shares on the Jnternet. T Spring Street Brewing Co.'s "World Wide Web trading system believed to be the first of its Rind highlights the growing friction between the technology explosion and securities laws written before computers were born. The electronic bulletin board trading system the company launched Friday on its World Wide Web page allowed buyers and sellers to meet and sell its stock. Only a handful of trades took place, before regulators intervened. PosRICHMOND, Va. (AP) ing as a Philip Morris executive, a former employee of the tobacco giant spun a fantastic tale of a top- - secret, offshore cigarette research project to secure $323 million in loans from at least six banks, the FBI says. Edward J. Reiners, 51, of Somers, N.Y., and his alleged accomplice, Judy Rose Bachiman, a secretary from Cliff-sid- e Park, N.J., were arrested Tuesday on bank fraud charges. The FBI said Reiners and Bachiman used Philip Morris stationery and posed as executives of the tobacco giant when applying for the loans, succeeding in part because of Philip Morris' healthy credit rating. ld NEW YORK ( AP) Trying to end weeks of confusion, AT&T and IBM's Lotus Development Corp. said they are indeed work- ing together to let businesses use an important software product through the telephone company. AT&T and Lotus three weeks ago abandoned their effort to allow companies to use Lotus' Notes product over AT&T's phone network. But on Wednesday, they said, Notes will be available after all as part of AT&T's Internet offerings. two-year-o- ld NEW YORK (AP) Digital Equipment Corp.'s stock plunged 1 7 percent after it warned it would not meet Wall Street's profit expectations due to flat sales of personal computers. Shares in other PC makers also fell Wednesday. Digital had been shooting for PC revenue growth of 30 percent in the quarter that ends March 31; and analysts thought Digital would meet the sales predictions because it rejuvenated the PC operation last fall. s$ 2cntn I'Jorld Performance of key stock markets CARTAGENA, Colombia (AP) Tempers exploded over U.S. patent rights at the hemispheric trade summit, prompting organizers to summon police to calm unruly South American drug company representatives. Wednesday's disruption where the violence was only verwas over what U.S. drug bal companies call piracy, but which some South American companies say is greed by U.S. drugmakers. ' GENEVA (AP) China is invited be into the to unlikely World Trade Organization this year because the United States "can't afford to make gestures" to Beijing in an election year, a senior Chinese diplomat said. A new round of talks to bring China into the world trade body started in Geneva but China's ambassador Wu Jianmin ruled out a breakthrough. Previous close iaW"! Percent change Amsterdam Milan 627.93 0.04 9457 0.04 Brussels Paris jt 1682.01 0.001 Frankfurt rTTm Sydney L2493L2gJ 0.3 1967.20 0.1 Hong Kong 0.40! loeaoiio A, MARKETS Amsterdam: 3605 1 I 1 02 CBS-ne- DAX Hong Kong. Hang Seng London: FT 100 Pans: CAC-4'Ryo: Nikkei. Sydney AH Ordinaries. Zurich Credit Suisse. Milan: MIB. na: not available. holiday. Bel-2- Frankfurt: AP E?!?ascnc!a!s narfic! LONDON (AP) The U.S. currency was trading at 106.64 Japanese yen, up from 106.40 late Wednesday and higher than a late afternoon quote of 106.54 yen in Tokyo. Other dollar rates in Europe Compared with late Wednesday: 1.4755 German marks, up from 4.4730; 1.1948 Swiss francs, up from 1.1910; 5.0548 French francs, up from 5.0465; 1.6519, Dutch guilders, up from 1.6491; 1554.05 Italian lire, down from 1,557.00; 1.3595 Canadian dollars, down from 1.3598. The British pound was quoted at $1.5387, up from $1.5374 late Wednesday. The Mexican peso was at 7.5350, up from 7.4975 Wednesday. ' Gold dealers in London fixed a recommended price of $395.30 per troy ounce at midmorning. up from $394.75 late Wednesday. In Zurich, the late bid price was $395.20, up from $394.75 late Wednesday. Gold rose 90 cents to $395.31 in Hong Kong. Silver traded in London at $5.57 a troy ounce, up from $5.50 a troy ounce late Wednesday. NONFERROUS METALS AluNEW YORK (AP) minum - 73.6 cents per lb, London Metal Exch. Wed. Copper $1.2200 Cathode full plate, U.S. destinations. Copper - $ . 1 790 per lb, NY Merc spot Wed. Lead - 52 cents per lb. Zinc - .5226-.542- 9 per lb, delivered. Tin - $4.1276 Tue. Metals Week composite price lb. Gold - $394.90 Handy & K;r (only daily quote). -- 1 20-da- slow-grow- th economy cHamagBcig for about 1 percent of the nation's $7.3 trillion gross domestic product and put a twist on the old saying: "What's good for the country is good for GM and what's bad for GM is bad for the coun-try.- " The strike erupted in Dayton after GM announced it was awarding a contract to Robert k brakes Bosch to supply for 1998 Chevrolet Camaros and Pontiac Firebirds. The union said the contract would cause 125 UAW workers at GM's Delphi Chassis Systems brake plants in Dayton to lose their jobs, and about 3,000 members walked anti-loc- out. "The economy keeps getting these little kicks in the shin," Dederick said. "We had the Boeing strike, the snowstorm and the government shutdown. The economy doesn't need another one. "The economy is going through a struggling stage. This could be the final straw," said Dederick, who said the 1970 recession was precipitated by a UAW strike against GM. What once was an inventory surplus for General Motors is quickly turning into a shortage. Diane Swonk, deputy chief economist for First Chicago NBD Corp. and an auto industry specialist, said the strike already has cost GM 250,000 units in production. She said a continuing strike could cause buyers to shift purchases to either Ford or Chrysler. So far that hasn't occurred. "There's been no noticeable shift of people into Chrysler products because GM had ample supplies when the strike began," said Steve Torok, general manager of Chrysler Corp.'s Chrysler-Plymout- h division. ( Va strike grew to 175.800 By ALAN L. ADLER Newspapers Knight-Ridd- DETROIT Investors are firmly behind General Motors Corp. even as a strike at two United Auto Workers-represente- d brake plants has halted all car and truck production in the United States and Canada and assures huge hits to profits. The question is: How long can the strike in Dayton, Ohio, last before Wall Street turns on the world's largest automaker? "I think we're patient very long," said one analyst who asked for anonymity out of concern for angering GM or the UAW. "The point is the longer it goes on, GM has to win. They clearly have the Street behind them in the way the stock has been behaving." GM shares closed "at $53.50 Wednesday, down 75 cents for the day but still $1.25 above where it closed March 5, the first day of the strike by 2,700 Delphi Chassis workers. Delphi is GM's g business. The number of GM workers temporarily laid off because of the first-quart- er of late Wednesday. The remaining workers are mostly in parts as plants that have business for auto companies other than GM. Only two GM assembly plants were factooperating, both ries in Mexico. low-volu- Negotiations that began Tuesday afternoon continued Wednesday with only short breaks for meals. A blackout on extensive comment about the pace or specifics of the talks remained in effect. The two sides have met almost nonstop since Saturday. "We stand here to resolve the issues. If it means another 24 we'll go another 24," UAW Local 696 President Joe Hasenjager said during a lunch break Wednesday. The key issue in the dispute is a showdown between GM and its union over where it will buy parts for future models and how much influence the UAW will have in those decisions. A GM decision to buy brake systems for the 1998 Pontiac Firebird and Chevrolet Camaro from nonunion Robert Bosch plants in long-await- ed J Jo 2 yy vv AP PhofS' Kyle Amburgey joins his dad, Tony, left, on the picket line Wednes?.: day outside of the General Motors Corp. Delphi Chassis Systems plant in Dayton, Ohio. Kyle had a school snow day and wanted to see what it was like on the picket line. Swonk said that although first- quarter economic data may be depressed by the strike, second- quarter data could be inflated by Wall Street supports GM in strike South Carolina instead of from the Delphi plants helped trigger the strike in Dayton. outTechnically, that sourcing issue can't be settled for the whole country in the Dayton negotiations, but GM can hope for a template that could be used in other local disputes where the UAW is unhappy about a purchasing decision that sends work to an independent supplier. The hope for such an agreement now, after GM had given in to UAW demands in seven local strikes since 1994, is the reason investors have stuck with GM so far during this one. "The real question is for the next round of labor negotiations," said Ken Blaschke, an analyst with Dean Witter Reynolds in San Francisco. "GM is saying it will take a tough stance even if Chrysler is the target" in national negotiations this fall. Wall Street analysts interviewed Wednesday said there is no magic date when the stock market will turn on GM. UAW-represent- a settlement. Once production GDP could grow by as much as 3.3 percent. resumes, second-quart- er strike affecting GM local firm Morton OGDEN. Utah ( AP) International's Automotive Safety Products Division has shut down assembly lines that make air bags for General Motors cars. The move, announced Wednesday, is a result of a strike that closed two General Motors brake plants since March 5. Roger Tea, vice president of human resources for Morton, said the company will keep the lines closed for the duration of the strike. Morton's other assembly lines will not be affected. The company has released "a number of temporary employees who were working for us," Tea said. It also has reassigned workers on the GM lines to other parts of the Ogden Industrial Park plant. "We've also asked workers to take voluntary furloughs," Tea said. "And it must be because of the nice weather, because we've had more than enough volunteers." Exact numbers were not immediately available. Tea said. changes name to reflect company's vision By TRAVIS JACOBSEN Daily Herald Business Editor Zurich 3693.0 Brussels: J t m 0.2 14-da- 10-da- ETC 20442.601 0.0 j With the General Motors Corp. strike entering its 17th day today, an estimated 250,000 workers have been laid off in the dispute, which shows little sign of a settlement. Only two GM North American assembly plants remain operating, and both are in Mexico, according to GM officials. Only one makes the highly popular light-dut- y trucks and sport-utilit- y vehicles that are among GM's best sellers. "The effect of the strike is exponential," said Robert Dederick, economic consultant for the Northern Trust Co. "The effects are growing ever more rapidly as the days go on. What's true for a y y strike is not true of a y strike is not true of a strike." Some University of Michigan economists estimate that the strike already may have affected as many as 500,000 workers in the United States, Canada and Mexico. "I'd say about 250,000 workers for GM and its suppliers have been laid off," said Tim O'Neill, chief economist for the Bank of Montreal, parent company of Chicago's Harris Bank, who said the economic impact of the strike could be severe. O'Neill and other economists said the strike may cut as much as 0.75 percent off economic growth in the first quarter for the U.S. and Canadian economies. "That's quite a bit in a economy," said Dederick. "It could make the difference between an economy that has slow growth and an economy that has minuscule growth." Dederick said GM accounts parts-makin- 1)3L2213J Tokyo London layoffs By JOHN SCHMELTZER Chicago Tribune v v hi? ttii NASDAQ ElecAMERICAN FORK tronic Technology Corp. (ETC), a local leader in wireless communications and electronic manufacturing, today announced it has changed its company name to Digital Radio Communications Corp. Digital Radio President Phil Bunker stated that the change was made to more accurately reflect the company's vision and central focus of operation. "As a leader and expert in wired and wireless communications engineering and applications, we are looking to better define our corporate identity to reflect this focus," Bunker said. "Changing the name immediately demonstrates our intent to define and promote our mission to the public." Digital Radio Communications Corp. will continue to use the ETC name through a newly-forme- d business unit Electronic Technology Co. Bunker said the ETC name is recognizable throughout Utah as a quality leader in contract design, development and manufacturing. "We wanted to keep the ETC name locally since it is known and established as a producer of quality development and manufacturing." Founded in 1992, Digital Radio Communications Corp. specializes in designing and manufacturing wired and wireless communications products, as well as providing contract design, development and manufacturing services. It operates four divisions: ETC, EMA, DataMill and Demtronics. Yahoo! founders to become instant multimillionaires By SONIA REYES New York Daily News The Internet is NEW YORK about to make a couple of California computer geeks instant multimillionaires. Yahoo! Inc., a fledgling software company founded just two years ago by two Stanford University graduates, is about to sell shares to the public. That w ill make its founders David Filo and Jerry at least $50 million Yang, 27 each from the deal, SEC filings show. This for a company that earned just one penny of profit in its last quarter, has just 39 employes at its Sunnyvale, Calif., headquarters and whose owners call themselves "chief yahoos." No matter, Yahoo! makes one of the most popular online search tools and directories in the business. Like a phone book to the Internet, it helps computer users navigate through 100,000 subject areas on the Internet and find their favorite sites on the World Wide Web. That's making for a very hot public offering. The company's preliminary prospectus, which was released Wednesday, shows Yahoo plans to offer 2.6 million shares of its common stock. The stock is expected to sell at $ 10 to $ 2 per share and will make Yahoo! a $300 million behemoth. The IPO is expected to take place 1 by April 1 . The company will retain of 90 percent "of its 25.7 shares after the sale founders will be some biggest stockholders. control million and its of the Filo and Yang's odyssey from struggling students to multimilhoblionaires began as a late-nigby in a trailer on the campus of Stanford University in the spring of '94. There the bespectacled graduate students had an idea: to catalog thousands of Web sites so as to make them easier to find. ht Soon after, with the job market soft, they decided to offer their list of sites to Internet surfers. Yang, who immigrated with his parents to the U.S. from Taiwan in the late 1970s, figured it would be a good hobby to pursue while job searching. Filo, the son of hippie parents w ho shared their home with several other families in Moss Bluff, La., agreed. Today, their computerized index system helps cyber junkies find everything from the Beverly Hills 90210 web site to the Eddie Bauer online catalog. Millions of Web surfers now use Yahoo! by typing a topic, of their choice, which results in them getting a page of related Web sites w ithin seconds. S our aim divide was "Really, to and conquer the Web," Yang told U.S. News & World Report last month. |