| OCR Text |
Show O Financial Markets C5 D Mutual Funds C6 - C7 Local Business C7 c. BDQ0nQ(D Wednesday, April 3, The Daily Herald Consumers return to stores in February By jokn d. Mcclain Associated Press Writer April 2, 1996 NYSE DOW (Industrials) 50 -- S&P MidCap. t NASDAQ AMEX WASHINGTON Consumer spending and personal incomes rebounded strongly in February, recovering from an earlier stall when snow and frigid cold kept shoppers away from malls and Hi) NSE S&P 500 103.1 Diary Advances: 1,263 Newlufhs Declines: 1.098 Unchanged: 772 Total issues: 3,133 1W5 ave. comp. vol.: 4:2,909.640 Volume: workers from factories. The Commerce Department said today spending shot up 1.1 percent after falling 0.4 percent in January. It was the steepest gain since a 1.7 percent surge in February 1994. 146 New lows 18 489,233,150 Consumer spending of the nation's economic totaled $5.07 trillion at activity two-thir- ds a seasonally adjusted annual rate, up from $5.01 trillion in January. announcement it wanted to merge w ith cable giants NEW YORK (AP) Corbis Corp.. the digital images company owned by software billionaire Bill Gates, obtained the rights to the work of Ansel Adams, including some of the 1 993 Inc. and Liberty Media Corp. He knew beforehand about the proposal through his position as an analyst for Salomon Brothers Inc.. an investment banker on the deal. The deal later fell apart. most striking and phothe American wilderness. of tographs well-know- n The company said Tuesday it comintends to develop a puter program using hundreds of Adams' photographs, which are now maintained by the Ansel Adams Trust. And it will add the photographs to its electronic archive, from which publishers and individuals can buy - CD-RO- NEW YORK (AP) Despite risand interest rates spells of ing volatility, stock mutual funds turned in another strong performance in the first quarter of More than 2.100 domestic stock funds averaged a 5.66 percent return for the January March period, includstock-mark- et 19. imaces. its Still, many analysts expect spending to remain sluggish this year because of weak income growth, large debt accumulations and worries over the health of the economy. Growth slowed in the fourth quarter last year to 1.2 percent from 2.8 percent in the third quarter, the government reported Tuesday. But in February, incomes grew 0.8 percent to an annual rate of $6.3 trillion compared w ith a barely discernible 0. percent the previous month. The February growth 1 was the largest since January 1995. when it was 0.9 percent and reflected in part employees returning to the workplace. The Labor Department reported earlier that payrolls, which plunged by 188,000 during January's blizzards and severe cold, shot up by 705,000 in February. Many of February's economic reports reflected the return to more moderate weather. For instance, the Index of Leading Economic Indicators jumped 1.3 percent, due mostly to the return of workers socked in by the blizzard. durable Spending on items such as sofas and goods stoves expected to last more than rose at a $28.7 bilthree years lion rate, wiping out a $28.6 billion decline in January. Outlays for nondurable goods including food and fuel rose at a $3.5 billion rate, while spending for services grew at a $23.6 billion rate. income Disposable income 0.7 after taxes jumped percent, up from an anemic 0.2 percent gain in January and matching December's advance. The combination of incomes and spending means that Americans' saving rate savings as a of disposable income percentage was 4.8 percent, down from 5.2 big-tick- et Percent Mtov of dbivt Mi; :,- - 16.30 SOS 'us kits 620 i..'v. S- -- - '"fJlf MS 590 J.' OA 0 Piil)()(IIIIIO(lOii(; 4 85 4B Illl II iW II UK I ()()()(1IH)()0"(J 4 ylnufuuitf. II ta Hiwinnnnnf! U :nll(l(ll)t)0''C 495 "M)M) 610 - 0 iMHHHWIWOO'' 4 55 aBiiiim an MAMJJASONDJF INS Feb. '95 Jan. '96 11BDB0BMDD OP Feb. 96 i MAM J 0 Feb. "95 A SO NO J t FA XI Jen. "83 6.30 I Soun: U S. Oept d Commm P percent a month earlier w hen many consumers kept their wallets closed. Private wages and salaries, the most closely watched component of income, rose $34.8 billion in February after falling $10.5 billion in January. US Dm Sowc ct Cammrat The income and spending figures were not adjusted for inflation. When adjusted, disposable incomes rose 0.5 percent after remaining unchanged a month earlier. Spending was up 0.9 percent, erasing a 0.7 percent decline the previous month. -- ing assumed reinvestment of dividends, the research firm of Upper Analytical Services Inc. reported A California NEW YORK (API consumer group accused the big HMO Pacificare Health Systems of discouraging use of a new chickenpox vaccine just to save money. Consumers for Quality Care on Tuesday said Pacificare's position Tuesday. That works out to an annualized rate of return of close to 25 percent not far off the runaway pace set last year, when the average fund gained 31.08 percent. r vacthe against Varivax cine against the disease contradicts endorsements by federal health agencies and leading pediatricians. first-eve- NEW YORK (AP) - A federal Salomon Brothers analyst and his father of government judge cleared a charges they passed illegal tips about the corporate merger plans of Bell Atlantic Corp. The father, Frederick A. Moran. bought stocks and profited from Bell Atlantic's merger targets for reasons unrelated to anv tips from his son. U.S. District Judge Bernard Newman ruled . WASHINGTON (AP) Makers k medical devices, from urinary catheters to thermometers, can opt this summer to have private companies instead of the government evaluate whether they're ready for sale. of Tuesday. The son. Frederick W. Moran. had been accused of passing privileged stock information to his father the week before Bell Atlantic's Oct. 13. 11 Performance Previous Amsterdam " FaT markets of key stock Percent change Milan ' EllVJ-- q.7 Frankfurt 289 2055 63 ' rmrm ' Sydney 09 Hong Kong J0926 Tokyo (U 2.0. 1Z?II London ran v m.q.i.M 0.2 Zurich 3718 4 n mv-i-a o.33o 6.2 it wanted. The company is introducing a viv id blue can in Europe and other parts of the world that scraps the familiar red, white and blue logo. Instead. Pepsi cans will adopt a color the company thinks will attract more teenagers. Pepsi, perhaps preparing for another promotional blitz, pointedly did not release any plans Tuesday for the can in the United States or Canada. But the company did say it would eventually use the new look worldwide. cola-swilli- 36S4 3 . LONDON (AP) Next to those bright red cans, Pepsi just wasn't getting the attention 2230 3 ; 0.5 ' The pilot being program, announced Wednesday by the Food and Drug Administration, stops short of a similar initiative pending in Congress. It would allow private review companies to evaluate more dangerous medical devices like mechanical heart valves. Paris 1680 89 J.0 low-ris- InJbrid I ll.?!' I 0.6 Brussels ' dose 53? 28 0.04' CMllt - NEW YORK (AP) ITT Corp. is er talks w ith Bally Entertainment Corp., a move that would bring fiv e more casinos to the owner of Caesars World, a source w ith knowledge of the negotiations said. An analyst who follows the two companies estimated ITT would have to pay $2.6 billion to S2.8 billion for Bally Spokesmen for both companies declined to comment Tuesdav. in takeov I jh Amsterdam CBS-nesrures gerwai r DAX Hong Kong Hang Brussels Bel 20 yo "Win. Seng London FT 100 Pans CAC-4- 0 Crd Sinse SyOwv A Ordmanes Zunc Milan MlB na notavaurtw n hoWav MARKETS BoHarorlcfo1'? Llcrfid HHaaMHHHaMMBBHi fell 40 cents to $394.05 in LONDON (AP) The U.S. currency was trading at 107.07 Japanese yen. down from 107.50 late Tuesday and lower than an afternoon quote of 107.12 yen in Tokyo. Other dollar rates in Europe compared with late Tuesday: .4807 German marks, down from 1.4823; 1.1936 Swiss francs, up from 1.1933; 5.0498 French francs, down from 5.0526; 1.6565 Dutch guilders, down from 1.6582; 1564.50 Italian lire, down from 1.565.00; 1.3570 Canadian dollars, up from 1.3551. The British pound was quoted at $1.5255. up from $1.5243 late Tuesday. The Mexican peso was at 7.4925. up from 7.4975 Tuesday. London dealers fixed a recommended gold price of $393.80 per ounce at midmoming. down from the closing price of $394.40 bid Tuesday. In Zurich gold traded at $393.80. down from $394.40. Gold 1 4f Hong Kong. Silver closed in London at $5.50 a trov ounce, down from $5.52. NONFERROL'S METALS NEW YORK (AP) Aluminum - 73.2 cents per lb. London Metal Exch. Tue. Copper -$1.2000 Cathode full plate. U.S. destinations. Copper - $1.1375 per lb. NY Merc spot Tue. Lead - 52 cents per lb. Zinc - .5I35-.524- 0 per lb. delivered. Tin - $4.2617 Mon. Metals Week composite price per lb. Gold - $394.35 Handy Harman (only daily quote). Gold $394.00 Troy oz.. NY Merc spot month Tue. Silver $5,490 Handy & Harman (only daily quote). Silver - $5,500 per troy oz., NY Merc spot month Tue. Mer$265.00 per 76 lb flask. cury 0 New York. Platinum N.Y. oz., (contract). troy Platinum - $406.70 .N.Y. Merc spot per troy oz. Tue. & -- $411.50-$413.0- Novell stockholder files suit alleging securities violations by officers and directors By TRAVIS JACOBSEN Dairy Herald Business Editor One stockholder of Novell Inc. is not pleased with its management practices, or the lack thereof, and is intent upon taking his displeasures to court. Mark Bondiett, an individual Novd shareholder of ell. Tuesday announced the filing of a complaint in the U.S. District Court for the District of Utah, Central Division, against the officers and directors of Novell Inc., alleging violations of the U.S. Exchange Act. the U.S. Securities Act. state corporation laws for both Utah and Orem-base- Delaware, and other related causes of action. Bondiett's complaint stated that Novell's directors and offi P&G cers have solicited proxies from shareholders through misrepresentation and concealment of material information. Bondiett claims that Novell's repeated violation of shareholder rights as granted by state and federal statutes has resulted in shareholders becoming victims of management's practices. "As a shareholder I 'am very concerned that a few officers and directors are misleading shareholders in a way that penalizes them and undermines the business of the corporation." said Bondiett. To protect myself and other shareholders, we intend to bring management to task for their actions and their failure to act when needed. Today's action is an important part of that ongoing effort." Bondiett is willing to work aggressively with shareholders, customers and others who are adversely effected by poor management at Novell to improve the quality of that management. He has retained counsel and filed this suit to attempt to force management to comply w ith the law and to fairly and candidly report what the real effects of recent management decisions have been. Bondiett has set up an address, MBondietttaol.com., to allow others who are dissatisfied with Novell management to communicate w ith him on these issues. Novell officers were not available today for comment on the allegations raised by Bondiett. adds Amway to lawsuit list CINCINNATI (AP) Procter & Gamble Co. said Tuesday it added Amway Corp. and five of its product distributors to a lawsuit that accuses an Amway distributor of spreading rumors linking P&G to devil worship. P&G said it added the six new defendants to a lawsuit P&G filed in August in U.S. District Court at Salt Lake City. The lawsuit accuses Amway distributor Randy Haugen of spreading the satanism rumors against P&G. The lawsuit seeks a court order preventing the further spread of rumors, and more than $50,000 in damages. The court will decide the exact amount. P&G's lawsuit claims Amway is responsible for its distributors' conduct and has failed to stop them from spreading the rumors. Amway competes with P&G in some product categories, and the distributors listed in the lawsuit have spread the satanism rumor to encourage consumers not to buy P&G products. James Johnson, P&G's general counsel and senior vice president, said. Amway said Tuesday that P&G is unfairly blaming it. Amway said that Haugen has issued a retraction of the rumor and that it has been cooperative in response to P&G's lawsuit. "Amway does not condone the spreading of such rumors and is disappointed that P&G would take action that appears to be designed to discredit Amway and its more than 2.5 million independent distributors." Amway said in a statement from its headquarters in Ada, Mich. Haugen has an unpublished telephone number in Ogden, Utah. and was not available to comment. P&G's original lawsuit accused Haugen of using Amway 's voice mail system to spread the rumors to other Amw ay distributors. The rumors ty pically claim that P&G's president spoke in support of Satanism on a nationally televised talk show and that the comtrademark pany's is a satanic symbol. No one from P&G has ever discussed satanism on a talk show, the Cincinnati-base- d consumer products company said. P&G said its trademark dates back to the mid- - 1800s. when a man in the moon was a popular design. The 13 stars in the design honor the 3 original colonies. P&G has answered about 200.000 calls and letters about the rumors during the past 15 years. Calls and letters peaked in 1982, 1985, 1990 and this year. moon-and-sta- rs 1 General Motors facing another possible strike KETTERING, Ohio (AP) Less than two w eeks after General Motors Corp. settled a walkout at. two brake plants that crippled pro-- j duction across the country, the; company has been told that work-- i ers at two suspension plants are! prepared to do the same thing. '! The International Union of Electronics Workers said it deliv-era letter to GM on a strike to begin April, for 2.700 unionized workers at two GM Delphi Chassis plants in ed Monday-authorizin- 1 g 1 this Dayton suburb. Neither union spokesman Ron Gilvin nor GM spokesman Jim Hagedon would identify the issues in dispute. Hagedon confirmed that the automaker had received the strike authorization notice. The Daxttm Daily Nms reported Tuesday that the local told GM the workers would strike if there w as no agreement on subcontracting, or using outside companies to work. The perform skilled-trade- s newspaper did not cite a source. The Delphi plants produce shock absorbers, strut mounts and other suspension parts used on a wide variety of GM and other vehicles. In 1993. GM and Local 755 tled set- dispute over subcontracting (hat had threatened to erupt into a strike. Union officials had com; plained that GM was giving too much work to outside contractorv On March 22. the nation's top automaker and the United Auw Workers settled an y strike m two brake plants in Dayton. The strike halted production at 26 of GM's 29 North American assembly plants and idled 177.000 workers. The dispute centered on outsourcing, the practice of buying parts from outside manufacturers to reduce costs. a 18-da- Factory orders show sharpest drop in 10 months By JOHN D. McCLAIN Associated Press Writer WASHINGTON Orders to U.S. factories plunged 1.4 percent in February, the largest decrease in 10 months. The drop was due mostly to a huge decline in the volatile transportation sector. The Commerce Department said today orders for both durable and goods totaled a seasonally adjusted $304.4 billion, down from $308.8 billion in January. It was the second decline in three months and the steepest since orders fell 2.2 percent last April. Many analysts had expected a 1.3 percent decline. But excluding transportation, orders managed a 0.2 percent gain, the third straight advance. Orders are considered a key gauge of the nation's manufacturing strength and an increase could non-durab- le lead to greater production and more jobs. The manufacturing economy has been weak for months, rising just 6.7 percent last year, compared to 10.3 percent in 1994. Analysts say the weakness is just part of the sluggishness that had affected much of the overall economy. It grew just 0.S percent at an annual rate in the final three months of 1995, down from 3.6 percent from July through Septem- - Still, analysts point to signs of a rebound in the overall economy, including job growth, strong housing sales and expanded moderate retail sales. The backlog of unfilled orders inched up 0.1 percent, the sixth straight increase. A growing backlog suggests more jobs and longer production lines may be needed to meet demand. Inventories, another sign of future activity, edged up 0.2 percent after a 0.7 percent advance in January. That resulted in a 1.39 ratio. down from .40 a month earlier. The ratio means it would take I. 39 months to exhaust stockpiles at the February shipment pace. Shipments, a measure of current production, rose 0.8 percent, the third increase in four months. Orders for durable goods, items such as turbines and tractors expected to last more than three years, fell 2.3 percent, slightly less than the government's 2.5 percent initial estimate last wek. They had fallen 0.6 percent in January after rising 3.1 percent at year's end. Transportation orders plunged I I. 7 percent following a 3 percent decline a month earlier. The drop, largest since 11.8 percent last October, was due largely to falling demand for commercial aircraft. Orders for electronic and other electrical equipment also fell, down I.S percent after a 0.6 percent decline January. inventories-to-shipmen- ts 1 Groso dorrcctic product Ttftr , P . 7 3.7 1985 T a -- 1 n v u if ti ta - |
