Reno Gazette-Journal from Reno, Nevada • Page 24

Today's tip me The Service Corps of Retired Executives needs volunteer retired businesspeople to share their expertise with persons starting their own businesses. Details: 784-5477. 10B Thursday, February 5, 1987 Reno Gazette-Journal Wall Street bulls ahead 22.78 to another record Riding wild market drains stamina Analysts said traders also were encouraged that interest rates held steady or even declined a bit in the Treasury bond market. The credit markets are in the midst of absorbing auctions of $29 billion in government bonds and notes this week. Analysts saw several distinct pluses in the stock market's behavior.

For one thing, many smaller "secondary" stocks have rallied strongly this week, resuming an advance that began in dramatic fashion early in January but cooled later in the month. For another, transportation stocks had an especially good day Wednesday, pushing the Dow Jones average of 20 transportation issues up 20.10 points to 911.94 for a See WALL, page 7B Sears' profit drops in fourth quarter CHICAGO Sears, Roebuck Co. has reported a fourth quarter profit of $543 million, down slightly from a year ago despite higher revenue. The company, in announcing its earnings Wednesday, attributed the smaller profit to the elimination of investment tax credits, the costs of dismantling the domestic operations of the world trade unit, increased provision for uncollectible accounts and accounting changes. For the final period, earnings totaled $543 million, or $1.45 a share, down nearly 1.7 percent from the $552.3 million, or $1.50 a share, earned during the fourth quarter of 1985.

Revenue increased nearly 7.5 percent to $12.97 billion from $12.07 billion. For the full 12 months, Sears' earnings increased to $1.35 billion, or $3.62 a share, a 3.8 percent rise from the $1.30 billion, or $3.53 a share, earned in 1985. Revenue increased 8.7 percent to $44.28 billion from $40.72 billion a year earlier. As more and more investors rush into the market where the total value of stocks has soared $338 billion since the beginning of the year the outlook is even rosier for brokers' earnings. But the people who work in the stock market say they've been flying along on sheer adrenalin, and the killer pace is starting to take its toll.

"In my 25 years here, I've never been this tired," says George Pirrone, vice president and institutional trader See WILD, page 7B auto sales NEW YORK (AP) Wall Street put on a renewed show of force Wednesday, extending its early-1987 advance to more record highs after some early profit-taking. The Dow Jones average of 30 industrials climbed 22.78 points to 2,191.23, surpassing the record closing high of 2,179.42 it reached on Monday. Volume on the New York Stock Exchange came to 222.43 million shares, the eighth largest total on record, against 198.05 million in the previous session. The market has responded favorably of late to evidence that the pace of business activity is picking up. On Tuesday, for example, the Commerce Department reported the biggest increase in its index of leading economic indicators in nearly four years.

USX shuts JSL Plant closing All or part of plants shown will not be reopened from strike-related shutdown Baytown, Domestic UVK yffWU out 3,700 steel workers McKeesDort. Pa. I I Wnrkore I IV 'iX Texas 3 700 XX WASHINGTON The rip-roaring stock market is putting a bulge in the pockets of brokers across the country, who are pulling in ever-fatter paychecks thanks to commissions and bonuses. Last year, a typical Wall Street broker or trader making an annual base salary of around $100,000 racked up commissions and bonuses of five to 10 times that, say executive search firms. This year, some experts estimate those brokers are raking in up to 50 percent more than they did at this time in 1986.

Utah Gov. Norm Bangerter said that by closing the Orem facilities, where 2,200 people were employed, shows USX officials are "willing to exercise selective amnesia when it comes to their promises to Utahans." "They were warned" that the costs of restarting certain operations could combine with marginally profitable market conditions to keep certain plants closed, Roderick said. "Now the economic hammer has dropped." Bullion coin sales began Oct. 20. A total of 3.2 million gold coins were sold, using 1.8 million ounces of the precious metal.

Goin coins are offered in four sizes. Sales of 1-ounce silver coins, the only size offered, began Nov. 24 and totaled 5 million coins. Under the 1985 American Gold Bullion Act, the U.S. Mint must use newly mined gold, rather than federal bullion reserves, to make the coins.

This is why mining executives and financial analysts say production should benefit the precious-metals industry. The expanding supply and ongoing availability of the American Eagles have caused a steadily declining average premium. The premium is a fee added to the Paul CarboGazette-Journal Company boss rebuts union claim of jobs restored by contract PITTSBURGH (AP) USX Corp. Chairman David Roderick said Wednesday that steel facilities employing 3,700 workers will not be restarted now that the union's six-month work stoppage against the No. 1 U.S.

steelmaker is over. Roderick also said an estimate that negotiated restrictions on non-union i labor will restore up to 4,000 union jobs is a "major exaggeration." The remarks by Roderick at his regular quarterly news conference were a blow to the United Steelworkers union, which ended the longest work stoppage against USX in history Saturday after ratifying a contract that union officials said would strengthen job security and limit the use of non-union help. Senior union officials did not immediately respond to Roderick. "You're bound to have some legitimate opportunities" to replace outside contractors with union members, Roderick said. "We don't mind calling people back into the plant if the work can be more efficiently done in the plant." But Roderick undercut the union's claim to victory in the dispute because 'v I I i i I I I i "ili.

I 111 i I USmmmilZ Culinary union pact tossed LAS VEGAS A federal bankruptcy judge has thrown out the Silver Nugget's contract with the culinary union, but the North Las Vegas casino was told to negotiate a new pact with the union within a reasonable period of time. Bankruptcy Judge Clive Jones ruled the Silver Nugget, which filed for bankruptcy reorganization last June, could reject the present contract it has with about 180 employees because the casino needs immediate financial relief. Jones issued an interim ruling last October, allowing the Silver Nugget to cut employee wages 20 percent while management entered into negotiations with the casino's unions. Casino sale talks halted LAS VEGAS Dunes Hotel officials said Wednesday they have terminated negotiations on the sale of the resort to a group headed by Kirk Kerkorian. Dunes Hotels and Casinos Inc.

said it intends to proceed with a previously reported deal to sell the Strip resort to a partnership formed by the investment firm of E.F. Hutton. Reports surfaced last month that Kerkorian, former owner of the MGM Grand resorts, was trying to buy the Dunes. A group headed by Kerkorian submitted an application last month to state gaming officials for licensing at the Dunes. Donnelley income rises R.R.

Donnelley Sons, preparing to open a printing plant in Stead in mid-March, reported net income of $158.3 million on revenues of $2.2 billion in 1986, compared with 1985 net income of $148.4 million on revenues of $2 billion. The 1986 results include Norwest Publishing a takeover completed in October 1986. Sales increased 9.6 percent and net income 6.6 percent over 1985, Donnelley Chairman John B. Schwemm said. Insider records scrutinized NEW YORK Secret records being examined by government investigators suggest that Ivan F.

Boesky and officials at Drexel Burnham Lambert Inc. might have had an illegal arrangement to profit from corporate takeovers, the Wall Street Journal said Wednesday. The newspaper said evidence suggests that Boesky, the former speculator at the center of an insider stock-trading scandal, and officials of the investment banking firm agreed to unlawfully conceal ownership of blocks of stock and agreed to share profits from their holdings. Export report criticized WASHINGTON A report's conclusions that export controls designed to deny the Soviet Union access to high technology have cost U.S. industry billions of dollars in lost business are wrong, a top Pentagon official said Wednesday.

A report by the National Academy of Sciences contends the United States has overreacted to fears that the Soviet Union will use U.S. technology to improve its military position, causing the loss of $9.3 billion in business and 188,000 jobs in 1985. "Those are complete rubbish," said Richard N. Perle, assistant secretary of defense for international security, said of the figures. "They're drawn from thin air." Fight for medical company LeRoy A.

Pesch's offer to buy American Medical International Inc. for $1.74 billion is part of the Chicago doctor's plan to build a major health-care network, but the hospital chain is expected to fight the bid. Wall Street reacted cautiously Wednesday to Pesch's $20-a-share offer. Despite heavy turnover, American Medical's common stock closed unchanged at $19.25 a share in New York Stock Exchange composite trading. I Wire serv.9 and staff reports GM paces Big 3 with 34.6 drop in late January DETROIT (AP) Domestic car sales in late January fell 25.8 percent below the same period a year earlier, with General Motors Corp.

showing the greatest slippage among the Big Three automakers, the U.S. manufacturers said Wednesday. The eight automakers sold 194,169 cars Jan. 21-31, compared with 261,704 in late January 1986. Sales by No.

1 GM were down 34.6 percent, second-ranked Ford Motor down 16.1 percent, and third-ranked Chrysler Corp. down 27.1 percent. The decline, while steep, was less than in early and mid-January. Domestic sales by the eight companies were down 38.4 percent Jan. 1-10 and down 36.9 percent Jan.

11-20. "There seems to be a slow, painful recovery in car sales from the beginning of the year, when car sales fell apart because everybody wanted to buy in 1986 to take advantage of the sales-tax break," said David Healy, automotive analyst with the New York investment firm Drexel Burnham Lambert Inc. "The hangover is coming to an end." A federal tax-reform law that went into effect Jan. 1 ended the state sales-tax deduction on income tax returns. For the month, domestic car sales totaled 427,678, down 32.7 percent from the corresponding period a year earlier.

GM sales were down 38.2 percent; Ford, down 27.5 percent; and Chrysler, down 31.6 percent. GM's share of the domestic market in January was 54.4 percent, compared with 59.2 percent a year earlier. Ford's share was 25.3 percent and Chrysler's 12.5 percent. Imported car sales in January totaled 195,734, down 17.2 percent from a year earlier, and accounted for 31.4 percent of all U.S. sales, up from a 26.8 percent share in January 1986.

Japanese automakers took 21.5 percent of the U.S. car market in January, although their sales were down 27.1 percent from a year earlier. Among the major importers, Nissan sales were down 3.7 percent; Toyota, down 35.3 percent; and Honda, down 29.4 percent. Domestic-made vehicle sales both cars and trucks totaled 647,355 in January, down 28 percent from a year earlier. Import vehicle sales were down 15 percent and accounted for 28.1 percent of the U.S.

market. Overall vehicle sales totaled 899,764 in the month, down 24.7 percent from a year earlier. Domestic cars in late January sold at a seasonally adjusted annualized rate of 6 million, compared with 8.1 million a year earlier. market price for retail buyers. Early heavy demand for the coins had pushed up the coins' purchase premium at many retail locations, Brown said.

Pat Richaudeau of Deak International, a precious metals dealer, said all four gold American Eagle coins are priced competitively with the Canadian Maple Leaf and other foreign bullion coins. Gold has hovered around $400 a troy ounce in recent weeks and silver at about $6. In a related development, the Mint has started an alternative qualifying procedure to companies interested in becoming coin distributors. The procedure will allow additional domestic and international companies to purchase gold American Eagles directly from the Mint. $50,000 payments, and the Sands and Lloyds agreed to pay an additional $105,000 if he would drop his claim to the rest of the prize.

"I sort of had enough," Sherry said after the settlement. "I've had enough of this litigation already." Sherry, who says he is working for world peace and AIDS research, said he does not need the extra money because he has also won $460,000 in a blackjack tournament and $150,000 in a mini-baccarat contest. 4 Associated Press CLOSED: USX Corp. announced Wednesday that the Orern, Utah, plant's furnaces and related melting facilities would be shut down indefinitely. restarting idled equipment led USX to indefinitely idle all or part of four plants: Furnaces and related melting facilities at Orem, Utah; welded pipe and melt shops at Baytown, Texas; the welded pipe shop at McKeesport, and an ore conditioning plant at nearby Saxonburg.

To trigger special benefits for idled union members, the new contract recognized long-standing shutdowns at a dozen other plants. Gold, silver sales exceed Mint's projections of language in a new contract that would mean a net gain in jobs. The job security provisions of the new pact were a key factor in the union's acceptance of pay cuts of 7 to 8 percent over four years. USW chief negotiator James McGee-han said Saturday in announcing rank-and-file ratification of the contract that a company document obtained by the union estimated 2,000 to 4,000 workers could be recalled for work done by nonunion contractors. Market conditions and the costs of Poor economy leads convention authority to reduce activities By Tim AndersonGazetie-Joumai Northern Nevada's flat tourism economy has forced convention sales officials for the Reno-Sparks Convention and Visitors Authority to cut back on some travel and promotional activities over the next few months.

Convention Sales Director Peter Bachelor told members of the authority's Convention Sales Advisory Committee Wednesday that he has pared a few expense items that were originally placed in this year's budget. He stressed that they were minor cuts and involved expendable programs. All of the authority's departments are trimming expenses because of a decline in room tax revenues largely attributed to lower room rates. Original spending plans were based on higher revenue projections this fiscal year. Bachelor said he cut about $17,000 from his department's budget of nearly $900,000.

"We had to tighten up a little just like everyone else (at the authority), so we looked at some marginal programs that wouldn't hurt our overall effort if they were dropped," Bachelor said. One of the programs was planned for April 9 in Washington, D.C, where Reno convention sales officials were to host meeting planners of major national asso- ee CONVENTION, page 7B By Mike NorrisGazette-Journal Nearly 8.4 million American gold and silver bullion coins were sold in the first three months of a U.S. Mint program more than had been expected in the entire first year. "We were sold out in the first 60 to 90 days," said Mint spokesman Michael J. Brown.

Nevada mining executives say sales of the coins offer more of a psychological boost than any significant financial improvement to the precious metals mining industry. Nevada is the nation's largest gold producer, with more than half of the U.S. output and about 5,000 people employed in the precious-metals mining industry. Man ends fight to ATLANTIC CITY, N.J. (AP) A man who says he is a humanitarian working for world peace has given up his battle to claim a $1 million casino game prize and settled for $305,000.

The Sands Hotel Casino claimed Michael Sherry cheated in its Million Dollar Money Machine promotion in 1982. The odds against winning were supposed to be 3 million to 1, but Sherry said he had figured out a way to win without doing anything illegal. In the contest, the Sands distributed tickets and set up a giant slot machine in keep $1 million from Jersey casino its lobby. The machine stopped six ume a day, and players had 15 minutes to match their tickets to the symbols on the machine. Sherry, who is from New York, saved 4,400 discarded tickets and camped out in the Sands lobby for two weeks.

The Sands and its underwriter, Lloyds of London, sued in Superior Court. Sherry, 35, represented himself in a hearing Tuesday before the settlement, asking himself questions and referring to himself in the second person. Sherry had already received for.