Star Tribune from Minneapolis, Minnesota • Page 37

Star Tribune Saturday April 81995 4,192.62 Down 12.79 1D. Classified Ads Inside Column six The economy fit'' Jobless rate up to 5.5 as factory jobs decline Clinton administration welcomes the 'soft but stock market doesn't Defining a new age Harry Newton is helping foment a revolution in phone technology .11 1 wo m.f. "jp i 3 "Every assumption is up for grabs." Harry Newton that the growth rate in consumer credit appears to have peaked in November. Although there were 203,000 payroll additions in March, the gain was far short of the 345,000 increase a month earlier and about 100,000 below the average of the previous 12 months. Growth was curbed in part by manufacturing, which shed 4,000 jobs in the first decline since December 1993.

The drop was widespread, although industrial machinery plants bucked the trend. Factories had been adding more than 40,000 jobs a month from October through January, but the pace began to slow in February. "It suggests the manufacturing sector, which had been booming, is starting to cool off," said Norman "I think the stock market is probably worried about the possibility that this soft landing could turn into a hard landing," said economist Sung Won Sohn of Norwest Corp. in Minneapolis. But many analysts focused on the creation of 203,000 jobs in March amid indications that wage inflation remained in check.

Despite the job growth, the unemployment rate rose because more people entered the labor market than found jobs. "We have hit a glide pattern that is bringing steady job growth without inflation at a relatively low level of unemployment," said Labor Secretary Robert Reich. "We haven't had this good a combination of job growth and noninflation for several decades." Lynn Reaser, an economist with First Interstate Bancorp in Los Ange les, said the report and other economic indicators so far this year support "a soft-landing scenario," in which the economy slows to a sustainable rate of growth that will relieve inflationary pressures. Sohn agreed that the economy probably has reached a soft landing, but he added, "There is a growing possibility of something more than that." Alan Davidson, president of Zeus Securities Inc. in Jericho, N.Y., was more emphatic: "We can kiss the soft landing goodbye Recession will start within the next six to nine months." A separate report from the Federal Reserve Board, meanwhile, added evidence that the economy was slowing.

It said consumer credit rose $8.2 billion in February, compared with a $9 billion pace a month earlier. Analysts maintain Associated Press Washington, D.C. Unemployment climbed to 5.5 percent in March as the number of factory jobs fell for the first time since 1993. The Clinton administration welcomed the development after a period of torrid growth, but it rattled the stock market and raised recession worries among some economists. Shortly after the Labor Department reported Friday that the jobless rate rose from 5.4 percent in February, stocks began to fall.

By early afternoon, the Dow Jones industrial index was down 35.96 points; it ended the session at 4,192.62, a 12.79 loss. The Treasury's benchmark 30-year bond was off as well as investors worried about a new slide in the dollar, which set another record low against the Japanese yen. Robertson, an economics professor at Carnegie Mellon University in Pittsburgh. Robertson and other economists agree that the labor market slowdown is the result of seven Federal Reserve Board interest-rate increases in the past 14 months, designed to cool the economy and keep inflation from overheating. "The Fed's medicine seems to be working," said Stephen Roach, an economist with Morgan Stanley Co.

in New York City. "The economy is slowing into a 2.5 percent growth range from a 5.1 percent annual rate in the fourth quarter, and that is pretty much what the good doctor ordered." Retail businesses, including apparel and department stores, also saw Jobs continued on page 2D 3 i tw i niienH gie-13 TOfl rltneM vo'i 1 169 JfOfni? By John J. Oslund Staff Writer Like a caged lion, Harry Newton paces with nervous energy and occasionally emits a ferocious roar. "The telephone is the stupidest animal on the face of the Earth," Newton rages. "Let me tell you why." If you make a mistake dialing, Retailing Summary V7 WEEKLY INDEXES you have to hang up and dial again.

"Even my $3 calculator has a backspace erase if I enter a wrong number," Newton said. And what about all those hard-to-remember commands on the touch-tone keypad? "Why aren't there telephones with screens, like computers, so you don't have to remember all those funny commands?" And voice mail. Don't get Harry Newton started on voice mail unless you've got the time to listen. Investors bail out of Funco in wake of woeful 4th quarter Stock loses 16 of value, closing at $3.8712 Weekly netchg 34.93 Weekly 0.84 Last 4192.62 3 4,1 Dow Jones Industrials 5.70 1.14: Standard Poors 500 506.41 Percent change from a week ago: hivee I "2-0 (year ago: 15.50) ASEOTC (year ago: 7.76) 0.37 Equity funds (year ago: 6.81) Taxable bonds (year ago: 5.65) 'V I Q.84 k3l0.59 0.11 poofs kS0.29 Municipal bonds (year ago: 10.25) Bond funds (year ago: 3.60) CDs (year ago: 4.91) ment software through 1 82 Funco-Land stores. Funco reported that fourth-quarter net sales will be about $18.7 million, an increase of 25 percent over the year-ago period.

Net sales for the fiscal year will be about $80.3 million an increase of 59 percent, it said. Comparable store sales for the fiscal year decreased 7 percent. Also Friday, the company said it has promoted Stanley Bodine to president and chief operating officer, replacing founder David Po-mije, who will continue as chairman and chief executive. Bodine had been a vice president and director. Funco also named its controller, Robert Hiben, to the new post of chief financial officer.

The company also said Michael Hinnenkamp, vice president for merchandising and information systems has "elected to leave the company to pursue other career opportunities." cent from the same period last year. Comparable store sales sales from stores open at least one year are considered the most accurate indicator of a retailer's performance because sales surges associated with store openings are not used. In a statement, the Eden Prairie company said that fourth-quarter results "were adversely impacted by comparison against last year's strong fourth quarter video game release, NBA JAM." The company also cited the "current slowdown of the video game category," as consumers defer purchases in anticipation of next-generation video game systems, scheduled for release in the fall. Funco said that while the market recovers, it will focus on increasing sales in existing markets and improving expense controls and margins. Funco sells primarily Nintendo and Sega video games as well as other secondhand home entertain By Sally Apgar Staff Writer Wall Street slammed Funco Inc.

Friday in a tempest of trading on news that the used video game retailer's sales stumbled woefully during the fourth quarter. Funco lost 16.2 percent of its value, or 75 cents a share to close at a new 52-week low for the stock, which is traded on the NASDAQ market. A whopping 220,300 shares traded hands, compared with an average day when about 24,000 shares are traded. The stock has been battered badly over the past 12 months. It has traded at a 52-week high of $19.50.

It has lost more than half of its value since Jan. 13 when it traded at $8. Analyst said investors bailed out on news released late Thursday that Funco's comparable store sales for the fourth quarter dropped 24 per Money funds (year ago: 2.59) Real estate (year ago: 14.02) M3.40 Gold (year ago: 6.14) i Ki wii em 10 largest price percentage losers 10 largest price percentage gainers Weekly Weekly Last netchg chg Weekly Last net chg Weekly chg Sheldl 15 25.0 3 Currencies The beat(ing) goes on as dollar takes another tumble vs. the yen cns 24 4 247 Unavailable Bralnerd 10 1 21.2 Diametrc 63A 1'e 20.0 a i GameFn 57A 17.5 TwrAuto 9 1 14.9 BioVasc 6 7a 14.7 Navarre 5 12.5 UltPac 7 12.0 MichlF 12 VA 11.4 10 largest by percentage 10 largest by volume of shares traded Weekly Weekly volume Weekly 4 sham Weekly (00) Last net chg. traded Last net chg BestBuy 43402 22ft 1 CNS 35.9 24 4 UHlthCr 35622 451z -VA FtTeam 8 22.4 23 tt CNS 30338 24 4 Ji Ault 14.3 2 -ft DaytHd 28422 68 CasnRsc 14.0 4ft MMM 22536 58 -1a OlymFn 13.8 10 1 Norwest 21694 2634 1 Zeos 13.1 VA -ft GrdCasn 19728 24 2'a FSI Int 12.6 38 -2 ADC Tel 19505 28 -1'a BestBuy 10.3 22 1V4 StJude 16958 43V6 -Vt HlthRsk 9.3 8 'z 's FtBkSy 16085 39 -1 GrdCasn 8.9 247s 2Vb Bank of Japan's failure to lower a key interest rate ord low of 1.75 percent, to contain the soaring Japanese currency.

But governor Yasuo Matsushita suggested that the Japanese central bank was not ready to do so at the present time. Traders said that sent the dollar plunging. In late New York trading, the dollar was quoted at 83.65 yen, its lowest level since modern exchange rates were established in the late 1940s, down from 85.40 late Thursday. The dollar also was changing hands in New York at 1.3760 marks, down from 1.3762. partly to blame Associated Press Harry Newton "I come back from lunch and I've got 37 messages.

And the voice mail system makes me listen to each one in the order they came in. How stupid is that? I don't know about you, but I'd like to hear the most important calls first." Increasingly, telephone and computer industry executives are giving Newton's calls high priority. Armed with a gift for gut-level communicating, a Harvard MBA and a growing publishing empire, Newton has become the nation's foremost advocate of what he calls "computer telephony" the art and science of applying PC-based computer intelligence to the making and managing of telephone calls. For a more precise definition of that term and thousands of others you could turn to Newton's Telecom Dictionary. Now in its eighth edition, this five-pound softcover compilation explains the arcane language (and the endless acronyms) used by those who toil at the confluence of computer and telephone technologies.

It's all there, from "A bits" to the "zmodem." Telecommunications now the world's largest, fastest-growing and most profitable industry is coining new words and terms at the rate of about 1 00 a week, Newton claims, which makes it hard for him to keep up. He used to update the dictionary every three years. Now new editions come out every six months for an anxious and growing read "The Bank of Japan will only cut the rate as a last resort," said Joseph Francomano, a currency trader at Dai-Ichi Kangyo Bank Ltd. in New York. "It's not clear that will happen soon." The dollar remained mostly steady vs.

the mark as dealers took profits on the Germany currency, which began to retreat against European counterparts. Lower Japanese interest rates would make yen-denominated investments less attractive, thereby boosting the dollar. "The market is looking for the rate cut," said Hillel Waxman, chief foreign exchanger dealer at Bank Leumi Trust Ltd. in New York. "It could temporarily stop the plunge." Dollar continued on page 2D New York, N.Y.

The dollar tumbled to yet another record low against the yen Friday, crashing through the 84-yen barrier for the first time amid speculation that Japan's central bank would not cut a key interest rate. The Bank of Japan declined to comment on whether it would cut the discount rate, which stands at a rec- WINDOW ON THE MARKETS April 7, 1 995 to 4192.62; i Gainers i Banking Mixed first-quarter bank earnings expected, 4250 Last Net Pa. I 425Q 1 r-r-t iBrainerd 10 1'2 17.6 hTITl fCaslnoDS 12 1 8.5 '-j-t tHectCm Vh 'z 7.1 4160- Losers I 100Z3 "Hjjj VlnovGme 55ta -ft 4050 Iffirdl iRoyllnv 5Vi 4000 ---rdxf ZTTTI lArdenPd 6 -5 8 I '3g50I 'llj Moat active 3900 -j I Vol. (000) Last NetJ ZZZ3 I DaytHd 869 68 if TTttI I Norwest 528 263A 14 i 0 Feb. Mar.

Apf.MTVvThF I UHlthCr 482 45Vz Past week HW.W IIIJ.tr.IHIJ MM depending on where investments are located mand for derivatives, customized securities that derive value from un derlying markets in stocks, currencies and interest rates. Latin America will hurt some large N.Y. firms invested there ft Salomon Brothers Inc. expects to 814.60; Bankers Trust to report a loss of Treasury yield curve As of 3:30, CST Associated Press 850 $2.85 cents a share, compared with a 1 profit a year ago. J.P.

Morgan, which said it will lose $55 million in the quarter to pay for ership. Newton dictionary, which has sold more than 100,000 copies, aims to take a technically correct but lightheart-ed approach to topics that most nontechnical folks find pretty tough going. For example, here are a few gems from Page 355 of the latest edition: Drunken Swede. A way of describing the sound of a computer doing text-to-speech conversion." Dial Tone. "The sound you hear when you pick up a telephone.

Dial tone does not come from God or the telephone instrument New York, N.Y. First-quarter profits at the country's largest banks will be mixed, reflecting weak Latin American markets that! hurt New York banks and a recqvering economy and fewer bad loans that boosted California banks. Large New York banks that dabble in Latin American and other emerging markets and underwrite corporate securities will suffer from the recent turmoil stemming from the Mexican peso crisis. Investors have fled those markets and Latin American debt securities have plunged in value, which will hit Bankers Trust New York J.P. Morgan Co.

Chase Manhattan Corp. and First Chicago Corp. hard. "Trading wise, it won't be a good quarter," said Raphael Soifer, who follows money center banks for Brown Brothers Harriman Co. Bankers Trust has warned investors that it will lose $125 million in the quarter because of bad bets on Latin American securities and sagging de staff reductions, is estimated by Sal ill IS llllJ omon to have earned $1.09, down 5.5 r-4- '725 -H 700 4.5 1 iacmmmmmmmmi 675 ,40 Yesterday 1 week ago 1 $30 5 Pf 4 weeks ago 625 i 35.5 percent from 1 .69 a year ago.

Salomon said Chase Manhattan, which has jumped in stock value in recent days since an activist inves 6 12 3 7 10 30 Jan. Feb. Mar. Apf-MTWThF Past week tor group upped its ownership to 6 percent, is expected to earn $1.26 a The'quarterly results, to be released ovef the next two weeks, illustrate the fvide gap between the fortunes of banks that rely on U.S.-based coniumer businesses for profits and those that make money from trading Securities and serving corporations around the globe. nut.

yr. Source: Bridge Information Systems 4 share, down 30 percent from $1.80 Outlook continued on page 3D Newton continued on page 3D i.