The San Francisco Examiner from San Francisco, California • 17

Monday, July I99IB-1 gawjranrigtp Examiner Rudolf Solomon explains how small business owners can calculate their return on investment. I B-2 am mm II 111 I 1 SMALL BUSINESS b-2 CALENDAR b.2' STOCKS b-7 MUTUALS B.g occts Markets at a glance Monday's closing figures. Change from previous trading day's close. miurmi DOW- soar raw ft rt 2,958.41. i 6.76 ffltff L.

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gowrmrv Aug. delivery: 7.S20.76, iT. ..138.42. KTl W68o HttH "4 A 'i' 40.891 xnxoxrn OFF 11 r- A Nil I 516 points Japan's rate cut a pleasant surprise EXAMNER NEWS SERVICES NEW YORK Wall Street stocks soared Monday, propelled by a surprise cut in Japan's discount rate and a private report showing that the economy is quickly rebounding from recession. The Dow Jones industrial average was up 51.66 points to 2,958.41 at the close of regular trading on the New York Stock Exchange, recouping in a single session almost all of last week's 58.81-point loss.

Volume was 166 million shares compared with 162 million in the similar period Friday. In the broader market, gaining issues led losers by about 11 to 5. The NYSE composite index of all listed common stocks rose 3.20 to 206.67. Standard Poor's composite index of 500 stocks added 6.76 to 377.92. The American Stock Exchange index advanced 2.54 to 360.66.

The Nasdaq over-the-counter index was up 5.39 to 481.31. Analysts said the-opening surge was ignited by news that the Japanese central bank had cut its discount rate to 5.5 percent from 6.0 percent. They said the stock market was also buoyed by more evidence that the economy is coming out of recession. "What we have is a relief rally based on lower interest rates in in Chris Mottern, Capri Sun CEO: "Word of mouth and peer pressure has been a big factor in our product Malt liquor firm assailed San Francisco-based McKenzie River marketer of St Ides malt liquor, is one of a handful of companies being aggressively targeted by the Bureau of Alcohol, Tobacco and Firearms for violating regulations which ban firms from trumpeting the strength and power of their brews in advertising, according to the Wall Street Journal Officials at the company were unavailable for comment Monday. McKenzie River markets its product, St Ides, a brew with 5.9 percent alcohol, as "the number one strongest malt" Its ads star popular rapper Ice Cube, and have been widely criticized by black community groups as well because of their street and graphic references and implication the malt liquor is favored by street gangs.

AMD unveils speedier 386 chip Advanced Micro Devices Inc. continues to challenge Intel monopoly on the 386 microprocessor market with the introduction Monday of a speedy version of the popular chip. AMD Chairman J. Sanders called the new chip "the microprocessor for the masses," because of its low price, high speed and low power consumption. AMD's new chip, the Am386SXL, can be substituted for Intel 80386SX microprocessor as the "brain" of a personal computer.

Intel has been unable to keep up with demand for the chip, which was introduced in 1988. AMD began selling 386 clones in March. The two companies have been battling in the courts over AMD's right to make 386 chips. T-biil rates mixed Interest rates on short-term Treasury securities were mixed in Monday's auction. The Trea Selling by word of little mouths Key index gains for first time in a year Capri Sun markets fruit juice to kids by appeal to 'coolness Purchasing managers say recession is over By Carla Marinucci OF THE EXAMINER STAFF REUTEfl T-BILLS Averao discount Interest rat on 5-fnonth bNI at tha weekly auction THE rarefied atmosphere of a supermarket, the parent-child relationship can take on a strange and complex dynamic usually resembling Japan and the fact that the Japa July 1:5.59 says Bill Lilla, marketing director for Capri Sun the fruit drink giant "They'll sample things.

They're adventurous. They like the trends, but they're concerned about quality, too. When we devel-s op new ideas and new products, we talk to them." San Mateo-based Capri Sun, in fact, has been a master at marketing to kids, particularly in the 5- to 1 2-year-age range. The privately held firm last year sold 450 million of its trademark juice pouches in 52 countries worldwide, competing with giants like Coca-Cola and i General Foods in the fruit drinks category, and racking up 1 10 million in sales annually. Yet Capri's managers proudly acknowledge that they use no ad agency and have never launched anything re- motely resembling a general ad campaign.

Instead, Capri Sun has relied on getting the message of its products to kids with image-oriented spots almost exclusively in kids' maga- sury Department sold $10.47 billion in three-month bills at an average discount rate of 5.59 percent, up from 5.58 percent last week and the highest since they sold for 5.61 percent on June 17. Another $10.44 billion was sold in six-month bills at an average discount rate of 5.71 percent, down from 5.76 percent last week and the lowest since they averaged 5.65 percent on May 28. The new discount rates understate the actual return to investors 5.76 percent for three-month bills with a 1 III nese market didn't unravel over the weekend," said Alan Ackerman of Reich and Co. Tokyo's 225-share Nikkei average soared 817.80 points after the Japanese rate cut was announced. Analysts said a prolonged lack of positive news and last week's slump made the advance especially welcome.

On Monday, the National Association of Purchasing Management said its monthly index rose to 50.9 percent in June from 45.4 percent in May, ending 12 straight months of declines for the manufacturing June July the Big Bout at Wrestlemania IV. The struggle for buying power between parents and kids is at its peak there, in the aisles, in front of the Mini Chips Ahoys, Lite Twin-kies and Ninja Turtle Cereal Often, it's the parent who ends up getting the headlock and being thrown to the mat That's why the importance and influence of the kid consumer is not lost on savvy marketers, who are increasingly learning the power of effective kid-aimed marketing campaigns. "Kids are smart consumers," EXAMHED GRAPHICS $10,000 bill selling for $9,860.30, and 5.98 percent for a six-month bill selling for $9,712.90. TEMPE, Ariz. The manufacturing sector of the economy expanded in June for the first time in a year, the National Association of Purchasing Management said Monday, leading the group to declare that the recession was over.

In its monthly survey of purchasing managers, NAPM said its index rose to 50.9 percent last month, up from a revised 45.4 percent in May. A reading above 50 percent suggests the economy is expanding, while one below that level suggests it is contracting. "With the purchasing managers' index over 50 percent, the recession is essentially over for the manufacturing sector as well as the overall economy," said Robert Bretz, chairman of the NAPM's Business Survey Committee. The recession began in July 1990 and was the first in eight years. Not every sector of the economy is doing as well: the Commerce De-I partment reported Monday that See ADVERTISING, B-5 3-51 See MARKETS, B-5 urn i Autodesk reorganizes into 5 units Autodesk Inc.

said Monday it has formed a new operational structure of five business units that integrates technical and marketing activities along product lines. The Sausalito company said the reorganization "creates the infrastructure for continued growth and accelerates the company's diversification strategies." The company has already undergone a similar organization plan in its European operations. The reorganization will cause no layoffs and is expected to result in some expansion. The new business units are comprised of product development and marketing teams led by product managers. Compiled from Examiner staff and wire reports Kuwaitis face fight to regain customers construction spending fell 0.9 per-j cent in May after advancing a strong 1.2 percent the previous month the sharpest gain in 14 1 months.

The department said residen tial, non-residential and govern EXAMINER ment spending totaled a seasonally helped boost Antonio's portfolio by 7.6 percent for the week, good enough for the trophy. Antonio faced tough competi By Anne Reifenberg adjusted annual rate of $403.1 bil STOCK GAME DALLAS MORNING NEWS lion, down from $406.6 billion in 1 1 111 i if' tion in the final week. UC-Berkeley student Peter Schaffer boosted his portfolio by more than $15,000, or nearly 17 percent by short Short-selling IBM wins it for Antonio 4 i -i' v. i -a. I 4 -v i TM April and 10.6 percent below that' of May 1990.

The construction industry has been slumping for more than a year, resulting in the loss of about one-tenth of its jobs although it added 13,000 to its payrolls in May. While most analysts believe the housing sector of the construction industry has been recovering from its recession since last January indeed, spending on residential buildings was up 2.3 percent to $155 billion in May spending in other sectors is off. Apartment spending fell 2.5 percent, to $15.5 billion, following a. Antonio WASHINGTON Once the well fires are doused, the cracks in the pipelines fused and the refinery computers repaired, Kuwait will be ready to do business again. The last hurdle will be finding the business to do.

Iraq's conquest and scorched-earth defense of the emirate not only sabotaged Kuwait's petroleum infrastructure, but also stole its profitable place in the international market It will not be simple to regain. When Kuwait was forced to stop selling crude and products last other producers and refiners jumped to adopt its longtime customers. Some invested heavily in order to get them. For Kuwait to win them back or woo replacements will take aggressive sales techniques, cooperation from the Organization of Petroleum Exporting Countries and maybe a little price undercutting. "When the time comes, there will be some very sharp elbows at Sre KUWAIT, B-6 By Don Wiogandt SPECIAL TO THE EXAMINER In the end, the professional walked off with the trophy.

Christopher Antonio, specialist with PaineWebber at the Pacific Stock Exchange, hit it big by short-selling IBM stock, a move that shot him to the winner's spot in the first-ever Examiner Stock Game. For several weeks, the leading contestant had been the Dart-board, a group of randomly selected stocks picked three months ago. But IBM stock fell to a low for the year Friday, pushing Antonio's 5,000 IBM scores to a gain of 87 peicent for the weekThe Burge ing Wells Fargo stock. His quick thinking hurled him into the No. 2 spot Schaffer sold short 1,400 Wells shares just prior to last week's nose dive in the stock.

He covered his position by Wednesday. Had he held on until Friday, Schaffer would have edged Antonio out of first place as Wells stock fell anoth- er VA points Friday, the last day of the Stock Game's second-quarter run. As it was, Schaffer put all his money in the fixed-rate money market fund. The Stock Game began April 1 when the four contestants Anto- See STOCI( GAME, B-4 5.9 percent drop a month earlier. Multi-family building has been plagued by overbuilding in some areas and a lack of construction, financing.

The glut of unsold homes, combined with lower mortgage interest mtPB is nut tine housine within1 AP FIE PHOTO 190, reach of more families, however. tThe National Association of Real-: See ECONOMY, B-6 Flames and black $mok pour from a Kuwaiti oil well in February. It was only one of hundreds sabotaged by retreating Iraqi troops. rj -V.