Southern Illinoisan from Carbondale, Illinois • Page 15

Southern Illinoisan, Wednesday, July 16, 1986 Page 15 65 We are burdened with large trade deficits, extremely weak capital spending and cutbacks in energy. Economist Lawrence Chimerine yp nim OKU CQ soar Toe Retail Sales Industrial Production Market in Brief N.Y.S.E. Issues Consolidated Trading Tuesday, July 15 Seasonally Adjusted in Billions of U.S. Dollars Source: U.S. Commerce Dept.

Volume Shares 214,831,290 Percentage of Capacity, with 1001977 Industrial Activity Source: Federal Reserve Board r127 118- M26 'VI M16- Issues Traded 1,981 Up 424 Unchanged 304 Down 1,253 2 JiiL 114- -125 rn -124 r-112- IBM again triggers Dow drop New York Times NEW YORK A slide in the price of IBM's shares Tuesday again infected the stock market and the result was the third straight double-digit loss for the Dow Jones industrial average, which closed at its lowest level in nearly two months. Trading volume picked up significantly, making Tuesday Wall Street's 10th busiest day ever, as investors, fearful that a broad market downturn was under way, sold the stocks not only of companies the would likely suffer from a weak economy but also issues that have been up on takeover speculation. "I'm in my bunker, and I have my steel pot on," said Anthony Woodruff, head of block trading at Kidder Peabody as the debris from once high-priced stocks littered the tape. "The street is hurt." The Dow average, after several mistic, however. While the Reagan administration is forecasting economic growth of 4 percent in the second half of 1986, many analysts contend the economy will show little pickup from the weak growth of the past two years.

"The basic trend of the economy is very weak," said Lawrence Chimerine, president of Chase Econometrics, a private forecasting company. "We are burdened with large trade deficits, extremely weak capital spending and cutbacks in energy. The economy is stagnant at best." He said unless the country's huge trade deficit shrinks, it was unlikely the economy would show any improvement in the second half of the year. The trade deficit has held back growth for two years now as a flood of imports has robbed U.S. manufacturers of sales while the strong dollar has made American products uncompetitive overseas as well.

Jerry Jasinowski, chief economist for the National Association of Manufacturers, said while some of the June weakness was strike-related, it did not change the fact that the manufacturing sector of the economy is "bearing the brunt of the current slowdown" in economic growth. The June decline in factory output followed a 0.4 percent drop in May and declines of 0.9 percent in both WASHINGTON (AP) U.S. industrial production plunged 0.5 percent in June, the fourth decline in the past five months, while retail sales inched upward only slightly, the government said Tuesday in separate reports that underscored how weak the economy has become. One-half of the drop in industrial output was blamed on strikes in the communciations, aluminum and timber But the Federal Reserve. Board report showed that the troubles in industrial America went farther than strikes as domestic manufacturers continued to be battered by foreign competition.

The Commerce Department report on retail sales showed they rose a slight 0.2 percent in June, the weakest showing since March. The government did substantially raise earlier estimates of sales activity for May and April. The Reagan administration said these revisions, despite the lackluster growth in June, pointed the way to increased production gains and a stronger economy in the second half of the year. "High consumer confidence and low interest rates and inflation favor continued growth in consumer spending," Commerce Secretary Malcolm Baldrige said in a statement. Private analysts were not as opti- 110- M08- 106- L-123 Lm IbJ UUUwUU N.Y.S.E.

Index 134.91 2.36 JASOND JFMAMJ 85 86 AS OND JFM AM 85 88 June '85 May '86 June '86 June '85 May '86 June '86 233.66 4-45 Dow Jones Ind. 1,768.70 24.75 113.5 118.5 118.7 124.3 124.7 124.1 AP graphic attempts at rallies failed, finished with a 24.75 loss, at 1,768.70. The blue chip index, which lost 27.98 Monday after dropping 79.44 points last week, is down to a level not seen since mid-May. AP graphics which includes oil and gas drilling, fell by 1.5 percent in June. Manufacturing fell 0.5 percent in June, more than double the 0.2 percent May decline, despite the fact that auto production rose during the month.

February and March. Industrial output is now 2.1 percent below where it was in January. The weakness this year has been concentrated in widespread layoffs in oil and gas drilling because of slumping energy prices. Production in the mining industry, Bujsqitdsss Bccsffs ynton, state delegation posh tfoir business incentives 'How do we get people to take their money out of the bank and risk it in a small Doris Boynton proved by the Illinois General Assembly, which placed no limits on liability awards. "It just didn't go far enough," Boynton said.

The Illinois recommendations included perservation of the Small Business Administration in the face of Reagan administration attempts to eliminate that agency. The group also recommended formation of a cabinet-level Department of international Trade to facilitate exports from individual states. The other recommendations from the Illinois delegation are: Turning Social Security over to the private sector and giving workers under 45 the option of leaving the federal program in favor of a private retirement plan. A national Right to Work law, which would allow individual employees to decide whether or to belong to a labor union. Revision of the Standard Industry Code to reflect the national economy's transitition from an industrial base to a service industry.

By Tim Landis Of The Southern Illinoisan Republican legislative candidate Doris Boynton of Marion has been elected as an Illinois delegate to the White House Conference on Small Business, which meets Aug. 17 in Washington, D.C. Boynton is executive director of Optima Management Corp. of Marion, a business consulting firm, though she's taking a leave of absence during the campaign. Boynton is seeking the seat held by Rep.

Jim Rea, D-Christopher, in the 117th House District. The conference was called by President Reagan to focus attention on the problems of small businesses, and Boynton said the members of the Illinois delegation will present seven recommendations they feel would help small businesses in Illinois. Boynton said additional tax incentives are needed for individuals who invest in small businesses. "How do we get. people to take their money out of the bank and Second-quarter net income was $40.5 million, or 15 cents a share, compared with $37.3 million, or 13 cents a share, during the comparable period of 1985.

The improved performance was attributed to higher non-interest income, particularly the sale of real estate and improved trading profits, the company said. The corporation is parent to Continental Illinois National Bank and Trust Company of Chicago, which was rescued from a near collapse in 1984. Oklahoma bank closed, then sold OKLAHOMA CITY (AP) Okla- homa's second-largest bank, which tottered on the brink of financial disaster as the state faced depressions in agriculture and energy, was sold after being closed by federal offi- cials. Regulators closed First National Bank Trust Co. of Oklahoma City, on Monday, then sold it to First In-terstate Bank of California, which was to reopen it Tuesday.

It was the 28th bank failure in Oklahoma since the collapse of Penh Square Bank on July 5, 1982, sent shock waves throughout the nation's banking community. Although First National is a much larger bank, the repercussions of its failure were expected to be minimal primarily because it had been anticipated and because the deal with the Los Angeles bank protects all depositors, even those who had more than the $100,000 federally insured limit. to an even more disappointing 54.8 percent this time. Cosentino wants card rates lowered SPRINGFIELD (AP) State treasurer candidate Jerry Cosentino said Tuesday he carries an kansas bank's Visa card because it charges only 11 percent interest and that other consumers should get out-of-state cards unless Illinois banks lower their credit-card interest rates. "The Arkansas credit card is a symbol," Cosentino, a Democrat, said at a news conference.

"Most states have reduced credit card rates, but not Illinois. "My campaign has a new slogan 'Please leave home without Cosentino said if he is elected he would remove state deposits from banks that refuse to lower credit-card interest rates. "WhejI become treasurer, banks would ilavcto make a choice as to whether they would continue to gouge consumers with interest rates of 21 percent and 22 percent or give up state deposits," he said. Cosentino said the half-dozen or so banks that handle the bulk of the credit cards in Illinois could lose up to $200 million in state deposits if they refuse to lower interest rates. Continental Illinois profits up 9 percent CHICAGO (AP) Continental Illinois Corp.

increased quarterly profits by 9 percent over year-ago levels, the banking company announced Tuesday. Big Three report big July sales gains DETROIT (AP) Domestic automakers reported Tuesday an impressive 8.9 percent gain in early July new-car sales compared with a year ago, reflecting the continued effectiveness of incentive programs. It was Detroit's second-best showing for the July 1-10 period this decade. The magic of incentives was particularly apparent at Chrysler which enjoyed a 25.6 percent sales gain compared with last year by more than doubling the sales of two dated car lines: the Dodge Omni-Plymouth Horizon subcompacts and the rear-drive Fifth Avenue luxury car. The two car lines have been around for nearly a decade with relatively few refinements, but aggressive marketing has boosted sales.

Chrysler has cut the suggested base price of the Omni-Horizon to $5,499 while adding options. Chrysler, the No.3 automaker, increased its share of the domestic market from 13.6 percent last year to 15.7 percent in the July 1-10 period. No.2 Ford Motor Co. reported an 8.8 percent sales gain over a year ago and had the same market share, 26.3 percent. General Motors which has been trying unsuccessfully for nearly two years to re-establish a market share around 60 percent, appeared to suffer at Chrysler and Ford's hands.

GM enjoyed a sales gain of 7.8 percent over a year ago. But its market share fell from 55.4 percent last year risk it in a small business?" she said. She said that while tax incentives for existing businesses are adequate, there should be more incentive for people to start new, small businesses. The Illinois delegation also recommends a national insurance reform plan that would place limits on liability awards and eliminate certain types of liability claims that have been particularly expensive for business. Boynton also was critical of the reform plan just ap Closing stock prices Local stocks NEW YORK AP) 4 p.m.

prices for NYSE listed most active High Low High Low Lat Chg 483 47 48 34 High Low 46V 43' 7 30V 29'a 367 35 54 48' 4 76'4 74'a 22V 30' 7 12'a 31V 19a 52' 4 45' I 20' 43' 1 3734 57'a 33'4 25a 52' a 47'a 53V 75 73' 22' a 29 12' 30'4 18' 50 44 41Hl 35V 57'a 32' 4 24'a 66V 21'a 72V 9'4 17a 17V 41' a 57' 4 77V S4V '44V 37V 59V 31V 32H 435 56V 9S 33V 25 21' 1 71V 9 16V 12 '7 39 49V 77 51 42V 36V 59' 7 30V 43 53'a 92V 32 24V Allen Industries (Bemis) 23'2 (Dayco) 207e AAeis Amax 12V8 (Brn Grp) 34Vs CI PS 29V8 McDonald's 69V4 Coca-Cola 40'4 Norge ConAg 55 (MgChf) 47 Consol old Ben Coal (Du Pont) 7934 (SRD) 40V'2 Gen Dyn 72V2 oiin 46 Holiday 571b Pepsi 30Vs III Cntrl Indust Ramada (ICX) 23V2 sears 43 Inld Stl 18H Tuck Tape 6V4 Penney 73V2 Turco, Inc. KMart (Atcor) 15 Kroger 538 USGyp 34 V4 S'thrn Illinoisan WalAAart 44Va (Lee Ent) 24' 4 Wendys 14'8 Lustour Walgreens 35e 49 16' 27H 29 40 3t5 7 14 4 2' 58 86'. 74H SiU 37 53' 18 47' 14 18 59' a 60' i 79' 62' 6" 25' 3CV 47' 1 7tH 29'? 38? 358 93 71H 28 57' i 85'- 24 54' iSH 17' 7H 6V 461. 14l mt 58 'a 59' 'i 77' 59' a 65 24V 29a Z77V I 541? 52V 2Vt 13S' 2 67 65' 64 103V 100V 75'1 75' 4 stocks: Last Chg 36' a 53 47'a 4 54'3 75' 'a 73 'a 30 17 4 3 3CV 'a 1 SOU 2 45' 20 4IV3 2 36 -2' a 57'a 33 24'a 53 -IV 135V 3' 65V 1'4 50' a 1'4 73' l'a 27V 2 68 3 '4 30' a 20-V l'a 69' 4 98V- 1 4 34' a 14' a 12 105V 29V 84 1 34' a IV 48 Pa 15' a 9 V3 7Vj 'j 2 23 27V 63 IV 19V 'a 24V 7 34V 'a 6V trap oo(s Last Chg 44' 72' 4 30 66V- 21V 'a 71V ''a 9 16V 12V 39' 7 52 7 77' a -f a 52V 2 43' 7 37'-4 'a 59 29V IV 31 2' 4 43 53'a 3V 93' a 2V 33' 4 24V 100 2 75V 40' 7 46 63V 33V 1' 4 17V IV 29 28'7 2 32V 1 30 IS 4 42V-2V 46''7 49 18V 22'a 55' 4 IV S4'a '4 42Vj l'a 28V 18'4 44'a-IV 45' 4 IV 9 l'a 'a 50' 4 52 IV PanhEC 2 30 PepsiC .64 1 64 PhilaEI 2.20 PhilMr 2 30 PhiiPet .60 PrimeC PS Ind PSvEG 2 96 RJR Nb 1.48 RcylD 4 71e Satewy 1.70 Salomn .64 SD.eGs2 38 Sandr .60 SFeSoP 1 Schima 1 20 Sears 1 76 Singer 40 SmkB 3 SCaiEd 2 28 SouThCo 2.04 SOell 6 40 Sperry 1 92 StilOII 2 80 SterlDg 1 32 Syntex 1.20 Tandy Terdyn Texaco 3 TcxEst2.20 TexUtil 2.68 Toy RU i TWA Transco 6 06e Trayer 2 16 UAL 1 USX Cp 1.20 UCarb 1 50 UnPac 1 80 USWst 3 04 UnTech 1 43 1.92 Unocal 1 WIMrt .17 waste .56 WnAirL WCNA W'StgE 1.40 Xerox 3 AMR AbtLb .64 AMD Ahmns .46 Alcan BO AldSgn nV80b Alcoa 1 20 ABrartd 4 05 ACyan 1 90 AEIPw 2 26 Am Exp 1.36 AHome 3.10 1 20 Amoco 3 30 AMP .72 Anheus .60 ArchO Arnco AsdOG 1 40 AtlRicn 4 BfkA.T BaxtTr 40 Be 1 1 Sou 3 .04 Boeing 1 20 BnstM 2.20 BnNth 1 60 Borrgh 2 60 CBI in .60 CSX 1 16 Caterp .50 CentE 2 56 CenSoW 2.14 Crtaus Chevrn 2.40 Chrys 1 Citicrp 2.46 CocaCI CmwS 3 ConsEd 2.68 DarlKr 1 72 DaytHd .84 DetEd 1.68 Digital Disney .32 DowCn 1.80 duPonf 3 DuaLt 1.20 EKodk 2 52 Exxon 3 60 FedExp FedNM .16 FordM 2.20 f-'ruehf .70 GTE 3 16 GenEI 2.32 GAAof 5r GPU GaPac .80 GibrPn 05e Goody 1 60 Gould .34 Grace 2 80 GtWFin 1.20 Halbtn 1 Heim .90 HewlP .22 Holiday 1.16 Houlnd 2 80 Human 76 ITT Cp 1 IBM 4 40 IniPapr 2 40 Jofrnjn 1.40 mart 1.48 Lilly 1 80 Limitd .16 M.acy 1 16 Meiriots .13 Mc Deri 1.80 McDni MercK 1 80 MerLyn .80 MesLP n.SOe M.dSUt 1 33j MMM 3 60 Vobil 2.21 Morjan 2.45 Motor 'a .64 NCR .97 NL Ind 20 Niifmi NaviSV Nav wtB NiaMP 2.08 NorTe .40 Nynex 3 48 Oh.oEd 1 92 PacCE 1 92 Pacitco 2 40 PanAm 474 1' 4 15' a 'a VH i 39 1 35' 3 1 93 'a 73 1 28 57'a l'a 85' a 'a 24' 4 a 54ia 14 35'a 14 53' a la 17V a 7-U 62 -2' a 4634 a 4 I 4 17'a 59' a 60 'a 78 Vi 60' 4 H4 65'-? 2' 4 'a 44'4-23 24H 32V 22'4-t- 34 4 341 a 56 40H. '4 '4 45V 1 4 53 IV 49H 1H 16'a 84' 71-7 45'a-l'4 53'a-r 79V 13'? S3 57H 5Fa 1 I Lrl 46' -J 44' 24V, 24' 4 TRUC TIR 66' 1 51 74V 29 68' 31 21'a 69' a 99' 3 35U 14'a 108 29' 3 85' 4 35'a 50V 151 91 7 3 24 27V 64V 19V 49' 72 27 68 29V 20 68 y'i 344 13'a 12V 105 29 82' 34 48 15 8'a 2V 23 27' 4 19' 2 41 4 46' a 64-" 4 35'a 18'a 29V 29V 33V 31 15' 4 45V 47 49' a 19' a 23' 4 56 55 43' 28V3 )8V 46 46V 9V IV 51V 53V 40' 3 46'a 63 33V 17V 29 27 324 28V 14 41' 3 46' 48V 18'-7 22V 55 53V 42 27'2 18' 43' a 44' 8'a 1 50' 4 51V SALE 50 OF 33s 23 35 35' 4 58 'a 4C4 33 "4 46l 60 5) 17H 87 467a 54H 60 134 543 58' a 32S 7U 34' 34 S5J4 40 32'i 45" 4 58 49' 4 164 8 4' -a 44'a 52H 79a ma 52 57' 51 Grain futures CHICAGO (AP) Corn and futures prices advanced Tuesday on the Chicago Board of Trade.

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