It seems to me that this is the pin that has finally pricked the balloon says Mr. Rogers a professor of finance at Columbia University and former co-manager of one of the most successful hedge funds in history Quantum Fund

( S ( S-TPC-2 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ seems ) ( PP ( TO to ) ( NP ( PRP me ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT this ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN pin ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ has ) ( ADVP ( RB finally ) ) ( VP ( VBN pricked ) ( NP ( DT the ) ( NN balloon ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Rogers ) ) ( NP ( NP ( NP ( DT a ) ( NN professor ) ) ( PP ( IN of ) ( NP ( NN finance ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Columbia ) ( NNP University ) ) ) ) ( CC and ) ( NP ( NP ( JJ former ) ( NN co-manager ) ) ( PP ( IN of ) ( NP ( NP ( NP ( CD one ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ successful ) ) ( NN hedge ) ( NNS funds ) ) ( PP-LOC ( IN in ) ( NP ( NN history ) ) ) ) ) ) ( NP ( NNP Quantum ) ( NNP Fund ) ) ) ) ) ) ) )


He sees economic problems financial problems ahead for the U.S. with a fairly strong possibility of a recession

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Friday you could n't sell dollars he says

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Dealers would give you a quote but then refuse to make the trade

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If the dollar stays weak he says that will add to inflationary pressures in the U.S. and make it hard for the Federal Reserve Board to ease interest rates very much

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Mr. Rogers wo n't decide what to do today until he sees how the London and Tokyo markets go

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He recommends that investors sell takeover-related stocks but hang on to some other stocks especially utilities which often do well during periods of economic weakness

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Frank Curzio


Many people now claim to have predicted the 1987 crash

( S ( NP-SBJ-1 ( JJ Many ) ( NNS people ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBP claim ) ( S ( VP ( TO to ) ( VP ( VB have ) ( VP ( VBN predicted ) ( NP ( DT the ) ( CD 1987 ) ( NN crash ) ) ) ) ) ) ) )


Queens newsletter writer Francis X. Curzio actually did it He stated in writing in September 1987 that the Dow Jones Industrial Average was likely to decline about 500 points the following month

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Mr. Curzio says what happens now will depend a good deal on the Federal Reserve Board

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If it promptly cuts the discount rate it charges on loans to banks he says That could quiet things down

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If not We could go to 2200 very soon

( S ( SBAR-ADV ( IN If ) ( FRAG ( RB not ) ) ) ( NP-SBJ ( PRP We ) ) ( VP ( MD could ) ( VP ( VB go ) ( PP-DIR ( TO to ) ( NP ( CD 2200 ) ) ) ( ADVP-TMP ( RB very ) ( RB soon ) ) ) ) )


Frank W. Terrizzi

( NP ( NNP Frank ) ( NNP W. ) ( NNP Terrizzi ) )


Stock prices would still have to go down some additional amount before we become positive on stocks says Mr. Terrizzi president and managing director of Renaissance Investment Management Inc. in Cincinnati

( SINV ( S-TPC-2 ( NP-SBJ-1 ( NN Stock ) ( NNS prices ) ) ( VP ( MD would ) ( ADVP-TMP ( RB still ) ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB go ) ( ADVP-DIR ( RB down ) ) ( NP-EXT ( DT some ) ( JJ additional ) ( NN amount ) ) ) ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP become ) ( ADJP-PRD ( JJ positive ) ( PP ( IN on ) ( NP ( NNS stocks ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Terrizzi ) ) ( NP ( NP ( NP ( NN president ) ) ( CC and ) ( NP ( VBG managing ) ( NN director ) ) ) ( PP ( IN of ) ( NP ( NP ( NNP Renaissance ) ( NNP Investment ) ( NNP Management ) ( NNP Inc. ) ) ( PP-LOC ( IN in ) ( NP ( NNP Cincinnati ) ) ) ) ) ) ) )


Renaissance which manages about 1.8 billion drew stiff criticism from many clients earlier this year because it pulled entirely out of stocks at the beginning of the year and thus missed a strong rally

( S ( NP-SBJ ( NP ( NNP Renaissance ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ manages ) ( NP ( QP ( RB about ) ( CD 1.8 ) ( CD billion ) ) ) ) ) ) ) ( VP ( VBD drew ) ( NP ( JJ stiff ) ( NN criticism ) ) ( PP-CLR ( IN from ) ( NP ( JJ many ) ( NNS clients ) ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VP ( VBD pulled ) ( ADVP ( RB entirely ) ) ( PP-CLR ( IN out ) ( PP ( IN of ) ( NP ( NNS stocks ) ) ) ) ( PP-TMP ( IN at ) ( NP ( NP ( DT the ) ( NN beginning ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ) ) ( CC and ) ( ADVP ( RB thus ) ) ( VP ( VBD missed ) ( NP ( DT a ) ( JJ strong ) ( NN rally ) ) ) ) ) ) ) )


Renaissance is keeping its money entirely in cash equivalents primarily U.S. Treasury bills

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T-bills probably are the right place to be he says

( S ( S-TPC-2 ( NP-SBJ ( NNS T-bills ) ) ( ADVP ( RB probably ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( DT the ) ( JJ right ) ( NN place ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )


Many of the nation 's highest-ranking executives saluted Friday 's market plunge as an overdue comeuppance for speculators and takeover players

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Assuming that the market does n't head into a bottomless free fall some executives think Friday 's action could prove a harbinger of good news as a sign that the leveraged buy-out and takeover frenzy of recent years may be abating

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This is a reaction to artificial LBO valuations rather than to any fundamentals said John Young chairman of Hewlett-Packard Co. whose shares dropped 3.125 to 48.125

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If we get rid of a lot of that nonsense it will be a big plus

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A few of the executives here for the fall meeting of the Business Council a group that meets to discuss national issues were only too happy to personalize their criticism

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People wish the government would do something about leveraged buy-outs do something about takeovers do something about Donald Trump said Rand Araskog chairman of ITT Corp. whose stock dropped 3.375

( SINV ( S-TPC-2 ( NP-SBJ ( NNS People ) ) ( VP ( VBP wish ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( MD would ) ( VP ( VP ( VB do ) ( NP ( NN something ) ) ( PP-CLR ( IN about ) ( NP ( JJ leveraged ) ( NNS buy-outs ) ) ) ) ( VP ( VB do ) ( NP ( NN something ) ) ( PP-CLR ( IN about ) ( NP ( NNS takeovers ) ) ) ) ( VP ( VB do ) ( NP ( NN something ) ) ( PP-CLR ( IN about ) ( NP ( NNP Donald ) ( NNP Trump ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Rand ) ( NNP Araskog ) ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( NNP ITT ) ( NNP Corp. ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( NN stock ) ) ( S ( VP ( VBD dropped ) ( NP-EXT ( CD 3.375 ) ) ) ) ) ) ) ) ) )


Where 's the leadership

( SBARQ ( WHADVP-1 ( WRB Where ) ) ( SQ ( VP ( VBZ 's ) ) ( NP-SBJ ( DT the ) ( NN leadership ) ) ) )


Where 's the guy who can say Enough is enough

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The executives were remarkably unperturbed by the plunge even though it lopped billions of dollars off the value of their companies and millions off their personal fortunes

( S ( NP-SBJ ( DT The ) ( NNS executives ) ) ( VP ( VBD were ) ( ADJP-PRD ( RB remarkably ) ( JJ unperturbed ) ( PP ( IN by ) ( NP ( DT the ) ( NN plunge ) ) ) ) ( SBAR-ADV ( RB even ) ( IN though ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VP ( VBD lopped ) ( NP ( NP-1 ( NNS billions ) ) ( PP ( IN of ) ( NP ( NNS dollars ) ) ) ) ( PP-CLR-2 ( IN off ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( NNS companies ) ) ) ) ) ) ( CC and ) ( VP ( NP=1 ( NNS millions ) ) ( PP-CLR=2 ( IN off ) ( NP ( PRP$ their ) ( JJ personal ) ( NNS fortunes ) ) ) ) ) ) ) ) )


I 'm not going to worry about one day 's decline said Kenneth Olsen Digital Equipment Corp. president who was leisurely strolling through the bright orange and yellow leaves of the mountains here after his company 's shares plunged 5.75 to close at 86.50

( SINV ( S-TPC-3 ( NP-SBJ-2 ( PRP I ) ) ( VP ( VBP 'm ) ( RB not ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB worry ) ( PP-CLR ( IN about ) ( NP ( NP ( CD one ) ( NN day ) ( POS 's ) ) ( NN decline ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Kenneth ) ( NNP Olsen ) ) ( NP ( NNP Digital ) ( NNP Equipment ) ( NNP Corp. ) ( NN president ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD was ) ( VP ( ADVP-MNR ( RB leisurely ) ) ( VBG strolling ) ( PP-DIR ( IN through ) ( NP ( NP ( DT the ) ( JJ bright ) ( ADJP ( NN orange ) ( CC and ) ( JJ yellow ) ) ( NNS leaves ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS mountains ) ) ( ADVP-LOC ( RB here ) ) ) ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ-4 ( NP ( PRP$ his ) ( NN company ) ( POS 's ) ) ( NNS shares ) ) ( VP ( VBD plunged ) ( NP-EXT ( CD 5.75 ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB close ) ( PP-CLR ( IN at ) ( NP ( CD 86.50 ) ) ) ) ) ) ) ) ) ) ) ) ) ) )


I did n't bother calling anybody I did n't even turn on TV

( S ( S ( NP-SBJ-1 ( PRP I ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB bother ) ( S ( VP ( VBG calling ) ( NP ( NN anybody ) ) ) ) ) ) ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBD did ) ( RB n't ) ( ADVP ( RB even ) ) ( VP ( NN turn ) ( PRT ( RP on ) ) ( NP ( NN TV ) ) ) ) ) )


There has n't been any fundamental change in the economy added John Smale whose Procter & Gamble Co. took an 8.75 slide to close at 120.75

( SINV ( S-TPC-1 ( NP-SBJ ( RB There ) ) ( VP ( VBZ has ) ( RB n't ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT any ) ( JJ fundamental ) ( NN change ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN economy ) ) ) ) ) ) ) ( VP ( VBD added ) ) ( NP-SBJ ( NP ( NNP John ) ( NNP Smale ) ) ( SBAR ( WHNP ( WP$ whose ) ) ( S ( NP-SBJ-2 ( NNP Procter ) ( CC & ) ( NNP Gamble ) ( NNP Co. ) ) ( VP ( VBD took ) ( NP ( DT an ) ( ADJP ( CD 8.75 ) ) ( NN slide ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB close ) ( PP-CLR ( IN at ) ( NP ( CD 120.75 ) ) ) ) ) ) ) ) ) ) )


The fact that this happened two years ago and there was a recovery gives people some comfort that this wo n't be a problem

( S ( NP-SBJ ( DT The ) ( NN fact ) ( SBAR ( IN that ) ( S ( S ( NP-SBJ ( DT this ) ) ( VP ( VBD happened ) ( ADVP-TMP ( NP ( CD two ) ( NNS years ) ) ( RB ago ) ) ) ) ( CC and ) ( S ( NP-SBJ ( EX there ) ) ( VP ( VBD was ) ( NP-PRD ( DT a ) ( NN recovery ) ) ) ) ) ) ) ( VP ( VBZ gives ) ( NP ( NNS people ) ) ( NP ( DT some ) ( NN comfort ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT this ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( NN problem ) ) ) ) ) ) ) ) )


Of course established corporate managements often tend to applaud the setbacks of stock speculators and takeover artists

( S ( PP ( IN Of ) ( NP ( NN course ) ) ) ( NP-SBJ-1 ( JJ established ) ( JJ corporate ) ( NNS managements ) ) ( ADVP-TMP ( RB often ) ) ( VP ( VBP tend ) ( S ( VP ( TO to ) ( VP ( VB applaud ) ( NP ( NP ( DT the ) ( NNS setbacks ) ) ( PP ( IN of ) ( NP ( NP ( NN stock ) ( NNS speculators ) ) ( CC and ) ( NP ( NN takeover ) ( NNS artists ) ) ) ) ) ) ) ) ) )


Indeed one chief executive who was downright delighted by Friday 's events was Robert Crandall chairman of AMR Corp. the parent of American Airlines and the target of a takeover offer by Mr. Trump

( S ( ADVP ( RB Indeed ) ) ( NP-SBJ ( NP ( CD one ) ( JJ chief ) ( NN executive ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD was ) ( ADJP-PRD ( RB downright ) ( JJ delighted ) ( PP ( IN by ) ( NP ( NP ( NNP Friday ) ( POS 's ) ) ( NNS events ) ) ) ) ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( NNP Robert ) ( NNP Crandall ) ) ( NP ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( NNP AMR ) ( NNP Corp. ) ) ( NP ( NP ( DT the ) ( NN parent ) ) ( PP ( IN of ) ( NP ( NNP American ) ( NNP Airlines ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN target ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN takeover ) ( NN offer ) ) ( PP ( IN by ) ( NP ( NNP Mr. ) ( NNP Trump ) ) ) ) ) ) ) ) ) )


Asked whether Friday 's action could help him avoid being Trumped by the New York real estate magnate Mr. Crandall smiled broadly and said No comment

( S ( S-ADV ( VP ( VBN Asked ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( NP ( NNP Friday ) ( POS 's ) ) ( NN action ) ) ( VP ( MD could ) ( VP ( VB help ) ( S ( NP-SBJ-3 ( PRP him ) ) ( VP ( VB avoid ) ( S ( VP ( VBG being ) ( VP ( VBN Trumped ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NNP New ) ( NNP York ) ( JJ real ) ( NN estate ) ( NN magnate ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-2 ( NNP Mr. ) ( NNP Crandall ) ) ( VP ( VP ( VBD smiled ) ( ADVP-MNR ( RB broadly ) ) ) ( CC and ) ( VP ( VBD said ) ( FRAG ( NP ( DT No ) ( NN comment ) ) ) ) ) )


On Friday morning before the market 's sell-off the business leaders issued a report predicting the economy would grow at roughly an inflation-adjusted 2 % annual rate through next year then accelerate anew in 1991

( S ( PP-TMP ( IN On ) ( NP ( NNP Friday ) ( NN morning ) ) ) ( PP-TMP ( IN before ) ( NP ( NP ( DT the ) ( NN market ) ( POS 's ) ) ( NN sell-off ) ) ) ( NP-SBJ ( DT the ) ( NN business ) ( NNS leaders ) ) ( VP ( VBD issued ) ( NP ( NP ( DT a ) ( NN report ) ) ( VP ( VBG predicting ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( MD would ) ( VP ( VP ( VB grow ) ( PP ( IN at ) ( NP ( RB roughly ) ( DT an ) ( JJ inflation-adjusted ) ( ADJP ( CD 2 ) ( NN % ) ) ( JJ annual ) ( NN rate ) ) ) ( PP-TMP ( IN through ) ( NP ( JJ next ) ( NN year ) ) ) ) ( RB then ) ( VP ( VB accelerate ) ( ADVP ( RB anew ) ) ( PP-TMP ( IN in ) ( NP ( CD 1991 ) ) ) ) ) ) ) ) ) ) ) )


Of the 19 economists who worked on the Business Council forecast only two projected periods of decline in the nation 's output over the next two years and in both instances the declines are too modest to warrant the phrase recession said Lewis Preston chairman of J.P. Morgan & Co. and vice chairman of the Business Council

( SINV ( S-TPC-4 ( S ( PP-TPC-2 ( IN Of ) ( NP ( NP ( DT the ) ( CD 19 ) ( NNS economists ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD worked ) ( PP ( IN on ) ( NP ( DT the ) ( NNP Business ) ( NNP Council ) ( NN forecast ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( QP ( RB only ) ( CD two ) ) ) ) ( VP ( VBD projected ) ( NP ( NP ( NNS periods ) ) ( PP ( IN of ) ( NP ( NP ( NN decline ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( NN output ) ) ) ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ next ) ( CD two ) ( NNS years ) ) ) ) ) ) ( CC and ) ( S ( PP-LOC ( IN in ) ( NP ( DT both ) ( NNS instances ) ) ) ( NP-SBJ-3 ( DT the ) ( NNS declines ) ) ( VP ( VBP are ) ( ADJP-PRD ( RB too ) ( JJ modest ) ( S ( VP ( TO to ) ( VP ( VB warrant ) ( NP ( NP ( DT the ) ( NN phrase ) ) ( NP ( NN recession ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Lewis ) ( NNP Preston ) ) ( NP ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NNP J.P. ) ( NNP Morgan ) ( CC & ) ( NNP Co. ) ) ) ) ( CC and ) ( NP ( NP ( NN vice ) ( NN chairman ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Business ) ( NNP Council ) ) ) ) ) ) )


Pension funds insurers and other behemoths of the investing world said they began scooping up stocks during Friday 's market rout

( S ( NP-SBJ ( NP ( NN Pension ) ( NNS funds ) ) ( NP ( NNS insurers ) ) ( CC and ) ( NP ( NP ( JJ other ) ( NNS behemoths ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN investing ) ( NN world ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBD began ) ( S ( VP ( VBG scooping ) ( PRT ( RP up ) ) ( NP ( NNS stocks ) ) ( PP-TMP ( IN during ) ( NP ( NP ( NNP Friday ) ( POS 's ) ) ( NN market ) ( NN rout ) ) ) ) ) ) ) ) ) )


And they plan to buy more today

( S ( CC And ) ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP plan ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( JJR more ) ) ( NP-TMP ( NN today ) ) ) ) ) ) )


Rightly or wrongly many giant institutional investors appear to be fighting the latest war by applying the lesson they learned in the October 1987 crash Buying at the bottom pays off

( S ( ADVP ( RB Rightly ) ( CC or ) ( RB wrongly ) ) ( NP-SBJ-2 ( JJ many ) ( JJ giant ) ( JJ institutional ) ( NNS investors ) ) ( VP ( VBP appear ) ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBG fighting ) ( NP ( DT the ) ( JJS latest ) ( NN war ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG applying ) ( NP ( NP ( NP ( DT the ) ( NN lesson ) ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD learned ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NNP October ) ( CD 1987 ) ( NN crash ) ) ) ) ) ) ) ( S ( S-NOM-SBJ ( VP ( VBG Buying ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NN bottom ) ) ) ) ) ( VP ( VBZ pays ) ( PRT ( RP off ) ) ) ) ) ) ) ) ) ) ) ) ) )


To be sure big investors might put away their checkbooks in a hurry if stocks open sharply lower today

( S ( S-ADV ( VP ( TO To ) ( VP ( VB be ) ( ADJP-PRD ( JJ sure ) ) ) ) ) ( NP-SBJ ( JJ big ) ( NNS investors ) ) ( VP ( MD might ) ( VP ( VB put ) ( PRT ( RP away ) ) ( NP ( PRP$ their ) ( NNS checkbooks ) ) ( PP-MNR ( IN in ) ( NP ( DT a ) ( NN hurry ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( NNS stocks ) ) ( VP ( VBP open ) ( ADVP-CLR ( RB sharply ) ( JJR lower ) ) ( NP-TMP ( NN today ) ) ) ) ) ) ) )


They could still panic and bail out of the market

( S ( NP-SBJ ( PRP They ) ) ( VP ( MD could ) ( ADVP ( RB still ) ) ( VP ( VP ( VB panic ) ) ( CC and ) ( VP ( VB bail ) ( PRT ( RP out ) ) ( PP-CLR ( IN of ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) )


But their 1987 performance indicates that they wo n't abandon stocks unless conditions get far worse

( S ( CC But ) ( NP-SBJ ( PRP$ their ) ( CD 1987 ) ( NN performance ) ) ( VP ( VBZ indicates ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB abandon ) ( NP ( NNS stocks ) ) ( SBAR-ADV ( IN unless ) ( S ( NP-SBJ ( NNS conditions ) ) ( VP ( VBP get ) ( ADJP-PRD ( RB far ) ( JJR worse ) ) ) ) ) ) ) ) ) ) )


Last time we got rewarded for going out and buying stocks when the panic was the worst said John W. Rogers president of Chicago-based Ariel Capital Management Inc. which manages 1.1 billion of stocks

( SINV ( S-TPC-2 ( NP-TMP ( JJ Last ) ( NN time ) ) ( NP-SBJ-3 ( PRP we ) ) ( VP ( VBD got ) ( VP ( VBN rewarded ) ( PP-PRP ( IN for ) ( S-NOM ( VP ( VP ( VBG going ) ( ADVP-DIR ( RB out ) ) ) ( CC and ) ( VP ( VBG buying ) ( NP ( NNS stocks ) ) ) ( SBAR-TMP ( WHADVP-5 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN panic ) ) ( VP ( VBD was ) ( NP-PRD ( DT the ) ( JJS worst ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP John ) ( NNP W. ) ( NNP Rogers ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( JJ Chicago-based ) ( NNP Ariel ) ( NNP Capital ) ( NNP Management ) ( NNP Inc. ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ manages ) ( NP ( NP ( QP ( CD 1.1 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NNS stocks ) ) ) ) ) ) ) ) ) ) ) )


Mr. Rogers spent half his cash on hand Friday for our favorite stocks that have fallen apart

( S ( NP-SBJ ( NNP Mr. ) ( NNP Rogers ) ) ( VP ( VBD spent ) ( NP ( NP ( PDT half ) ( PRP$ his ) ( NN cash ) ) ( PP-LOC ( IN on ) ( NP ( NN hand ) ) ) ) ( NP-TMP ( NNP Friday ) ) ( PP-CLR ( IN for ) ( NP ( NP ( PRP$ our ) ( JJ favorite ) ( NNS stocks ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP have ) ( VP ( VBN fallen ) ( ADVP-CLR ( RB apart ) ) ) ) ) ) ) ) ) )


He expects to invest the rest if the market weakens further

( S ( NP-SBJ-2 ( PRP He ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB invest ) ( NP ( DT the ) ( NN rest ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( VBZ weakens ) ( ADVP ( RB further ) ) ) ) ) ) ) ) ) )


Denver-based portfolio manager James Craig was n't daunted when Friday 's rout shaved 40 million from the value of the 752 million Janus Fund he oversees

( S ( NP-SBJ-2 ( JJ Denver-based ) ( NN portfolio ) ( NN manager ) ( NNP James ) ( NNP Craig ) ) ( VP ( VBD was ) ( RB n't ) ( VP ( VBD daunted ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ ( NP ( NNP Friday ) ( POS 's ) ) ( NN rout ) ) ( VP ( VBD shaved ) ( NP ( QP ( CD 40 ) ( CD million ) ) ) ( PP-CLR ( IN from ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( ADJP ( QP ( CD 752 ) ( CD million ) ) ) ( NNP Janus ) ( NNP Fund ) ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ oversees ) ) ) ) ) ) ) ) ) ) ) ) ) )


I waited to make sure all the program trades had kicked through he said

( S ( S-TPC-1 ( NP-SBJ-2 ( PRP I ) ) ( VP ( VBD waited ) ( S ( VP ( TO to ) ( VP ( VB make ) ( ADJP-CLR ( JJ sure ) ( SBAR ( S ( NP-SBJ ( PDT all ) ( DT the ) ( NN program ) ( NNS trades ) ) ( VP ( VBD had ) ( VP ( VBN kicked ) ( PRT ( RP through ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )


Then he jumped into the market

( S ( RB Then ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD jumped ) ( PP-DIR ( IN into ) ( NP ( DT the ) ( NN market ) ) ) ) )


I spent 30 million in the last half-hour

( S ( NP-SBJ ( PRP I ) ) ( VP ( VBD spent ) ( NP ( QP ( CD 30 ) ( CD million ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ last ) ( NN half-hour ) ) ) ) )


Other money managers also opened their wallets

( S ( NP-SBJ ( JJ Other ) ( NN money ) ( NNS managers ) ) ( ADVP ( RB also ) ) ( VP ( VBD opened ) ( NP ( PRP$ their ) ( NNS wallets ) ) ) )


I was buying at the close Friday and I 'll be buying again because I know we 're getting good value said Frederick A. Moran president of Moran Asset Management Inc. Greenwich Conn

( SINV ( S-TPC-1 ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBD was ) ( VP ( VBG buying ) ( PP-TMP ( IN at ) ( NP ( DT the ) ( JJ close ) ) ) ( PRN ( NP-TMP ( NNP Friday ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( MD 'll ) ( VP ( VB be ) ( VP ( VBG buying ) ( ADVP-TMP ( RB again ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP know ) ( SBAR ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 're ) ( VP ( VBG getting ) ( NP ( JJ good ) ( NN value ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Frederick ) ( NNP A. ) ( NNP Moran ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NP ( NNP Moran ) ( NNP Asset ) ( NNP Management ) ( NNP Inc. ) ) ( NP-LOC ( NP ( NNP Greenwich ) ) ( NP ( NNP Conn ) ) ) ) ) ) ) )


There is no justification on the fundamental level for this crash

( S ( NP-SBJ ( EX There ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT no ) ( NN justification ) ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( JJ fundamental ) ( NN level ) ) ) ( PP-1 ( IN for ) ( NP ( DT this ) ( NN crash ) ) ) ) )


Unlike mutual funds which can be forced to sell stockholdings when investors rush to withdraw money big investors such as pension funds and insurance companies can decide to ride out market storms without jettisoning stock

( S ( PP ( IN Unlike ) ( NP ( NP ( JJ mutual ) ( NNS funds ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( MD can ) ( VP ( VB be ) ( VP ( VBN forced ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NNS stockholdings ) ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ-4 ( NNS investors ) ) ( VP ( VBP rush ) ( S ( VP ( TO to ) ( VP ( VB withdraw ) ( NP ( NN money ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-5 ( NP ( JJ big ) ( NNS investors ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NN pension ) ( NNS funds ) ) ( CC and ) ( NP ( NN insurance ) ( NNS companies ) ) ) ) ) ( VP ( MD can ) ( VP ( VB decide ) ( S ( VP ( TO to ) ( VP ( VB ride ) ( PRT ( RP out ) ) ( NP ( NN market ) ( NNS storms ) ) ( PP ( IN without ) ( S-NOM ( VP ( VBG jettisoning ) ( NP ( NN stock ) ) ) ) ) ) ) ) ) ) )


Most often they do just that because stocks have proved to be the best-performing long-term investment attracting about 1 trillion from pension funds alone

( S ( ADVP-TMP ( RBS Most ) ( RB often ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP do ) ( NP ( RB just ) ( DT that ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-1 ( NNS stocks ) ) ( VP ( VBP have ) ( VP ( VBN proved ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( DT the ) ( JJ best-performing ) ( JJ long-term ) ( NN investment ) ) ( S-ADV ( VP ( VBG attracting ) ( NP ( QP ( RB about ) ( CD 1 ) ( CD trillion ) ) ) ( PP-CLR ( IN from ) ( NP ( NP ( NN pension ) ( NNS funds ) ) ( ADJP ( RB alone ) ) ) ) ) ) ) ) ) ) ) ) ) ) )


If you bought after the crash you did very very well off the bottom said Stephen B. Timbers chief investment officer of Chicago-based Kemper Financial Services Inc

( SINV ( S-TPC-1 ( SBAR-ADV ( IN If ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBD bought ) ( PP-TMP ( IN after ) ( NP ( DT the ) ( NN crash ) ) ) ) ) ) ( NP-SBJ ( PRP you ) ) ( VP ( VBD did ) ( ADVP-MNR ( RB very ) ( RB very ) ( RB well ) ) ( PP ( IN off ) ( NP ( DT the ) ( NN bottom ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Stephen ) ( NNP B. ) ( NNP Timbers ) ) ( NP ( NP ( JJ chief ) ( NN investment ) ( NN officer ) ) ( PP ( IN of ) ( NP ( JJ Chicago-based ) ( NNP Kemper ) ( NNP Financial ) ( NNP Services ) ( NNP Inc ) ) ) ) ) )


The 56 billion California Public Employees Retirement System for one added 1 billion to its stock portfolio two years ago

( S ( NP-SBJ ( DT The ) ( ADJP ( QP ( CD 56 ) ( CD billion ) ) ) ( NNP California ) ( NNP Public ) ( NNP Employees ) ( NNP Retirement ) ( NNP System ) ) ( PP ( IN for ) ( NP ( CD one ) ) ) ( VP ( VBD added ) ( NP ( QP ( CD 1 ) ( CD billion ) ) ) ( PP-CLR ( TO to ) ( NP ( PRP$ its ) ( NN stock ) ( NN portfolio ) ) ) ( ADVP-TMP ( NP ( CD two ) ( NNS years ) ) ( RB ago ) ) ) )


The last crash taught institutional investors that they have to be long-term holders and that they ca n't react to short-term events good or bad said Stephen L. Nesbitt senior vice president for the pension consultants Wilshire Associates in Santa Monica Calif

( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( JJ last ) ( NN crash ) ) ( VP ( VBD taught ) ( NP ( JJ institutional ) ( NNS investors ) ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( PRP they ) ) ( VP ( VBP have ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( JJ long-term ) ( NNS holders ) ) ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB react ) ( PP-CLR ( TO to ) ( NP ( NP ( JJ short-term ) ( NNS events ) ) ( ADJP ( JJ good ) ( CC or ) ( JJ bad ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Stephen ) ( NNP L. ) ( NNP Nesbitt ) ) ( NP ( NP ( JJ senior ) ( NN vice ) ( NN president ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN pension ) ( NNS consultants ) ) ( NP ( NP ( NNP Wilshire ) ( NNP Associates ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP Santa ) ( NNP Monica ) ) ( NP ( NNP Calif ) ) ) ) ) ) ) ) ) )


Those that pulled out of stocks regretted it he said so I doubt you 'll see any significant changes in institutional portfolios as a result of Friday 's decline

( S-2 ( S ( NP-SBJ ( NP ( DT Those ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD pulled ) ( ADVP-DIR ( RP out ) ( PRN ( PP ( IN of ) ( NP ( NNS stocks ) ) ) ) ) ) ) ) ) ( VP ( VBD regretted ) ( NP ( PRP it ) ) ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) ) ) ( RB so ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP doubt ) ( SBAR ( S ( NP-SBJ ( PRP you ) ) ( VP ( MD 'll ) ( VP ( VB see ) ( NP ( DT any ) ( JJ significant ) ( NNS changes ) ) ( PP-LOC ( IN in ) ( NP ( JJ institutional ) ( NNS portfolios ) ) ) ( PP-PRP ( IN as ) ( NP ( NP ( DT a ) ( NN result ) ) ( PP ( IN of ) ( NP ( NP ( NNP Friday ) ( POS 's ) ) ( NN decline ) ) ) ) ) ) ) ) ) ) ) )


Stocks as measured by the Standard & Poor 's 500-stock index have been stellar performers this year rising 27.97 % before Friday 's plunge excluding dividends

( S ( NP-SBJ-1 ( NNS Stocks ) ) ( SBAR-ADV ( IN as ) ( S ( VP ( VBN measured ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NNP Standard ) ( CC & ) ( NNP Poor ) ( POS 's ) ) ( NNP 500-stock ) ( NN index ) ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( NP-PRD ( JJ stellar ) ( NNS performers ) ) ( NP-TMP ( DT this ) ( NN year ) ) ( S-ADV ( VP ( VBG rising ) ( NP-EXT ( CD 27.97 ) ( NN % ) ) ( PP-TMP ( IN before ) ( NP ( NP ( NNP Friday ) ( POS 's ) ) ( NN plunge ) ) ) ( PP ( VBG excluding ) ( NP ( NNS dividends ) ) ) ) ) ) ) )


Even Friday 's slump leaves investors ahead more than 20 % well above the annual average for stocks over several decades

( S ( NP-SBJ ( RB Even ) ( NP ( NNP Friday ) ( POS 's ) ) ( NN slump ) ) ( VP ( VBZ leaves ) ( S ( NP-SBJ ( NNS investors ) ) ( ADJP-PRD ( RB ahead ) ( NP ( NP ( QP ( JJR more ) ( IN than ) ( CD 20 ) ) ( NN % ) ) ( PP-LOC ( ADVP ( RB well ) ) ( IN above ) ( NP ( NP ( DT the ) ( JJ annual ) ( NN average ) ) ( PP ( IN for ) ( NP ( NNS stocks ) ) ) ( PP-TMP ( IN over ) ( NP ( JJ several ) ( NNS decades ) ) ) ) ) ) ) ) ) )


You could go down 400 points and still have a good year in the market said James D. Awad president of New York-based BMI Capital Corp

( SINV ( S-TPC-1 ( NP-SBJ ( PRP You ) ) ( VP ( MD could ) ( VP ( VP ( VB go ) ( ADVP-DIR ( RB down ) ) ( NP-EXT ( CD 400 ) ( NNS points ) ) ) ( CC and ) ( VP ( ADVP ( RB still ) ) ( VB have ) ( NP ( NP ( DT a ) ( JJ good ) ( NN year ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP James ) ( NNP D. ) ( NNP Awad ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( ADJP ( NNP New ) ( JJ York-based ) ) ( NNP BMI ) ( NNP Capital ) ( NNP Corp ) ) ) ) ) )


Mr. Awad however worries that the market could go down 800 or 900 points in the next few days

( S ( NP-SBJ ( NNP Mr. ) ( NNP Awad ) ) ( ADVP ( RB however ) ) ( VP ( VBZ worries ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN market ) ) ( VP ( MD could ) ( VP ( VB go ) ( ADVP-DIR ( RB down ) ) ( NP-EXT ( QP ( CD 800 ) ( CC or ) ( CD 900 ) ) ( NNS points ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ next ) ( JJ few ) ( NNS days ) ) ) ) ) ) ) ) )


It can happen before you can turn around

( S ( NP-SBJ ( PRP It ) ) ( VP ( MD can ) ( VP ( VB happen ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( MD can ) ( VP ( VB turn ) ( ADVP-CLR ( RB around ) ) ) ) ) ) ) ) )


He said he discerns many parallels with 1987 including the emphasis on takeover stocks and the re-emergence of computerized program trading

( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ discerns ) ( NP ( NP ( JJ many ) ( NNS parallels ) ) ( PP ( IN with ) ( NP ( CD 1987 ) ) ) ( PP ( VBG including ) ( NP ( NP ( NP ( DT the ) ( NN emphasis ) ) ( PP-LOC ( IN on ) ( NP ( NN takeover ) ( NNS stocks ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN re-emergence ) ) ( PP ( IN of ) ( NP ( JJ computerized ) ( NN program ) ( NN trading ) ) ) ) ) ) ) ) ) ) ) )


The only thing you do n't have he said is the portfolio insurance phenomenon overlaid on the rest

( S-2 ( NP-SBJ ( NP ( DT The ) ( JJ only ) ( NN thing ) ) ( SBAR ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB have ) ) ) ) ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NN portfolio ) ( NN insurance ) ( NN phenomenon ) ) ( VP ( VBN overlaid ) ( PP-LOC-CLR ( IN on ) ( NP ( DT the ) ( NN rest ) ) ) ) ) ) )


Most institutional investors have abandoned the portfolio insurance hedging technique which is widely thought to have worsened the 1987 crash

( S ( NP-SBJ ( RBS Most ) ( JJ institutional ) ( NNS investors ) ) ( VP ( VBP have ) ( VP ( VBN abandoned ) ( NP ( NP ( DT the ) ( NN portfolio ) ( NN insurance ) ( NN hedging ) ( NN technique ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( ADVP ( RB widely ) ) ( VBN thought ) ( S ( VP ( TO to ) ( VP ( VB have ) ( VP ( VBN worsened ) ( NP ( DT the ) ( CD 1987 ) ( NN crash ) ) ) ) ) ) ) ) ) ) ) ) ) )


Not really insurance this tactic was designed to soften the blow of declining stock prices and generate an offsetting profit by selling waves of S&P futures contracts

( S ( S-ADV ( RB Not ) ( ADVP ( RB really ) ) ( NP-PRD ( NN insurance ) ) ) ( NP-SBJ-1 ( DT this ) ( NN tactic ) ) ( VP ( VBD was ) ( VP ( VBN designed ) ( S ( VP ( TO to ) ( VP ( VP ( VB soften ) ( NP ( NP ( DT the ) ( NN blow ) ) ( PP ( IN of ) ( NP ( VBG declining ) ( NN stock ) ( NNS prices ) ) ) ) ) ( CC and ) ( VP ( VB generate ) ( NP ( DT an ) ( VBG offsetting ) ( NN profit ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG selling ) ( NP ( NP ( NNS waves ) ) ( PP ( IN of ) ( NP ( NNP S&P ) ( NNS futures ) ( NNS contracts ) ) ) ) ) ) ) ) ) ) ) ) ) )


In its severest test the 60 billion of portfolio insurance in effect in the 1987 crash did n't work as stock buyers disappeared and stock and futures prices became disconnected

( S ( PP-LOC ( IN In ) ( NP ( PRP$ its ) ( JJS severest ) ( NN test ) ) ) ( NP-SBJ ( NP ( DT the ) ( QP ( CD 60 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( NN portfolio ) ( NN insurance ) ) ) ( PP ( IN in ) ( NP ( NN effect ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( CD 1987 ) ( NN crash ) ) ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB work ) ( SBAR-ADV ( IN as ) ( S ( S ( NP-SBJ ( NN stock ) ( NNS buyers ) ) ( VP ( VBD disappeared ) ) ) ( CC and ) ( S ( NP-SBJ ( NN stock ) ( CC and ) ( NNS futures ) ( NNS prices ) ) ( VP ( VBD became ) ( ADJP-PRD ( VBN disconnected ) ) ) ) ) ) ) ) )


Even without portfolio insurance market conditions were grim Friday money managers said

( S ( S-TPC-1 ( PP ( ADVP ( RB Even ) ) ( IN without ) ( NP ( NN portfolio ) ( NN insurance ) ) ) ( NP-SBJ ( NN market ) ( NNS conditions ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ grim ) ) ( NP-TMP ( NNP Friday ) ) ) ) ( NP-SBJ ( NN money ) ( NNS managers ) ) ( VP ( VBD said ) ) )


Neil Weisman whose New York-based Chilmark Capital Partners had converted 85 % of its 220 million investment pool to cash in recent months said he was besieged by Wall Street firms Friday asking him to take stock off their hands

( S ( NP-SBJ ( NP ( NNP Neil ) ( NNP Weisman ) ) ( SBAR ( WHNP-4 ( WP$ whose ) ( ADJP ( NNP New ) ( JJ York-based ) ) ( NNP Chilmark ) ( NNP Capital ) ( NNP Partners ) ) ( S ( VP ( VBD had ) ( VP ( VBN converted ) ( NP ( NP ( CD 85 ) ( NN % ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( ADJP ( QP ( CD 220 ) ( CD million ) ) ) ( NN investment ) ( NN pool ) ) ) ) ( PP-CLR ( TO to ) ( NP ( VB cash ) ) ) ( PP-TMP ( IN in ) ( NP ( JJ recent ) ( NNS months ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-3 ( PRP he ) ) ( VP ( VBD was ) ( VP ( VBN besieged ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Wall ) ( NNP Street ) ( NNS firms ) ) ) ) ( NP-TMP ( NNP Friday ) ) ( VP-1 ( VBG asking ) ( NP-2 ( PRP him ) ) ( S ( VP ( TO to ) ( VP ( VB take ) ( NP ( NN stock ) ) ( PP-CLR ( IN off ) ( NP ( PRP$ their ) ( NNS hands ) ) ) ) ) ) ) ) ) ) ) ) )


We got calls from big block houses asking us if we want to make bids on anything said Mr. Weisman who happy with his returns on investments chalked up earlier declined the offers

( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBD got ) ( NP ( NP ( NNS calls ) ) ( PP ( IN from ) ( NP ( JJ big ) ( NN block ) ( NNS houses ) ) ) ( VP ( VBG asking ) ( NP ( PRP us ) ) ( SBAR ( IN if ) ( S ( NP-SBJ-2 ( PRP we ) ) ( VP ( VBP want ) ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( NNS bids ) ) ( PP-CLR ( IN on ) ( NP ( NN anything ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Weisman ) ) ( SBAR ( WHNP-3 ( WP who ) ) ( S ( S-ADV ( ADJP-PRD ( JJ happy ) ( PP ( IN with ) ( NP ( NP ( PRP$ his ) ( NNS returns ) ) ( PP ( IN on ) ( NP ( NNS investments ) ) ) ( VP ( VBN chalked ) ( PRT ( RP up ) ) ( ADVP-TMP ( RBR earlier ) ) ) ) ) ) ) ( VP ( VBD declined ) ( NP ( DT the ) ( NNS offers ) ) ) ) ) ) )


Mr. Weisman predicts stocks will appear to stabilize in the next few days before declining again trapping more investors

( S ( NP-SBJ ( NNP Mr. ) ( NNP Weisman ) ) ( VP ( VBZ predicts ) ( SBAR ( S ( NP-SBJ-1 ( NNS stocks ) ) ( VP ( MD will ) ( VP ( VB appear ) ( S ( VP ( TO to ) ( VP ( VB stabilize ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ next ) ( JJ few ) ( NNS days ) ) ) ) ) ) ( PP-TMP ( IN before ) ( S-NOM ( VP ( VBG declining ) ( ADVP-TMP ( RB again ) ) ( S-ADV ( VP ( VBG trapping ) ( NP ( JJR more ) ( NNS investors ) ) ) ) ) ) ) ) ) ) ) ) )


I think it will be a rigor mortis rally he said

( S ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( NN rigor ) ( NN mortis ) ( NN rally ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )


Meanwhile Friday brought a reprieve for money managers whose investment styles had put them at odds with the market rally

( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ ( NNP Friday ) ) ( VP ( VBD brought ) ( NP ( NP ( DT a ) ( NN reprieve ) ) ( PP ( IN for ) ( NP ( NP ( NN money ) ( NNS managers ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( NN investment ) ( NNS styles ) ) ( S ( VP ( VBD had ) ( VP ( VBN put ) ( NP ( PRP them ) ) ( PP-PUT ( IN at ) ( NP ( NP ( NNS odds ) ) ( PP ( IN with ) ( NP ( DT the ) ( NN market ) ( NN rally ) ) ) ) ) ) ) ) ) ) ) ) ) )


Especially gleeful were the short sellers who have been pounded by this year 's market climb

( SINV ( ADJP-PRD-TPC-3 ( RB Especially ) ( JJ gleeful ) ) ( VP ( VBD were ) ) ( NP-SBJ ( NP ( DT the ) ( JJ short ) ( NNS sellers ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBN pounded ) ( PP ( IN by ) ( NP-LGS ( NP ( DT this ) ( NN year ) ( POS 's ) ) ( NN market ) ( NN climb ) ) ) ) ) ) ) ) ) )


The shorts sell borrowed shares hoping to profit by replacing them later at a lower price

( S ( NP-SBJ-1 ( DT The ) ( NNS shorts ) ) ( VP ( VBP sell ) ( NP ( VBN borrowed ) ( NNS shares ) ) ( S-ADV ( VP ( VBG hoping ) ( S ( VP ( TO to ) ( VP ( NN profit ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG replacing ) ( NP ( PRP them ) ) ( ADVP-TMP ( RB later ) ) ( PP ( IN at ) ( NP ( DT a ) ( JJR lower ) ( NN price ) ) ) ) ) ) ) ) ) ) ) ) )


The nation 's largest short-selling operation is Feshbach Brothers Palo Alto Calif. which said last May that its short positions had shown losses of 10 % for the year up to that point

( S ( NP-SBJ ( NP ( DT The ) ( NN nation ) ( POS 's ) ) ( JJS largest ) ( NN short-selling ) ( NN operation ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NNP Feshbach ) ( NNP Brothers ) ) ( NP-LOC ( NP ( NNP Palo ) ( NNP Alto ) ) ( NP ( NNP Calif. ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD said ) ( NP-TMP ( JJ last ) ( NNP May ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP$ its ) ( JJ short ) ( NNS positions ) ) ( VP ( VBD had ) ( VP ( VBN shown ) ( NP ( NP ( NNS losses ) ) ( PP ( IN of ) ( NP ( CD 10 ) ( NN % ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN year ) ) ) ) ( ADVP-TMP ( IN up ) ( PP ( TO to ) ( NP ( DT that ) ( NN point ) ) ) ) ) ) ) ) ) ) ) ) ) )


All that now has changed

( S ( NP-SBJ ( DT All ) ( WDT that ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBZ has ) ( VP ( VBN changed ) ) ) )


We 're ahead for the year because of Friday said the firm 's Kurt Feshbach

( SINV ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP 're ) ( ADJP-PRD ( RB ahead ) ( PP ( IN for ) ( NP ( DT the ) ( NN year ) ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NNP Friday ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( DT the ) ( NN firm ) ( POS 's ) ) ( NNP Kurt ) ( NNP Feshbach ) ) )


We 're not making a killing but we had a good day

( S ( S ( NP-SBJ ( PRP We ) ) ( VP ( VBP 're ) ( RB not ) ( VP ( VBG making ) ( NP ( DT a ) ( NN killing ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBD had ) ( NP ( DT a ) ( JJ good ) ( NN day ) ) ) ) )


Friday October 13 1989

( NP ( NNP Friday ) ( NNP October ) ( CD 13 ) ( CD 1989 ) )


The key U.S. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions

( S ( NP-SBJ ( NP ( DT The ) ( JJ key ) ( UCP ( NNP U.S. ) ( CC and ) ( JJ foreign ) ) ( JJ annual ) ( NN interest ) ( NNS rates ) ) ( ADVP-LOC ( RB below ) ) ) ( VP ( VP ( VBP are ) ( NP-PRD ( NP ( DT a ) ( NN guide ) ) ( PP ( TO to ) ( NP ( JJ general ) ( NNS levels ) ) ) ) ) ( CC but ) ( VP ( VBP do ) ( RB n't ) ( ADVP-TMP ( RB always ) ) ( VP ( VB represent ) ( NP ( JJ actual ) ( NNS transactions ) ) ) ) ) )


PRIME RATE


10 1\/2 %


The base rate on corporate loans at large U.S. money center commercial banks

( NP ( NP ( DT The ) ( JJ base ) ( NN rate ) ) ( PP ( IN on ) ( NP ( JJ corporate ) ( NNS loans ) ) ) ( PP-LOC ( IN at ) ( NP ( JJ large ) ( NNP U.S. ) ( NN money ) ( NN center ) ( JJ commercial ) ( NNS banks ) ) ) )


FEDERAL FUNDS


8 13\/16 % high 8 1\/2 % low 8 5\/8 % near closing bid 8 3\/4 % offered

( NP ( NP ( NP ( QP ( CD 8 ) ( CD 13\/16 ) ) ( NN % ) ) ( ADJP ( JJ high ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 1\/2 ) ) ( NN % ) ) ( ADJP ( JJ low ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 5\/8 ) ) ( NN % ) ) ( PP ( IN near ) ( NP ( NN closing ) ( NN bid ) ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 3\/4 ) ) ( NN % ) ) ( VP ( VBN offered ) ) ) )


Reserves traded among commercial banks for overnight use in amounts of 1 million or more

( NP ( NP ( NNS Reserves ) ) ( VP ( VBD traded ) ( PP-LOC ( IN among ) ( NP ( JJ commercial ) ( NNS banks ) ) ) ( PP-PRP ( IN for ) ( NP ( JJ overnight ) ( NN use ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS amounts ) ) ( PP ( IN of ) ( NP ( QP ( CD 1 ) ( CD million ) ) ( QP ( CC or ) ( JJR more ) ) ) ) ) ) ) )


Source Fulton Prebon U.S.A Inc

( NP ( NP ( NN Source ) ) ( NP ( NNP Fulton ) ( NNP Prebon ) ( PRN ( NNP U.S.A ) ) ( NNP Inc ) ) )


DISCOUNT RATE


7 %


The charge on loans to depository institutions by the New York Federal Reserve Bank

( NP ( NP ( DT The ) ( NN charge ) ) ( PP ( IN on ) ( NP ( NP ( NNS loans ) ) ( PP ( TO to ) ( NP ( JJ depository ) ( NNS institutions ) ) ) ) ) ( PP ( IN by ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Federal ) ( NNP Reserve ) ( NNP Bank ) ) ) )


CALL MONEY


9 3\/4 % to 10 %


The charge on loans to brokers on stock exchange collateral

( NP ( NP ( DT The ) ( NN charge ) ) ( PP ( IN on ) ( NP ( NP ( NNS loans ) ) ( PP ( TO to ) ( NP ( NNS brokers ) ) ) ) ) ( PP ( IN on ) ( NP ( NN stock ) ( NN exchange ) ( NN collateral ) ) ) )


COMMERCIAL PAPER placed directly by General Motors Acceptance Corp.

( NP-HLN ( NP ( JJ COMMERCIAL ) ( NN PAPER ) ) ( VP ( VBN placed ) ( ADVP-MNR ( RB directly ) ) ( PP ( IN by ) ( NP-LGS ( NNP General ) ( NNP Motors ) ( NNP Acceptance ) ( NNP Corp. ) ) ) ) )


8.60 % 30 to 44 days 8.55 % 45 to 59 days 8.375 % 60 to 79 days 8.50 % 80 to 89 days 8.25 % 90 to 119 days 8.125 % 120 to 149 days 8 % 150 to 179 days 7.625 % 180 to 270 days


COMMERCIAL PAPER

( NP-HLN ( JJ COMMERCIAL ) ( NN PAPER ) )


High-grade unsecured notes sold through dealers by major corporations in multiples of 1,000

( NP ( NP ( JJ High-grade ) ( JJ unsecured ) ( NNS notes ) ) ( VP ( VBN sold ) ( PP ( IN through ) ( NP ( NNS dealers ) ) ) ( PP ( IN by ) ( NP-LGS ( JJ major ) ( NNS corporations ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS multiples ) ) ( PP ( IN of ) ( NP ( CD 1,000 ) ) ) ) ) ) )


8.65 % 30 days 8.55 % 60 days 8.55 % 90 days


CERTIFICATES OF DEPOSIT

( NP-HLN ( NP ( NNS CERTIFICATES ) ) ( PP ( IN OF ) ( NP ( NN DEPOSIT ) ) ) )


8.15 % one month 8.15 % two months 8.13 % three months 8.11 % six months 8.08 % one year

( NP ( NP ( NP ( CD 8.15 ) ( NN % ) ) ( NP ( CD one ) ( NN month ) ) ) ( NP ( NP ( CD 8.15 ) ( NN % ) ) ( NP ( CD two ) ( NNS months ) ) ) ( NP ( NP ( CD 8.13 ) ( NN % ) ) ( NP ( CD three ) ( NNS months ) ) ) ( NP ( NP ( CD 8.11 ) ( NN % ) ) ( NP ( CD six ) ( NNS months ) ) ) ( NP ( NP ( CD 8.08 ) ( NN % ) ) ( NP ( CD one ) ( NN year ) ) ) )


Average of top rates paid by major New York banks on primary new issues of negotiable C.D.s usually on amounts of 1 million and more

( NP ( NP ( NP ( NN Average ) ) ( PP ( IN of ) ( NP ( JJ top ) ( NNS rates ) ) ) ) ( VP ( VBN paid ) ( PP ( IN by ) ( NP-LGS ( JJ major ) ( NNP New ) ( NNP York ) ( NNS banks ) ) ) ( PP ( IN on ) ( NP ( NP ( JJ primary ) ( JJ new ) ( NNS issues ) ) ( PP ( IN of ) ( NP ( JJ negotiable ) ( NNS C.D.s ) ) ) ) ) ( PP ( ADVP-TMP ( RB usually ) ) ( IN on ) ( NP ( NP ( NNS amounts ) ) ( PP ( IN of ) ( NP ( NP ( CD 1 ) ( CD million ) ) ( CC and ) ( NP ( JJR more ) ) ) ) ) ) ) )


The minimum unit is 100,000

( S ( NP-SBJ ( DT The ) ( JJ minimum ) ( NN unit ) ) ( VP ( VBZ is ) ( NP-PRD ( CD 100,000 ) ) ) )


Typical rates in the secondary market

( NP ( NP ( JJ Typical ) ( NNS rates ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ secondary ) ( NN market ) ) ) )


8.65 % one month 8.65 % three months 8.55 % six months

( NP ( NP ( NP ( NP ( CD 8.65 ) ( NN % ) ) ( NP ( CD one ) ( NN month ) ) ) ( NP ( NP ( CD 8.65 ) ( NN % ) ) ( NP ( CD three ) ( NNS months ) ) ) ( NP ( NP ( CD 8.55 ) ( NN % ) ) ( NP ( CD six ) ( NNS months ) ) ) ) )


BANKERS ACCEPTANCES

( NP-HLN ( NNS BANKERS ) ( NNS ACCEPTANCES ) )


8.52 % 30 days 8.37 % 60 days 8.15 % 90 days 7.98 % 120 days 7.92 % 150 days 7.80 % 180 days


Negotiable bank-backed business credit instruments typically financing an import order

( NP ( NP ( JJ Negotiable ) ( JJ bank-backed ) ( NN business ) ( NN credit ) ( NNS instruments ) ) ( VP ( ADVP ( RB typically ) ) ( VBG financing ) ( NP ( DT an ) ( NN import ) ( NN order ) ) ) )


LONDON LATE EURODOLLARS

( NP-HLN ( NNP LONDON ) ( JJ LATE ) ( NNS EURODOLLARS ) )


8 13\/16 % to 8 11\/16 % one month 8 13\/16 % to 8 11\/16 % two months 8 13\/16 % to 8 11\/16 % three months 8 3\/4 % to 8 5\/8 % four months 8 11\/16 % to 8 9\/16 % five months 8 5\/8 % to 8 1\/2 % six months


LONDON INTERBANK OFFERED RATES LIBOR

( NP-HLN ( NP ( NNP LONDON ) ( RB INTERBANK ) ( VBN OFFERED ) ( NNS RATES ) ) ( PRN ( NP ( NNP LIBOR ) ) ) )


8 3\/4 % one month 8 3\/4 % three months 8 9\/16 % six months 8 9\/16 % one year

( NP ( NP ( NP ( QP ( CD 8 ) ( CD 3\/4 ) ) ( NN % ) ) ( NP ( CD one ) ( NN month ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 3\/4 ) ) ( NN % ) ) ( NP ( CD three ) ( NNS months ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 9\/16 ) ) ( NN % ) ) ( NP ( CD six ) ( NNS months ) ) ) ( NP ( NP ( QP ( CD 8 ) ( CD 9\/16 ) ) ( NN % ) ) ( NP ( CD one ) ( NN year ) ) ) )


The average of interbank offered rates for dollar deposits in the London market based on quotations at five major banks

( NP ( NP ( DT The ) ( NN average ) ) ( PP ( IN of ) ( NP ( NP ( RB interbank ) ( VBN offered ) ( NNS rates ) ) ( PP ( IN for ) ( NP ( NN dollar ) ( NNS deposits ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP London ) ( NN market ) ) ) ( PP ( VBN based ) ( PP ( IN on ) ( NP ( NP ( NNS quotations ) ) ( PP-LOC ( IN at ) ( NP ( CD five ) ( JJ major ) ( NNS banks ) ) ) ) ) ) )


FOREIGN PRIME RATES

( NP-HLN ( JJ FOREIGN ) ( JJ PRIME ) ( NNS RATES ) )


Canada 13.50 % Germany 8.50 % Japan 4.875 % Switzerland 8.50 % Britain 15 %

( NP ( NP ( NP ( NNP Canada ) ) ( NP ( CD 13.50 ) ( NN % ) ) ) ( NP ( NP ( NNP Germany ) ) ( NP ( CD 8.50 ) ( NN % ) ) ) ( NP ( NP ( NNP Japan ) ) ( NP ( CD 4.875 ) ( NN % ) ) ) ( NP ( NP ( NNP Switzerland ) ) ( NP ( CD 8.50 ) ( NN % ) ) ) ( NP ( NP ( NNP Britain ) ) ( NP ( CD 15 ) ( NN % ) ) ) )


These rate indications are n't directly comparable lending practices vary widely by location

( S ( S ( NP-SBJ ( DT These ) ( NN rate ) ( NNS indications ) ) ( VP ( VBP are ) ( RB n't ) ( ADJP-PRD ( RB directly ) ( JJ comparable ) ) ) ) ( S ( NP-SBJ ( NN lending ) ( NNS practices ) ) ( VP ( VBP vary ) ( ADVP-MNR ( RB widely ) ) ( PP ( IN by ) ( NP ( NN location ) ) ) ) ) )


TREASURY BILLS

( NP-HLN ( NN TREASURY ) ( NNS BILLS ) )


Results of the Tuesday October 10 1989 auction of short-term U.S. government bills sold at a discount from face value in units of 10,000 to 1 million

( NP ( NP ( NNS Results ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NAC-TMP ( NNP Tuesday ) ( NNP October ) ( CD 10 ) ( CD 1989 ) ) ( NN auction ) ) ( PP ( IN of ) ( NP ( NP ( JJ short-term ) ( NNP U.S. ) ( NN government ) ( NNS bills ) ) ( VP ( VBN sold ) ( PP ( IN at ) ( NP ( NP ( DT a ) ( NN discount ) ) ( PP ( IN from ) ( NP ( NN face ) ( NN value ) ) ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS units ) ) ( PP ( IN of ) ( NP ( QP ( CD 10,000 ) ( TO to ) ( CD 1 ) ( CD million ) ) ) ) ) ) ) ) ) ) ) )


7.63 % 13 weeks 7.60 % 26 weeks


FEDERAL HOME LOAN MORTGAGE CORP Freddie Mac

( NP-HLN ( NP ( NNP FEDERAL ) ( NNP HOME ) ( NNP LOAN ) ( NNP MORTGAGE ) ( NNP CORP ) ) ( PRN ( NP ( NNP Freddie ) ( NNP Mac ) ) ) )


Posted yields on 30-year mortgage commitments for delivery within 30 days

( FRAG ( NP ( NP ( VBN Posted ) ( NNS yields ) ) ( PP ( IN on ) ( NP ( NP ( JJ 30-year ) ( NN mortgage ) ( NNS commitments ) ) ( PP ( IN for ) ( NP ( NP ( NN delivery ) ) ( PP-TMP ( IN within ) ( NP ( CD 30 ) ( NNS days ) ) ) ) ) ) ) ) )


9.91 % standard conventional fixedrate mortgages 7.875 % 2 % rate capped one-year adjustable rate mortgages

( NP ( NP ( NP ( CD 9.91 ) ( NN % ) ) ( NP ( JJ standard ) ( JJ conventional ) ( JJ fixedrate ) ( NNS mortgages ) ) ) ( NP ( NP ( CD 7.875 ) ( NN % ) ) ( NP ( ADJP ( CD 2 ) ( NN % ) ) ( ADJP ( NN rate ) ( VBN capped ) ) ( JJ one-year ) ( JJ adjustable ) ( NN rate ) ( NNS mortgages ) ) ) )


Source Telerate Systems Inc

( NP ( NP ( NN Source ) ) ( NP ( NNP Telerate ) ( NNP Systems ) ( NNP Inc ) ) )


FEDERAL NATIONAL MORTGAGE ASSOCIATION Fannie Mae

( NP-HLN ( NP ( NNP FEDERAL ) ( NNP NATIONAL ) ( NNP MORTGAGE ) ( NNP ASSOCIATION ) ) ( PRN ( NP ( NNP Fannie ) ( NNP Mae ) ) ) )


Posted yields on 30 year mortgage commitments for delivery within 30 days priced at par

( NP ( NP ( VBN Posted ) ( NNS yields ) ) ( PP ( IN on ) ( NP ( NP ( ADJP ( CD 30 ) ( NN year ) ) ( NN mortgage ) ( NNS commitments ) ) ( PP ( IN for ) ( NP ( NP ( NN delivery ) ) ( PP-TMP ( IN within ) ( NP ( CD 30 ) ( NNS days ) ) ) ) ) ( PRN ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( NN par ) ) ) ) ) ) ) )


9.86 % standard conventional fixed-rate mortgages 8.85 % 6\/2 rate capped one-year adjustable rate mortgages

( NP ( NP ( NP ( CD 9.86 ) ( NN % ) ) ( NP ( JJ standard ) ( JJ conventional ) ( JJ fixed-rate ) ( NNS mortgages ) ) ) ( NP ( NP ( CD 8.85 ) ( NN % ) ) ( NP ( CD 6\/2 ) ( ADJP ( NN rate ) ( VBD capped ) ) ( JJ one-year ) ( JJ adjustable ) ( NN rate ) ( NNS mortgages ) ) ) )


Source Telerate Systems Inc


MERRILL LYNCH READY ASSETS TRUST

( NP-HLN ( NNP MERRILL ) ( NNP LYNCH ) ( NNP READY ) ( NNP ASSETS ) ( NNP TRUST ) )


8.33 %


Annualized average rate of return after expenses for the past 30 days not a forecast of future returns

( NP ( NP ( NP ( JJ Annualized ) ( JJ average ) ( NN rate ) ) ( PP ( IN of ) ( NP ( NN return ) ) ) ( PP-TMP ( IN after ) ( NP ( NNS expenses ) ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ past ) ( CD 30 ) ( NNS days ) ) ) ) ( RB not ) ( NP ( NP ( DT a ) ( NN forecast ) ) ( PP ( IN of ) ( NP ( JJ future ) ( NNS returns ) ) ) ) )


Traditional Industries Inc. said it expects to report a net loss for the fourth quarter that ended June 30 and is seeking new financing

( S ( NP-SBJ ( NNP Traditional ) ( NNP Industries ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB report ) ( NP ( NP ( DT a ) ( JJ net ) ( NN loss ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD ended ) ( NP-TMP ( NNP June ) ( CD 30 ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBZ is ) ( VP ( VBG seeking ) ( NP ( JJ new ) ( NN financing ) ) ) ) ) ) ) ) )


The seller of photographic products and services said it is considering a number of financing alternatives including seeking increases in its credit lines

( S ( NP-SBJ ( NP ( DT The ) ( NN seller ) ) ( PP ( IN of ) ( NP ( JJ photographic ) ( NNS products ) ( CC and ) ( NNS services ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG considering ) ( NP ( NP ( DT a ) ( NN number ) ) ( PP ( IN of ) ( NP ( NN financing ) ( NNS alternatives ) ) ) ( PP ( VBG including ) ( S-NOM ( VP ( VBG seeking ) ( NP ( NP ( NNS increases ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( NN credit ) ( NNS lines ) ) ) ) ) ) ) ) ) ) ) ) ) )


Traditional declined to estimate the amount of the loss and would n't say if it expects to show a profit for the year

( S ( NP-SBJ-1 ( NNP Traditional ) ) ( VP ( VP ( VBD declined ) ( S ( VP ( TO to ) ( VP ( VB estimate ) ( NP ( NP ( DT the ) ( NN amount ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN loss ) ) ) ) ) ) ) ) ( CC and ) ( VP ( MD would ) ( RB n't ) ( VP ( VB say ) ( SBAR ( IN if ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB show ) ( NP ( NP ( DT a ) ( NN profit ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN year ) ) ) ) ) ) ) ) ) ) ) ) ) )


In the year ended June 30 1988 Traditional reported net income of 4.9 million or 1.21 a share

( S ( PP-TMP ( IN In ) ( NP ( NP ( DT the ) ( NN year ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP June ) ( CD 30 ) ( CD 1988 ) ) ) ) ) ( NP-SBJ ( NNP Traditional ) ) ( VP ( VBD reported ) ( NP ( NP ( JJ net ) ( NN income ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 4.9 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.21 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) )


The company did n't break out its fourth-quarter results

( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB break ) ( PRT ( RP out ) ) ( NP ( PRP$ its ) ( JJ fourth-quarter ) ( NNS results ) ) ) ) )


In the latest nine months net income was 4.7 million or 1.31 a share on revenue of 44.3 million

( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( JJS latest ) ( CD nine ) ( NNS months ) ) ) ( NP-SBJ ( JJ net ) ( NN income ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( QP ( CD 4.7 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.31 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP ( IN on ) ( NP ( NP ( NN revenue ) ) ( PP ( IN of ) ( NP ( QP ( CD 44.3 ) ( CD million ) ) ) ) ) ) ) )


Separately the company said it would file a delayed fiscal-year report with the Securities and Exchange Commission within approximately 45 days

( S ( ADVP-MNR ( RB Separately ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB file ) ( NP ( DT a ) ( JJ delayed ) ( NN fiscal-year ) ( NN report ) ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNP Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ( PP-TMP ( IN within ) ( NP ( RB approximately ) ( CD 45 ) ( NNS days ) ) ) ) ) ) ) ) )


It said the delay resulted from difficulties in resolving its accounting of a settlement with the Federal Trade Commission

( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN delay ) ) ( VP ( VBD resulted ) ( PP-CLR ( IN from ) ( NP ( NP ( NNS difficulties ) ) ( PP-LOC ( IN in ) ( S-NOM ( VP ( VBG resolving ) ( NP ( NP ( PRP$ its ) ( NN accounting ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NN settlement ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNP Federal ) ( NNP Trade ) ( NNP Commission ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )


Under an agreement filed in federal court in August to settle FTC objections to some Traditional sales practices Traditional said it would establish a 250,000 trust fund to provide refunds to certain customers

( S ( PP-LOC ( IN Under ) ( NP ( NP ( DT an ) ( NN agreement ) ) ( VP ( VBN filed ) ( PP-LOC ( IN in ) ( NP ( JJ federal ) ( NN court ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB settle ) ( NP ( NP ( NNP FTC ) ( NNS objections ) ) ( PP ( TO to ) ( NP ( DT some ) ( NNP Traditional ) ( NNS sales ) ( NNS practices ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Traditional ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB establish ) ( NP ( NP ( DT a ) ( ADJP ( CD 250,000 ) ) ( NN trust ) ( NN fund ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB provide ) ( NP ( NNS refunds ) ) ( PP-CLR ( TO to ) ( NP ( JJ certain ) ( NNS customers ) ) ) ) ) ) ) ) ) ) ) ) ) )


Gulf Resources & Chemical Corp. said it agreed to pay 1.5 million as part of an accord with the Environmental Protection Agency regarding an environmental cleanup of a defunct smelter the company formerly operated in Idaho

( S ( NP-SBJ ( NNP Gulf ) ( NNP Resources ) ( CC & ) ( NNP Chemical ) ( NNP Corp. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( NP ( QP ( CD 1.5 ) ( CD million ) ) ) ( PP ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT an ) ( NN accord ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNP Environmental ) ( NNP Protection ) ( NNP Agency ) ) ) ( VP ( VBG regarding ) ( NP ( NP ( DT an ) ( JJ environmental ) ( NN cleanup ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ defunct ) ( NN smelter ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( ADVP-TMP ( RB formerly ) ) ( VP ( VBD operated ) ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Idaho ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )


In 1984 the EPA notified Gulf Resources which was a part-owner of the smelter that it was potentially liable for sharing cleanup costs at the site under the federal Superfund program

( S ( PP-TMP ( IN In ) ( NP ( CD 1984 ) ) ) ( NP-SBJ ( DT the ) ( NNP EPA ) ) ( VP ( VBD notified ) ( NP ( NP ( NNP Gulf ) ( NNP Resources ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( NN part-owner ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN smelter ) ) ) ) ) ) ) ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( VBD was ) ( ADJP-PRD ( RB potentially ) ( JJ liable ) ( PP ( IN for ) ( S-NOM ( VP ( VBG sharing ) ( NP ( NP ( NN cleanup ) ( NNS costs ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( NN site ) ) ) ) ( PP-LOC ( IN under ) ( NP ( DT the ) ( JJ federal ) ( NNP Superfund ) ( NN program ) ) ) ) ) ) ) ) ) ) ) )


The 21-square-mile area is contaminated with lead zinc and other metals

( S ( NP-SBJ ( DT The ) ( JJ 21-square-mile ) ( NN area ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ contaminated ) ( PP ( IN with ) ( NP ( NP ( NN lead ) ) ( NP ( NN zinc ) ) ( CC and ) ( NP ( JJ other ) ( NNS metals ) ) ) ) ) ) )


Gulf Resources earlier this year proposed a reorganization plan that would make it a unit of a Bermuda concern potentially exempting it from liability for the smelter 's cleanup costs

( S ( NP-SBJ ( NNP Gulf ) ( NNP Resources ) ) ( NP-TMP ( RBR earlier ) ( DT this ) ( NN year ) ) ( VP ( VBD proposed ) ( NP ( NP ( DT a ) ( NN reorganization ) ( NN plan ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( MD would ) ( VP ( VB make ) ( S ( NP-SBJ ( PRP it ) ) ( NP-PRD ( NP ( DT a ) ( NN unit ) ) ( PP ( IN of ) ( NP ( DT a ) ( NNP Bermuda ) ( NN concern ) ) ) ) ) ( S-ADV ( ADVP ( RB potentially ) ) ( VP ( VBG exempting ) ( NP ( PRP it ) ) ( PP-CLR ( IN from ) ( NP ( NP ( NN liability ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN smelter ) ( POS 's ) ) ( NN cleanup ) ( NNS costs ) ) ) ) ) ) ) ) ) ) ) ) ) )


The company said that as part of its agreement with the EPA it made certain voluntary undertakings with respect to intercorporate transactions entered into after the reorganization

( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP ( IN as ) ( NP ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( NN agreement ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNP EPA ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD made ) ( NP ( JJ certain ) ( JJ voluntary ) ( NNS undertakings ) ) ( PP ( IN with ) ( NP ( NP ( NN respect ) ) ( PP ( TO to ) ( NP ( NP ( JJ intercorporate ) ( NNS transactions ) ) ( VP ( VBN entered ) ( PP-DIR ( IN into ) ) ( PP-TMP ( IN after ) ( NP ( DT the ) ( NN reorganization ) ) ) ) ) ) ) ) ) ) ) ) )


The company which issued a statement on the agreement late Friday said that 1 million of the payment was previously provided for in its financial statements and that 500,000 will be recognized in its 1989 third-quarter statement

( S ( NP-SBJ ( NP ( DT The ) ( NN company ) ) ( SBAR ( WHNP-3 ( WDT which ) ) ( S ( VP ( VBD issued ) ( NP ( NP ( DT a ) ( NN statement ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN agreement ) ) ) ) ( NP-TMP ( RB late ) ( NNP Friday ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( NP ( QP ( CD 1 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN payment ) ) ) ) ( VP ( VBD was ) ( ADVP-TMP ( RB previously ) ) ( VP ( VBN provided ) ( PP-CLR ( IN for ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( JJ financial ) ( NNS statements ) ) ) ) ) ) ) ( CC and ) ( SBAR ( DT that ) ( S ( NP-SBJ-1 ( CD 500,000 ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN recognized ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( CD 1989 ) ( JJ third-quarter ) ( NN statement ) ) ) ) ) ) ) ) ) ) )


The agreement and consent decree are subject to court approval the company said

( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN agreement ) ( CC and ) ( NN consent ) ( NN decree ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ subject ) ( PP ( TO to ) ( NP ( NN court ) ( NN approval ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) )


Gulf Resources added that it will seek to recover equitable contribution from others for both the amount of the settlement and any other liabilities it may incur under the Superfund law

( S ( NP-SBJ ( NNP Gulf ) ( NNP Resources ) ) ( VP ( VBD added ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( PRP it ) ) ( VP ( MD will ) ( VP ( VB seek ) ( S ( VP ( TO to ) ( VP ( VB recover ) ( NP ( JJ equitable ) ( NN contribution ) ) ( PP-CLR ( IN from ) ( NP ( NNS others ) ) ) ( PP ( IN for ) ( NP ( CC both ) ( NP ( NP ( DT the ) ( NN amount ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN settlement ) ) ) ) ( CC and ) ( NP ( NP ( DT any ) ( JJ other ) ( NNS liabilities ) ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD may ) ( VP ( VB incur ) ( PP-LOC ( IN under ) ( NP ( DT the ) ( NNP Superfund ) ( NN law ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )


Under the agreement Gulf must give the U.S. government 45 days ' advance written notice before issuing any dividends on common stock

( S ( PP-LOC ( IN Under ) ( NP ( DT the ) ( NN agreement ) ) ) ( NP-SBJ-1 ( NNP Gulf ) ) ( VP ( MD must ) ( VP ( VB give ) ( NP ( DT the ) ( NNP U.S. ) ( NN government ) ) ( NP ( CD 45 ) ( NNS days ) ( POS ' ) ( JJ advance ) ( JJ written ) ( NN notice ) ) ( PP-TMP ( IN before ) ( S-NOM ( VP ( VBG issuing ) ( NP ( DT any ) ( NNS dividends ) ) ( PP ( IN on ) ( NP ( JJ common ) ( NN stock ) ) ) ) ) ) ) ) )


The company 's net worth can not fall below 185 million after the dividends are issued

( S ( NP-SBJ ( NP ( DT The ) ( NN company ) ( POS 's ) ) ( JJ net ) ( NN worth ) ) ( VP ( MD can ) ( RB not ) ( VP ( VB fall ) ( PP-DIR ( IN below ) ( NP ( QP ( CD 185 ) ( CD million ) ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ-1 ( DT the ) ( NNS dividends ) ) ( VP ( VBP are ) ( VP ( VBN issued ) ) ) ) ) ) ) )


The terms of that agreement only become effective the date of Gulf 's reorganization which we anticipate will occur sometime in early 1990 said Lawrence R. Mehl Gulf 's general counsel

( SINV ( S-TPC-1 ( NP-SBJ ( NP ( DT The ) ( NNS terms ) ) ( PP ( IN of ) ( NP ( DT that ) ( NN agreement ) ) ) ) ( ADVP ( RB only ) ) ( VP ( VBP become ) ( ADJP-PRD ( JJ effective ) ) ( NP-TMP ( NP ( NP ( DT the ) ( NN date ) ) ( PP ( IN of ) ( NP ( NP ( NNP Gulf ) ( POS 's ) ) ( NN reorganization ) ) ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP anticipate ) ( SBAR ( S ( VP ( MD will ) ( VP ( VB occur ) ( ADVP-TMP ( RB sometime ) ) ( PP-TMP ( IN in ) ( NP ( JJ early ) ( CD 1990 ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Lawrence ) ( NNP R. ) ( NNP Mehl ) ) ( NP ( NP ( NNP Gulf ) ( POS 's ) ) ( JJ general ) ( NN counsel ) ) ) )


In addition Gulf must give the government 20 days ' advance written notice of any loans exceeding 50 million that are made to the Bermuda-based holding company

( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( NNP Gulf ) ) ( VP ( MD must ) ( VP ( VB give ) ( NP ( DT the ) ( NN government ) ) ( NP ( NP ( CD 20 ) ( NNS days ) ( POS ' ) ( JJ advance ) ( JJ written ) ( NN notice ) ) ( PP ( IN of ) ( NP ( NP ( DT any ) ( NNS loans ) ) ( VP ( VBG exceeding ) ( NP ( QP ( CD 50 ) ( CD million ) ) ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBP are ) ( VP ( VBN made ) ( PP-DTV ( TO to ) ( NP ( DT the ) ( JJ Bermuda-based ) ( NN holding ) ( NN company ) ) ) ) ) ) ) ) ) ) ) ) )


Gulf 's net worth after those transaction must be at least 150 million

( S ( NP-SBJ ( NP ( NP ( NNP Gulf ) ( POS 's ) ) ( JJ net ) ( NN worth ) ) ( PP-TMP ( IN after ) ( NP ( DT those ) ( NN transaction ) ) ) ) ( VP ( MD must ) ( VP ( VB be ) ( NP-PRD ( QP ( IN at ) ( JJS least ) ( CD 150 ) ( CD million ) ) ) ) ) )


Separately the company said it expects to hold a special meeting for shareholders in early 1990 to vote on its proposed reorganization

( S ( ADVP ( RB Separately ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-3 ( PRP it ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB hold ) ( NP ( NP ( DT a ) ( JJ special ) ( NN meeting ) ) ( PP ( IN for ) ( NP ( NNS shareholders ) ) ) ) ( PP-TMP ( IN in ) ( NP ( JJ early ) ( CD 1990 ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB vote ) ( PP-CLR ( IN on ) ( NP ( PRP$ its ) ( VBN proposed ) ( NN reorganization ) ) ) ) ) ) ) ) ) ) ) ) ) )


Sharp increases in the price of fresh produce caused Spain 's September consumer price index to shoot up 1.1 % from the previous month pushing the annual rate of inflation to 6.8 % the National Institute of Statistics said Friday

( S ( S-TPC-1 ( NP-SBJ ( NP ( JJ Sharp ) ( NNS increases ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NN price ) ) ( PP ( IN of ) ( NP ( JJ fresh ) ( NN produce ) ) ) ) ) ) ( VP ( VBD caused ) ( S ( NP-SBJ ( NP ( NNP Spain ) ( POS 's ) ) ( NNP September ) ( NN consumer ) ( NN price ) ( NN index ) ) ( VP ( TO to ) ( VP ( VB shoot ) ( ADVP-DIR ( RB up ) ) ( NP-EXT ( CD 1.1 ) ( NN % ) ) ( PP-DIR ( IN from ) ( NP ( DT the ) ( JJ previous ) ( NN month ) ) ) ( S-ADV ( VP ( VBG pushing ) ( NP ( NP ( DT the ) ( JJ annual ) ( NN rate ) ) ( PP ( IN of ) ( NP ( NN inflation ) ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 6.8 ) ( NN % ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NNP National ) ( NNP Institute ) ) ( PP ( IN of ) ( NP ( NNP Statistics ) ) ) ) ( VP ( VBD said ) ( NP-TMP ( NNP Friday ) ) ) )


The monthly increase is the highest recorded in the past four years

( S ( NP-SBJ ( DT The ) ( JJ monthly ) ( NN increase ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( RB highest ) ) ( VP ( VBN recorded ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ past ) ( CD four ) ( NNS years ) ) ) ) ) ) )


The index which registered 156.8 at the end of September has a base of 100 set in 1983 and is n't seasonally adjusted

( S ( NP-SBJ-2 ( NP ( DT The ) ( NN index ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD registered ) ( NP ( CD 156.8 ) ) ( PP-TMP ( IN at ) ( NP ( NP ( DT the ) ( NN end ) ) ( PP ( IN of ) ( NP ( NNP September ) ) ) ) ) ) ) ) ) ( VP ( VP ( VBZ has ) ( NP ( NP ( DT a ) ( NN base ) ) ( PP ( IN of ) ( NP ( CD 100 ) ) ) ( VP ( NN set ) ( PP-TMP ( IN in ) ( NP ( CD 1983 ) ) ) ) ) ) ( CC and ) ( VP ( VBZ is ) ( RB n't ) ( VP ( ADVP ( RB seasonally ) ) ( VBN adjusted ) ) ) ) )


Prices have risen 5.9 % in the first nine months of the year outstripping both the initial 3 % inflation goal set by the government of Socialist Prime Minister Felipe Gonzalez and the second revised goal of 5.8 %

( S ( NP-SBJ-1 ( NNS Prices ) ) ( VP ( VBP have ) ( VP ( VBN risen ) ( NP-EXT ( CD 5.9 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( JJ first ) ( CD nine ) ( NNS months ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN year ) ) ) ) ) ( S-ADV ( VP ( VBG outstripping ) ( NP ( CC both ) ( NP ( NP ( DT the ) ( JJ initial ) ( ADJP ( CD 3 ) ( NN % ) ) ( NN inflation ) ( NN goal ) ) ( VP ( VBN set ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN government ) ) ( PP ( IN of ) ( NP ( NNP Socialist ) ( NNP Prime ) ( NNP Minister ) ( NNP Felipe ) ( NNP Gonzalez ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( JJ second ) ( VBN revised ) ( NN goal ) ) ( PP ( IN of ) ( NP ( CD 5.8 ) ( NN % ) ) ) ) ) ) ) ) ) )


Predicting the financial results of computer firms has been a tough job lately

( S ( S-NOM-SBJ ( VP ( VBG Predicting ) ( NP ( NP ( DT the ) ( JJ financial ) ( NNS results ) ) ( PP ( IN of ) ( NP ( NN computer ) ( NNS firms ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( NP-PRD ( DT a ) ( JJ tough ) ( NN job ) ) ( ADVP-TMP ( RB lately ) ) ) ) )


Take Microsoft Corp. the largest maker of personal computer software and generally considered an industry bellwether

( S ( VP ( VB Take ) ( NP ( NP ( NNP Microsoft ) ( NNP Corp. ) ) ( UCP ( NP ( NP ( DT the ) ( JJS largest ) ( NN maker ) ) ( PP ( IN of ) ( NP ( JJ personal ) ( NN computer ) ( NN software ) ) ) ) ( CC and ) ( VP ( ADVP ( RB generally ) ) ( VBN considered ) ( NP ( DT an ) ( NN industry ) ( NN bellwether ) ) ) ) ) ) )


In July the company stunned Wall Street with the prediction that growth in the personal computer business overall would be only 10 % in 1990 a modest increase when compared with the sizzling expansion of years past

( S ( PP-TMP ( IN In ) ( NP ( NNP July ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD stunned ) ( NP ( NNP Wall ) ( NNP Street ) ) ( PP ( IN with ) ( NP ( DT the ) ( NN prediction ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NP ( NN growth ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ personal ) ( NN computer ) ( NN business ) ) ) ( ADVP ( RB overall ) ) ) ( VP ( MD would ) ( VP ( VB be ) ( NP-PRD ( NP ( QP ( RB only ) ( CD 10 ) ) ( NN % ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1990 ) ) ) ( NP-1 ( NP ( DT a ) ( JJ modest ) ( NN increase ) ) ( SBAR ( WHADVP-3 ( WRB when ) ) ( S ( VP ( VBN compared ) ( PP-CLR ( IN with ) ( NP ( NP ( DT the ) ( JJ sizzling ) ( NN expansion ) ) ( PP ( IN of ) ( NP ( NP ( NNS years ) ) ( ADJP ( JJ past ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )


Investors taking this as a sign that a broad industry slump was in the offing reacted by selling the company 's stock which lost 3.25 that day to close at 52 in national over-the-counter trading

( S ( NP-SBJ-2 ( NNS Investors ) ) ( PRN ( S-ADV ( VP ( VBG taking ) ( NP ( DT this ) ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( NN sign ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT a ) ( JJ broad ) ( NN industry ) ( NN slump ) ) ( VP ( VBD was ) ( PP-LOC-PRD ( IN in ) ( NP ( DT the ) ( NN offing ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD reacted ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG selling ) ( NP ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN stock ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD lost ) ( NP ( CD 3.25 ) ) ( NP-TMP ( DT that ) ( NN day ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB close ) ( PP-CLR ( IN at ) ( NP ( CD 52 ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ national ) ( JJ over-the-counter ) ( NN trading ) ) ) ) ) ) ) ) ) ) ) ) ) ) )


But that was all of three months ago

( S ( CC But ) ( NP-SBJ ( DT that ) ) ( VP ( VBD was ) ( ADVP-TMP-PRD ( NP ( QP ( DT all ) ( IN of ) ( CD three ) ) ( NNS months ) ) ( RB ago ) ) ) )


Last week Microsoft said it expects revenue for its first quarter ended Sept. 30 to increase 34 %

( S ( NP-TMP ( JJ Last ) ( NN week ) ) ( NP-SBJ ( NNP Microsoft ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( NP ( NN revenue ) ) ( PP ( IN for ) ( NP ( NP ( PRP$ its ) ( JJ first ) ( NN quarter ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP Sept. ) ( CD 30 ) ) ) ) ) ) ( VP ( TO to ) ( VP ( VB increase ) ( NP-EXT ( CD 34 ) ( NN % ) ) ) ) ) ) ) ) ) )


The announcement caused the company 's stock to surge 6.50 to close at 75.50 a share

( S ( NP-SBJ ( DT The ) ( NN announcement ) ) ( VP ( VBD caused ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN stock ) ) ( VP ( TO to ) ( VP ( VB surge ) ( NP-EXT ( CD 6.50 ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB close ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 75.50 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) ) )


Microsoft 's surprising strength is one example of the difficulty facing investors looking for reassurances about the financial health of the computer firms

( S ( NP-SBJ ( NP ( NNP Microsoft ) ( POS 's ) ) ( JJ surprising ) ( NN strength ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( CD one ) ( NN example ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN difficulty ) ) ( VP ( VBG facing ) ( NP ( NP ( NNS investors ) ) ( VP ( VBG looking ) ( PP-CLR ( IN for ) ( NP ( NP ( NNS reassurances ) ) ( PP ( IN about ) ( NP ( NP ( DT the ) ( JJ financial ) ( NN health ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN computer ) ( NNS firms ) ) ) ) ) ) ) ) ) ) ) ) ) ) )


It 's hard to know what to expect at this point said Peter Rogers an analyst at Robertson Stephens & Co

( SINV ( S-TPC-1 ( NP-SBJ ( NP ( PRP It ) ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( JJ hard ) ) ( S-3 ( VP ( TO to ) ( VP ( VB know ) ( SBAR ( WHNP-2 ( WP what ) ) ( S ( VP ( TO to ) ( VP ( VB expect ) ( PP-TMP ( IN at ) ( NP ( DT this ) ( NN point ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Peter ) ( NNP Rogers ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP Robertson ) ( NNP Stephens ) ( CC & ) ( NNP Co ) ) ) ) ) )


The industry defies characterization

( S ( NP-SBJ ( DT The ) ( NN industry ) ) ( VP ( VBZ defies ) ( NP ( NN characterization ) ) ) )


To illustrate Mr. Rogers said that of the 14 computer-related firms he follows half will report for their most recent quarter earnings below last year 's results and half above those results

( S ( S-PRP ( VP ( TO To ) ( VP ( VB illustrate ) ) ) ) ( NP-SBJ-2 ( NNP Mr. ) ( NNP Rogers ) ) ( VP ( VBD said ) ( SBAR ( IN that ) ( S ( PP-TPC-3 ( IN of ) ( NP ( NP ( DT the ) ( CD 14 ) ( JJ computer-related ) ( NNS firms ) ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBZ follows ) ) ) ) ) ) ( S ( NP-SBJ ( NP-4 ( NN half ) ) ) ( VP ( MD will ) ( VP ( VB report ) ( PP ( IN for ) ( NP ( PRP$ their ) ( ADJP ( RBS most ) ( JJ recent ) ) ( NN quarter ) ) ) ( NP ( NP ( NNS earnings ) ) ( PP-LOC-5 ( IN below ) ( NP ( NP ( JJ last ) ( NN year ) ( POS 's ) ) ( NNS results ) ) ) ) ) ) ) ( CC and ) ( S ( NP=4 ( NN half ) ) ( PP-LOC=5 ( IN above ) ( NP ( DT those ) ( NNS results ) ) ) ) ) ) ) )


Among those companies expected to have a down quarter are Hewlett-Packard Co. Amdahl Corp. and Sun Microsystems Inc. generally solid performers in the past

( SINV ( PP-LOC-PRD-TPC-1 ( IN Among ) ( NP ( NP ( DT those ) ( NNS companies ) ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB have ) ( NP ( DT a ) ( JJ down ) ( NN quarter ) ) ) ) ) ) ) ) ( VP ( VBP are ) ) ( NP-SBJ ( NP ( NP ( NNP Hewlett-Packard ) ( NNP Co. ) ) ( NP ( NNP Amdahl ) ( NNP Corp. ) ) ( CC and ) ( NP ( NNP Sun ) ( NNP Microsystems ) ( NNP Inc. ) ) ) ( NP ( NP ( RB generally ) ( JJ solid ) ( NNS performers ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN past ) ) ) ) ) )


International Business Machines Corp. also is expected to report disappointing results

( S ( NP-SBJ-1 ( NNP International ) ( NNP Business ) ( NNP Machines ) ( NNP Corp. ) ) ( ADVP ( RB also ) ) ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB report ) ( NP ( JJ disappointing ) ( NNS results ) ) ) ) ) ) ) )


Apple Computer Inc. meanwhile is expected to show improved earnings for the period ended Sept

( S ( NP-SBJ-1 ( NNP Apple ) ( NNP Computer ) ( NNP Inc. ) ) ( ADVP-TMP ( RB meanwhile ) ) ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB show ) ( NP ( JJ improved ) ( NNS earnings ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN period ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP Sept ) ) ) ) ) ) ) ) ) ) )


Another contradictory message comes from Businessland Inc. a computer retailer

( S ( NP-SBJ ( DT Another ) ( JJ contradictory ) ( NN message ) ) ( VP ( VBZ comes ) ( PP-DIR ( IN from ) ( NP ( NP ( NNP Businessland ) ( NNP Inc. ) ) ( NP ( DT a ) ( NN computer ) ( NN retailer ) ) ) ) ) )


In July the company reported that booming sales of new personal computers from Apple and IBM had resulted in net income more than doubling for its fourth quarter ended June 30 to 7.4 million or 23 cents a share

( S ( PP-TMP ( IN In ) ( NP ( NNP July ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD reported ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( JJ booming ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( NP ( JJ new ) ( JJ personal ) ( NNS computers ) ) ( PP ( IN from ) ( NP ( NNP Apple ) ( CC and ) ( NNP IBM ) ) ) ) ) ) ( VP ( VBD had ) ( VP ( VBN resulted ) ( PP-CLR ( IN in ) ( S-NOM ( NP-SBJ ( JJ net ) ( NN income ) ) ( VP ( ADVP ( RBR more ) ( IN than ) ) ( VBG doubling ) ( PP ( IN for ) ( NP ( NP ( PRP$ its ) ( JJ fourth ) ( NN quarter ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP June ) ( CD 30 ) ) ) ) ) ( PP-DIR ( TO to ) ( NP ( NP ( QP ( CD 7.4 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 23 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) ) ) ) ) ) )


This month however Businessland warned investors that results for its first quarter ended Sept. 30 had n't met expectations

( S ( NP-TMP ( DT This ) ( NN month ) ) ( ADVP ( RB however ) ) ( NP-SBJ ( NNP Businessland ) ) ( VP ( VBD warned ) ( NP ( NNS investors ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNS results ) ) ( PP ( IN for ) ( NP ( NP ( PRP$ its ) ( JJ first ) ( NN quarter ) ) ( VP ( VBD ended ) ( NP-TMP ( NNP Sept. ) ( CD 30 ) ) ) ) ) ) ( VP ( VBD had ) ( RB n't ) ( VP ( VBN met ) ( NP ( NNS expectations ) ) ) ) ) ) ) )


The company said it expects earnings of 14 to 17 cents a share down from 25 cents a share in the year-earlier period

( S ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ expects ) ( NP ( NP ( NNS earnings ) ) ( PP ( IN of ) ( NP ( NP ( NP ( QP ( CD 14 ) ( TO to ) ( CD 17 ) ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( ADVP ( RB down ) ( PP ( IN from ) ( NP ( NP ( CD 25 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ year-earlier ) ( NN period ) ) ) ) ) ) ) ) ) ) ) ) )


While the earnings picture confuses observers say the major forces expected to shape the industry in the coming year are clearer

( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( DT the ) ( NNS earnings ) ( NN picture ) ) ( VP ( VBZ confuses ) ) ) ) ( NP-SBJ ( NNS observers ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( JJ major ) ( NNS forces ) ) ( VP ( VBD expected ) ( S ( VP ( TO to ) ( VP ( VB shape ) ( NP ( DT the ) ( NN industry ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ coming ) ( NN year ) ) ) ) ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJR clearer ) ) ) ) ) ) )


Companies will continue to war over standards

( S ( NP-SBJ-1 ( NNS Companies ) ) ( VP ( MD will ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB war ) ( PP ( IN over ) ( NP ( NNS standards ) ) ) ) ) ) ) ) )


In computer publishing a battle over typefaces is hurting Adobe Systems Inc. which sells software that controls the image produced by printers and displays

( S ( PP-LOC ( IN In ) ( NP ( NN computer ) ( NN publishing ) ) ) ( NP-SBJ ( NP ( DT a ) ( NN battle ) ) ( PP ( IN over ) ( NP ( NNS typefaces ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG hurting ) ( NP ( NP ( NNP Adobe ) ( NNP Systems ) ( NNP Inc. ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ sells ) ( NP ( NP ( NN software ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBZ controls ) ( NP ( NP ( DT the ) ( NN image ) ) ( VP ( VBN produced ) ( PP ( IN by ) ( NP-LGS ( NNS printers ) ( CC and ) ( NNS displays ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )


Until recently Adobe had a lock on the market for image software but last month Apple Adobe 's biggest customer and Microsoft rebelled

( S ( S ( PP-TMP ( IN Until ) ( ADVP ( RB recently ) ) ) ( NP-SBJ ( NNP Adobe ) ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( NN lock ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN market ) ) ( PP ( IN for ) ( NP ( NN image ) ( NN software ) ) ) ) ) ) ) ) ( CC but ) ( S ( NP-TMP ( JJ last ) ( NN month ) ) ( NP-SBJ ( NP ( NP ( NNP Apple ) ) ( NP ( NP ( NNP Adobe ) ( POS 's ) ) ( JJS biggest ) ( NN customer ) ) ) ( CC and ) ( NP ( NNP Microsoft ) ) ) ( VP ( VBD rebelled ) ) ) )


Now the two firms are collaborating on an alternative to Adobe 's approach and analysts say they are likely to carry IBM the biggest seller of personal computers along with them

( S ( S ( ADVP-TMP ( RB Now ) ) ( NP-SBJ ( DT the ) ( CD two ) ( NNS firms ) ) ( VP ( VBP are ) ( VP ( VBG collaborating ) ( PP-CLR ( IN on ) ( NP ( NP ( DT an ) ( NN alternative ) ) ( PP ( TO to ) ( NP ( NP ( NNP Adobe ) ( POS 's ) ) ( NN approach ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNS analysts ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ likely ) ( S ( VP ( TO to ) ( VP ( VB carry ) ( NP ( NP ( NNP IBM ) ) ( NP ( NP ( DT the ) ( JJS biggest ) ( NN seller ) ) ( PP ( IN of ) ( NP ( JJ personal ) ( NNS computers ) ) ) ) ) ( ADVP-CLR ( RB along ) ( PP ( IN with ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) ) ) ) ) )


The short-term outlook for Adobe 's business however appears strong

( S ( NP-SBJ ( NP ( DT The ) ( JJ short-term ) ( NN outlook ) ) ( PP ( IN for ) ( NP ( NP ( NNP Adobe ) ( POS 's ) ) ( NN business ) ) ) ) ( ADVP ( RB however ) ) ( VP ( VBZ appears ) ( ADJP-PRD ( JJ strong ) ) ) )


The company is beginning to ship a new software program that 's being heralded as a boon for owners of low-end printers sold by Apple

( S ( NP-SBJ-2 ( DT The ) ( NN company ) ) ( VP ( VBZ is ) ( VP ( VBG beginning ) ( S ( VP ( TO to ) ( VP ( VB ship ) ( NP ( NP ( DT a ) ( JJ new ) ( NN software ) ( NN program ) ) ( SBAR ( WHNP-3 ( WDT that ) ) ( S ( VP ( VBZ 's ) ( VP ( VBG being ) ( VP ( VBN heralded ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( NN boon ) ) ( PP ( IN for ) ( NP ( NP ( NNS owners ) ) ( PP ( IN of ) ( NP ( NP ( JJ low-end ) ( NNS printers ) ) ( VP ( VBN sold ) ( PP ( IN by ) ( NP-LGS ( NNP Apple ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )


The program is aimed at improving the quality of printed material

( S ( NP-SBJ-1 ( DT The ) ( NN program ) ) ( VP ( VBZ is ) ( VP ( VBN aimed ) ( PP-CLR ( IN at ) ( S-NOM ( VP ( VBG improving ) ( NP ( NP ( DT the ) ( NN quality ) ) ( PP ( IN of ) ( NP ( JJ printed ) ( NN material ) ) ) ) ) ) ) ) ) )


John Warnock Adobe 's chief executive officer said the Mountain View Calif. company has been receiving 1,000 calls a day about the product since it was demonstrated at a computer publishing conference several weeks ago

( S ( NP-SBJ ( NP ( NNP John ) ( NNP Warnock ) ) ( NP ( NP ( NNP Adobe ) ( POS 's ) ) ( JJ chief ) ( JJ executive ) ( NN officer ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NAC-LOC ( NNP Mountain ) ( NNP View ) ( NNP Calif. ) ) ( NN company ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBG receiving ) ( NP ( NP ( CD 1,000 ) ( NNS calls ) ) ( NP-ADV ( DT a ) ( NN day ) ) ( PP ( IN about ) ( NP ( DT the ) ( NN product ) ) ) ) ( SBAR-TMP ( IN since ) ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD was ) ( VP ( VBN demonstrated ) ( PP-LOC ( IN at ) ( NP ( DT a ) ( NN computer ) ( NN publishing ) ( NN conference ) ) ) ( ADVP-TMP ( NP ( JJ several ) ( NNS weeks ) ) ( RB ago ) ) ) ) ) ) ) ) ) ) ) ) )


Meanwhile competition between various operating systems which control the basic functions of a computer spells trouble for software firms generally

( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ ( NP ( NN competition ) ) ( PP ( IN between ) ( NP ( NP ( JJ various ) ( NN operating ) ( NNS systems ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP control ) ( NP ( NP ( DT the ) ( JJ basic ) ( NNS functions ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN computer ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ spells ) ( NP ( NP ( NN trouble ) ) ( PP ( IN for ) ( NP ( NP ( NN software ) ( NNS firms ) ) ( ADVP ( RB generally ) ) ) ) ) ) )


It creates uncertainty and usually slows down sales said Russ Crabs an analyst at Soundview Financial Group

( SINV ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VP ( VBZ creates ) ( NP ( NN uncertainty ) ) ) ( CC and ) ( VP ( ADVP-TMP ( RB usually ) ) ( VBZ slows ) ( PRT ( RP down ) ) ( NP ( NNS sales ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Russ ) ( NNP Crabs ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP Soundview ) ( NNP Financial ) ( NNP Group ) ) ) ) ) )


Mr. Crabs said this probably is behind the expected weak performance of Aldus Corp. maker of a widely used computer publishing program

( S ( NP-SBJ ( NNP Mr. ) ( NNP Crabs ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT this ) ) ( ADVP ( RB probably ) ) ( VP ( VBZ is ) ( PP-LOC-PRD ( IN behind ) ( NP ( NP ( DT the ) ( JJ expected ) ( JJ weak ) ( NN performance ) ) ( PP ( IN of ) ( NP ( NP ( NNP Aldus ) ( NNP Corp. ) ) ( NP ( NP ( NN maker ) ) ( PP ( IN of ) ( NP ( DT a ) ( ADJP ( RB widely ) ( VBN used ) ) ( NN computer ) ( NN publishing ) ( NN program ) ) ) ) ) ) ) ) ) ) ) ) )


He expects Aldus to report earnings of 21 cents a share on revenues of 19.5 million for its third quarter compared with earnings of 30 cents a share on revenue of 20.4 million in the year-earlier period

( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ expects ) ( S ( NP-SBJ ( NNP Aldus ) ) ( VP ( TO to ) ( VP ( VB report ) ( NP ( NP ( NNS earnings ) ) ( PP ( IN of ) ( NP ( NP ( CD 21 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP ( IN on ) ( NP ( NP ( NNS revenues ) ) ( PP ( IN of ) ( NP ( QP ( CD 19.5 ) ( CD million ) ) ) ) ) ) ( PP ( IN for ) ( NP ( PRP$ its ) ( JJ third ) ( NN quarter ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( NNS earnings ) ) ( PP ( IN of ) ( NP ( NP ( CD 30 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP ( IN on ) ( NP ( NP ( NN revenue ) ) ( PP ( IN of ) ( NP ( QP ( CD 20.4 ) ( CD million ) ) ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ year-earlier ) ( NN period ) ) ) ) ) ) ) ) ) ) ) )


Aldus officials could n't be reached for comment

( S ( NP-SBJ-1 ( NNP Aldus ) ( NNS officials ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB be ) ( VP ( VBN reached ) ( PP-PRP ( IN for ) ( NP ( NN comment ) ) ) ) ) ) )


On the other hand the battle of the bus is expected to grow increasingly irrelevant

( S ( PP ( IN On ) ( NP ( DT the ) ( JJ other ) ( NN hand ) ) ) ( NP-SBJ-1 ( NP ( DT the ) ( NN battle ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN bus ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB grow ) ( ADJP-PRD ( RB increasingly ) ( JJ irrelevant ) ) ) ) ) ) ) )


A bus is the data highway within a computer

( S ( NP-SBJ ( DT A ) ( NN bus ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( NNS data ) ( NN highway ) ) ( PP-LOC ( IN within ) ( NP ( DT a ) ( NN computer ) ) ) ) ) )


IBM is backing one type of bus called microchannel while the nine other leading computer makers including H-P and Compaq Computer Corp. have chosen another method

( S ( NP-SBJ ( NNP IBM ) ) ( VP ( VBZ is ) ( VP ( VBG backing ) ( NP ( NP ( CD one ) ( NN type ) ) ( PP ( IN of ) ( NP ( NN bus ) ) ) ( VP ( VBD called ) ( S ( ADJP-PRD ( JJ microchannel ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NP ( DT the ) ( CD nine ) ( JJ other ) ( JJ leading ) ( NN computer ) ( NNS makers ) ) ( PP ( VBG including ) ( NP ( NP ( NNP H-P ) ) ( CC and ) ( NP ( NNP Compaq ) ( NNP Computer ) ( NNP Corp. ) ) ) ) ) ( VP ( VBP have ) ( VP ( VBN chosen ) ( NP ( DT another ) ( NN method ) ) ) ) ) ) ) ) )


Users do n't care about the bus said Daniel Benton an analyst at Goldman Sachs & Co

( SINV ( S-TPC-1 ( NP-SBJ ( NNS Users ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB care ) ( PP-CLR ( IN about ) ( NP ( DT the ) ( NN bus ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Daniel ) ( NNP Benton ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP Goldman ) ( NNP Sachs ) ( CC & ) ( NNP Co ) ) ) ) ) )


He said Apple 's family of Macintosh computers for instance uses four different buses and no one seems to mind

( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( SBAR ( S ( S ( NP-SBJ ( NP ( NP ( NNP Apple ) ( POS 's ) ) ( NN family ) ) ( PP ( IN of ) ( NP ( NNP Macintosh ) ( NNS computers ) ) ) ) ( PP ( IN for ) ( NP ( NN instance ) ) ) ( VP ( VBZ uses ) ( NP ( CD four ) ( JJ different ) ( NNS buses ) ) ) ) ( CC and ) ( S ( NP-SBJ-1 ( DT no ) ( NN one ) ) ( VP ( VBZ seems ) ( S ( VP ( TO to ) ( VP ( VB mind ) ) ) ) ) ) ) ) ) )


The gap between winners and laggards will grow

( S ( NP-SBJ ( NP ( DT The ) ( NN gap ) ) ( PP ( IN between ) ( NP ( NNS winners ) ( CC and ) ( NNS laggards ) ) ) ) ( VP ( MD will ) ( VP ( VB grow ) ) ) )


In personal computers Apple Compaq and IBM are expected to tighten their hold on their business

( S ( PP-LOC ( IN In ) ( NP ( JJ personal ) ( NNS computers ) ) ) ( NP-SBJ-1 ( NNP Apple ) ( NNP Compaq ) ( CC and ) ( NNP IBM ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB tighten ) ( NP ( NP ( PRP$ their ) ( NN hold ) ) ( PP ( IN on ) ( NP ( PRP$ their ) ( NN business ) ) ) ) ) ) ) ) ) )


At the same time second-tier firms will continue to lose ground

( S ( PP-TMP ( IN At ) ( NP ( DT the ) ( JJ same ) ( NN time ) ) ) ( NP-SBJ-1 ( JJ second-tier ) ( NNS firms ) ) ( VP ( MD will ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB lose ) ( NP ( NN ground ) ) ) ) ) ) ) )


Some lagging competitors even may leave the personal computer business altogether

( S ( NP-SBJ ( DT Some ) ( VBG lagging ) ( NNS competitors ) ) ( ADVP ( RB even ) ) ( VP ( MD may ) ( VP ( VB leave ) ( NP ( DT the ) ( JJ personal ) ( NN computer ) ( NN business ) ) ( ADVP ( RB altogether ) ) ) ) )


Wyse Technology for instance is considered a candidate to sell its troubled operation

( S ( NP-SBJ-1 ( NNP Wyse ) ( NNP Technology ) ) ( PP ( IN for ) ( NP ( NN instance ) ) ) ( VP ( VBZ is ) ( VP ( VBN considered ) ( S ( NP-PRD ( NP ( DT a ) ( NN candidate ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( PRP$ its ) ( JJ troubled ) ( NN operation ) ) ) ) ) ) ) ) ) ) )


Wyse has done well establishing a distribution business but they have n't delivered products that sell said Kimball Brown an analyst at Prudential-Bache Securities

( SINV ( S-TPC-2 ( S ( NP-SBJ-3 ( NNP Wyse ) ) ( VP ( VBZ has ) ( VP ( VBN done ) ( ADVP-MNR ( RB well ) ) ( S-CLR ( VP ( VBG establishing ) ( NP ( DT a ) ( NN distribution ) ( NN business ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN delivered ) ( NP ( NP ( NNS products ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP sell ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Kimball ) ( NNP Brown ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP Prudential-Bache ) ( NNP Securities ) ) ) ) ) )


Mr. Brown estimates Wyse whose terminals business is strong will report a loss of 12 cents a share for its quarter ended Sept

( S ( NP-SBJ ( NNP Mr. ) ( NNP Brown ) ) ( VP ( VBZ estimates ) ( SBAR ( S ( NP-SBJ ( NP ( NNP Wyse ) ) ( SBAR ( WHNP-1 ( WP$ whose ) ( NNS terminals ) ( NN business ) ) ( S ( VP ( VBZ is ) ( ADJP-PRD ( JJ strong ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB report ) ( NP ( NP ( DT a ) ( NN loss ) ) ( PP ( IN of ) ( NP ( NP ( CD 12 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( PP ( IN for ) ( NP ( NP ( PRP$ its ) ( NN quarter ) ) ( VP ( VBN ended ) ( NP-TMP ( NNP Sept ) ) ) ) ) ) ) ) ) ) ) )


Personal-computer makers will continue to eat away at the business of more traditional computer firms

( S ( NP-SBJ-1 ( NN Personal-computer ) ( NNS makers ) ) ( VP ( MD will ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB eat ) ( PRT ( RP away ) ) ( PP-CLR ( IN at ) ( NP ( NP ( DT the ) ( NN business ) ) ( PP ( IN of ) ( NP ( ADJP ( RBR more ) ( JJ traditional ) ) ( NN computer ) ( NNS firms ) ) ) ) ) ) ) ) ) ) )


Ever-more powerful desk-top computers designed with one or more microprocessors as their brains are expected to increasingly take on functions carried out by more expensive minicomputers and mainframes

( S ( NP-SBJ-1 ( NP ( ADJP ( RB Ever-more ) ( JJ powerful ) ) ( JJ desk-top ) ( NNS computers ) ) ( VP ( VBN designed ) ( PP-CLR ( IN with ) ( NP ( NP ( QP ( CD one ) ( CC or ) ( JJR more ) ) ( NNS microprocessors ) ) ( PP ( IN as ) ( NP ( PRP$ their ) ( NNS brains ) ) ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( ADVP ( RB increasingly ) ) ( VB take ) ( PP-CLR ( RP on ) ( NP ( NP ( NNS functions ) ) ( VP ( VBN carried ) ( PRT ( RP out ) ) ( PP ( IN by ) ( NP-LGS ( ADJP ( RBR more ) ( JJ expensive ) ) ( NNS minicomputers ) ( CC and ) ( NNS mainframes ) ) ) ) ) ) ) ) ) ) ) )


The guys that make traditional hardware are really being obsoleted by microprocessor-based machines said Mr. Benton

( SINV ( S-TPC-3 ( NP-SBJ-1 ( NP ( DT The ) ( NNS guys ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBP make ) ( NP ( JJ traditional ) ( NN hardware ) ) ) ) ) ) ( VP ( VBP are ) ( ADVP ( RB really ) ) ( VP ( VBG being ) ( VP ( VBN obsoleted ) ( PP-LGS ( IN by ) ( NP ( JJ microprocessor-based ) ( NNS machines ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Benton ) ) )


As a result of this trend longtime powerhouses H-P IBM and Digital Equipment Corp. are scrambling to counterattack with microprocessor-based systems of their own

( S ( PP-PRP ( IN As ) ( NP ( NP ( DT a ) ( NN result ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN trend ) ) ) ) ) ( NP-SBJ-1 ( JJ longtime ) ( NNS powerhouses ) ( NX ( NX ( NNP H-P ) ) ( NX ( NNP IBM ) ) ( CC and ) ( NX ( NNP Digital ) ( NNP Equipment ) ( NNP Corp. ) ) ) ) ( VP ( VBP are ) ( VP ( VBG scrambling ) ( S ( VP ( TO to ) ( VP ( VB counterattack ) ( PP-MNR ( IN with ) ( NP ( NP ( JJ microprocessor-based ) ( NNS systems ) ) ( PP ( IN of ) ( NP ( PRP$ their ) ( JJ own ) ) ) ) ) ) ) ) ) ) )