European Stars and Stripes (Newspaper) - August 4, 1991, Darmstadt, Hesse                                Sunday August 4, 1991 the stars and stripes  Pago 17stock Market plays both sides of 3,000 level new York up a stocks fluctuated last week taking three Steps Forward and two backward. A we crossed 3,000 for the fifth time and each time we get hurled Back a said Larry Wachtel Market analyst at Prudential securities inc. The Market Rose three Days last week and fell two in slow trading. The Dow Jones Industrial average the most closely watched indicator broke through the 3,000 Barrier tuesday. At the end of the week the Dow Industrial average had advanced 33.76 to 3,006.26, or 1 percent. Broader Market indexes such As the new York Stock Exchange composite Index and Standard and poor a 500 Index advanced. A amp pcs 500-Stock Index Rose 6.25 to end the week at 387-18, and the nose composite increased 3.25 to end the week at 212.03. Advances led declines 1,230-697 among the 2,223 nose issues traded this week. Weekly big Board volume totalled 1,249,566,930 shares compared with 911,159,350 a week ago and with 972,75041 in the same week a year ago. Some strength in Oil stocks boosted the Dow on monday to a gain of 12.74. The Market staged a major rally tuesday rising 31.08, its biggest Rise since july 18. Investors were buying the Blue chips or heavily capitalized stocks. Stocks managed a Small gain wednesday moving up 8.50. Analysts blamed concern Over the tepid economic recovery. The Dow fell 7.15 thursday after three Days of advances. Many investors cashed in their recent gains. The Market tumbled Friday for the second straight Day falling 11.41. Analysts said the Economy looks weak which Hurt stocks. A the Basic problem is that we reach a valuation level and lose momentum a Wachtel said because stocks become overpriced. When the Dow Breaks 3,000, it loses its momentum and Falls. T a a we be been in this interminable Range for the last six months a he added. A a it a a restless rotation of the  even More troubling Toad Achtelik the resurgence of consumer stocks such As drugs and tobacco and the fall of cyclical stocks such As paper steel and chemicals. To him that Means investors Are worried about a weak or non existent recovery and Are seeking safety in consumer issues. On the trading floor last week Tel Fonos de Mexico was the most Active Stock at 31%, up a. Pepsico inc. Was the second most Active at 31%, up 2%. Columbia Gas which filed for bankruptcy Protection was third at 15%, off 3%. At amp to was fourth at 39%, unchanged. The Federal communications commission loosened regulations that have made it difficult for the company to offer volume discounts and other pricing deals on Long distance services. On the american Stock Exchange the amex Market value Index Rose 0.16 Friday to close at 368 40. For the week the Index increased 3.89. Advances led declines 425-392 among the 1,014 issues traded for the week. Amex volume totalled 71,948,915, compared with 62,844,930 a week ago and 95,847,685 in the same week a year ago. The National association of securities dealers composite Index Rose 12.98 to close the week at 505.67.elderly woman grabs Keating during a amp a trial by the los Angeles times los Angeles a an elderly woman who said she lost thousands of dollars because of the failure of Lincoln savings amp loan provided Sparks on the first Day of a fraud trial of former owner Charles h. Keating when she grabbed the executive by the lapels and screamed at him to return her Money. A emr. Keating you took All my Money away a the woman yelled. A what happened to my Money i can to work  Keating was taken Aback by the confrontation with the woman who identified herself later As Sarah mandrel of Hollywood. She said she was 90 years old and had lost $100,000 in Bonds. But a neighbor who brought her to court identified the woman As Sarah Solomon a Bondholder who was about 80 years old and had lost $5,000. Bailiffs who pulled the Bondholder off Keating said no charges would be brought against her. The confrontation occurred just after proceedings recessed in Superior court in the securities fraud trial against Keating who was chairman of Lincoln a Parent company american Continental corp. In Phoenix. After the incident Superior court judge Lance a. Ito returned to the Bench. He said because of concern for the safety of the defendants and their lawyers he would order increased Security for the remainder of the trial including possibly electronic searches. Keating is accused of misleading 20 Small investors about the safety of american Continental Bonds and the soundness of the company and its Irvine Calif. Based Thrift. He is also accused of defrauding the investors of $1.8 million. He has been charged with 20 counts and faces a maximum sentence of 10 years in prison. Thousands of Lincoln depositors bought nearly $200 million in Bonds at the a amp los Southern California branches. The depositors lost their Money in april 1989, after the company went bankrupt and regulators seized Lincoln. It was the biggest Thrift failure in . History with an estimated taxpayer Cost of $2.6 billion. Opening statements and testimony in the first criminal trial stemming from the Lincoln scandal will not Start before the last week of August. Lawyers first must go through 300 to 500 prospective jurors to try to find 18 or 20 who could be impartial and who also could remain for a trial of up to six months. The prosecution contends that Keating should be criminally liable for his a failure to control corporate misconduct in the Sale of Bonds by employees. By his very position and ability to control How Bonds were sold prosecutors say he should be liable for what the sales Force did. In addition to the state Case several Federal grand juries have been investigating allegations that Keating and his top aides looted Lincoln. Keating is also fighting dozens of civil suits stemming from the failure of Lincoln. A defendant Charles h. Keatingjr. At the trials  cast doubt on . Economic recovery unemployment percent of work Force seasonally adjusted 8.0 7.0 n Man bhiii11 i 11 i a i 1 i 11 3 11 i is 11111 i ii i a 11 Iii 11144-1 a $ o n d 4 f m a m j j 1900 1991 july 90 june�?~91 july 91 5.5% 11 7.0%11 6.8% source . Dept of labor a new York a though most economists say the recession is ending major corporations have announced new rounds of layoffs in recent weeks that raise doubts Over whether the recovery has begun. Airlines Banks computer makers and chemical companies Are among the Large employers who Are saying they will eliminate jobs in coming months. This news contradicts statistics that Many economists say show the Economy is improving. On thursday for example a widely watched Survey of corporate purchasing managers showed the nations manufacturing Economy grew for the second straight month in july. On wednesday the government said its main economic barometer the Index of leading economic indicators Rose 0.5 percent in june its fifth straight increase. Meanwhile the number of americans filing new claims for unemployment benefits has been falling. And the labor department last week reported that the nations unemployment rate improved to 6.8 percent in july from 7 percent in june As the ranks of the jobless dropped by about 240,000. Economists say they can explain the discrepancy Between the Layoff announcements and their own optimism. A i done to know that these latest announcements Are anything but the last and More moderate set of to counter late in the business Cycle a said Roger e. Brinner chief economist at the forecasting firm Dri Mcgraw Hill inc. A Are there More companies laying off employees now than there were six months ago i done to think so a Quot he said thursday. Brinner also said the latest layoffs Are primarily in Industrial companies which typically see recovery six months later than consumer oriented companies. Employment already has picked up in the Auto and retail industries for example he said. The fact the layoffs Are occurring primarily in major companies is significant As Well said economist Bruce handler of Dun amp Bradstreet corp. In contrast Small and medium size businesses Are hiring he said. A More and More people Are entering the labor Force As the recession eases he said. A smaller firms Are hiring a disproportionate amount of these employees. When firms gradually increase their payroll it never makes the  he said Many entrepreneurs View the Start of an economic recovery As the Best time to open or expand a business. That a because labor costs rent and interest rates on Loans Are near their lows. Handler also said the size of the recent layoffs pales in comparison with the 110 million americans in the labor Force. A where it does matter is the psychological reaction to the headlines a a if it layoffs you in could happen to them it could happen to me a a he said. That response can Dampen the spending habits and economic Outlook or Consumers he said. Consumer spending is crucial to an economic recovery since it accounts for about two thirds of All the nations economic activity. A in general its very Clear that we re out of recession and things have picked up. The big question of whether this in crease in growth is sustainable and i have my doubts a handler said. Five of the eight recessions since world War ii have experienced a a double dip a in which the Economy expanded for one Quarter before resuming its contraction. Though handler said he does no to believe this will happen he foresees anaemic growth in the Gross National product or the total output of the nations goods and services of under 2 percent. Economist John Lonski of Moody a investors service inc. Said he a less optimistic about the recovery than Many of his colleagues. He said the latest layoffs May not be the last. A we Are crawling out of the recession Quot he said. A these layoffs would not be announced if they the companies believed this would be a More typical  Lonski said companies also have curbed hiring. A if you Are attempting to enter the labor Force if you Are a recent High school or College graduate you will probably find the going