Investment Figures Of The Week

COMMENTARY

The U.S. stock market staged a rousing recovery, after a worrisome decline that

had some traders concerned that the bull market may be faltering. On Aug. 15

the Dow Jones industrial average fell 247 points to 7694, a 3.1% decline, in

its worst selloff since November, 1991. Profit concerns prompted the decline.

But the market came roaring back on the three days that followed, with

100-point gains on each day, and the Dow topped 8000 again on Aug. 20. Gains in

computer-stock earnings fed the rally.

Investment Figures of the Week
Investment Figures of the Week
      
                                            % change
      U.S. MARKETS                 Latest  Week    Year
      
      Dow Jones Industrials        8021.2  1.2     40.2
      NASDAQ Combined Composite    1628.7  2.9     44.8
      S&P MidCap 400               314.7   1.3     36.3
      S&P SmallCap 600             174.2   1.7     33.1
      S&P SuperComposite 1500      201.6   1.8     40.3
      
                                                % change
      SECTORS                         Latest  Week    Year
      
      Bloomberg Information Age       304.0   1.4     54.2
      S&P Financials                  108.2   2.1     54.2
      S&P Utilities                   199.1   0.7     4.3
      PSE Technology                  338.7   4.4     69.4
      
                                           % change
      FOREIGN MARKETS           Latest    Week    Year
      
      London (FT-SE 100)        4958.4    -0.9    27.7
      Frankfurt (DAX)           4223.4    -1.3    65.0
      Tokyo (NIKKEI 225)        19,252.2   1.3   -8.9
      Hong Kong (Hang Seng)     15,855.7  -3.8    40.2
      Toronto (TSE 300)         6773.1    -0.3    31.5
      Mexico City (IPC)         5124.2     2.1    50.6
      
                                                  Week    Year
      FUNDAMENTALS                      Latest    ago      ago
      
      S&P 500 Dividend Yield             1.62%    1.62%    2.16%
      S&P 500 P/E Ratio (Last 12 mos.)   23.3     23.2     19.0
      S&P 500 P/E Ratio (Next 12 mos.)*  18.6     18.6     NA
      First Call Earnings Revision*     -1.2%    -1.4%     NA
      
                                                    Week
      TECHNICAL INDICATORS              Latest      ago       Reading
      
      S&P 500 200-day average           813.5       808.1     Positive
      Stocks above 200-day average      80.0%       81.0%     Negative
      Options: Put/call ratio           0.59        0.50      Negative
      Insiders: Vickers Sell/buy ratio  3.20        2.91      Negative
      
      BEST-PERFORMING               Last                           Last 12
      GROUPS                       month%                          months%
      
      Homebuilding                  16.3    Semiconductors          127.5
      Transportation Services       12.0    Trucking                116.3
      Semiconductors                11.7    Computer Systems        98.6
      Tobacco                       11.5    Savings & Loans         88.7
      Money Center Banks            9.9    Invest.Banking/Brkrge.   83.0
      
      WORST-PERFORMING              Last                           Last 12
      GROUPS                       month%                          months%
      
      Health-Care Services         -10.5    Gold Mining             -20.7
      Cosmetics                     -8.4    Photography/Imaging     -9.7
      Soft Drinks                   -8.4    Engineering & Constr.   -9.7
      Shoes                         -7.2    Hospital Management     -2.4
      Oil & Gas Drilling            -5.5    Electric Companies       1.8
      
      BLOOMBERG MONEY FLOW ANALYSIS
      
      Rebound ahead?  Stocks with most                    1-month
      significant buying on price weakness     Price       change
      
      Telebras-ADR                            124 3/4     -6 1/4
      Coca-Cola                               60 13/16    -7 1/2
      Signet Banking                          49 15/16    -1/4
      United HealthCare                       50 11/16    -2 11/16
      Warner-Lambert                          135 1/16    -4 7/16
      McDonald's                              49 3/4      -3/8
      
      Decline ahead?  Stocks with most                    1-month
      significant selling on price strength     Price     change
      
      Intel                                    97 29/32   12 7/32
      Microsoft                                138 13/16  2 7/8
      Dell Computer                            84 11/16   8 3/8
      Oracle                                   41 1/8     4 21/64
      Sun Microsystems                         50 7/16    4 11/16
      Apple Computer                           24 7/16    8 9/32
      
                                      Latest  Week    Year
      KEY RATES                       week%   ago%    ago%
      
      MONEY MARKET FUNDS              5.16    5.15    4.93
      90-DAY TREASURY BILLS           5.23    5.32    5.18
      6-MONTH BANK CDS                5.17    5.17    5.02
      1-YEAR TREASURY BILLS           5.51    5.60    5.62
      10-YEAR TREASURY NOTES          6.24    6.36    6.59
      30-YEAR TREASURY BONDS          6.54    6.64    6.80
      LONG-TERM AA INDUSTRIALS        7.05    7.10    7.32
      LONG-TERM BBB INDUSTRIALS       7.41    7.48    7.74
      LONG-TERM AA TELEPHONES         7.33    7.42    7.56
      
                   BLOOMBERG MUNI YIELD EQUIVALENTS
      Taxable equivalent yields on AAA-rated, tax-exempt municipal bonds,
      assuming a 31% federal tax rate.
      
                                10-yr. bond     30-yr. bond
                                Latest  Last    Latest  Last
                                week    week    week    week
      
      GENERAL OBLIGATIONS       4.65%   4.67%   5.23%   5.25%
      PERCENT OF TREASURIES     74.52   73.60   79.64   78.84
      TAXABLE EQUIVALENT        6.74    6.77    7.58    7.61
      INSURED REVENUE BONDS     4.79    4.83    5.45    5.49
      PERCENT OF TREASURIES     76.77   76.13   82.99   82.44
      TAXABLE EQUIVALENT        6.94    7.00    7.90    7.96
      CHARTS BY ALBERTO MENA/BW
      
      EQUITY FUNDS
      Leaders                                 Laggards
      Four-week total return           %      Four-week total return        %
      
      Lexington Troika Russia         15.2    Merrill Emerging Tigers B   -14.2
      Robertson Steph. Info Age A     8.8     DFA Japanese Small Co.      -11.5
      Steadman American Industry      8.6     Tocqueville Intl. Value     -9.9
      Wright EquiFd.-Mexico           8.3     Fidelity Emerging Markets   -8.8
      United Svcs. China Reg. Op.     8.2     Van Eck Asia Infrastr. A    -8.3
      
      EQUITY FUNDS
      Leaders                                 Laggards
      52-week total return              %     52-week total return          %
      
      Lexington Troika Russia        143.0    Bull & Bear Gold Investors  -42.8
      Fidelity Select Electronics     88.5    Frontier Equity             -42.6
      ITT Hartford Cap. Apprec. A     85.0    United Svcs. Gold Shares    -42.5
      American Heritage               83.1    Morgan Stan. Instl. Gold A  -38.8
      Fidelity Select Computers       72.0    DFA Japanese Small Co.      -38.5
      
      EQUITY FUNDS CATEGORIES
      Leaders                        Laggards
      Four-week total return  %      Four-week total return      %
      
      Technology             3.6     Diversified Pacific/Asia  -4.1
      Natural Resources      2.8     Japan                     -3.7
      Precious Metals        2.7     Health                    -3.4
      Small-cap Value        2.7     Pacific/Asia ex-Japan     -3.2
      Small-cap Blend        2.4     Foreign                   -2.1
      
      EQUITY FUNDS CATEGORIES
      Leaders                         Laggards
      52-week total return      %     52-week total return       %
      
      Financial               47.4    Precious Metals          -27.2
      Technology              46.3    Japan                    -5.2
      Latin America           41.5    Diversified Pacific/Asia  3.4
      Large-cap Growth        36.6    Pacific/Asia ex-Japan    10.0
      Large-cap Blend         36.3    Utilities                16.7
      
      All data are as of market close Wednesday, Aug. 20, 1997, unless otherwise 
      indicated. Industry groups include S&P 500 companies only.  Fundamentals, 
      technical indicators, Bloomberg money flow analysis, and mutual fund returns 
      are as of Aug. 19. For a more detailed explanation, write to us or E-mail 
      figures@businessweek.com.  NA=Not available  **Vanguard Index 500 Fund
      
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