The stock market seems to be pulling...
The stock market seems to be pulling in opposite directions, said Irving Katz, director of research at Thomas Green/San Diego Securities.
On one hand, the easing of the federal funds rate seems to indicate that the prime rate will be lowered soon, the good news necessary for a stock market rally, which, for some reason, didn’t materialize last week, Katz said.
The disappointing news was the continuance of poor third-quarter earnings reports by many U.S. corporations. Many of the reports were worse than expected, causing investors to raise questions about the economy’s health.
San Diego’s stocks didn’t seem to be much affected either way as only four stocks managed to move a point or more during the week. The largest percentage mover was Xytronyx, which gained 46%. Although there were no announcements, the company’s periodontal disease detection kit is being evaluated by Colgate-Palmolive.
HomeFed Corp. recovered $1.50 after losing $16 during the previous six weeks. Mail Boxes Etc. gained $1.25 as it released second-quarter earnings of $.20 versus $.15 per share over the same quarter the previous year. Psicor dropped $1 when it reported flat fourth-quarter earnings of $.14 a share for its recently ended quarter, versus $.13 for the same three months the previous year.
San Diego Gas & Electric gained $.75 and is selling just below its year high of $42.875. The stock is moving in sympathy with SCEcorp, parent of Southern California Edison, which recorded a new high of $38.25. Should the proposed SCEcorp-SDG&E; merger become effective today, each share of SDG&E; would have a valuation of about $49.50.
New lows were recorded by five San Diego stocks. Rohr Industries sank to $19.50 after reporting a $.64-a-share loss versus a $.45 profit the year before, a reversal attributed to cost overruns, changes in product mix and an increase in interest expense.
Other new lows were recorded by Biomagnetic Technologies, at $5.375, Triton Group, at $14, Great American Bank, at $7.625, and CCT, at $.94.
