The Palm Beach Post from West Palm Beach, Florida • Page 30

Stocks continue to rebound after (closures' Corp. said it earned 50 cents a share in its second quarter, up from 32 cents last year, and beating the Street's estimate of 46 cents. The stock ended down Tuesday $1 a share at $109.56, but leaped to $114 after hours. Dell also declared a 2-for-l stock split for Sept. 4.

The Standard Poor's composite index of 500 stocks gained 17.53 points to 1,101.20. The American Stock Exchange index rose 6.75 to 670.02. The NYSE Composite index of all listed common stocks rose 8.04 to 552.03. The average share was up 64 cents. The Wilshire Associates Equity Index the market value of NYSE, American and Nasdaq issues was 10,220.492, up 155.700, or 1.55 percent.

probably going to stall out during the next few months. So equities won't be getting further help from lower yields just as yet," Steinberg said. Russia's ruble devaluation and Hong Kong's move to support its financial markets were, however, still a cause for concern, Steinberg said. Russian shares slid 9 percent Tuesday. "The intervention by Hong Kong authorities into the stock market directly is sort of a signal that not all is well," said Peter Coolidge, senior equity trader at BreanMurray Co.

"It is a red flag." Coolidge said the markets were bracing for devaluations by Hong Kong and China. Internet stocks were strong Tuesday. After the market close, Dell Computer kets at Cruttenden Roth. As expected, the Federal Open Market Committee decided to hold interest rates steady, a decision that followed consumer price data that offered further evidence of a benign U.S. inflation picture.

The Consumer Price Index, the government's main inflation gauge, rose 0.2 of a percent in July after a 0. 1 of a percent rise in June. The rise was in line with analysts' expectations. But the economic fundamentals that led to the stock market correction of the past month are likely to get worse before they get better, said Bruce Steinberg, chief economist at Merrill Lynch. He said he expected a Fed easing in December.

"That means that the long bond is ByHuwJone neuters NEW YORK Stocks extended their rebound from their monthlong selloff Tuesday as Wall Street hoped the White House sex scandal was now behind Tresident Clinton. Investors also cheered the Federal Reserve's decision to keep interest rates unchanged. The Dow Jones industrial average rose 139.80 points, or 1.6 percent, to 8,714.65 after gaining 150 points Monday. The Dow has plunged nearly 1,000 points, or 10 percent, in the past four weeks since its record high of 9,337.97 on July 17, as investors worried about the White House scandal and economic problems in Asia, Japan and Russia. In the broader market, advancing issues beat declines 2,071 to 928 on active volume of 682 million shares on the New York Stock Exchange.

The Nasdaq composite index was up 37.06 points, or 2 percent, at 1,855.10. "You had relief Monday that Russia had at least taken some action on the ruble, and you had relief (Tuesday) that Clinton took some action to admit to some of the adventures he has had," said Alfred Kugel, senior investment strategist at Stein Roe Farnham. "Both of the announcements are being regarded as moves toward closure of these two matters," he said. "The worst is over I think," said Arnie Owen, managing director of capital mar FPL rescinds power cut request Fed chief shuns stock market 1 1 .4 In brief UIUUlClcll U1SL1U3UIC CVCljr jrvcu since he was sworn in as Federal Reserve chairman in August 1987. But until this year, it said WV 111 H1111V4 UUU jx than $1 million.

He chose to liquidate the trust after his marriage to Mitchell so the couple could make joint financial plans, Fox 9CUU. It probably was an expensive decision. "He probably gave up a couple hundred thousand dollars a year 1 By Dave Skidmore Ihe Associated Press WASHINGTON So where does Federal Reserve Chairman Alan Greenspan, who knows more about the economy than almost anybody, put his own money? No irrational exuberance for him. He shuns the stock market for the safest investment of all short-term Treasury bills. Greenspan's desire to avoid any conflict of interest guides that decision, says Fed spokeswoman Lynn Fox.

But investment advisers caution that others shouldn't necessarily follow his lead, even with the market's recent rocky course. "If you don't have a growth element in your portfolio, you're not keeping up with inflation," said David B. Yeske, a certified financial planner in San Francisco. "So he's probably losing ground with each passing year." Not that the central bank chairman has much to worry about in that department, according to Greenspan's financial statement, made available The man with his finger on the economy's pulse owned at least $2.4 million in short-term Treasury securities and had at least $466,000 in money market and credit union accounts at the end of 1997, according to the statement dated June 29. He also owned a Norfolk Southern Corp.

bond worth at least $500,000 and a Massachusetts state bond worth at least $100,000. That's on top of his annual salary of $136,700, not to mention the salary and assets of his wife, NBC-TV correspondent Andrea Mitchell, 51, whom he married in April 1997. Unlike Greenspan's holdings, his wife's portfolio is weighted heavily toward stocks. Greenspan isn't required to disclose gifts from friends, but he listed wedding gifts from colleagues in government, anyway. They included glass servers and a silver ladle, valued at $300, from Treasury Secretary Robert Rubin, and folk art of undetermined value from House Banking Committee Chairman Jim Leach, R-Iowa.

Greenspan has filed an annual national retailer. Kmart has about 1,500 stores. Rexall already sells vitamins at the mass merchandiser. The two deals are expected to increase sales of Sundown products by up to $15 million annually, said Rich Goudis, chief financial officer. Rexall Sundown said it expects to have sales this year of about $500 million.

American Stores, based in Salt Lake City, has retail outlets under the names Acme, Jewel, Jewel-OSCo and Lucky. Engle Homes' profits drop BOCA RATON Engle Homes Inc. on Tuesday reported decreased income for its fiscal third quarter ended July 31, compared with the same period last year. The Boca Raton-based home builder (Nasdaq: ENGL, $15.38) had profits of $3.2 million, down from the $3.6 million for its third quarter of 1997. The company attributed the decline to a $1.8 million debt payment.

Quarterly revenue grew to $156 million from $107 million. Engle Homes Inc. Quarter ended July 31 in investment income, Yeske guessed. Many people of Greenspan's age tend to shun stocks in favor of Palm Beach Post Staff and Wire Reports JUNO BEACH Florida Power Light Co. on Tuesday canceled its public appeal to 3.6 million customers to cut back on power use because of a natural gas shortage caused by an explosion Friday.

FPL had lost about 10 percent of its generating capacity from the lightning-caused explosion and fire that knocked out three gas pipelines at a facility located about 50 miles southeast of Tallahassee and owned by the Florida Gas Transmission Co. Florida Gas Transmission completed repairs Tuesday to two of the three pipelines damaged by the blast and fire, restoring about 80 percent of the volume of its natural gas flows. The third ruptured line is expected to be restored Thursday. Credit union moratorium lifted TALLAHASSEE Because of the recent passage of the Credit Union Membership Access Act, Florida Comptroller Robert Milligan has lifted a moratorium that prevented federal credit unions from converting to state charters. The state had been concerned that existing federal credit unions would rush to get state charters to avoid stricter federal membership rules.

It imposed a moratorium on Feb. 26. The federal requirements originally made, for example, railroad credit unions restrict membership to just railroad workers. Florida allowed a credit union to branch into other groups. The new federal law makes federal requirements essentially the same as Florida's.

Able Telcom deal not completed yet investments sucu as ncasuiy, securities, which protect against loss of principal, said Scott Kahan, president of Financial As-- set Management Corp. in New York City. But that can be a mistake. If Greenspan were his client, Kahan said, he'd warn the chairman he can't count on inflation remaining as low as it is now. Prices have risen at a 1.5 percent annual rate so far this year.

1997 $3.6 million $107 million 9.1 million 43 cents 1998 $3.2 million $156 million 11.3 million 28 cents Net income Revenue Shares outstanding Earningsshare Papers expect business as usual Milestone Properties reports loss BOCA RATON Milestone Properties Inc. reported a net loss for the second quarter ended June 30. The Boca Raton-based real estate holding company (OTC: MPRP, 87 cents) lost $1 million, compared to a net loss of $2.1 million for the second quarter of 1997. Quarterly revenue declined to $5.4 million from $5.9 million. In June, the New York Stock Exchange suspended trading in Milestone's common stock and Series A preferred, then delisted the company because it had fallen below NYSE criteria on net income and market value.

Milestone Properties Quarter ended June 30 be independent from the Sun-Sentinel. "We will continue our focus and be a very local source for news and advertising," Patterson said. The deal, which Gremillion expects will be completed by the end of September, is subject to approval by the Federal Trade Commission, but no challenges are anticipated by Warshal or Gremillion. The Jewish Journal includes six newspapers in South Florida. The South Florida Newspaper Network's Palm Beach and Treasure Coast papers are: the Jewish Journals, the West Boca Times, Boca Thursday, The Boynton Beach Times, the Vero Beach Forum, The Martin County Forum, the Port St.

Lucie Forums, the Fort Pierce Forum, the WellingtonRoyal Palm Beach Forum, GreenacresLake WorthLantana Forum, the Boynton Beach Times, the Boca Raton Business Journal, and the Delray Beach Times. NEWSPAPERS From 4B the chain with majority owner Riverside but will have no ownership interest under the Sentinel deal. They will be employees of the Sentinel Warshal said. Neither would reveal how much the deal was worth or whether they were paid in cash or stock. No changes are expected for the 350 staffers at the South Florida Newspaper Network.

The chain also will keep the same name. "Maybe our community papers will get a little better," Warshal said. "Our profits were going to interest payments to the bank. Now we can take that money and invest in better equipment and be a little better." The newspaper also said the editorial voice will 1997 ($2.1 million) $5.9 million 4.9 million (50 cents) 1998 ($1 million) $5.4 million 4.2 million (25 cents) Net income (loss) Revenue Shares outstanding Earningsshare WEST PALM BEACH Able Telcom Holding Corp. (Nasdaq: ABTE, $7.63) said Tuesday it still owes $49 million to WorldCom Inc.

for a subsidiary it is trying to pay for before an Aug. 31 deadline. The agreed-upon cost of Omaha, MFS Network Technologies is the company's book value plus $10 million. Able said it has paid $38.6 million to WorldCom for MFS. Tuesday's outstanding balance announcement brings Abie's estimate of MFS' value to about $87.6 million.

In April, when the deal was announced, WorldCom had placed the value of MFS at about $101 million. Able Telcom also said the outstanding $49 million balance could change after the completion of an independent audit to determine the book value. Able declined to say who is doing the audit and when it will be released. The two sides are still negotiating the book value. The deal has an Aug.

31 deadline. If it passes, Abie's interest payments on any outstanding balance will increase to 18 percent from 12 percent. Innkeepers USA shifts revenue PALM BEACH Innkeepers USA Trust on Tuesday said it has adopted new accounting standards and restated its financial results for the first and second quarters of 1998. Applying the new standards as of June 30, the Palm Beach-based hotel real estate investment trust (NYSE: KPA, $11.82) will defer $21.2 million in revenue to the third and fourth quarters. The deferment caused a $7.9 million net loss for the first half of this year, compared with the previously announced net income of $11.6 million.

David Bulger, Innkeepers' chief financial officer, said the new accounting standards do not affect the REITs economics or cash flow of its leases. The standards also do not affect the dividend or funds from operations, a leading indicator of a REITs performance, he said. Rexall expands vitamin distribution RHP A RATON Rpxall Sundown said Mondav Bank's financial health good overall U.S. Diagnostic continues to gain WEST PALM BEACH U.S. Diagnostic Inc.

(NASDAQ: USDL, $2.60) last week posted its second consecutive quarter of profits. For the quarter ended June 30, net income was $3.4 million, as compared with a net loss of $11.9 million for the same period in 1997. Sales for the second quarter were $52.5 million as compared to $56.4 million in the same period last year. Sales were down partly because the company had divested its mobile imaging operations. Profits rose from increase use of its diagnostic centers.

West Palm Beach-based U.S. Diagnostic Inc. is the nation's largest provider of MRIs and other radiology services. It has locations in 18 states and owns 102 fixed site diagnostic imaging facilities. U.S.

Diagnostic Quarter ended June 30 1997 1998 thrift has 21 branches in Palm Beach, Martin, St. Lucie, Indian River and Brevard counties. Christopher Parker, a Ryan Beck Co. analyst in Livingston, N.J., said it is unclear what will happen to Community's stock from here. He said it depends on how much Community is affected by mortgage prepayments.

Pittard said he doesn't expect prepayments to affect earnings because "most of the prepayments have occurred already." Ryan Beck has a "buy" recommendation on the stock. The New York Times contributed to this story. "It's just speculation," he said. And the analysts agreed Community's stock price is not a reflection of its overall generally healthy financial picture. Its assets for the second quarter ended June 30 were $765.5 million, up from $720.1 million on Dec.

31. But its second-quarter net income was down slightly $105,000 from the year-ago quarter to $1.3 million. Earnings for the quarter were 26 cents a share, down from 28 cents a share during the same quarter last year. The thrift said earnings were down because of increased operating expenses. The North Palm Beach-based COMMUNITY From 4B said normally stock prices go up when such a conversion is announced.

Harbor Federal, for example, jumped 13 percent the day after itannounced its conversion. From Oct 6, 1997 the day of the announcement to Tuesday, Harbor Federal has gone up 26 percent From June 30 to Tuesday, its price has remained virtually unchanged, while Community's has dropped 13 percent Community's president Jim Pittard, said there is no valid reason for the drop. it has signed agreements to sell its Sundown brand vitamins, herbals and nutritional supplements in sales 1,500 grocery stores owned by American Stores. Net income Rexall also said it will expand its distribution Average shares contract with Kmart to start selling herbals at the Earnings per share 52.5 million $3.4 million 22.821 15 cents $56.4 million ($11.9 million) 21.642 (55 cents) Experts: Consumer demand can stave off U.S. recession ADVERTISEMENT ADVERTISEMENT ADVERTISEMENT Bank Offers Mortgage Loans To People Turned Down By Other Institutions.

have dropped 46 percent to South Korea, 53 percent Indonesia, and 28 percent to Thailand, nations forced to seek bailout packages last year from the International Monetary Fund. Administration economists insisted the trade drag, which helped slow economic growth to an anemic 1.4 percent rate in the spring, will not be enough to push the country into a recession so long as domestic consumer demand remains strong. The Asian financial crisis that began in July 1997 has shown little signs of easing. Japan, the world's second-largest economy, is mired in its worst recession in 50 years and this week Russia was forced to devalue its currency and declare a temporary halt to paying parts of its foreign debt be-cai!" of a severe cash shortage. While the overall deficit declined in June, the deficit with Japan was up 6 percent in June to $5 3 billion and the deficit with China climbed to an fight-month high of $4.7 billion.

INTEREST From 4B helped to offset increases elsewhere including price increases for new autos, airline tickets and tobacco. For the year, consumer inflation is rising just 1.5 percent, even better than last year's 1 1-year low of 1.7 percent Asia's economic crisis and the steep recessions that have cut sharply into world demand have pushed down prices for a variety of products from oil to farm crops. While Asia's troubles have helped the U.S. inflation picture, those problems have cut sharply into demand for American goods, causing the U.S. trade deficit to soar.

The new trade report showed the imbalance for the first six months of this year running at an annual rate of $158 billion, putting the country on track to surpass the record deficit of $153 billion set in 1987. So far this year, U.S. exports In-Home Service for Loans Delaware Savings Bank, FSB, is one of the nation's fastest-growing mortgage lenders. The company offers in-home service, 24-hour approvals and many other services and exclusive benefits not available through traditional loan sources. For more information or to inquire about a loan that is right for jou.

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