Trading was heavy at about one billion shares , compared with ###.# million Friday .
But the session was orderly , in contrast to the market 's four-day closure after the #### crash .
Richard Chenevix-Trench , a director at Hong Kong-based Baring International Fund Managers Ltd. , said the market probably has n't hit bottom yet but is close .
In Australia , Sydney 's All Ordinaries index closed at ####.# , down #.# % , its biggest drop since October #### .
London 's Financial Times-Stock Exchange ###-share index , the most closely watched market barometer , ended at its intraday high of ####.# , down ##.# , or #.# % .
At its low , shortly before Wall Street opened , it was off more than ### points .
The Financial Times ##-share index closed ##.# points lower at ####.# .
Volume more than doubled to ###.# million shares from ###.# million Friday .
Prices on the Frankfurt Stock Exchange tumbled in heavy trading .
The decline in the German Stock Index of ###.## points , or ##.# % , to ####.## was the Frankfurt market 's steepest fall ever .
Retail investors dumped holdings on a massive scale , pushing some blue-chip shares down as much as ## % .
To make them directly comparable , each index is based on the close of #### equaling ### .
The percentage change is since year-end .
We 've always thought that Mr. Wright underestimated California 's vitality , but maybe the state 's la-la factions are starting to overwhelm the forces that made it such a significant place .
Interestingly , the Environmental Defense Fund is having nothing to do with this one .
Not only Californians but all Americans would pay if this thing passed .
The initiative bars the sale of any crops in California that do n't meet the initiative 's standards .
Kansas wheat farmers and Florida fruit growers would have to adjust or give up the California market .
In other words , California is presuming to take control of the nation 's farm policy .
Consider the greenhouse-effect provision .
Even if one buys into the whole greenhouse theory , it is inconceivable that reductions in a single state could have any impact on what is billed as a global problem .
But if rational science and economics have nothing to do with the new environment initiative , what is going on ?
The key here is the ambition of state Attorney General John Van de Kamp .
The initiative seems to have been crafted to include all the hot issues that set off the wealthy Hollywood weepers who donate money .
And it allows Mr. Van de Kamp to get around campaign spending limits .
This initiative is being labeled The Big Green , but maybe it should be called The Big Greenback .
-LRB-- The Republican candidate , Sen. Pete Wilson , is playing the initiative fundraising game too , sponsoring his own crime initiative . -RRB--
While it is possible that the Big Green initiative will be ruled unconstitutional , it is of course conceivable that in modern California it could slide through .
This is the state that recently passed the Prop. ## anti-toxic initiative .
If this new proposal ever does become law , the green lobby will benefit directly .
The initiative creates a free floating state environmental officer to sue companies or government agencies that do things he does n't like .
That means the NRDC and such groups no longer would have to spend as much money on litigation ; taxpayers would bear the cost .
Of course the state 's liberals are not yet a nation unto themselves .
Then exhilaration .
Spurred by waves of large-scale buying in blue-chip stocks , the Dow Jones Industrial Average rallied yesterday and erased about a half of Friday 's ###.##-point plunge , gaining ##.## to ####.## .
While the advance cheered investors who feared a ####-style crash would occur yesterday , it was strictly a big-stock rally fed by huge buying by bargain-hunting institutions and program traders .
The Nasdaq OTC index closed down #.## to ###.## .
Transports plunged on takeover disappointments in two airline stocks , UAL and AMR , which each fell more than ## % when they reopened for trading yesterday after being suspended Friday afternoon .
Overall , `` this is a pleasant rally but it 's very selective , '' said Arthur Cashin Jr. , a veteran PaineWebber Inc. trader at the Big Board .
It 's just a strange feeling .
I do n't think anyone left the place whistling Dixie . ''
But to traders , it looked like disaster on the #:## a.m. opening bell .
At #:## , Procter & Gamble -- one of the most important Dow bellwethers of late -- opened down # #/# to ### .
The Dow dropped to a quick ##-point loss , and to many traders it looked as if stocks were headed for yet another big tumble .
Then , to make matters worse , computerized sell programs kicked in , hammering stocks into steeper losses .
There was heavy stock-index arbitrage , as traders sold big baskets of stock and bought stock-index futures to profit from the price discrepancies between the two markets .
This was a hangover from Friday , when Standard & Poor 's ###-stock index futures had closed at a sharp discount to stocks .
They did n't .
The Dow accelerated its slide , losing ##.## in the first ## minutes of trading .
Then at ##:## the Dow suddenly started to rebound , and when it shot upward it did so even faster than the early-morning fall .
All the selling had pushed stocks to such cheap values that big investment banks and major money management firms started buying stocks heavily .
Trading in Walt Disney Co. particularly caught traders ' eyes .
According to Big Board officials , Disney had one of the biggest sell-order imbalances on Friday ; it was one of the seven stocks that could n't finish trading that day .
But then it shot upward # #/# as Goldman , Sachs & Co. stepped in and bought , traders said .
Around Wall Street , trading desks were relieved that they could at least play the market yesterday , in contrast to Friday 's gridlock .
We put some orders together .
There was n't a lot of panic selling , either domestically or internationally ... .
Not like Friday where they just took -LCB-- the market -RCB-- apart . ''
Grinned Griffith Peck , a trader in Shearson Lehman Hutton Inc. 's OTC department : `` I tell you , this market acts healthy . ''
Around him , scores of traders seemed to get a burst of energy ; their boss broke out bottles of Perrier water to cool them off .
Among Big Board specialists , the cry was `` Pull your offers '' -- meaning that specialists soon expected to get higher prices for their shares .
But not everybody was making money .
The carnage on the Chicago Board Options Exchange , the nation 's major options market , was heavy after the trading in S&P ### stock-index options was halted Friday .
`` They were absolutely killed , slaughtered , '' said one Chicago-based options trader .
Some traders said that the closely watched Major Market Index , whose ## stocks mimic the Dow industrials , did n't lead yesterday 's big rally .
Then when the market was at a technical level to buy , they came in with a vengeance . ''
However , according to one analyst , the timing of Major Market Index futures buying just before the turnaround was similar to that of Terrible Tuesday .
`` Futures were pulling the stock market higher , '' said Donald Selkin , head of stock-index futures research at Prudential-Bache Securities Inc .
Specialists were criticized for their inability to maintain orderly markets during the Friday plunge .
According to a Big Board official , while many stocks opened late , there were subsequent trading halts in only three issues -- AMR , Merck and Valero Energy .
Merck is one of the most important stocks in the Major Market Index .
No sector of the market has been spared during the past two days ' gyrations .
For example , Halliburton jumped # #/# to ## , Schlumberger rose # #/# to ## #/# and Baker Hughes rose # #/# to ## .
Because of the UAL and AMR tumbles , airlines were the weakest sector of the market yesterday .
Philip Morris was the Big Board 's most active issue , rising # #/# to ## #/# on nearly eight million shares .
Merrill Lynch added # #/# to ## , PaineWebber rose #/# to ## #/# and Bear Stearns rose #/# to ## #/# .
Federal National Mortgage Association , a recently hot stock , climbed # to ### on nearly #.# million shares .
Mr. Phelan said that program trading strategies were n't responsible for triggering Friday 's decline despite a jump in the use of the computer-driven strategies in recent months .
Mr. Phelan expressed relief that the market rebounded yesterday .
`` It was the opposite of what happened on Oct. ## .
They used their judgment .
Instead , they bought on weakness and sold into the strength , which kept the market orderly .
Maybe they learned from experience . ''
Wall Street traders on Friday had complained about the trading suspensions .
James A. White and Sonja Steptoe contributed to this article .
West Germany 's Green Party joined its ideological soulmates Jeremy Rifkin and the Christic Institute in the legal battle to ground the Atlantis shuttle and its plutonium-powered Galileo probe to Jupiter .
Of course it was .
NASA should now sue for fines against all three politico-plaintiffs , foreign and domestic , for bringing this mischievous case .
A House-Senate conference approved a permanent smoking ban on all domestic airline routes within the continental U.S. and on all flights of six hours or less to Alaska and Hawaii .
The restrictions would cover all but a small percentage of domestic air traffic , and represent a major expansion of the current smoking ban on flights of two hours or less .
From the outset , the tobacco industry has been uncertain as to what strategy to follow .
`` Anybody can vote as they want , '' said Rep. William Lehman -LRB-- D. , Fla. -RRB-- , head of the House conferees .
Leery of the costs -- and , critics say , competition -- the airlines have sought to gain leverage over the city of Denver .
The industry sought to impose conditions that would have delayed funds for the project until Denver and the airlines had agreed to leases for ## % of the gates .
Congress previously cut six airports this year .
And federal-formula grants for mass transit would be effectively frozen at $ #.### billion , or $ ## million more than last fiscal year .
Sony two weeks ago agreed to acquire Columbia for $ #.# billion , or $ ## a share .
Warner sued Sony and Guber-Peters late last week ; Sony and Guber-Peters have countersued , charging Warner with attempting to interfere in Sony 's acquisition of the two companies .
Guber-Peters 's net income in the latest quarter compared with a net loss of $ #.# million , or ## cents a share , in the year-earlier period .
Officials at Aristech , based in Pittsburgh , declined comment .
Congress has been critical of the Bush administration for not sending enough aid to Poland , so it is getting ready to send its own version of a CARE package .
Last month , the Senate voted to send a delegation of congressional staffers to Poland to assist its legislature , the Sejm , in democratic procedures .
Senator Pete Domenici calls this effort `` the first gift of democracy . ''
Maybe after the staffers explain their work to the Poles , they 'd be willing to come back and do the same for the American people .
In a sharply weaker London market yesterday , Waterford shares were down ## pence at ## pence -LRB-- ## cents -RRB-- .
There were n't any extraordinary items .
Sales for the total group rose ## % to ###.# million Irish punts compared with ###.# million Irish punts a year ago .
Waterford has decided against paying an interim dividend .
Waterford said the appointment of a new management team and the signing of a comprehensive labor agreement are expected to enhance the company 's long-term prospects .
The sudden `` flight to quality '' that triggered Friday 's explosive bond-market rally was reversed yesterday in a `` flight from quality '' rout .
`` It was a pretty wild day .
Our markets were closely tied to the stock market , '' said Joel Kazis , manager of trading at Smith Barney , Harris Upham & Co .
`` Friday 's flight to quality was no longer needed once the stock market found its legs , '' he said .
That caused investors to flee stocks and buy high-quality Treasury bonds , which are safer than other types of securities .
Contributing to the selling pressure were dispatches by several investment firms advising clients to boost their stock holdings and reduce the size of their cash or bond portfolios .
The rate is considered an early signal of changes in Fed policy .
In fact , some economists contend that the latest easing started last week .
The Treasury 's benchmark ##-year bond , ended about # #/# points lower , or down about $ ##.## for each $ #,### face amount .
After Treasury bill rates plummeted as much as #.## percentage point on Friday , they gave back three-fourths of that amount yesterday .
The bond-equivalent yield on three-month Treasury bills , for example , was quoted late yesterday at #.## % , compared with #.## % Friday .
Investment-grade corporate bonds , mortgage-backed securities and municipal bonds also fell .
But prices of junk bonds , which were battered Friday in near standstill trading , rebounded to post small gains after a volatile trading session .
Junk bonds opened as much as four points lower but staged a modest comeback as stock prices firmed .
Some traders said the high-yield market was helped by active institutional buying .
The benchmark ##-year bond , for example rose one point in early Japanese trading in reaction to a quick ###-point drop in the Tokyo stock market .
But as Japanese stocks rebounded , Treasurys retreated and ended just modestly higher .
Many U.S. trading operations , wanting to keep a watchful eye on Japanese trading as an indication of where U.S. trading would begin , were fully staffed during the Tokyo trading session .
`` Most of the action was during the night session , '' said Michael Moore , trading manager at Continental Bank .
Jay Goldinger , who often trades overnight for Capital Insight Inc. , Beverly Hills , Calif. , said trading in Tokyo was `` very active '' but highly volatile .
In Tokyo , trading is halted during lunchtime .
The August trade deficit is expected to have widened to $ #.# billion from $ #.## billion in July .
A widening of that magnitude , said one New York trader , is `` not a favorable number ... .
It could do damage to us . ''
Resolution Funding is a division of Resolution Trust Corp. , the new federal agency created to bail out the nation 's troubled thrifts .
`` There 's lots of supply , '' the New York trader said .
`` We have a couple or three tough weeks coming . ''
The benchmark ##-year Treasury bond was quoted late at a price of ### ##/## , compared with a closing price of ### ##/## Friday .
The yield on the benchmark issue rose to #.## % from #.## % .
Short-term interest rates fell yesterday at the government 's weekly Treasury bill auction .
The average discount rate was #.## % on new six-month bills , the lowest since the average of #.## % at the auction on July ## , #### .
Here are auction details :
Rates are determined by the difference between the purchase price and face value .
Thus , higher bidding narrows the investor 's return while lower bidding widens it .
Corporate Issues
Investment-grade corporate bonds ended one to # #/# point lower .
Foreign bonds surged as the dollar weakened against most major currencies .
The yield was #.### % .
Mortgage securities gave up most of Friday 's gains as active issues ended ##/## to ##/## point lower .
On Friday , mortgage issues gained as much as # #/## .
Late yesterday Ginnie Mae # % securities were yielding #.## % to a ##-year average life assumption , as the spread above the Treasury ##-year note narrowed #.## percentage point to #.## .
Municipals
Rebounding stocks and weaker Treasury prices drove municipal bonds #/# to #/# point lower in late dealings .
The session losses left municipal dollar bonds close to where they were before the ###.##-point drop in the Dow Jones Industrial Average Friday prompted a capital markets rally .
Professionals dominated municipal trading throughout the session .
New Jersey Turnpike Authority 's #.## % issue of #### was off #/# at ## #/# bid , yielding #.## % , up #.## percentage point from late Friday .
Florida Board of Education 's # #/# % issue of #### was #/# point weaker at ## #/# bid .
The # #/# % issue of Triborough Bridge and Tunnel Authority of New York , due #### , was off #/# at ## #/# bid .
ADT , a security services and auctions company , trades on London 's Stock Exchange .
Laidlaw is ##%-controlled by Canadian Pacific Ltd. , a Montreal transportation , resources and industrial holding concern .
Pershare net fell to ###.# yen from ###.# yen because of expenses and capital adjustments .
Domestic leisure sales , however , were lower .
Hertz Corp. of Park Ridge , N.J. , said it retained Merrill Lynch Capital Markets to sell its Hertz Equipment Rental Corp. unit .
`` We are only going to sell at the right price . ''
Hertz Equipment had operating profit before depreciation of $ ## million on revenue of $ ### million in #### .
The closely held Hertz Corp. had annual revenue of close to $ # billion in #### , of which $ #.# billion was contributed by its Hertz Rent A Car operations world-wide .
It supplies commercial and industrial equipment including earth-moving , aerial , compaction and electrical equipment , compressors , cranes , forklifts and trucks .
In the year-earlier quarter , the company reported net income of $ ###,### , or ## cents a share .
In over-the-counter trading , Interspec fell ##.# cents to $ #.## .
In the first nine months of #### , net was $ ## million , or $ #.## a share .
Mr. Simmons said the third-quarter results reflect continued improvements in productivity and operating margins .
U.S. Banknote said it believes the sale , if completed , apparently would satisfy antitrust issues raised by the U.S. Justice Department about U.S. Banknote 's offer to buy International Banknote .
Both of the New York-based companies print stock certificates and currency .
It also said the tender offer would probably have to be extended further to complete financing arrangements .
The offer , made June # , has been extended several times .
U.S. Banknote said that as of Oct. ## , ##.# million shares , or about ##.# % of the fully diluted shares outstanding , had been tendered .
Gitano Group Inc. said it agreed to buy ## % of Regatta Sport Ltd. , a closely held apparel maker , with the assumption of $ # million of contingent debt .
That ## % is now held by Clifford Parker , Regatta 's president and chief executive officer , who will continue to manage Regatta 's operations under Gitano .
In #### , Regatta will have sales `` in excess of $ ## million '' and will show a profit , Mr. Parker said .
Gitano , which makes budget-priced apparel sold mainly through mass merchandisers like K mart and Wal-Mart , said the Regatta acquisition will enhance its strategy to expand into department stores .
This fall , Gitano began manufacturing moderately priced clothes aimed at department stores under the Gloria Vanderbilt trademark , which Gitano recently acquired .
Those results included a $ #.# million charge related to the retirement of debt .
Enron said each unit will be priced in the $ ##-to-$## range and will represent about ## % of the partnership equity .
Arthur M. Goldberg said he extended his unsolicited tender offer of $ ## a share tender offer , or $ ###.# million , for Di Giorgio Corp. to Nov. # .
DIG Acquisition Corp. , the New Jersey investor 's acquisition vehicle , said that as of the close of business yesterday , ###,### shares had been tendered .
Including the stake DIG already held , DIG holds a total of about ## % of Di Giorgio 's shares on a fully diluted basis .
The offer , which also includes common and preferred stock purchase rights , was to expire last night at midnight .
The new expiration date is the date on which DIG 's financing commitments , which total about $ ### million , are to expire .
DIG is a unit of DIG Holding Corp. , a unit of Rose Partners L.P .
In New York Stock Exchange composite trading yesterday , Di Giorgio closed at $ ##.## a share , down $ #.## .
A. manual typewriters , B. black-and-white snapshots , C. radio adventure shows .
If you guessed black-and-white snapshots , you 're right .
After years of fading into the background , two-tone photography is coming back .
Trendy magazine advertisements feature stark black-and-white photos of Hollywood celebrities pitching jeans , shoes and liquor .
Portrait studios accustomed to shooting only in color report a rush to black-and-white portrait orders .
What 's happening in photography mirrors the popularity of black and white in fashion , home furnishings and cinematography .
On Seventh Avenue , designers have been advancing the monochrome look with clothing collections done entirely in black and white .
And classic black-and-white movies are enjoying a comeback on videocassette tapes , spurred , in part , by the backlash against colorization of old films .
`` The pendulum is swinging back to black and white , '' says Richard DeMoulin , the general manager of Eastman Kodak Co. 's professional photography division .
Until two years ago , sales of black-and-white film had been declining steadily since the ####s .
Aimed at commercial photographers , the film can be used in very low light without sacrificing quality , says Donald Franz of Photofinishing Newsletter .
Agfa recently signed Olympic gold medalist Florence Griffith-Joyner to endorse a new line of black-and-white paper that 's geared to consumers and will compete directly with Kodak 's papers .
The biggest beneficiary of the black-and-white revival is likely to be International Paper Co. 's Ilford division , known in the industry for its premium products .
Sales of Ilford 's four varieties of black-and-white film this year are outpacing growth in the overall market , although the company wo n't say by exactly how much .
`` We hope the trend lasts , '' says Laurie DiCara , Ilford 's marketing communications director .
`` It has an archival , almost nostalgic quality to it , '' says Owen B. Butler , the chairman of the applied photography department at Rochester Institute of Technology .
`` You can shift out of reality with black and white , '' he adds .
Such features have been especially attractive to professional photographers and marketing executives , who have been steadily increasing their use of black and white in advertising .
Consider Gap Inc. , whose latest ad campaign features black-and-white shots of Hollywood stars , artists and other well-known personalities modeling the retailer 's jeans and T-shirts .
Richard Crisman , the account manager for the campaign , says Gap did n't intentionally choose black and white to distinguish its ads from the color spreads of competitors .
`` We wanted to highlight the individual , not the environment , '' he says , `` and black and white allows you to do that better than color . ''
The campaign won a Cleo award as this year 's best ad by a specialty retailer .
Even food products and automobiles , which have long depended on color , are making the switch .
Other companies that are currently using two-tone ads include American Express Co. and Epson America Inc .
Portrait studios have also latched onto the trend .
His On-Broadway Photography studio in Portland , Ore. , doubled its business last year and , he says , is booked solid for the next five .
One customer , Dayna Brunsdon , says she spurned a color portrait for black and white because `` it 's more dramatic .
I show it to my friends , and they all say ` wow . '
It is n't ordinary like color . ''
Still , most consumers are n't plunking black-and-white film into their cameras to take family snapshots .
Typically , it must be mailed to a handful of processors and may take a week or more to be processed and returned .
But for photofinishers , developing costs for black-and-white film are higher .
Some companies are starting to tackle that problem .
Ilford , for example , recently introduced a black-and-white film that can be processed quickly by color labs .
Intent on wooing customers , the company is also increasing its sponsorship of black-and-white photography classes .
Similarly , Agfa is sponsoring scores of photography contests at high schools and colleges , offering free black-and-white film and paper as prizes .
And Kodak is distributing an instructional video to processors on how to develop its monochrome film more efficiently .
Other companies are introducing related products .
Charles Beseler Co. , a leading maker of photographic enlargers , introduced last month a complete darkroom starter kit targeted at teen-agers who want to process their own black-and-white photographs .
But some industry observers believe the resurgence of black and white is only a fad .
They cite the emergence of still electronic photography , more newspapers turning to color on their pages and measurable improvements in the quality of color prints .
`` Black and white has n't made the same quantum leaps in technological development as color , '' says Mr. Butler of the Rochester Institute .
`` The color print today is far superior to prints of ## years ago .
`` It 's got a classic spirit and carries over emotionally , '' says Alfred DeBat of Professional Photographers of America .
`` That 's the appeal .
Sales rose more than # % to $ ##.# million from $ ##.# million .
The Sacramento , Calif. , company also attributed improved performance to a lower effective tax rate and higher interest income .
Sales grew almost # % to $ ###.# million from $ ###.# million .
McClatchy publishes the Sacramento -LRB-- Calif . -RRB-- Bee and Tacoma -LRB-- Wash . -RRB-- News Tribune , and other papers in Western states .
Agip S.p . A. and Societe National Elf Aquitaine , the state oil companies of Italy and France , respectively , submitted an offer to buy Gatoil Suisse S.A .
The price was n't disclosed .
A spokesman for Gatoil said that the Swiss oil concern was examining the offer , submitted last Friday , along with two other offers , also submitted last week .
Those two offers were private and the spokesman refused to identify the bidding companies .
The spokesman further said that at least two more offers are expected from other companies within two weeks .
The latest reading of ###.# was up from ###.# in July and ###.# as recently as March .
The August rise marked the fifth straight monthly gain for the indicator , which uses the #### average as a base of ### .
In contrast , the Commerce Department 's widely followed index of leading indicators , while up in August , has fallen repeatedly since reaching a high early this year .
But the far stronger showing of the Columbia index `` makes a recession any time soon highly unlikely , '' says Geoffrey H. Moore , the director of the Columbia facility .
The group normally convenes only when a change in the economy 's general course seems likely .
`` No meeting is scheduled because the expansion shows no sign of going off the tracks , '' Mr. Moore reports .
The comparable lead times for the Commerce index , whose components include the stock market , are far shorter -- ## months before recessions and only three months before recoveries .
`` It was an entirely different pattern from what we 're seeing now , '' Mr. Moore says .
The stock market has lost some precursory power , analysts at the Columbia center claim , because of the growing impact of international developments .
BSN S.A. , a leading French food group , said it agreed to acquire Birkel G.m.b . H. , a West German pasta maker .
The value of the acquisition was n't disclosed .
The move is in line with BSN 's strategy of gradually building its share of the European pasta market through external growth .
BSN will initially acquire a ## % interest in Birkel , a closely held concern .
The French group has an agreement giving it the right to buy all the shares outstanding , and this could be completed within a few months , a BSN spokeswoman said .
The acquisition strengthens BSN 's position in the European pasta market .
The French group currently ranks second after Barilla Group of Italy , whose sales are chiefly in the Italian market .
The agency said it confirmed American Continental 's preferred stock rating at C .
CENTRUST SAVINGS BANK -LRB-- Miami -RRB-- --
The rating agency also reduced the ratings for long-term deposits to B-# from Ba-# and for preferred stock to Ca from Caa .
THE STOCK MARKET AVOIDED a repeat of Black Monday as prices recovered from an early slide , spurred by bargain-hunting institutions and program traders .
The rally erased about half of Friday 's ###.##-point plunge , but analysts are cautious about the market 's outlook .
The dollar also rebounded , while bond prices plummeted and Treasury bill rates soared .
Junk bonds also recovered somewhat , though trading remained stalled .
Gold also rose .
Tokyo stock prices bounced back in early trading Tuesday following a #.# % plunge on Monday .
The dollar also moved higher in Tokyo .
AMR slid $ ##.### , to $ ##.## .
Also , a UAL group tried to get financing for a lower bid , possibly $ ### a share .
UAL fell $ ##.### , to $ ###.### .
IBM 's earnings tumbled ## % in the third quarter , slightly more than expected .
The computer giant partly cited a stronger dollar and a delay in shipping a new high-end disk drive .
Output at Japanese-owned and managed plants in the U.S. is due to rise ## % .
Budget director Darman said he wo n't give federal agencies much leeway in coping with Gramm-Rudman spending cuts , which took effect yesterday .
Darman hopes to prod Congress to finish a deficit plan .
The Ways and Means plan would create another possible obstacle to selling sick thrifts .
The Supreme Court agreed to decide whether a federal court may dismantle a merger that has won regulatory approval but been ruled anticompetitive in a private suit .
Merrill Lynch 's profit slid ## % in the third quarter .
Bear Stearns posted a #.# % gain , while PaineWebber had a decline due to a year-ago gain .
Blue Arrow of Britain plans to return to the name Manpower and take a big write-off .
NCNB 's profit more than doubled .
K mart agreed to acquire Pace Membership Warehouse for $ ### million , expanding its presence in the growing wholesale-store business .
Markets --
Dow Jones industrials ####.## , up ##.## ; transportation ####.## , off ###.## ; utilities ###.## , up #.## .
Commodities : Dow Jones futures index ###.## , off #.## ; spot index ###.## , up #.## .
Dollar : ###.## yen , off #.## ; #.#### marks , off #.#### .
Monday , October ## , ####
The key U.S. and foreign annual interest rates below are a guide to general levels but do n't always represent actual transactions .
The base rate on corporate loans at large U.S. money center commercial banks .
Reserves traded among commercial banks for overnight use in amounts of $ # million or more .
Source : Fulton Prebon -LRB-- U.S.A . -RRB-- Inc .
The charge on loans to depository institutions by the New York Federal Reserve Bank .
CALL MONEY : # #/# % to ## % .
The charge on loans to brokers on stock exchange collateral .
COMMERCIAL PAPER : High-grade unsecured notes sold through dealers by major corporations in multiples of $ #,### : #.## % ## days ; #.## % ## days ; #.## % ## days .
Average of top rates paid by major New York banks on primary new issues of negotiable C.D.s , usually on amounts of $ # million and more .
Typical rates in the secondary market : #.## % one month ; #.## % three months ; #.## % six months .
BANKERS ACCEPTANCES : #.## % ## days ; #.## % ## days ; #.## % ## days ; #.## % ### days ; #.## % ### days ; #.## % ### days .
Negotiable , bank-backed business credit instruments typically financing an import order .
The average of interbank offered rates for dollar deposits in the London market based on quotations at five major banks .
FOREIGN PRIME RATES : Canada ##.## % ; Germany #.## % ; Japan #.### % ; Switzerland #.## % ; Britain ## % .
These rate indications are n't directly comparable ; lending practices vary widely by location .
FEDERAL HOME LOAN MORTGAGE CORP . -LRB-- Freddie Mac -RRB-- : Posted yields on ##-year mortgage commitments for delivery within ## days.
#.## % , standard conventional fixedrate mortgages ; #.### % , # % rate capped one-year adjustable rate mortgages .
MERRILL LYNCH READY ASSETS TRUST : #.## % .
Annualized average rate of return after expenses for the past ## days ; not a forecast of future returns .
Under the agreement , Intel will invest $ # million to acquire a # % stake in Alliant , a maker of minisupercomputers for scientists and engineers .
Alliant said it plans to use the microprocessor in future products .
In #### the Cincinnati company earned $ #.# million , or ## cents a share , on revenue of $ ###.# million .
Omnicare said the division operates under the trade name ACCO and supplies the medical and dental markets .
Burmah Oil PLC , a British independent oil and specialty chemicals marketing concern , said SHV Holdings N.V. of the Netherlands has built up a #.# % stake in the company .
James Alexander , a Burmah spokesman , said SHV had previously owned `` a little under # % '' of Burmah for about two years .
The Dutch company had n't notified Burmah of its reason for increasing the stake , he said .
Burmah , which owns the Castrol brand of lubricant oils , reported a ## % rise in net income to # ##.# million -LRB-- $ ##.# million -RRB-- in the first half .
The group consists of Weslock Corp. and JPI Modern Inc .
The company 's remaining business is the manufacture and sale of engine and transmissions products for industrial and transportation applications .
Citing a $ #.# million provision for doubtful accounts , Dallas-based National Heritage Inc. posted a loss for its fourth quarter ended June ## .
The company said the $ #.# million reserve was created to reflect doubt about the collectability of receivables owed to National Heritage by some of the real estate partnerships it manages .
The company also said expenses incurred by the previous board and management in the recent contest for control were recognized primarily in the first quarter ended Sept. ## .
`` The new structure will enable United Biscuits to focus clearly upon opportunities for planned growth during the ####s , '' said Bob Clarke , deputy chairman and group chief executive .
Last month , United Biscuits agreed to sell its entire restaurant operations to Grand Metropolitan PLC for # ### million .
An American journalist now is standing trial in Namibia .
The most likely winner will be the Marxist-dominated SWAPO rebels .
The U.S. journalist 's `` crime '' was writing that the head of the commission charged with overseeing the election 's fairness , Bryan O'Linn , was openly sympathetic to SWAPO .
Shortly after that , Mr. O'Linn had Scott Stanley arrested and his passport confiscated .
SWAPO has enjoyed favorable Western media treatment ever since the U.N. General Assembly declared it the `` sole , authentic representative '' of Namibia 's people in
The elections are set for Nov. # .
In July , Mr. Stanley , editor of American Press International , a Washington D.C.-based conservative wire service , visited Namibia to report on the U.N.-monitored election campaign .
After Mr. Stanley 's article was published in two Namibian newspapers , Mr. O'Linn had criminal charges brought against their editors , publisher and lawyer .
Mr. Stanley was arrested and charged along with the others when he returned to Namibia this month .
Both the State Department and the Lawyers Committee for Freedom of the Press have protested Mr. Stanley 's detention .
Both South African and SWAPO extremists are intimidating voters .
It now has the chance to redress that record in Namibia .
Commodity futures prices generally reflected the stability of the stock market following its plunge Friday .
Yesterday , the stock market 's influence at first created nervousness .
Trading in cotton and sugar was nervous and showed small declines .
In Chicago , grain and soybean prices rose slightly .
Livestock and meat prices , however , dropped on concern that a financial crisis would cut consumption of beef and pork .
The spot October gold price rose $ # to $ ###.## an ounce .
December silver was up #.# cents an ounce at $ #.### .
Platinum behaved more like an industrial metal , easing early on concern over a possible weaker economy , but recovering later , as the stock market strengthened .
For one thing , last Friday , precious metals markets closed before the stock market went into its late-in-the-day nose dive , so it could n't react to it .
Back on Friday , Oct. ## , l### , the stock market declined during the day , and gold prices surged as the stock market fell .
Yesterday 's October gain of $ # was miniscule compared with that .
There 's a good chance that gold will retain its gains and rise further , he said .
He expects a drop in interest rates , which would help gold by keeping the dollar from rising .
Finally , according to Mr. Cardillo , the impact of the strong dollar should be reflected in reduced exports in the August merchandise trade deficit , when the figures are released today .
This would be damaging to the dollar and supportive for gold , he said .
ENERGY :
The U.S. benchmark crude , West Texas Intermediate , closed at $ ##.## a barrel for November delivery , down ## cents .
But most market observers agreed that Friday 's stock market drop is what dampened spirits in the petroleum pits yesterday .
Until yesterday , futures prices had been headed up on expectations that world oil demand will continue to be strong .
The Organization of Petroleum Exporting Countries increased its production ceiling for the fourth quarter based on projections of robust demand .
Indeed , after reacting early in the trading day to Friday 's plummet , futures prices firmed up again as traders took note of the stock market 's partial recovery yesterday .
COPPER :
Futures prices fell and showed little rebound as one major labor problem that had been underpinning prices appeared to be solved .
Prices were down from the outset of trading on concern that a drop in the stock market might create a weakened economy and a consequent reduction in copper use .
Highland Valley is a large Canadian producer and principal supplier to Japan , which recently began seeking copper elsewhere as its inventories shrank .
Last week it was reported that company and union negotiations had overcome the major hurdle , the contracting out of work by the company .
Now , the analyst said , only minor points remain to be cleaned up .
`` For all intents and purposes , an agreement appears to have been achieved , '' he said .
Copper inventories in New York 's Commodity Exchange warehouses rose yesterday by ### tons , to ##,### tons .
London Metal Exchange copper inventories last week declined ##,### tons , to ##,### tons .
The LME stocks decline was about as expected , but the Comex gain was n't .
However , this was brushed aside by concern over the stock market , the analyst said .
`` It was simply overbought , '' he said , and selling by funds that are computer guided helped depress prices .
Futures prices eased , more in reaction to Hurricane Jerry than to any influence of the stock market .
The December contract ended with a loss of #.## cent a pound , at ##.## cents .
Prices rose sharply Friday as the storm approached Texas and Louisiana , which is part of the Mississippi Delta cotton-growing area .
However , after absorbing the potential effect of the hurricane , prices began to slip late Friday , Mr. Simon said .
That selling continued yesterday and kept prices under pressure , he said .
Colder weather is being predicted for the high plains of Texas and the northern states of the Delta during the coming weekend , Mr. Simon said .
That has n't yet captured traders ' attention , he added .
Futures prices declined .
The March contract was off #.## cent a pound at ##.## cents .
At one point in early trading the March price rose to as high as ##.## cents when the stock market recovered , but the price then fell back .
India recently bought ###,### tons and was expected to buy more , the analyst said .
Another analyst thought that India may have pulled back because of the concern over the stock market .
At any rate , she added , `` India needs the sugar , so it will be in sooner or later to buy it . ''
FARM PRODUCTS :
The price of the hog contract for October delivery dropped its maximum permissible daily limit of #.# cents a pound .
The prices of most grain futures contracts rose slightly yesterday out of relief that the stock market was showing signs of recovering .
Earlier in the session , the prices of several soybean contracts set new lows .
A broad rally began when several major processors began buying futures contracts , apparently to take advantage of the price dip .
The Knight-Ridder spokesman said the third-quarter earnings that the company plans to report Oct. ## are expected to be up .
Dunkin ' Donuts is based in Randolph , Mass .
Cara Operations , a food services concern , and Unicorp , a holding company with interests in oil and natural gas and financial services , are based in Toronto .
The company earned $ ## million , or ## cents a share , in the year-ago quarter .
Earlier repairs vented the CFCs out of the home through a hose directly into the atmosphere .
CFCs are widely used as solvents , coolants and fire suppressants .
However , Maxus said it believes the reserves in the field are about ## million barrels of oil .
Maxus , an independent oil and gas concern , is the operator and owns a ## % interest in the new field , called Northeast Intan .
The production-sharing contract area is held with Pertamina , the Indonesian state oil company .
But because of confusion , it took those credits again in reporting its results through the first nine months .
In Montreal Exchange trading , Memotec closed unchanged at ##.### Canadian dollars -LRB-- US$ #.## -RRB-- .
Memotec is a Montreal-based maker of telecommunications products and provider of telecommunications and computer services .
Memotec said the agreement calls for it to make a $ ##-a-share cash tender offer for all shares outstanding of ISI .
Memotec said the tender offer is conditioned on , among other things , holders tendering at least ## % of the shares outstanding , other than the shares held by Mr. Johnston .