( S ( NP-SBJ ( NNP Judge ) ( NNP Masaaki ) ( NNP Yoneyama ) ) ( VP ( VBD told ) ( NP ( DT the ) ( NNP Osaka ) ( NNP District ) ( NNP Court ) ) ( SBAR ( S ( NP-SBJ ( NP ( NNP Daikin ) ( POS 's ) ) ( NN responsibility ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ heavy ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( JJ illegal ) ( NNS exports ) ) ( VP ( VBD lowered ) ( NP ( NP ( JJ international ) ( NN trust ) ) ( PP-LOC ( IN in ) ( NP ( NNP Japan ) ) ) ) ) ) ) ) ) ) ) )

Judge Masaaki Yoneyama told the Osaka District Court Daikin 's responsibility is heavy because illegal exports lowered international trust in Japan


( S ( NP-SBJ-1 ( NP ( NN Sale ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN solution ) ) ( PP ( IN in ) ( NP ( VBN concentrated ) ( NN form ) ) ) ) ) ( PP ( TO to ) ( NP ( NNP Communist ) ( NNS countries ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN prohibited ) ( PP-LGS ( PP ( IN by ) ( NP ( JJ Japanese ) ( NN law ) ) ) ( CC and ) ( PP ( IN by ) ( NP ( JJ international ) ( NN agreement ) ) ) ) ) ) )

Sale of the solution in concentrated form to Communist countries is prohibited by Japanese law and by international agreement


( S ( NP-SBJ ( DT A ) ( JJ Soviet ) ( JJ legislative ) ( NN panel ) ) ( VP ( VBD rejected ) ( PP-CLR ( RB as ) ( ADJP ( RB not ) ( JJ radical ) ( RB enough ) ) ) ( NP ( NP ( DT a ) ( NN government ) ( NN proposal ) ) ( PP ( IN on ) ( S-NOM ( VP ( VBG decentralizing ) ( NP ( JJ economic ) ( NN control ) ) ) ) ) ) ) )

A Soviet legislative panel rejected as not radical enough a government proposal on decentralizing economic control


( S ( NP-SBJ ( DT The ) ( NN newspaper ) ( NNP Leninskoye ) ( NNP Zamya ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN committee ) ) ( VP ( VBD decided ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NN plan ) ( S ( VP ( TO to ) ( VP ( VB parcel ) ( PRT ( RP out ) ) ( NP ( NP ( JJ economic ) ( NNS powers ) ) ( VP ( ADVP-TMP ( RB previously ) ) ( VBN exercised ) ( PP ( IN by ) ( NP-LGS ( NNP Moscow ) ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN country ) ( POS 's ) ) ( CD 15 ) ( NNS republics ) ) ) ) ) ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB reflect ) ( NP ( NP ( DT the ) ( JJ radical ) ( NNS changes ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ Soviet ) ( NN federation ) ) ) ) ) ) ) ) ) ) ) ) )

The newspaper Leninskoye Zamya said the committee decided the plan to parcel out economic powers previously exercised by Moscow to the country 's 15 republics does n't reflect the radical changes in the Soviet federation


( S ( NP-SBJ ( DT The ) ( NN committee ) ) ( VP ( VBD gave ) ( NP ( DT the ) ( NN government ) ) ( PP-TMP-CLR ( IN until ) ( NP ( NNP Nov. ) ( CD 15 ) ) ) ( S ( VP ( TO to ) ( VP ( VB revise ) ( NP ( DT the ) ( NN proposal ) ) ) ) ) ) )

The committee gave the government until Nov. 15 to revise the proposal


( S ( NP-SBJ ( DT The ) ( NN move ) ) ( VP ( VBD reflected ) ( NP ( NP ( DT the ) ( VBG growing ) ( NN confidence ) ) ( PP ( IN of ) ( NP ( DT the ) ( VBN revamped ) ( NNP Supreme ) ( NNP Soviet ) ) ) ) ) )

The move reflected the growing confidence of the revamped Supreme Soviet


( S ( NP-SBJ ( NNP Scott ) ( NNP Paper ) ( NNP Co. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG abandoning ) ( NP ( NP ( DT a ) ( VBN proposed ) ( ADJP ( QP ( CD 650 ) ( CD million ) ) ) ( JJ tree-farming ) ( NN project ) ) ( PP-LOC ( IN in ) ( NP ( NNP Indonesia ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ-1 ( PRP it ) ) ( ADVP ( RB no ) ( RB longer ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB use ) ( NP ( NP ( IN as ) ( JJ much ) ( NN eucalyptus ) ( NN pulp ) ) ( SBAR ( RB as ) ( S ( VP ( ADVP-TMP ( RB previously ) ) ( VBN anticipated ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Scott Paper Co. said it is abandoning a proposed 650 million tree-farming project in Indonesia because it no longer expects to use as much eucalyptus pulp as previously anticipated


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN eucalyptus ) ( NN plantation ) ( CC and ) ( NN pulp ) ( NN mill ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( MD would ) ( VP ( VB have ) ( VP ( VBN covered ) ( NP ( NP ( IN about ) ( CD 175,000 ) ( NNS acres ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP Irian ) ( NNP Jaya ) ( NN region ) ) ) ) ) ) ) ) ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( VP ( VBN approved ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Indonesia ) ( POS 's ) ) ( NN investment ) ( NN board ) ) ) ) ) ) )

The eucalyptus plantation and pulp mill which would have covered about 175,000 acres in the Irian Jaya region had been approved by Indonesia 's investment board


( S ( CC But ) ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBD was ) ( VP ( VBN opposed ) ( PP ( IN by ) ( NP-LGS ( DT some ) ( NNS environmentalists ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( NP ( DT a ) ( NN threat ) ) ( PP ( TO to ) ( NP ( NP ( NNP Irian ) ( NNP Jaya ) ( POS 's ) ) ( NNS forests ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( JJ potential ) ( NN source ) ) ( PP ( IN of ) ( NP ( JJ social ) ( NN unrest ) ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( JJ primitive ) ( NNS tribes ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP inhabit ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) ) ) ) )

But it was opposed by some environmentalists as a threat to Irian Jaya 's forests and a potential source of social unrest for the primitive tribes who inhabit them


( S ( NP-SBJ ( NP ( NNP Yaohan ) ( NNP Departmentstore ) ( NNP Co. ) ) ( PP ( IN of ) ( NP ( NNP Japan ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG moving ) ( NP ( NP ( PRP$ its ) ( NNS international-operations ) ( NNS headquarters ) ) ( CC and ) ( NP ( VBG holding ) ( NN company ) ) ) ( PP-DIR ( TO to ) ( NP ( NNP Hong ) ( NNP Kong ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB gain ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( JJ British ) ( NN colony ) ( POS 's ) ) ( JJ economic ) ( NNS advantages ) ( CC and ) ( NN tax ) ( NN structure ) ) ) ) ) ) ) ) )

Yaohan Departmentstore Co. of Japan is moving its international-operations headquarters and holding company to Hong Kong to gain from the British colony 's economic advantages and tax structure


( S ( PP ( IN With ) ( NP ( NP ( NNS funds ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 5.56 ) ( CD billion ) ) ( NNP Hong ) ( NNP Kong ) ( NNS dollars ) ) ( PRN ( NP ( CD 712 ) ( CD million ) ) ) ) ) ) ) ( NP-SBJ-1 ( NP ( DT the ) ( JJ new ) ( NN company ) ) ( NP ( NNP Yaohan ) ( NNP International ) ( NNP Co. ) ) ) ( VP ( VBZ plans ) ( S ( VP ( TO to ) ( VP ( VB acquire ) ( NP ( NP ( CD 10 ) ) ( PP ( IN of ) ( NP ( NP ( NNP Hong ) ( NNP Kong ) ( POS 's ) ) ( JJ top ) ( NNS restaurants ) ) ) ) ) ) ) ) )

With funds of 5.56 billion Hong Kong dollars 712 million the new company Yaohan International Co. plans to acquire 10 of Hong Kong 's top restaurants


( S ( NP-SBJ-1 ( PRP It ) ) ( VP ( ADVP ( RB also ) ) ( VBZ intends ) ( S ( S ( VP ( TO to ) ( VP ( VB set ) ( PRT ( RP up ) ) ( NP ( DT an ) ( JJ international ) ( JJ wholesale ) ( NN market ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNP Singapore ) ( NN government ) ) ) ( NP-TMP ( IN next ) ( NNP May ) ) ) ) ) ( CC and ) ( S ( VP ( TO to ) ( VP ( VB open ) ( NP ( NP ( NP ( DT a ) ( NN department ) ( NN store ) ) ( PP-LOC ( IN in ) ( NP ( NNP Bangkok ) ) ) ) ( CC and ) ( NP ( NP ( NN shopping ) ( NNS centers ) ) ( PP ( IN in ) ( NP ( NNP Malaysia ) ( NNP Taiwan ) ( NNP Canada ) ( NNP Chicago ) ( CC and ) ( NNP Seattle ) ) ) ) ) ( PP-TMP ( IN by ) ( NP ( NNP December ) ( CD 1990 ) ) ) ) ) ) ) ) )

It also intends to set up an international wholesale market with the Singapore government next May and to open a department store in Bangkok and shopping centers in Malaysia Taiwan Canada Chicago and Seattle by December 1990


( S ( NP-SBJ ( DT The ) ( NN chain ) ) ( VP ( VP ( ADVP-TMP ( RB currently ) ) ( VBZ has ) ( NP-1 ( CD 90 ) ( JJ retail ) ( NNS outlets ) ) ( PP-LOC-2 ( IN in ) ( NP ( NNP Japan ) ) ) ) ( VP ( NP=1 ( CD seven ) ) ( PP-LOC=2 ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ) ( VP ( NP=1 ( CD three ) ) ( PP-LOC=2 ( IN in ) ( NP ( NNP Hong ) ( NNP Kong ) ) ) ) ( CC and ) ( VP ( NP=1 ( NP ( DT a ) ( NN dozen ) ) ( JJR more ) ) ( ADJP-LOC=2 ( VBN scattered ) ( PP ( IN around ) ( NP ( DT the ) ( NN globe ) ) ) ) ) ) )

The chain currently has 90 retail outlets in Japan seven in the U.S. three in Hong Kong and a dozen more scattered around the globe


( S ( NP-SBJ ( JJ Major ) ( JJ European ) ( NN auction ) ( NNS houses ) ) ( VP ( VBP are ) ( VP ( VBG turning ) ( ADVP ( RB increasingly ) ) ( PP-DIR ( TO to ) ( NP ( VBN specialized ) ( NNS sales ) ) ) ) ) )

Major European auction houses are turning increasingly to specialized sales


( S ( NP-SBJ ( NP ( NNP Christie ) ( POS 's ) ) ) ( VP ( MD will ) ( ADVP-TMP ( RB soon ) ) ( VP ( VB have ) ( NP ( NP ( DT a ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NNP Dada ) ( CC and ) ( NNP Symbolist ) ( NN art ) ) ) ) ( SBAR-ADV ( NN while ) ( S ( NP-SBJ ( NP ( NNP Sotheby ) ( POS 's ) ) ) ( VP ( VBZ is ) ( VP ( VBG luring ) ( NP ( NNS collectors ) ) ( PP ( IN with ) ( NP ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( ADJP ( JJ Swiss ) ( JJ German ) ( JJ Spanish ) ( JJ Australian ) ( CC and ) ( JJ Canadian ) ) ( NNS paintings ) ) ) ) ) ) ) ) ) ) ) )

Christie 's will soon have a sale of Dada and Symbolist art while Sotheby 's is luring collectors with sales of Swiss German Spanish Australian and Canadian paintings


( S ( PP-LOC ( IN In ) ( NP ( NNP Brussels ) ) ) ( NP-SBJ ( NNP Hotel ) ( IN de ) ( NNP Ventes ) ( NNP Horta ) ) ( VP ( VBD auctioned ) ( NP ( NP ( NNS pistols ) ( CC and ) ( NNS sabers ) ) ( ADVP ( RB along ) ( PP ( IN with ) ( NP ( NNS paintings ) ( CC and ) ( NNS jewels ) ) ) ) ) ) )

In Brussels Hotel de Ventes Horta auctioned pistols and sabers along with paintings and jewels


( S ( NP-SBJ ( NP ( NNP Berlin ) ( POS 's ) ) ( NNP Villa ) ( NNP Grisebach ) ) ( VP ( MD will ) ( VP ( VB auction ) ( NP ( NP ( NN art ) ( NNS works ) ) ( PP ( IN with ) ( NP ( NP ( JJ pre-sale ) ( NNS estimates ) ) ( PP ( IN of ) ( NP ( QP ( RBR less ) ( IN than ) ( CD 1,600 ) ) ) ) ) ) ) ( PP-TMP ( IN on ) ( NP ( NNP Nov. ) ( CD 25 ) ) ) ) ) )

Berlin 's Villa Grisebach will auction art works with pre-sale estimates of less than 1,600 on Nov. 25


( SINV ( S-TPC-3 ( NP-SBJ ( NP ( DT The ) ( NN auction ) ( NN house ) ) ( VP ( VBN known ) ( PP-CLR ( IN for ) ( NP ( NP ( PRP$ its ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( NN top-drawer ) ( ADJP ( JJ 19th ) ( CC and ) ( JJ 20th ) ) ( NN century ) ( NNS works ) ) ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG providing ) ( NP ( NP ( DT a ) ( NN service ) ) ( PP ( TO to ) ( NP ( NP ( NNS clients ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBP do ) ( RB n't ) ( VP ( VB want ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( RB just ) ( PRP$ their ) ( JJ fabulous ) ( NN oil ) ( NNS paintings ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Villa ) ( NNP Grisebach ) ( POS 's ) ) ( NNP Vivien ) ( NNP Reuter ) ) )

The auction house known for its sales of top-drawer 19th and 20th century works is providing a service to clients who do n't want to sell just their fabulous oil paintings says Villa Grisebach 's Vivien Reuter


( S ( NP-SBJ ( NNP Antwerp ) ( NN auctioneer ) ( NNP Campo ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( RBR less ) ( VBN concerned ) ( PP ( IN with ) ( NP ( NN market ) ( NNS niches ) ) ) ) ( ADVP ( IN than ) ( PP ( IN with ) ( NP ( NP ( NNP Belgium ) ( POS 's ) ) ( VBG crushing ) ( NN tax ) ( CC and ) ( JJ auction-fee ) ( NN burden ) ) ) ) ) ) )

Antwerp auctioneer Campo is less concerned with market niches than with Belgium 's crushing tax and auction-fee burden


( SINV ( S-TPC-2 ( NP-SBJ ( NN Everything ) ) ( VP ( VBZ has ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( DT the ) ( JJ same ) ) ( PP ( IN between ) ( NP ( NNS countries ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NP ( NNP Campo ) ( POS 's ) ) ( NNP Stefan ) ( NNP Campo ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ is ) ( VP ( VBG asking ) ( NP-3 ( NNS clients ) ) ( S ( VP ( TO to ) ( VP ( VB sign ) ( NP ( NN protest ) ( NNS petitions ) ) ) ) ) ) ) ) ) ) )

Everything has to be the same between countries says Campo 's Stefan Campo who is asking clients to sign protest petitions


( S ( ADVP-TMP ( RB Then ) ) ( NP-SBJ ( EX there ) ) ( VP ( MD 'll ) ( VP ( VB be ) ( NP-PRD ( JJ fair ) ( NN competition ) ) ) ) )

Then there 'll be fair competition


( S ( S-TPC-1 ( NP-SBJ ( S ( VP ( VBG Ending ) ( NP ( NP ( JJ tax-free ) ( NN shopping ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP European ) ( NNP Community ) ) ) ) ( PP-TMP ( IN after ) ( NP ( CD 1992 ) ) ) ) ) ) ( VP ( MD could ) ( VP ( VB threaten ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 3,000 ) ) ( NNS jobs ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNP International ) ( NNP Duty ) ( NNP Free ) ( NNP Confederation ) ) ( VP ( VBD said ) ) )

Ending tax-free shopping in the European Community after 1992 could threaten more than 3,000 jobs the International Duty Free Confederation said


( S ( PP ( RB Instead ) ( IN of ) ( S-NOM ( VP ( VBG banning ) ( NP ( JJ such ) ( NN shopping ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN confederation ) ) ( VP ( VBD proposed ) ( S ( VP ( VBG amending ) ( NP ( NNS controls ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB be ) ( ADJP-PRD ( JJ sure ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN privilege ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBN abused ) ) ) ) ) ) ) ) ) ) ) ) )

Instead of banning such shopping the confederation proposed amending controls to be sure the privilege is n't abused


( S ( NP-SBJ ( JJ British ) ( CC and ) ( JJ Argentine ) ( NNS diplomats ) ) ( VP ( VBD opened ) ( NP ( NP ( NNS talks ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Madrid ) ) ) ( VP-1 ( VBN aimed ) ( PP-CLR ( IN at ) ( S-NOM ( VP ( VBG restoring ) ( NP ( NP ( NNS ties ) ) ( VP ( VBN severed ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( PRP$ their ) ( CD 1982 ) ( NN war ) ) ( PP ( IN over ) ( NP ( DT the ) ( NNP Falkland ) ( NNPS Islands ) ) ) ) ) ) ) ) ) ) ) ) )

British and Argentine diplomats opened talks in Madrid aimed at restoring ties severed because of their 1982 war over the Falkland Islands


( S ( NP-SBJ ( NP ( NNP Britain ) ( POS 's ) ) ( NNP U.N. ) ( NN representative ) ( CC and ) ( NN delegation ) ( NN head ) ( NNP Crispin ) ( NNP Tickell ) ) ( VP ( VBD called ) ( S ( NP-SBJ ( DT the ) ( JJ first ) ( NN meeting ) ) ( ADJP-PRD ( JJ good ) ( JJ interesting ) ( CC and ) ( JJ businesslike ) ) ) ) )

Britain 's U.N. representative and delegation head Crispin Tickell called the first meeting good interesting and businesslike


( S ( NP-SBJ ( NP ( NNP Moody ) ( POS 's ) ) ( NNPS Investors ) ( NNP Service ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD lowered ) ( NP ( NP ( NNS ratings ) ) ( PP ( IN on ) ( NP ( NP ( QP ( IN about ) ( CD 650 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NNP Beatrice ) ( NNP Co. ) ( NN debt ) ) ) ) ) ) ) ) ) ( S-ADV ( VP ( VBG citing ) ( NP ( NP ( DT the ) ( ADJP ( RB closely ) ( VBN held ) ) ( NNP Chicago ) ( NN food ) ( NN concern ) ( POS 's ) ) ( VBN proposed ) ( NN recapitalization ) ) ) ) ) )

Moody 's Investors Service Inc. said it lowered ratings on about 650 million of Beatrice Co. debt citing the closely held Chicago food concern 's proposed recapitalization


( S ( NP-SBJ ( DT The ) ( NNS ratings ) ( NN concern ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VP ( VBD downgraded ) ( NP-1 ( NP ( NNP Beatrice ) ( NNS notes ) ) ( NP ( NNS Euronotes ) ) ( CC and ) ( NP ( JJ certain ) ( JJ industrial ) ( NN revenue ) ( NNS bonds ) ) ) ( PP-DIR-2 ( TO to ) ( NP ( NN single-B-1 ) ) ) ( PP-DIR-3 ( IN from ) ( NP ( NN Ba-3 ) ) ) ) ( CC and ) ( VP ( NP=1 ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( VBN subordinated ) ( NNS debentures ) ) ( PP-DIR=2 ( TO to ) ( NP ( NN single-B-3 ) ) ) ( PP-DIR=3 ( IN from ) ( NP ( NN single-B-2 ) ) ) ) ) ) ) ) )

The ratings concern said it downgraded Beatrice notes Euronotes and certain industrial revenue bonds to single-B-1 from Ba-3 and the company 's subordinated debentures to single-B-3 from single-B-2


( S ( NP-SBJ ( NP ( NNP Moody ) ( POS 's ) ) ) ( VP ( VBD said ) ( SBAR ( SBAR ( S ( NP-SBJ ( DT the ) ( VBN proposed ) ( NN recaptilization ) ) ( VP ( MD may ) ( VP ( VB limit ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN ability ) ( S ( VP ( TO to ) ( VP ( VB realize ) ( NP ( PRP$ its ) ( NN profit ) ( NN potential ) ) ) ) ) ) ) ) ) ) ( CC and ) ( SBAR ( IN that ) ( S ( S-NOM-SBJ ( VP ( VBG paying ) ( NP ( NNS dividends ) ) ( PP ( IN from ) ( NP ( NP ( DT a ) ( JJ new ) ( NN series ) ) ( PP ( IN of ) ( NP ( VBN preferred ) ) ) ) ) ) ) ( VP ( MD could ) ( VP ( VB squeeze ) ( NP ( JJ basic ) ( NN business ) ( NNS operations ) ) ) ) ) ) ) ) )

Moody 's said the proposed recaptilization may limit the company 's ability to realize its profit potential and that paying dividends from a new series of preferred could squeeze basic business operations


( S ( NP-SBJ ( DT A ) ( NNP Beatrice ) ( NN spokesman ) ) ( VP ( VBD did ) ( RB n't ) ( VP ( VB return ) ( NP ( NP ( NNS calls ) ) ( SBAR ( S ( VP ( VBG seeking ) ( NP ( NN comment ) ) ) ) ) ) ) ) )

A Beatrice spokesman did n't return calls seeking comment


( S ( NP-SBJ ( NP ( NNP Beatrice ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD went ) ( ADJP-PRD ( JJ private ) ) ( PP-LOC ( IN in ) ( NP ( DT an ) ( ADJP ( QP ( CD 8.2 ) ( CD billion ) ) ) ( JJ leveraged ) ( NN buy-out ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1986 ) ) ) ) ) ) ) ( VP ( VBD said ) ( NP-TMP ( JJ last ) ( NN month ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD might ) ( VP ( VB borrow ) ( ADVP ( RB again ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB help ) ( VP ( VB pay ) ( NP ( NNS investors ) ) ( NP ( NP ( QP ( RB as ) ( RB much ) ( IN as ) ( CD 983 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NP ( VBN preferred ) ( NN stock ) ) ( CC and ) ( NP ( NN debt ) ( NNS securities ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Beatrice which went private in an 8.2 billion leveraged buy-out in 1986 said last month that it might borrow again to help pay investors as much as 983 million in preferred stock and debt securities


( S ( NP-SBJ ( CD Three ) ( VBG leading ) ( NN drug ) ( NNS companies ) ) ( VP ( VBD reported ) ( NP ( NP ( JJ robust ) ( NN third-quarter ) ( NNS earnings ) ) ( VP ( VBN bolstered ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ strong ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( NP ( JJR newer ) ( JJ big-selling ) ( NNS prescriptions ) ( NNS drugs ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP provide ) ( NP ( JJ hefty ) ( NN profit ) ( NNS margins ) ) ) ) ) ) ) ) ) ) ) ) )

Three leading drug companies reported robust third-quarter earnings bolstered by strong sales of newer big-selling prescriptions drugs that provide hefty profit margins


( S ( S ( NP-SBJ ( NNP Merck ) ( CC & ) ( NNP Co. ) ) ( VP ( VBD reported ) ( NP ( NP ( DT a ) ( ADJP ( CD 25 ) ( NN % ) ) ( NN increase ) ) ( PP-LOC ( IN in ) ( NP ( NNS earnings ) ) ) ) ) ) ( S ( S ( NP-SBJ ( NP ( NNP Warner-Lambert ) ( NNP Co. ) ( POS 's ) ) ( NN profit ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 22 ) ( NN % ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NNP Eli ) ( NNP Lilly ) ( CC & ) ( NNP Co. ) ( POS 's ) ) ( JJ net ) ( NN income ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 24 ) ( NN % ) ) ) ) ) )

Merck & Co. reported a 25 % increase in earnings Warner-Lambert Co. 's profit rose 22 % and Eli Lilly & Co. 's net income rose 24 %


( S ( NP-SBJ ( DT The ) ( NNS results ) ) ( VP ( VBD were ) ( PP-PRD ( IN in ) ( NP ( NP ( NN line ) ) ( PP ( IN with ) ( NP ( NP ( NNS analysts ) ( POS ' ) ) ( NNS expectations ) ) ) ) ) ) )

The results were in line with analysts ' expectations


( NP-HLN ( NNP Merck ) ( CC & ) ( NNP Co ) )

Merck & Co


( S ( NP-SBJ-1 ( NP ( NNP Merck ) ) ( NP-LOC ( NP ( NNP Rahway ) ) ( NP ( NNP N.J. ) ) ) ) ( VP ( VBD continued ) ( S ( VP ( TO to ) ( VP ( VB lead ) ( NP ( DT the ) ( NN industry ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( JJ strong ) ( NNS sales ) ( NN performance ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN human ) ( CC and ) ( NN animal ) ( NNS health-products ) ( NN segment ) ) ) ) ) ) ) ) ) )

Merck Rahway N.J. continued to lead the industry with a strong sales performance in the human and animal health-products segment


( S ( NP-SBJ ( DT A ) ( JJR stronger ) ( NNP U.S. ) ( NN dollar ) ) ( VP ( VBD reduced ) ( NP ( NN third-quarter ) ( CC and ) ( JJ first-nine-month ) ( NNS sales ) ( NN growth ) ) ( NP-EXT ( NP ( QP ( CD 2 ) ( NN % ) ( CC and ) ( CD 3 ) ( NN % ) ) ) ( ADVP ( RB respectively ) ) ) ) )

A stronger U.S. dollar reduced third-quarter and first-nine-month sales growth 2 % and 3 % respectively


( S ( NP-SBJ ( JJ International ) ( NNS sales ) ) ( VP ( VBD accounted ) ( PP-CLR ( IN for ) ( NP ( NP ( CD 47 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NP ( JJ total ) ( NN company ) ( NNS sales ) ) ( PP ( IN for ) ( NP ( DT the ) ( CD nine ) ( NNS months ) ) ) ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( CD 50 ) ( NN % ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) )

International sales accounted for 47 % of total company sales for the nine months compared with 50 % a year earlier


( S ( NP-SBJ ( NP ( NNS Sales ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN quarter ) ) ) ) ( VP ( VBD rose ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 1.63 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 1.47 ) ( CD billion ) ) ) ) ) )

Sales for the quarter rose to 1.63 billion from 1.47 billion


( S ( S-TPC-1 ( NP-SBJ ( NP ( NNP Mevacor ) ) ( NP ( NP ( NNP Merck ) ( POS 's ) ) ( JJ new ) ( JJ cholesterol-lowering ) ( NN drug ) ) ) ( VP ( VBD had ) ( NP ( NP ( JJR higher ) ( NNS sales ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( DT any ) ( JJ other ) ( NN prescription ) ( NN medicine ) ) ( VP ( VBZ has ) ( ADVP-TMP ( RB ever ) ) ( VP ( VBN achieved ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNP U.S. ) ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT the ) ( NN year ) ) ( PP ( VBG following ) ( NP ( NN introduction ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) )

Mevacor Merck 's new cholesterol-lowering drug had higher sales than any other prescription medicine has ever achieved in the U.S. in the year following introduction the company said


( S ( NP-SBJ-1 ( DT The ) ( NN drug ) ) ( VP ( VBD was ) ( VP ( VBN introduced ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP West ) ( NNP Germany ) ) ) ( NP-TMP ( DT this ) ( NN year ) ) ) ) )

The drug was introduced in West Germany this year


( S ( NP-SBJ ( JJ Intense ) ( NN competition ) ) ( ADVP ( RB however ) ) ( VP ( VBD led ) ( PP-DIR ( TO to ) ( NP ( NP ( NN unit ) ( NNS sales ) ( NNS declines ) ) ( PP ( IN for ) ( NP ( NP ( NP ( DT a ) ( NN group ) ) ( PP ( IN of ) ( NP ( NP ( NNP Merck ) ( POS 's ) ) ( VBN established ) ( NN human ) ( CC and ) ( NN animal-health ) ( NNS products ) ) ) ) ( PP ( VBG including ) ( NP ( NNP Aldomet ) ( CC and ) ( NNP Indocin ) ) ) ) ) ) ) ) )

Intense competition however led to unit sales declines for a group of Merck 's established human and animal-health products including Aldomet and Indocin


( S ( PP-LOC ( IN In ) ( NP ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( JJ composite ) ( NN trading ) ) ) ( NP-TMP ( NN yesterday ) ) ( NP-SBJ ( NN Merck ) ( NNS shares ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( CD 75.25 ) ) ) ( ADVP ( IN up ) ( NP ( CD 50 ) ( NNS cents ) ) ) ) )

In New York Stock Exchange composite trading yesterday Merck shares closed at 75.25 up 50 cents


( NP-HLN ( NNP Warner-Lambert ) ( NNP Co ) )

Warner-Lambert Co


( S ( NP-SBJ ( NP ( NNP Warner-Lambert ) ) ( NP ( NP ( NNP Morris ) ( NNP Plains ) ) ( NP ( NNP N.J. ) ) ) ) ( VP ( VBD reported ) ( NP ( NP ( NNS sales ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD were ) ( NP-PRD ( NP ( NP ( DT a ) ( NN record ) ) ( PP ( IN for ) ( NP ( DT any ) ( NN quarter ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( JJ eighth ) ( NN quarter ) ) ( PP ( IN in ) ( NP ( DT a ) ( NN row ) ) ) ( PP ( IN of ) ( NP ( QP ( CD 20 ) ( NN % ) ( CC or ) ( JJR more ) ) ( JJ per-share ) ( NNS earnings ) ( NN growth ) ) ) ) ) ) ) ) ) ) )

Warner-Lambert Morris Plains N.J. reported sales that were a record for any quarter and the eighth quarter in a row of 20 % or more per-share earnings growth


( S ( S-ADV ( VP ( VBN Spurred ) ( PP ( IN by ) ( NP-LGS ( NP ( NN growth ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ world-wide ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN prescription ) ( NNS drugs ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( NNP Warner-Lambert ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( CD 1989 ) ) ( VP ( MD will ) ( VP ( VB be ) ( NP-PRD ( NP ( DT the ) ( JJS best ) ( NN year ) ) ( PP-TMP ( IN in ) ( NP ( PRP$ its ) ( NN history ) ) ) ) ( SBAR ( IN with ) ( S ( NP-SBJ-2 ( JJ per-share ) ( NNS earnings ) ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB increase ) ( NP ( QP ( JJR more ) ( IN than ) ( CD 20 ) ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( IN about ) ( CD 6.10 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Spurred by growth in world-wide sales of the company 's prescription drugs Warner-Lambert said 1989 will be the best year in its history with per-share earnings expected to increase more than 20 % to about 6.10


( S ( NP-SBJ ( NP ( NNS Sales ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN quarter ) ) ) ) ( VP ( VBD rose ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 1.11 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 1.03 ) ( CD billion ) ) ) ) ) )

Sales for the quarter rose to 1.11 billion from 1.03 billion


( S ( S ( NP-SBJ ( NN Prescription-drug ) ( JJ world-wide ) ( NNS sales ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 9 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN quarter ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 340 ) ( CD million ) ) ) ) ) ) ( S ( NP-SBJ ( NNP U.S. ) ( NNS sales ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 15 ) ( NN % ) ) ) ) )

Prescription-drug world-wide sales rose 9 % in the quarter to 340 million U.S. sales rose 15 %


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN segment ) ( POS 's ) ) ( NN growth ) ) ( VP ( VBD was ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS sales ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ cardiovascular ) ( NNS drugs ) ) ( NP ( NP ( NP ( NNP Lopid ) ) ( NP ( DT a ) ( NN lipid ) ( NN regulator ) ) ) ( CC and ) ( NP ( NP ( NNP Dilzem ) ) ( NP ( DT a ) ( NN calcium ) ( NN channel ) ( NN blocker ) ) ) ) ) ) ) ) ) ) )

The segment 's growth was led by sales of the cardiovascular drugs Lopid a lipid regulator and Dilzem a calcium channel blocker


( S ( S ( NP-SBJ ( NP ( JJ World-wide ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Warner-Lambert ) ( POS 's ) ) ( JJ non-prescription ) ( NN health-care ) ( NNS products ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( NNP Halls ) ( NN cough ) ( NNS tablets ) ) ( NP ( NNP Rolaids ) ( NN antacid ) ) ( CC and ) ( NP ( NNP Lubriderm ) ( NN skin ) ( NN lotion ) ) ) ) ) ) ) ( VP ( VBD increased ) ( NP-EXT ( CD 3 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 362 ) ( CD million ) ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ) ) ( S ( NP-SBJ ( NNP U.S. ) ( NNS sales ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 5 ) ( NN % ) ) ) ) )

World-wide sales of Warner-Lambert 's non-prescription health-care products such as Halls cough tablets Rolaids antacid and Lubriderm skin lotion increased 3 % to 362 million in the third quarter U.S. sales rose 5 %


( S ( NP-SBJ ( JJ Confectionery ) ( NNS products ) ( NNS sales ) ) ( ADVP ( RB also ) ) ( VP ( VBD had ) ( NP ( JJ strong ) ( NN growth ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN quarter ) ) ) ) )

Confectionery products sales also had strong growth in the quarter


( S ( NP-SBJ ( NP ( JJ World-wide ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( NP ( NNP Trident ) ( NN gum ) ) ( NP ( NNP Certs ) ( NN breath ) ( NNS mints ) ) ( CC and ) ( NP ( NNP Clorets ) ( NN gum ) ( CC and ) ( NN breath ) ( NNS mints ) ) ) ) ) ( VP ( VB increased ) ( NP-EXT ( CD 12 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 277 ) ( CD million ) ) ) ) ) )

World-wide sales of Trident gum Certs breath mints and Clorets gum and breath mints increased 12 % to 277 million


( S ( NP-SBJ ( NNP Warner-Lambert ) ( NNS shares ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 109.50 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP ( IN up ) ( NP ( CD 1.50 ) ) ) ( PP-LOC ( IN in ) ( NP ( NNP Big ) ( NNP Board ) ( JJ composite ) ( NN trading ) ) ) ( NP-TMP ( NN yesterday ) ) ) )

Warner-Lambert shares closed at 109.50 a share up 1.50 in Big Board composite trading yesterday


( NP-HLN ( NNP Eli ) ( NNP Lilly ) ( CC & ) ( NNP Co ) )

Eli Lilly & Co


( S ( NP-SBJ ( NNP Lilly ) ) ( VP ( VBD attributed ) ( NP ( NN record ) ( JJ third-quarter ) ( CC and ) ( JJ nine-month ) ( NNS results ) ) ( PP-CLR ( TO to ) ( NP ( NP ( JJ world-wide ) ( NNS gains ) ) ( PP ( IN for ) ( NP ( NP ( NNS pharmaceuticals ) ) ( NP ( JJ medical ) ( NNS instruments ) ) ( CC and ) ( NP ( NN plant-science ) ( NNS products ) ) ) ) ( PP ( IN despite ) ( NP ( NP ( NP ( JJ poor ) ( NN exchange ) ( NNS rates ) ) ( PP ( IN for ) ( NP ( DT the ) ( NN dollar ) ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD slowed ) ( NP ( NP ( NNS sales ) ) ( ADVP-LOC ( RB abroad ) ) ) ) ) ) ) ) ) ) ) )

Lilly attributed record third-quarter and nine-month results to world-wide gains for pharmaceuticals medical instruments and plant-science products despite poor exchange rates for the dollar that slowed sales abroad


( S ( NP-SBJ-1 ( NNS Earnings ) ) ( VP ( VBD continued ) ( S ( VP ( TO to ) ( VP ( VB pace ) ( NP ( NNS sales ) ) ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NP ( DT a ) ( JJR lower ) ( NN tax ) ( NN rate ) ) ( NP ( NP ( NN profit ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( NN renegotiation ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN debt ) ( NN instrument ) ) ( VP ( VBN received ) ( PP-CLR ( IN from ) ( NP ( NNP Faberge ) ( NNP Inc. ) ) ) ( PP ( IN in ) ( NP ( NP ( NN connection ) ) ( PP ( IN with ) ( NP ( NP ( NP ( NNP Lilly ) ( POS 's ) ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NNP Elizabeth ) ( NNP Arden ) ( NNP Inc. ) ) ) ( PP-TMP ( IN in ) ( NP ( CD 1987 ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( NP ( NP ( JJ net ) ( NNS proceeds ) ) ( PP ( IN from ) ( NP ( NP ( DT the ) ( NN settlement ) ) ( PP ( IN of ) ( NP ( NN patent ) ( NN litigation ) ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Lilly ) ( POS 's ) ) ( NNP Hybritech ) ( NNP Inc. ) ( NN unit ) ) ) ) ) ) ) ) ) )

Earnings continued to pace sales because of a lower tax rate profit from the renegotiation of the debt instrument received from Faberge Inc. in connection with Lilly 's sale of Elizabeth Arden Inc. in 1987 and net proceeds from the settlement of patent litigation at Lilly 's Hybritech Inc. unit


( S ( NP-SBJ ( NP ( NN Third-quarter ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( DT the ) ( NAC-LOC ( NNP Indianapolis ) ( NNP Ind. ) ) ( NN company ) ) ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 11 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 1.045 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 940.6 ) ( CD million ) ) ) ) ) )

Third-quarter sales of the Indianapolis Ind. company rose 11 % to 1.045 billion from 940.6 million


( S ( NP-SBJ ( JJ Nine-month ) ( NNS sales ) ) ( VP ( VBD grew ) ( NP-EXT ( CD 12 ) ( NN % ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 3.39 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 3.03 ) ( CD billion ) ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) )

Nine-month sales grew 12 % to 3.39 billion from 3.03 billion a year earlier


( S ( NP-SBJ ( NP ( NNS Sales ) ) ( PP ( IN of ) ( NP ( NP ( NNP Prozac ) ) ( NP ( DT an ) ( NN anti-depressant ) ) ) ) ) ( VP ( VBD led ) ( NP ( NNS drug-sales ) ( NNS increases ) ) ) )

Sales of Prozac an anti-depressant led drug-sales increases


( S ( S-TPC-1 ( NP-SBJ ( NP ( JJR Higher ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( NP ( NNS pesticides ) ) ( CC and ) ( NP ( JJ other ) ( NN plant-science ) ( NNS products ) ) ) ) ) ( VP ( ADVP ( RBR more ) ( IN than ) ) ( VBP offset ) ( NP ( NP ( DT a ) ( JJ slight ) ( NN decline ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( NN animal-health ) ( NNS products ) ) ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB fuel ) ( NP ( NP ( DT the ) ( NN increase ) ) ( PP-LOC ( IN in ) ( NP ( JJ world-wide ) ( JJ agricultural ) ( NN product ) ( NNS sales ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Lilly ) ) ( VP ( VBD said ) ) )

Higher sales of pesticides and other plant-science products more than offset a slight decline in the sales of animal-health products to fuel the increase in world-wide agricultural product sales Lilly said


( S ( NP-SBJ ( NP ( NNP Advanced ) ( NNP Cardiovascular ) ( NNPS Systems ) ( NNP Inc. ) ) ( CC and ) ( NP ( NNP Cardiac ) ( NNPS Pacemakers ) ( NNP Inc. ) ( NNS units ) ) ) ( VP ( VBD led ) ( NP ( NP ( NN growth ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ medical-instrument ) ( NNS systems ) ( NN division ) ) ) ) ) )

Advanced Cardiovascular Systems Inc. and Cardiac Pacemakers Inc. units led growth in the medical-instrument systems division


( S ( NP-SBJ ( NNP Lilly ) ( NNS shares ) ) ( VP ( VBD closed ) ( NP-TMP ( NN yesterday ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ composite ) ( NN trading ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ) ) ) ) ( PP-CLR ( IN at ) ( NP ( CD 62.25 ) ) ) ( ADVP ( IN down ) ( NP ( CD 12.5 ) ( NNS cents ) ) ) ) )

Lilly shares closed yesterday in composite trading on the Big Board at 62.25 down 12.5 cents


( SBARQ ( WHADVP ( WRB Why ) ) ( SQ ( VBZ is ) ( NP-SBJ ( DT the ) ( NN stock ) ( NN market ) ) ( ADVP-TMP ( RB suddenly ) ) ( ADJP-PRD ( RB so ) ( JJ volatile ) ) ) )

Why is the stock market suddenly so volatile


( S ( NP-TMP ( NN Yesterday ) ) ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBD did ) ( NP ( NP ( DT a ) ( ADJP ( RB now ) ( JJ familiar ) ) ( NN dance ) ) ) ( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD plunged ) ( NP-EXT ( CD 60.25 ) ( NNS points ) ) ( PP-TMP ( IN before ) ( NP ( NN lunch ) ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN drop ) ) ) ) ( VP ( VBG occurring ) ( PP-TMP ( IN in ) ( NP ( CD 25 ) ( NNS minutes ) ) ) ) ) ) ) ) ) )

Yesterday the Dow Jones Industrial Average did a now familiar dance It plunged 60.25 points before lunch with most of the drop occurring in 25 minutes


( S ( ADVP-TMP ( RB Then ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD rebounded ) ( S-ADV ( VP ( TO to ) ( VP ( VB finish ) ( ADVP-CLR ( RB down ) ( NP ( RB only ) ( CD 18.65 ) ( NNS points ) ) ) ) ) ) ) )

Then it rebounded to finish down only 18.65 points


( S ( CC And ) ( NP-SBJ ( DT those ) ( NNS swings ) ) ( VP ( VB paled ) ( PP-LOC ( IN beside ) ( NP ( NP ( NP ( NNP Friday ) ( POS 's ) ) ( JJ 190.58-point ) ( NN plunge ) ) ( CC and ) ( NP ( NP ( NNP Monday ) ( POS 's ) ) ( JJ 88.12-point ) ( NN recovery ) ) ) ) ) )

And those swings paled beside Friday 's 190.58-point plunge and Monday 's 88.12-point recovery


( S ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( NN madness ) ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN in ) ( NP ( DT an ) ( NN hour ) ) ) ( NP-SBJ ( PRP you ) ) ( VP ( MD can ) ( VP ( VB whack ) ( PRT ( RP off ) ) ( NP ( ADJP ( RB so ) ( JJ much ) ) ( NN value ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Stanford ) ( NNP Calderwood ) ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( NP ( NNP Trinity ) ( NNP Investment ) ( NNP Management ) ( NNP Corp. ) ) ( NP-LOC ( NNP Boston ) ) ) ) ) ) )

It 's madness that in an hour you can whack off so much value says Stanford Calderwood chairman of Trinity Investment Management Corp. Boston


( S ( CC And ) ( ADVP ( RB apparently ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( ADVP-PRD ( RB here ) ( S ( VP ( TO to ) ( VP ( VB stay ) ) ) ) ) ) )

And apparently it is here to stay


( S ( NP-SBJ ( NP ( NNP Richard ) ( NNP Bernstein ) ) ( NP ( NP ( JJ senior ) ( JJ quantitative ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP Merrill ) ( NNP Lynch ) ( CC & ) ( NNP Co ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( PRP$ My ) ( NN gut ) ( NN feel ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( MD 'll ) ( VP ( VB live ) ( PP-CLR ( IN with ) ( NP ( DT those ) ( NNS swings ) ) ) ( PP-TMP ( IN for ) ( NP ( DT a ) ( NN while ) ) ) ) ) ) ) ) ) ) ) )

Richard Bernstein senior quantitative analyst at Merrill Lynch & Co says My gut feel is that we 'll live with those swings for a while


( S ( NP-SBJ ( EX There ) ) ( VP ( VBP are ) ( NP-PRD ( NP ( NP ( JJ many ) ( NNS reasons ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NN market ) ( POS 's ) ) ( NN jumpiness ) ) ) ) ( NP ( NP ( NP ( JJ new ) ( NN trading ) ( NNS vehicles ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( JJ stock-index ) ( NNS futures ) ) ( CC and ) ( NP ( NNS options ) ) ) ) ) ( NP ( NP ( JJ computer-driven ) ( NNS strategies ) ) ( PP ( IN like ) ( NP ( NN program ) ( NN trading ) ) ) ) ( CC and ) ( NP ( NN crowd ) ( NN psychology ) ) ) ) ) )

There are many reasons for the market 's jumpiness new trading vehicles such as stock-index futures and options computer-driven strategies like program trading and crowd psychology


( S ( CC But ) ( NP-SBJ-1 ( JJS most ) ) ( VP ( VBP are ) ( VP ( VBN linked ) ( PP ( IN by ) ( NP-LGS ( NP ( DT a ) ( JJ single ) ( NN theme ) ) ( NP ( NP ( NN liquidity ) ) ( NP ( DT the ) ( NN ability ) ( S ( VP ( TO to ) ( VP ( VB get ) ( PP ( PP ( IN in ) ) ( CC and ) ( PP ( IN out ) ( PP ( IN of ) ) ) ( NP-2 ( DT the ) ( NN market ) ) ) ( ADVP-MNR ( RB quickly ) ) ) ) ) ) ) ) ) ) ) )

But most are linked by a single theme liquidity the ability to get in and out of the market quickly


( S ( NP-SBJ ( NNS Prices ) ) ( VP ( VBP are ) ( VP ( VBG moving ) ( ADVP-DIR ( IN up ) ( CC and ) ( IN down ) ) ( ADVP-MNR ( RB so ) ( RB fast ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( NNS investors ) ) ( VP ( VBP are ) ( VP ( VP ( VBG employing ) ( NP ( NP ( NNS ways ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB turn ) ( PRT ( RP over ) ) ( NP-PRD ( NNS shares ) ) ( PP ( IN at ) ( NP ( JJ ever-faster ) ( NNS rates ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( ADVP ( RB increasingly ) ) ( VBG acting ) ( PP-MNR ( IN in ) ( NP ( NN concert ) ) ) ) ) ) ) ) ) ) )

Prices are moving up and down so fast because investors are employing ways to turn over shares at ever-faster rates and increasingly acting in concert


( SINV ( S-TPC-2 ( NP-SBJ ( NNS Institutions ) ) ( VP ( VBP are ) ( VP ( VBG herding ) ( NP ( NNS animals ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Peter ) ( NNP Anderson ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ heads ) ( NP ( NP ( DT the ) ( JJ pension-fund ) ( NN management ) ( NN arm ) ) ( PP ( IN of ) ( NP ( NNP IDS ) ( NNP Financial ) ( NNPS Services ) ( NNP Inc ) ) ) ) ) ) ) ) )

Institutions are herding animals says Peter Anderson who heads the pension-fund management arm of IDS Financial Services Inc


( S ( NP-SBJ ( PRP We ) ) ( VP ( VP ( VBP watch ) ( NP ( DT the ) ( JJ same ) ( NNS indicators ) ) ) ( CC and ) ( VP ( VBP listen ) ( PP-CLR ( TO to ) ( NP ( DT the ) ( JJ same ) ( NNS prognosticators ) ) ) ) ) )

We watch the same indicators and listen to the same prognosticators


( S ( PP ( IN Like ) ( NP ( NNS lemmings ) ) ) ( NP-SBJ-1 ( PRP we ) ) ( VP ( VBP tend ) ( S ( VP ( TO to ) ( VP ( VB move ) ( PP-DIR ( IN in ) ( NP ( DT the ) ( JJ same ) ( NN direction ) ) ) ( PP-TMP ( IN at ) ( NP ( JJ same ) ( NN time ) ) ) ) ) ) ) )

Like lemmings we tend to move in the same direction at same time


( S ( CC And ) ( NP-SBJ ( IN that ) ) ( ADVP ( RB naturally ) ) ( VP ( VBZ exacerbates ) ( NP ( NN price ) ( NNS movements ) ) ) )

And that naturally exacerbates price movements


( S ( NP-SBJ ( NP ( NNS Institutions ) ) ( PRN ( SBAR ( WHNP-1 ( WP who ) ) ( S ( ADVP-TMP ( RB now ) ) ( VP ( VBP account ) ( PP-CLR ( IN for ) ( NP ( JJS most ) ( NN trading ) ) ) ) ) ) ) ) ( VP ( VBP count ) ( PP-CLR ( IN on ) ( S-NOM ( VP ( VBG being ) ( ADJP-PRD ( JJ able ) ( S ( VP ( TO to ) ( VP ( NP ( VB buy ) ( CC and ) ( VB sell ) ) ( NP ( NP ( JJ big ) ( NNS blocks ) ) ( PP ( IN of ) ( NP ( NN stock ) ) ) ) ( PP ( IN at ) ( NP ( DT an ) ( NN eye-blink ) ) ) ) ) ) ) ) ) ) ) )

Institutions who now account for most trading count on being able to buy and sell big blocks of stock at an eye-blink


( S ( CC But ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP discover ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNS markets ) ) ( VP ( VBP are ) ( RB n't ) ( ADVP-TMP ( RB always ) ) ( ADJP-PRD ( RB as ) ( JJ liquid ) ( SBAR ( IN as ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD supposed ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS markets ) ) ( VP ( VBP jump ) ) )

But when they discover that markets are n't always as liquid as they supposed markets jump


( S ( PP-TMP ( IN On ) ( NP ( NNP Monday ) ) ) ( PP ( IN for ) ( NP ( NN instance ) ) ) ( NP-SBJ ( NP ( NNP Howard ) ( NNP Ward ) ) ( NP ( NP ( DT a ) ( NN principal ) ) ( PP-LOC ( IN at ) ( NP ( NNP Scudder ) ( NNP Stevens ) ( CC & ) ( NNP Clark ) ) ) ) ) ( VP ( VBD found ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP you ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB buy ) ( NP ( NNS blue-chips ) ) ( PP-CLR ( IN at ) ( NP ( VBN quoted ) ( NNS prices ) ) ) ( PP ( IN without ) ( S-NOM ( VP ( VBG paying ) ( PRT ( IN up ) ) ) ) ) ) ) ) ) ) )

On Monday for instance Howard Ward a principal at Scudder Stevens & Clark found that you could n't buy blue-chips at quoted prices without paying up


( S ( CC And ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ-2 ( JJ many ) ( NNS firms ) ) ( VP ( VBD had ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( PRT ( IN up ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( NP ( NNP Monday ) ( POS 's ) ) ( JJ sudden ) ( NN rally ) ) ( VP ( VBD was ) ( VP ( VBN sparked ) ) ) )

And when many firms had to pay up Monday 's sudden rally was sparked


( S-1 ( NP-SBJ ( NP ( NN Trading ) ) ( PP-LOC ( IN in ) ( NP ( NNS futures ) ( CC and ) ( NNS options ) ) ) ) ( PRN ( S ( NP-SBJ ( DT some ) ( NNS people ) ) ( VP ( VBP believe ) ) ) ) ( VP ( MD can ) ( VP ( VB add ) ( PP-CLR ( TO to ) ( NP ( NN volatility ) ) ) ) ) )

Trading in futures and options some people believe can add to volatility


( S ( S ( NP-SBJ ( NNS Investors ) ) ( VP ( VBP believe ) ( SBAR ( S ( NP-SBJ-3 ( PRP they ) ) ( VP ( MD can ) ( X ( MD can ) ) ( VP ( VB rely ) ( PP-CLR ( IN on ) ( NP ( JJ such ) ( JJ derivative ) ( NNS securities ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB get ) ( PP-CLR ( PP ( IN in ) ) ( CC and ) ( PP ( IN out ) ( PP ( IN of ) ) ) ( NP-1 ( DT the ) ( NN stock ) ( NN market ) ) ) ( PP ( IN without ) ( S-NOM ( ADVP ( RB actually ) ) ( VP ( VBG selling ) ( NP ( DT any ) ( NNS stocks ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( S ( NP-SBJ ( DT that ) ) ( VP ( VBZ is ) ( FRAG ( NP ( NP ( DT a ) ( NN way ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG staying ) ( ADJP-PRD ( JJ liquid ) ) ( SBAR-TMP ( WHADVP-2 ( ADVP ( RB even ) ) ( WRB when ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP own ) ( NP ( NNS stocks ) ) ) ) ) ) ) ) ) ) ) ) )

Investors believe they can can rely on such derivative securities to get in and out of the stock market without actually selling any stocks that is a way of staying liquid even when they own stocks


( SINV ( S-TPC-2 ( NP-SBJ-1 ( DT These ) ( CC and ) ( JJ other ) ( JJ modern ) ( NN trading ) ( NNS methods ) ) ( VP ( VBP tend ) ( S ( VP ( TO to ) ( VP ( VB promote ) ( NP ( NP ( JJ dramatic ) ( NNS shifts ) ) ( PP-LOC ( IN in ) ( NP ( NNS assets ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP George ) ( NNP Douglas ) ) ( NP ( NP ( JJ first ) ( NN vice ) ( NN president ) ) ( PP-LOC ( IN at ) ( NP ( NNP Drexel ) ( NNP Burnham ) ( NNP Lambert ) ( NNP Inc ) ) ) ) ) )

These and other modern trading methods tend to promote dramatic shifts in assets says George Douglas first vice president at Drexel Burnham Lambert Inc


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ 's ) ( NP-PRD ( DT the ) ( NN idea ) ( SBAR ( IN that ) ( S ( SBAR-NOM-SBJ ( WHNP-1 ( WP what ) ) ( S ( VP ( VBZ goes ) ( PP-CLR ( IN in ) ) ( ADVP-MNR ( RB easy ) ) ) ) ) ( VP ( MD can ) ( VP ( VB come ) ( PP-CLR ( IN out ) ) ( ADVP-MNR ( RB easy ) ) ( SBAR-PRP ( IN so ) ( IN that ) ( S ( NP-SBJ-2 ( NP ( NNS bouts ) ) ( PP ( IN of ) ( NP ( JJR higher ) ( NN volatility ) ) ) ) ( VP ( VBP get ) ( S ( VP ( VBN built ) ( PP-CLR ( IN into ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

It 's the idea that what goes in easy can come out easy so that bouts of higher volatility get built into the stock market


( S ( NP-SBJ ( NP ( CD One ) ( JJ new ) ( NN investment ) ( NN style ) ) ( VP ( VBN called ) ( S ( NP-PRD ( NN asset ) ( NN allocation ) ) ) ) ) ( VP ( VBZ shifts ) ( NP ( NN portfolio ) ( NNS weightings ) ) ( PP ( IN between ) ( NP ( NP ( NNS stocks ) ) ( NP ( NNS bonds ) ) ( CC and ) ( NP ( NN cash ) ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NN computer ) ( NNS models ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( CD one ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RBR more ) ( JJ attractive ) ) ) ) ) ) ) ) ) )

One new investment style called asset allocation shifts portfolio weightings between stocks bonds and cash when computer models say one is more attractive


( S ( PP ( IN For ) ( NP ( NN instance ) ) ) ( NP-SBJ ( NP ( NNP First ) ( NNP Quadrant ) ( NNP Corp. ) ) ( NP ( NP ( DT an ) ( NN asset ) ( NN allocator ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NP ( NNP Morristown ) ) ( NP ( NNP N.J. ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( ADVP-MNR ( RB quickly ) ) ( VBD boosted ) ( NP ( NP ( NN stock ) ( NNS positions ) ) ( PP ( IN in ) ( NP ( PRP$ its ) ( JJ aggressive ) ( NNS accounts ) ) ) ) ( PP-DIR ( TO to ) ( NP ( CD 75 ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( CD 55 ) ( NN % ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB take ) ( NP ( NP ( NN advantage ) ) ( PP ( IN of ) ( NP ( VBG plunging ) ( NNS prices ) ) ) ) ( NP-TMP ( NNP Friday ) ) ) ) ) ) ) ) ) )

For instance First Quadrant Corp. an asset allocator based in Morristown N.J. said it quickly boosted stock positions in its aggressive accounts to 75 % from 55 % to take advantage of plunging prices Friday


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD added ) ( NP ( QP ( DT another ) ( CD 5 ) ) ( NN % ) ) ( NP-TMP ( NNP Monday ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( NNS stocks ) ) ( VP ( VBD rallied ) ) ) ) ) )

It added another 5 % Monday before stocks rallied


( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD did ) ) ) ) ( NP-SBJ ( DT the ) ( NN firm ) ) ( VP ( VBD reduced ) ( NP ( DT those ) ( NN stock ) ( NNS holdings ) ) ( PP-DIR ( TO to ) ( NP ( QP ( IN about ) ( CD 70 ) ) ( NN % ) ) ) ) )

When they did the firm reduced those stock holdings to about 70 %


( S ( NP-SBJ ( NP ( DT A ) ( JJ classic ) ( NN example ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNS institutions ) ( POS ' ) ) ( NN hunger ) ) ( PP ( IN for ) ( NP ( NN liquidity ) ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( NN portfolio ) ( NN insurance ) ) ( ADVP-TMP ( RB now ) ) ( ADJP ( RB widely ) ( VBN discredited ) ) ) ) )

A classic example of institutions ' hunger for liquidity is portfolio insurance now widely discredited


( S ( PP-TMP ( IN Before ) ( NP ( DT the ) ( CD 1987 ) ( NN crash ) ) ) ( NP-SBJ-1 ( NP ( DT an ) ( VBN estimated ) ( QP ( CD 60 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( JJ institutional ) ( NN money ) ) ) ) ( VP ( VBD was ) ( VP ( VBN managed ) ( PP-LOC ( IN under ) ( NP ( DT this ) ( VBG hedging ) ( NN technique ) ) ) ) ) )

Before the 1987 crash an estimated 60 billion in institutional money was managed under this hedging technique


( S ( NP-SBJ ( DT The ) ( NN idea ) ) ( VP ( VBD was ) ( S-PRD ( VP ( TO to ) ( VP ( VB insure ) ( NP ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN portfolio ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG selling ) ( NP ( NNS futures ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( NN stock ) ( NNS prices ) ) ( VP ( VBD dropped ) ) ) ) ( S-ADV ( VP ( VBG eliminating ) ( NP ( DT the ) ( NN need ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( DT the ) ( NNS stocks ) ( PRP themselves ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The idea was to insure the value of a portfolio by selling futures when stock prices dropped eliminating the need to sell the stocks themselves


( S ( CC But ) ( PP-TMP ( IN in ) ( NP ( NNP October ) ( CD 1987 ) ) ) ( SBAR-TMP ( WHADVP ( WRB when ) ) ( S ( NP-SBJ ( NN portfolio ) ( NNS insurers ) ) ( VP ( VBD rushed ) ( S ( VP ( TO to ) ( VP ( VB sell ) ) ) ( PP ( IN at ) ( NP ( DT the ) ( JJ same ) ( NN time ) ) ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBD overwhelmed ) ( NP ( PDT both ) ( DT the ) ( NN stock ) ( CC and ) ( NNS futures ) ( NNS markets ) ) ) )

But in October 1987 when portfolio insurers rushed to sell at the same time they overwhelmed both the stock and futures markets


( S ( ADVP ( RB Yet ) ) ( ADVP-TMP ( RB even ) ( NN today ) ) ( NP-SBJ ( NNS institutions ) ) ( VP ( VBP are ) ( VP ( ADVP-MNR ( RB quietly ) ) ( VBG practicing ) ( NP ( NP ( NNS forms ) ) ( PP ( IN of ) ( NP ( NN portfolio ) ( NN insurance ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( ADVP-MNR ( RB nervously ) ) ( VBG rushing ) ( ADVP-DIR ( TO to ) ( CC and ) ( RB fro ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NNS markets ) ) ) ) ) ) ) ) )

Yet even today institutions are quietly practicing forms of portfolio insurance by nervously rushing to and fro in the markets


( S ( NP-SBJ ( NNS Others ) ) ( VP ( VBP are ) ( VP ( VBG doing ) ( NP ( NP ( NN index ) ( NN arbitrage ) ) ( NP ( NP ( DT a ) ( NN strategy ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG taking ) ( NP ( NN advantage ) ) ( PP ( IN of ) ( NP ( NP ( NN price ) ( NNS discrepancies ) ) ( PP ( IN between ) ( NP ( NP ( NNS stocks ) ) ( CC and ) ( NP ( NNS futures ) ) ) ) ) ) ) ) ) ) ) ) ) )

Others are doing index arbitrage a strategy of taking advantage of price discrepancies between stocks and futures


( S ( PP ( IN Unlike ) ( NP ( JJ traditional ) ( JJ buy-and-hold ) ( NNS strategies ) ) ) ( NP-SBJ ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ above ) ) ) ) ( VP ( VBP require ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NN market ) ( NNS makers ) ) ( VP ( VB be ) ( PP-PRD ( IN on ) ( NP ( NN hand ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB provide ) ( NP ( NN liquidity ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG buying ) ( CC and ) ( VBG selling ) ( NP ( NNS stocks ) ) ( PP-LOC ( IN in ) ( NP ( DT a ) ( NN crunch ) ) ) ) ) ) ) ) ) ) ) ) ) )

Unlike traditional buy-and-hold strategies all of the above require that market makers be on hand to provide liquidity by buying and selling stocks in a crunch


( S ( CC But ) ( NP-SBJ ( NNS institutions ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( NNP Wall ) ( NNP Street ) ( NN brokerage ) ( NNS firms ) ) ( VP ( VBP are ) ( ADJP-PRD ( RBR less ) ( JJ willing ) ( S ( VP ( TO to ) ( VP ( VB make ) ( NP ( NNS markets ) ) ) ) ) ) ) ) ) ) )

But institutions say Wall Street brokerage firms are less willing to make markets


( S ( NP-SBJ ( NNS Brokers ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB deny ) ( NP ( IN that ) ) ) ) )

Brokers do n't deny that


( S ( NP-SBJ ( NNP Wall ) ( NNP Street ) ( NNS traders ) ) ( VP ( VBP say ) ( SBAR ( IN that ) ( S ( SBAR ( IN with ) ( S ( NP-SBJ ( JJ institutional ) ( NN brokerage ) ( NNS commissions ) ) ( ADJP-PRD ( ADJP ( RB far ) ( JJR lower ) ) ( PP ( IN than ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( CD 1970s ) ) ) ) ) ) ) ( NP-SBJ-1 ( NNS securities ) ( NNS firms ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB afford ) ( S ( VP ( TO to ) ( VP ( VB take ) ( NP ( NP ( DT the ) ( NN risk ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG buying ) ( NP ( ADJP ( RB too ) ( JJ much ) ) ( NN stock ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Wall Street traders say that with institutional brokerage commissions far lower than in the 1970s securities firms ca n't afford to take the risk of buying too much stock


( SINV ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( NN everyone ) ) ( VP ( VBZ 's ) ( ADJP-PRD ( DT a ) ( RB little ) ( RBR more ) ( JJ leery ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Jack ) ( NNP Baker ) ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( NN equity ) ( NN trading ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Shearon ) ( NNP Lehman ) ( NNP Hutton ) ( NNP Inc ) ) ) ) ) )

I think everyone 's a little more leery says Jack Baker head of equity trading at Shearon Lehman Hutton Inc


( SINV ( S-TPC-3 ( NP-SBJ ( DT The ) ( NNS institutions ) ) ( VP ( VBP have ) ( VP ( VBN driven ) ( NP ( PRN ( NN commission ) ) ( NNS rates ) ) ( ADVP-DIR ( IN down ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NN point ) ) ( SBAR ( WHADVP-2 ( WRB where ) ) ( S ( NP-SBJ ( NP ( PRP it ) ) ) ( VP ( VBZ makes ) ( NP ( DT no ) ( NN sense ) ) ( S-1 ( VP ( TO to ) ( VP ( VB commit ) ( NP ( NN capital ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( NP ( NNP Tom ) ( NNP Gallagher ) ) ( NP ( NP ( JJ senior ) ( NN executive ) ( NN vice ) ( NN president ) ) ( PP ( IN in ) ( NP ( NP ( NN charge ) ) ( PP ( IN of ) ( NP ( JJ institutional ) ( NN trading ) ) ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Oppenheimer ) ( CC & ) ( NNP Co ) ) ) ) ) )

The institutions have driven commission rates down to the point where it makes no sense to commit capital says Tom Gallagher senior executive vice president in charge of institutional trading at Oppenheimer & Co


( SBARQ ( WHADVP ( WRB Why ) ) ( SQ ( MD should ) ( NP-SBJ ( PRP I ) ) ( VP ( VB risk ) ( NP ( NN money ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( NN guy ) ) ( X ( IN for ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ 's ) ( VP ( VBG paying ) ( NP ( PRP me ) ) ( NP ( NP ( CD five ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN dance ) ) ) ) ) ) ) ) ) ) ) )

Why should I risk money for a guy for who 's paying me five cents a dance


( S ( NP-SBJ ( NP ( DT All ) ) ( SBAR ( S ( NP-SBJ ( PRP you ) ) ( VP ( VBP get ) ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NN risk ) ) ) )

All you get is risk


( S ( NP-SBJ ( NP ( NN Lack ) ) ( PP ( IN of ) ( NP ( NN liquidity ) ) ) ) ( VP ( MD can ) ( ADVP ( RB also ) ) ( VP ( VB result ) ( PP-CLR ( IN from ) ( NP ( NN exchange ) ( NNS reforms ) ) ) ) ) )

Lack of liquidity can also result from exchange reforms


( S ( NP-SBJ ( JJ Many ) ( NNS traders ) ) ( VP ( VBP say ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NN circuit ) ( NNS breakers ) ) ( VP ( VBN put ) ( PP-PUT ( IN in ) ( NP ( NN place ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB damp ) ( NP ( NN volatility ) ) ) ) ) ( PP-TMP ( IN after ) ( NP ( DT the ) ( CD 1987 ) ( NN crash ) ) ) ) ) ( VP ( ADVP ( RB actually ) ) ( VBD added ) ( PP-CLR ( TO to ) ( NP ( NN volatility ) ) ) ( SBAR-TMP ( WHADVP-1 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN stock ) ( NN market ) ) ( VP ( VBD plunged ) ( NP-TMP ( NNP Friday ) ) ) ) ) ) ) ) ) )

Many traders say that circuit breakers put in place to damp volatility after the 1987 crash actually added to volatility when the stock market plunged Friday


( S ( NP-SBJ ( DT The ) ( NN circuit ) ( NNS breakers ) ) ( VP ( VBD caused ) ( NP ( NP ( DT a ) ( JJ 30-minute ) ( NN shutdown ) ) ( PP ( IN in ) ( NP ( NP ( NN trading ) ) ( PP ( IN in ) ( NP ( NP ( NNP Standard ) ( CC & ) ( NNP Poor ) ( POS 's ) ) ( JJ 500-stock ) ( NN index ) ( NNS futures ) ( NN contract ) ) ) ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( DT the ) ( NNS markets ) ) ( VP ( VBD were ) ( VP ( VBG falling ) ) ) ) ) ) )

The circuit breakers caused a 30-minute shutdown in trading in Standard & Poor 's 500-stock index futures contract as the markets were falling


( SINV ( S-TPC-1 ( PP ( IN With ) ( NP ( DT the ) ( JJ futures-trading ) ( NN halt ) ) ) ( NP-SBJ ( PRP you ) ) ( VP ( MD could ) ( ADVP ( RB only ) ) ( VP ( VB sell ) ( NP ( NNS stocks ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB cut ) ( NP ( NP ( NN exposure ) ) ( PP ( TO to ) ( NP ( DT the ) ( NN market ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ says ) ) ( NP-SBJ ( DT a ) ( NN money ) ( NN manager ) ) )

With the futures-trading halt you could only sell stocks to cut exposure to the market says a money manager


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ scary ) ) ( PP ( TO to ) ( NP ( NP ( NNS people ) ) ( VP ( VBG thinking ) ( SBAR ( IN that ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB get ) ( NP ( PRP$ their ) ( NNS trades ) ) ( PRT ( IN off ) ) ) ) ) ) ) ) ) ) )

It was scary to people thinking that they could n't get their trades off


( SINV ( S-TPC-1 ( NP-SBJ ( PRP It ) ) ( VP ( VBD was ) ( SBAR-PRD ( IN like ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VP ( VBD put ) ( NP ( PRP you ) ) ( PP ( IN in ) ( NP ( NP ( DT a ) ( NN room ) ) ( PP ( IN with ) ( NP ( DT a ) ( NN gorilla ) ) ) ) ) ) ( CC and ) ( VP ( VBD told ) ( NP ( PRP you ) ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBD were ) ( NP-PRD ( NP ( CD three ) ( NNS doors ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB exit ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( CD one ) ( JJ Chicago-based ) ( NNS futures ) ( NN trader ) ) )

It was like they put you in a room with a gorilla and told you there were three doors to exit said one Chicago-based futures trader


( S ( ADVP-TMP ( RB Then ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBD said ) ( SBAR ( S ( PP ( IN By ) ( NP ( DT the ) ( NN way ) ) ) ( NP-SBJ ( NP ( CD two ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS doors ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( VBN locked ) ) ) ) ) ) )

Then they said By the way two of the doors are locked


( S ( NP-SBJ ( DT The ) ( NN takeover ) ( NN mania ) ) ( ADVP ( RB also ) ) ( VP ( VBZ adds ) ( PP-CLR ( TO to ) ( NP ( NN volatility ) ) ) ) )

The takeover mania also adds to volatility


( S ( NP-SBJ ( NNP UAL ) ( NNP Corp. ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( JJ good ) ( NN example ) ) ) )

UAL Corp. is a good example


( S ( S-ADV ( VP ( VBN Valued ) ( PP-CLR ( IN as ) ( NP ( DT a ) ( NN buy-out ) ( NN target ) ) ) ) ) ( NP-SBJ-1 ( DT the ) ( NN airline ) ( NN stock ) ) ( VP ( VBD was ) ( VP ( VBG trading ) ( PP-CLR ( IN at ) ( NP ( NP ( QP ( RB nearly ) ( CD 280 ) ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) )

Valued as a buy-out target the airline stock was trading at nearly 280 a share


( S ( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( DT the ) ( NN deal ) ) ( VP ( VBD ran ) ( PP-DIR ( IN into ) ( NP ( NN trouble ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN stock ) ) ( VP ( VBD tumbled ) ) ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( CD 198 ) ) ) ( NP-TMP ( NN yesterday ) ) ) ) )

When the deal ran into trouble the stock tumbled it closed at 198 yesterday


( S ( ADVP ( RB Presumably ) ) ( NP-SBJ ( NNP UAL ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB now ) ) ( VP ( VBG trading ) ( ADVP-LOC ( JJR closer ) ( PP ( TO to ) ( NP ( NP ( PRP$ its ) ( NN value ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN on ) ( NP ( NNS earnings ) ) ) ) ) ) ) ) ) )

Presumably UAL is now trading closer to its value based on earnings


( S ( PP ( IN By ) ( NP ( NN contrast ) ) ) ( NP-SBJ ( JJ traditional ) ( JJ buy-and-hold ) ( NNS investors ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ unlikely ) ( S ( VP ( TO to ) ( VP ( VB generate ) ( NP ( JJ sudden ) ( NN price ) ( NNS moves ) ) ) ) ) ) ) )

By contrast traditional buy-and-hold investors are unlikely to generate sudden price moves


( S ( NP-SBJ ( NP ( NNP Scott ) ( NNP Black ) ) ( NP ( NP ( DT a ) ( JJ value-oriented ) ( NN money ) ( NN manager ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBZ heads ) ( NP ( NNP Delphi ) ( NNP Management ) ( NNP Inc. ) ) ) ) ) ) ) ( VP ( VBZ points ) ( PRT ( RP out ) ) ( SBAR ( IN that ) ( S ( PP ( IN for ) ( NP ( NP ( DT those ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP invest ) ( PP-LOC-CLR ( IN on ) ( NP ( NNS fundamentals ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN value ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN stock ) ) ) ( PP ( PP ( IN from ) ( NP ( NN day ) ) ) ( PP ( TO to ) ( NP ( NN day ) ) ) ) ) ( VP ( VBZ does ) ( RB n't ) ( VP ( VB change ) ( ADVP-CLR ( RB all ) ( RB that ) ( RB much ) ) ) ) ) ) ) )

Scott Black a value-oriented money manager who heads Delphi Management Inc. points out that for those who invest on fundamentals the value of a stock from day to day does n't change all that much


( S ( NP-SBJ ( DT Some ) ( NNS experts ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( NNS markets ) ) ( VP ( VBP are ) ( RB n't ) ( ADJP-PRD ( ADJP ( RB as ) ( JJ volatile ) ) ( SBAR ( IN as ) ( S ( VP ( ADVP-MNR ( RB widely ) ) ( VBN assumed ) ) ) ) ) ) ) ) ) )

Some experts say markets are n't as volatile as widely assumed


( S ( NP-SBJ ( NP ( NNP Hans ) ( NNP Stoll ) ) ( NP ( NP ( NN finance ) ( NN professor ) ) ( PP-LOC ( IN at ) ( NP ( NNP Vanderbilt ) ( NNP University ) ) ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( JJ current ) ( NN volatility ) ) ( PP-LOC ( IN in ) ( NP ( NNP U.S. ) ( NNS markets ) ) ) ) ( VP ( VBZ pales ) ( PP ( IN in ) ( NP ( NP ( NN comparison ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( CD 1930s ) ) ( SBAR-TMP ( NP ( NNS decades ) ) ( IN before ) ( S ( NP-SBJ-1 ( NP ( JJ derivative ) ( NNS instruments ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NNS options ) ( CC and ) ( NNS futures ) ) ) ) ( VP ( VBD were ) ( VP ( VBN introduced ) ) ) ) ) ) ) ) ) ) ) ) ) )

Hans Stoll finance professor at Vanderbilt University says the current volatility in U.S. markets pales in comparison to the 1930s decades before derivative instruments such as options and futures were introduced


( S ( S-TPC-1 ( NP-SBJ ( PRP I ) ) ( ADVP ( RB just ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB believe ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NNS innovations ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ financial ) ( NN market ) ) ) ) ( VP ( VBP are ) ( VP ( VBG causing ) ( NP ( NP ( DT any ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN volatility ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBZ says ) ) )

I just ca n't believe that the innovations in the financial market are causing any of this volatility he says


( S ( CC And ) ( NP-SBJ ( NP ( NNP Robert ) ( NNP D. ) ( NNP Arnott ) ) ( NP ( NP ( NN president ) ) ( PP ( IN of ) ( NP ( NN asset ) ( NN allocator ) ( NNP First ) ( NNP Quadrant ) ) ) ) ) ( VP ( VBZ notes ) ( SBAR ( IN that ) ( S ( PP-TMP ( IN before ) ( NP ( NP ( NNP Friday ) ( POS 's ) ) ( NN tailspin ) ) ) ( NP-SBJ ( NP ( JJ daily ) ( NN volatility ) ) ( PP ( IN on ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ( PP-TMP ( IN in ) ( NP ( JJ recent ) ( NNS weeks ) ) ) ( VP ( VBD had ) ( VP ( VBN reached ) ( NP ( ADJP ( RB historically ) ( JJ low ) ) ( NNS levels ) ) ) ) ) ) ) )

And Robert D. Arnott president of asset allocator First Quadrant notes that before Friday 's tailspin daily volatility on the New York Stock Exchange in recent weeks had reached historically low levels


( S ( NP-SBJ-1 ( DT Some ) ( NNS people ) ) ( VP ( VBP tend ) ( S ( VP ( TO to ) ( VP ( VB ignore ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT a ) ( JJ 50-point ) ( NN move ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( JJR less ) ( PP ( IN in ) ( NP ( NN percentage ) ( NNS terms ) ) ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( SBAR-TMP ( WHADVP-2 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN stock ) ( NN market ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJR lower ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Some people tend to ignore that a 50-point move is less in percentage terms than it was when the stock market was lower


( S ( NP-SBJ ( NP ( NNP John ) ( NNP J. ) ( NNP Phelan ) ( NNP Jr. ) ) ( NP ( NP ( NN chairman ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ) ) ) ) ( VP ( VBZ asserts ) ( SBAR ( IN that ) ( S ( NP-SBJ ( CD 1988 ) ( CC and ) ( CD 1989 ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( NP-PRD ( NP ( CD two ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( ADJP ( JJS least ) ( JJ volatile ) ) ( NNS years ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ last ) ( QP ( CD 30 ) ( CC or ) ( CD 40 ) ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) )

John J. Phelan Jr. chairman of the Big Board asserts that 1988 and 1989 have been two of the least volatile years in the last 30 or 40 years


( S ( CC But ) ( NP-SBJ ( NP ( DT the ) ( JJ low ) ( NN average ) ( NN volatility ) ) ( SBAR ( S ( NP-SBJ ( NNP Mr. ) ( NNP Phelan ) ) ( VP ( VBZ is ) ( VP ( VBG talking ) ( PP ( IN about ) ) ) ) ) ) ) ( VP ( VBZ is ) ( RB n't ) ( NP-PRD ( DT any ) ( NN comfort ) ) ( PP-TMP ( IN in ) ( NP ( NP ( DT a ) ( NN period ) ) ( PP ( IN of ) ( NP ( JJ rapid ) ( NN stock-market ) ( NNS moves ) ) ) ( PP ( IN like ) ( NP ( DT the ) ( NN past ) ( NN week ) ) ) ) ) ) )

But the low average volatility Mr. Phelan is talking about is n't any comfort in a period of rapid stock-market moves like the past week


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( NP ( NNP Sanford ) ( NNP Grossman ) ) ( NP ( DT a ) ( NNP Wharton ) ( NNP School ) ( NN finance ) ( NN professor ) ) ) ( VP ( VBZ says ) ( SBAR ( S ( NP-SBJ ( NP ( JJ volatile ) ( NNS jumps ) ) ( PP ( IN in ) ( NP ( NN stock ) ( NNS prices ) ) ) ) ( VP ( MD will ) ( VP ( VB continue ) ( ADVP-TMP ( ADVP ( RB as ) ( RB long ) ) ( SBAR ( IN as ) ( S ( NP-SBJ ( NN liquidity ) ) ( VP ( VBZ falls ) ( ADJP ( RB short ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJ voracious ) ( NNS demands ) ) ( PP ( IN of ) ( NP ( NP ( NNS institutions ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( MD can ) ( VP ( VP ( VB go ) ( ADVP-DIR ( IN out ) ) ) ( CC and ) ( VP ( VB say ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( VBP have ) ( NP ( NP ( NP ( QP ( DT a ) ( CD billion ) ) ( NNS dollars ) ) ( PP ( IN of ) ( NP ( NNS stocks ) ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB sell ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In addition Sanford Grossman a Wharton School finance professor says volatile jumps in stock prices will continue as long as liquidity falls short of the voracious demands of institutions who can go out and say I have a billion dollars of stocks to sell


( S ( NP-SBJ ( DT Some ) ( NNS people ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN search ) ) ( PP ( IN for ) ( NP ( NN liquidity ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ fruitless ) ) ) ) ) ) )

Some people think the search for liquidity is fruitless


( S ( PP-TMP ( IN In ) ( NP ( CD 1936 ) ) ) ( NP-SBJ ( NNP John ) ( NNP Maynard ) ( NNP Keynes ) ) ( VP ( VBD wrote ) ( SBAR ( IN that ) ( S ( PP-TPC-1 ( IN of ) ( NP ( NP ( DT the ) ( NNS maxims ) ) ( PP ( IN of ) ( NP ( JJ orthodox ) ( NN finance ) ) ) ) ) ( NP-SBJ ( NP ( NN none ) ) ) ( ADVP ( RB surely ) ) ( VP ( VBZ is ) ( ADJP-PRD ( ADJP ( RBR more ) ( JJ antisocial ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( NN fetish ) ) ( PP ( IN of ) ( NP ( NN liquidity ) ) ) ) ) ) ) ) ) ) )

In 1936 John Maynard Keynes wrote that of the maxims of orthodox finance none surely is more antisocial than the fetish of liquidity


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBZ leads ) ( NP ( NNS investors ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB focus ) ( PP-LOC-CLR ( PP ( IN on ) ( NP ( NP ( JJ short-term ) ( NN price ) ( NNS movements ) ) ( PRN ( S ( NP-TPC-1 ( NP ( DT a ) ( NN game ) ) ( PP ( IN of ) ( NP ( JJ musical ) ( NNS chairs ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD called ) ( S ( NP-SBJ ( PRP it ) ) ) ) ) ) ) ) ( CONJP ( RB rather ) ( IN than ) ) ( PP ( IN on ) ( NP ( JJ long-term ) ( JJ fundamental ) ( NN valuation ) ) ) ) ) ) ) ) )

It leads investors to focus on short-term price movements a game of musical chairs he called it rather than on long-term fundamental valuation


( S ( NP-SBJ ( NNP James ) ( NNP A. ) ( NNP White ) ) ( VP ( VBD contributed ) ( PP-CLR ( TO to ) ( NP ( DT this ) ( NN article ) ) ) ) )

James A. White contributed to this article


( S ( NP-SBJ-3 ( NP ( NNP Robin ) ( NNP Honiss ) ) ( NP ( NP ( NP ( NN president ) ) ( CC and ) ( NP ( NN chief ) ( JJ executive ) ( NN officer ) ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN bank ) ( VBG holding ) ( NN company ) ) ) ) ) ( VP ( VBD was ) ( VP ( VBN elected ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( JJ additional ) ( NNS posts ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NN chairman ) ) ( NP ( NN president ) ) ( CC and ) ( NP ( NN chief ) ( NN executive ) ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NNP New ) ( NNP England ) ( NNP Savings ) ( NNP Bank ) ( NN subsidiary ) ) ) ) ) ) ) ) ) )

Robin Honiss president and chief executive officer of this bank holding company was elected to the additional posts of chairman president and chief executive of the company 's New England Savings Bank subsidiary


( S ( NP-SBJ ( NNP William ) ( NNP R. ) ( NNP Attridge ) ) ( VP ( VBD resigned ) ( NP ( NP ( DT those ) ( NNS posts ) ) ( CONJP ( RB as ) ( RB well ) ( IN as ) ) ( NP ( NP ( DT a ) ( NN seat ) ) ( PP-LOC ( IN on ) ( NP ( NP ( NNP NESB ) ( POS 's ) ) ( NN board ) ) ) ) ) ) )

William R. Attridge resigned those posts as well as a seat on NESB 's board


( S ( NP-SBJ ( NNP NESB ) ) ( VP ( VBZ is ) ( ADVP ( RB also ) ) ( NP-PRD ( NP ( DT the ) ( NN parent ) ) ( PP ( IN of ) ( NP ( NNP Omnibank ) ) ) ) ) )

NESB is also the parent of Omnibank


( S ( NP-SBJ-1 ( DT The ) ( NNP Treasury ) ) ( VP ( VBZ plans ) ( S ( VP ( TO to ) ( VP ( VB raise ) ( NP ( NP ( QP ( CD 1.55 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( JJ new ) ( NN cash ) ) ) ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( NN sale ) ) ( NP-TMP ( NNP Monday ) ) ( PP ( IN of ) ( NP ( NP ( QP ( IN about ) ( CD 15.6 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( JJ short-term ) ( NNS bills ) ) ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB redeem ) ( NP ( NP ( QP ( CD 14.1 ) ( CD billion ) ) ) ( PP ( IN in ) ( NP ( VBG maturing ) ( NNS bills ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The Treasury plans to raise 1.55 billion in new cash with the sale Monday of about 15.6 billion in short-term bills to redeem 14.1 billion in maturing bills


( S ( NP-SBJ-1 ( DT The ) ( NN offering ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN divided ) ( ADVP-MNR ( RB evenly ) ) ( PP ( IN between ) ( NP ( NP ( JJ 13-week ) ( CC and ) ( JJ 26-week ) ( NNS bills ) ) ( VP ( VBG maturing ) ( PP-TMP ( IN on ) ( NP ( NP ( NNP Jan. ) ( CD 25 ) ( CD 1990 ) ) ( CC and ) ( NP ( NNP April ) ( CD 26 ) ( CD 1990 ) ) ( ADVP ( RB respectively ) ) ) ) ) ) ) ) ) ) )

The offering will be divided evenly between 13-week and 26-week bills maturing on Jan. 25 1990 and April 26 1990 respectively


( S ( NP-SBJ-1 ( NP ( NNS Tenders ) ) ( PP ( IN for ) ( NP ( NP ( DT the ) ( NNS bills ) ) ( ADJP ( JJ available ) ( PP ( IN in ) ( NP ( JJ minimum ) ( ADJP ( CD 10,000 ) ) ( NNS denominations ) ) ) ) ) ) ) ( VP ( MD must ) ( VP ( VB be ) ( VP ( VBN received ) ( PP-TMP ( IN by ) ( NP ( CD 1 ) ( NN p.m. ) ( NNP EDT ) ( NNP Monday ) ) ) ( PP-LOC ( PP ( IN at ) ( NP ( DT the ) ( NN Treasury ) ) ) ( CC or ) ( PP ( IN at ) ( NP ( NNP Federal ) ( NNP Reserve ) ( NNS banks ) ( CC or ) ( NNS branches ) ) ) ) ) ) ) )

Tenders for the bills available in minimum 10,000 denominations must be received by 1 p.m. EDT Monday at the Treasury or at Federal Reserve banks or branches


( S ( NP-SBJ-2 ( NP ( NNP Michael ) ( NNP A. ) ( NNP Gaskin ) ) ( ADJP ( NP ( CD 55 ) ( NNS years ) ) ( JJ old ) ) ) ( VP ( VBD was ) ( VP ( VBN named ) ( S ( NP-PRD ( NP ( NP ( NN president ) ) ) ( CC and ) ( NP ( NP ( NN chief ) ( JJ executive ) ( NN officer ) ) ) ( PP-1 ( IN of ) ( NP ( NP ( DT this ) ( NN manufacturer ) ) ( PP ( IN of ) ( NP ( JJ industrial ) ( NNS robots ) ) ) ) ) ) ) ( S-ADV ( VP ( VBG succeeding ) ( NP ( NNP Walter ) ( NNP K. ) ( NNP Weisel ) ) ) ) ) ) )

Michael A. Gaskin 55 years old was named president and chief executive officer of this manufacturer of industrial robots succeeding Walter K. Weisel


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Weisel ) ) ( NP ( CD 49 ) ) ) ( VP ( VP ( VBD resigned ) ( PP-CLR ( IN as ) ( NP ( NP ( NN president ) ) ( CC and ) ( NP ( NN chief ) ( NN executive ) ) ) ) ) ( CC and ) ( VP ( MD will ) ( VP ( VB work ) ( PP-CLR ( IN on ) ( NP ( JJ special ) ( NNS projects ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP John ) ( NNP J. ) ( NNP Wallace ) ) ( NP ( NN chairman ) ) ) )

Mr. Weisel 49 resigned as president and chief executive and will work on special projects said John J. Wallace chairman


( S ( NP-SBJ ( NNP Mr. ) ( NNP Gaskin ) ) ( VP ( VP ( ADVP-TMP ( RB formerly ) ) ( VBD was ) ( NP-PRD ( NP ( NP ( NN president ) ) ) ( CC and ) ( NP ( NP ( NN chief ) ( NN executive ) ) ) ( PP-2 ( IN of ) ( NP ( NNP Taylor ) ( CC & ) ( NNP Gaskin ) ( NNP Inc. ) ) ) ) ) ( CC and ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( NN director ) ) ( PP ( IN of ) ( NP ( NNP Prab ) ( NNP Robots ) ) ) ) ( PP-TMP ( IN since ) ( NP ( CD 1985 ) ) ) ) ) )

Mr. Gaskin formerly was president and chief executive of Taylor & Gaskin Inc. and was a director of Prab Robots since 1985


( S ( NP-SBJ ( JJ Industrial ) ( NN production ) ) ( VP ( VBD declined ) ( NP-EXT ( CD 0.1 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ( S-ADV ( VP ( VBG reinforcing ) ( NP ( JJ other ) ( NNS signs ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( VBG manufacturing ) ( NN sector ) ) ( VP ( VBZ continues ) ( NP ( PRP$ its ) ( VBG slowing ) ( NN trend ) ) ) ) ) ) ) ) ) )

Industrial production declined 0.1 % in September reinforcing other signs that the manufacturing sector continues its slowing trend


( S ( NP-SBJ ( DT The ) ( NNP Federal ) ( NNP Reserve ) ( NNP Board ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( NN output ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( NNS factories ) ( NNS mines ) ( CC and ) ( NNS utilities ) ) ) ) ( VP ( VBD expanded ) ( PP-MNR ( IN at ) ( NP ( NP ( DT an ) ( JJ annual ) ( NN rate ) ) ( PP ( IN of ) ( NP ( CD 1.3 ) ( NN % ) ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ( ADJP ( ADJP ( RB substantially ) ( JJR slower ) ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( ADJP ( CD 3.3 ) ( NN % ) ) ( JJ annual ) ( NN rate ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ second ) ( NN quarter ) ) ) ) ) ) ) ) ) ) ) ) )

The Federal Reserve Board said output of the nation 's factories mines and utilities expanded at an annual rate of 1.3 % in the third quarter substantially slower than the 3.3 % annual rate in the second quarter


( SINV ( S-TPC-2 ( NP-SBJ ( NP ( NN Capital ) ( NN spending ) ( CC and ) ( NNS exports ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP have ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT the ) ( VBG driving ) ( NN force ) ) ( PP-LOC ( IN in ) ( NP ( DT this ) ( NN expansion ) ) ) ) ) ) ) ) ) ( VP ( VBP are ) ( VP ( VBG showing ) ( NP ( NP ( JJ clear ) ( NNS signs ) ) ( PP ( IN of ) ( S-NOM ( VP ( VBG having ) ( S ( NP-SBJ ( DT the ) ( NN steam ) ) ( VP ( VBN taken ) ( ADVP-CLR ( IN out ) ( PP ( IN of ) ( NP ( PRP them ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Robert ) ( NNP Dederick ) ) ( NP ( NP ( NN economist ) ) ( PP ( IN for ) ( NP ( NP ( NNP Northern ) ( NNP Trust ) ( NNP Co. ) ) ( PP ( IN in ) ( NP ( NNP Chicago ) ) ) ) ) ) ) )

Capital spending and exports which have been the driving force in this expansion are showing clear signs of having the steam taken out of them said Robert Dederick economist for Northern Trust Co. in Chicago


( S ( NP-SBJ ( NP ( NP ( DT The ) ( JJ new ) ( NNS reports ) ) ( PP ( IN of ) ( NP ( NN sluggishness ) ) ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBD were ) ( VP ( VBN foreshadowed ) ( PP ( IN by ) ( NP-LGS ( NP ( DT an ) ( JJR earlier ) ( NNP Labor ) ( NNP Department ) ( NN report ) ) ( SBAR ( IN that ) ( S ( NP-SBJ ( VBG manufacturing ) ( NNS payrolls ) ) ( VP ( VBD dropped ) ( PP-EXT ( IN by ) ( NP ( CD 105,000 ) ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBP give ) ( NP ( DT the ) ( NNP Fed ) ) ( NP ( DT another ) ( NN reason ) ( S ( VP ( TO to ) ( VP ( ADVP ( RB further ) ) ( VP ( VB ease ) ( NP ( NP ( PRP$ its ) ( NN grip ) ) ( PP-LOC ( IN on ) ( NP ( NN credit ) ) ) ) ) ( CC and ) ( VP ( VB lower ) ( NP ( NN interest ) ( NNS rates ) ) ) ) ) ) ) ) )

The new reports of sluggishness which were foreshadowed by an earlier Labor Department report that manufacturing payrolls dropped by 105,000 in September give the Fed another reason to further ease its grip on credit and lower interest rates


( SINV ( S-TPC-2 ( NP-SBJ-1 ( PRP They ) ) ( VP ( VBP need ) ( S ( VP ( TO to ) ( VP ( VB do ) ( NP ( NN something ) ) ( PP ( IN about ) ( NP ( DT this ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Maury ) ( NNP Harris ) ) ( NP ( NP ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( NNP PaineWebber ) ( NNP Group ) ( NNP Inc ) ) ) ) ) )

They need to do something about this said Maury Harris economist at PaineWebber Group Inc


( S ( NP-SBJ ( DT The ) ( NNP Fed ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNP U.S. ) ( NN industry ) ) ( VP ( VBD operated ) ( PP-CLR ( IN at ) ( NP ( CD 83.6 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NN capacity ) ) ) ( NP-TMP ( JJ last ) ( NN month ) ) ) ( ADVP ( IN down ) ( PP ( IN from ) ( NP ( CD 83.8 ) ( NN % ) ) ( PP ( IN in ) ( NP ( NNP August ) ) ) ) ) ) ) ) ) )

The Fed also said U.S. industry operated at 83.6 % of capacity last month down from 83.8 % in August


( S ( NP-SBJ ( NP ( NNS Measures ) ) ( PP ( IN of ) ( NP ( VBG manufacturing ) ( NN activity ) ) ) ) ( VP ( VBD fell ) ( ADVP ( ADVP ( RBR more ) ) ( PP ( IN than ) ( NP ( DT the ) ( JJ overall ) ( NNS measures ) ) ) ) ) )

Measures of manufacturing activity fell more than the overall measures


( S ( NP-SBJ ( NN Factory ) ( NN output ) ) ( VP ( VP ( VBD dropped ) ( NP-EXT ( CD 0.2 ) ( NN % ) ) ) ( NP ( NP ( PRP$ its ) ( JJ first ) ( NN decline ) ) ( PP ( IN since ) ( NP ( NNP February ) ) ) ) ( SBAR-TMP-1 ( IN after ) ( S-NOM ( VP ( VBG having ) ( VP ( VBN been ) ( ADJP-PRD ( JJ unchanged ) ) ( PP-TMP ( IN in ) ( NP ( NNP October ) ) ) ) ) ) ) ) )

Factory output dropped 0.2 % its first decline since February after having been unchanged in October


( S ( NP-SBJ ( NNS Factories ) ) ( VP ( VBD operated ) ( PP-CLR ( IN at ) ( NP ( NP ( NP ( CD 83.7 ) ( NN % ) ) ( PP ( IN of ) ( NP ( NN capacity ) ) ) ) ( UCP ( NP ( NP ( DT the ) ( JJS lowest ) ( NN rate ) ) ( PP-TMP ( IN in ) ( NP ( QP ( JJR more ) ( IN than ) ( DT a ) ) ( NN year ) ) ) ) ( CC and ) ( ADVP ( IN down ) ( PP ( IN from ) ( NP ( CD 84.1 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) ) ) ) ) ) )

Factories operated at 83.7 % of capacity the lowest rate in more than a year and down from 84.1 % in September


( S ( NP-SBJ ( DT The ) ( NNS declines ) ) ( ADVP ( RB mainly ) ) ( VP ( VBD reflected ) ( NP ( NP ( JJ widespread ) ( NN weakness ) ) ( PP-LOC ( IN in ) ( NP ( NP ( JJ durable ) ( NNS goods ) ) ( NP ( NP ( DT those ) ) ( VP ( VBN intended ) ( S ( VP ( TO to ) ( VP ( VB last ) ( NP-TMP ( QP ( JJR more ) ( IN than ) ( CD three ) ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) )

The declines mainly reflected widespread weakness in durable goods those intended to last more than three years


( S ( NP-SBJ-1 ( DT The ) ( JJS biggest ) ( NN drop ) ) ( VP ( VBD was ) ( VP ( VBN recorded ) ( PP ( IN by ) ( NP-LGS ( NP ( JJ primary ) ( NNS metals ) ( NNS producers ) ) ( NP ( NP ( DT a ) ( NN category ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBZ includes ) ( NP ( DT the ) ( NN steel ) ( NN industry ) ) ) ) ) ) ) ) ) ) )

The biggest drop was recorded by primary metals producers a category that includes the steel industry


( S ( NP-SBJ ( NP ( NN Output ) ) ( PP ( IN of ) ( NP ( NN business ) ( NN equipment ) ) ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ unchanged ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) )

Output of business equipment was unchanged in September


( S ( NP-SBJ ( NP ( NP ( NN Production ) ) ( PP ( IN of ) ( NP ( NN factory ) ( NN equipment ) ) ) ) ( NP ( NP ( CD one ) ( NN indication ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN strength ) ) ( PP ( IN of ) ( NP ( NP ( NNS manufacturers ) ( POS ' ) ) ( NN investment ) ( NN spending ) ) ) ) ) ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 0.3 ) ( NN % ) ) ) )

Production of factory equipment one indication of the strength of manufacturers ' investment spending fell 0.3 %


( S ( NP-SBJ ( DT Some ) ( NNS economists ) ) ( VP ( VBP expect ) ( NP ( NP ( JJ further ) ( NNS declines ) ) ( PP-LOC ( IN in ) ( NP ( NN investment ) ( NN spending ) ) ) ) ) )

Some economists expect further declines in investment spending


( S ( S-TPC-3 ( SBAR-TMP ( WHADVP-1 ( WRB Whenever ) ) ( S ( NP-SBJ ( JJ corporate ) ( NNS profits ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ weak ) ) ) ) ) ( NP-SBJ ( WDT that ) ) ( VP ( VBZ means ) ( SBAR ( S ( NP-SBJ-2 ( NN capital ) ( NN spending ) ) ( VP ( VBZ is ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB soften ) ( ADVP-TMP ( RB subsequently ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Harris ) ) ( VP ( VBD said ) ) )

Whenever corporate profits are weak that means capital spending is going to soften subsequently Mr. Harris said


( S ( NP-SBJ ( PRP You ) ) ( VP ( VBP have ) ( RB n't ) ( VP ( VBN seen ) ( NP ( NP ( DT the ) ( JJ full ) ( NN effect ) ) ( PP ( IN of ) ( NP ( DT that ) ) ) ) ( ADVP-TMP ( RB yet ) ) ) ) )

You have n't seen the full effect of that yet


( S ( S-TPC-1 ( NP-SBJ ( NP ( DT A ) ( NN decline ) ) ( PP-LOC ( IN in ) ( NP ( NN truck ) ( NN production ) ) ) ) ( VP ( ADVP ( RBR more ) ( IN than ) ) ( VB offset ) ( NP ( NP ( DT a ) ( JJ sharp ) ( NN rise ) ) ( PP ( IN in ) ( NP ( NN auto ) ( NNS assemblies ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( VBD noted ) ) )

A decline in truck production more than offset a sharp rise in auto assemblies the Fed noted


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB expect ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( NNP September ) ( NN surge ) ) ( PP-LOC ( IN in ) ( NP ( NN auto ) ( NN production ) ) ) ) ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN repeated ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( VBG coming ) ( NNS months ) ) ) ) ) ) ) ) ) )

Analysts do n't expect the September surge in auto production to be repeated in the coming months


( SINV ( NP-SBJ ( RB Here ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN summary ) ) ( PP ( IN of ) ( NP ( NP ( NP ( DT the ) ( NNP Federal ) ( NNP Reserve ) ( NNP Board ) ( POS 's ) ) ( NN report ) ) ( PP ( IN on ) ( NP ( NP ( JJ industrial ) ( NN production ) ) ( PP-TMP ( IN in ) ( NP ( NNP September ) ) ) ) ) ) ) ) ) )

Here is a summary of the Federal Reserve Board 's report on industrial production in September


( S ( NP-SBJ-1 ( DT The ) ( NNS figures ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB seasonally ) ) ( VP ( VBN adjusted ) ) ) )

The figures are seasonally adjusted


( NP-HLN ( NP ( CD 142.3 ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( CD 1977 ) ( NN average ) ) ) )

142.3 % of the 1977 average


NEWSPAPERS


( S ( NP-SBJ-2 ( NNP Media ) ( NNP General ) ( NNP Inc. ) ) ( VP ( VBZ intends ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( NP ( NP ( CD two ) ) ( PP ( IN of ) ( NP ( PRP$ its ) ( NNP West ) ( NNP Coast ) ( JJ weekly ) ( NN newspaper ) ( NNS chains ) ) ) ) ( PRN ( NP ( NP ( NNP Golden ) ( NNP West ) ( NNP Publishing ) ( NNP Inc. ) ) ( CC and ) ( NP ( NNP Highlander ) ( NNPS Publications ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( ADVP ( RB together ) ) ( VP ( VBP comprise ) ( NP ( CD 31 ) ( NNS papers ) ) ) ) ) ) ) ) ) ) )

Media General Inc. intends to sell two of its West Coast weekly newspaper chains Golden West Publishing Inc. and Highlander Publications which together comprise 31 papers


( S ( NP-SBJ ( NNP Media ) ( NNP General ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VP ( VBZ has ) ( VP ( VBN had ) ( NP ( NP ( NNS inquiries ) ) ( PP ( IN from ) ( NP ( JJ potential ) ( NNS buyers ) ) ) ) ) ) ( CC and ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB complete ) ( NP ( DT a ) ( NN sale ) ) ( PP-TMP ( IN in ) ( NP ( CD 1989 ) ) ) ) ) ) ) ) ) ) ) )

Media General said it has had inquiries from potential buyers and expects to complete a sale in 1989


( S ( NP-SBJ ( PRP It ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB discuss ) ( NP ( DT a ) ( NN price ) ) ) ) )

It would n't discuss a price


( S ( NP-SBJ-1 ( NNP Lee ) ( NNP Dirks ) ( CC & ) ( NNPS Associates ) ) ( VP ( VBZ is ) ( S ( VP ( TO to ) ( VP ( VB sell ) ( NP ( DT the ) ( NNS chains ) ) ) ) ) ) )

Lee Dirks & Associates is to sell the chains


( S ( NP-SBJ ( NP ( DT The ) ( NN oil ) ( CC and ) ( NN auto ) ( NNS industries ) ) ( VP ( VBN united ) ( PP-LOC ( IN in ) ( NP ( NP ( PRP$ their ) ( NN dislike ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP President ) ( NNP Bush ) ( POS 's ) ) ( NN proposal ) ) ( PP ( IN for ) ( NP ( NP ( NNS cars ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP run ) ( PP-MNR ( IN on ) ( NP ( JJ alternative ) ( NNS fuels ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD announced ) ( NP ( NP ( DT a ) ( JJ joint ) ( NN research ) ( NN program ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( MD could ) ( VP ( VB turn ) ( PRT ( RP up ) ) ( NP ( DT a ) ( JJ cleaner-burning ) ( NN gasoline ) ) ) ) ) ) ) ) )

The oil and auto industries united in their dislike of President Bush 's proposal for cars that run on alternative fuels announced a joint research program that could turn up a cleaner-burning gasoline


( S ( NP-SBJ ( NP ( NNS Officials ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Big ) ( CD Three ) ( NN auto ) ( NNS makers ) ) ( CC and ) ( NP ( CD 14 ) ( NN petroleum ) ( NNS companies ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP they ) ) ( VP ( VBP are ) ( VP ( VBG setting ) ( PRT ( RP out ) ) ( S ( VP ( TO to ) ( VP ( VB find ) ( NP ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ cost-effective ) ) ( NN fuel ) ) ( PP ( IN for ) ( S-NOM ( VP ( VBG reducing ) ( NP ( NP ( NNS cities ) ( POS ' ) ) ( NN air-pollution ) ( NNS problems ) ) ) ) ) ) ) ) ) ( PP ( IN with ) ( NP ( NP ( DT no ) ( NN bias ) ) ( PP ( IN toward ) ( NP ( NP ( DT any ) ( NN fuel ) ) ( PP ( IN in ) ( NP ( NN particular ) ) ) ) ) ) ) ) ) ) ) ) )

Officials of the Big Three auto makers and 14 petroleum companies said they are setting out to find the most cost-effective fuel for reducing cities ' air-pollution problems with no bias toward any fuel in particular


( S ( ADVP ( RB However ) ) ( NP-SBJ ( PRP$ their ) ( NN search ) ) ( ADVP ( RB notably ) ) ( VP ( MD wo ) ( RB n't ) ( VP ( VB include ) ( NP ( NP ( NP ( JJ natural ) ( NN gas ) ) ( CC or ) ( NP ( JJ pure ) ( NN methanol ) ) ) ( PRN ( NP ( DT the ) ( CD two ) ( JJ front-running ) ( JJ alternative ) ( NNS fuels ) ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS tests ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN completed ) ( PP-TMP ( IN by ) ( NP ( JJ next ) ( NN summer ) ) ) ) ) ) ) ) ) ) ) ) )

However their search notably wo n't include natural gas or pure methanol the two front-running alternative fuels in tests to be completed by next summer


( S ( ADVP ( RB Instead ) ) ( NP-SBJ ( DT the ) ( NNS tests ) ) ( VP ( MD will ) ( VP ( VB focus ) ( ADVP-MNR ( RB heavily ) ) ( PP-LOC-CLR ( IN on ) ( NP ( NP ( NP ( JJ new ) ( NNS blends ) ) ( PP ( IN of ) ( NP ( NN gasoline ) ) ) ) ( SBAR ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP are ) ( ADVP-TMP ( RB still ) ) ( ADJP-PRD ( JJ undeveloped ) ) ) ) ) ( CC but ) ( SBAR ( WHNP-3 ( WDT which ) ) ( S ( NP-SBJ ( DT the ) ( NN petroleum ) ( NN industry ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBG touting ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( NN solution ) ) ( PP ( IN for ) ( NP ( NP ( NN automobile ) ( NN pollution ) ) ( SBAR ( WHNP-2 ( WDT that ) ) ( S ( VP ( VBZ is ) ( VP ( VBG choking ) ( NP ( JJ urban ) ( NNS areas ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Instead the tests will focus heavily on new blends of gasoline which are still undeveloped but which the petroleum industry has been touting as a solution for automobile pollution that is choking urban areas


( S ( NP-SBJ ( NNS Environmentalists ) ) ( VP ( VBD criticized ) ( NP ( DT the ) ( NN program ) ) ( PP-CLR ( IN as ) ( NP ( RB merely ) ( DT a ) ( NNS public-relations ) ( NN attempt ) ( S ( VP ( TO to ) ( VP ( VB head ) ( PRT ( RP off ) ) ( NP ( DT a ) ( NNP White ) ( NNP House ) ( NN proposal ) ( S ( VP ( TO to ) ( VP ( VB require ) ( NP ( NP ( NP ( DT a ) ( CD million ) ( NNS cars ) ) ( NP-ADV ( DT a ) ( NN year ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBD run ) ( PP-MNR ( IN on ) ( NP ( JJ cleaner-burning ) ( NNS fuels ) ) ) ) ) ) ) ) ) ) ) ( PP-TMP ( IN by ) ( NP ( CD 1997 ) ) ) ) ) ) ) ) ) )

Environmentalists criticized the program as merely a public-relations attempt to head off a White House proposal to require a million cars a year that run on cleaner-burning fuels by 1997


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( JJ major ) ( NN oil ) ( NNS companies ) ) ( VP ( VBP have ) ( VP ( VBN been ) ( VP ( VBG experimenting ) ( PP-CLR ( IN with ) ( NP ( JJ cleaner-burning ) ( NN gasoline ) ( NNS blends ) ) ) ( PP-TMP ( IN for ) ( NP ( NNS years ) ) ) ) ) ) ) ) ( NP-SBJ ( RB only ) ( NNP Atlantic ) ( NNP Richfield ) ( NNP Co. ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB now ) ) ( VP ( VBG marketing ) ( NP ( NP ( DT a ) ( NN lower-emission ) ( NN gasoline ) ) ( PP ( IN for ) ( NP ( NP ( JJR older ) ( NNS cars ) ) ( VP ( ADVP-TMP ( RB currently ) ) ( VBG running ) ( PP-MNR ( IN on ) ( NP ( JJ leaded ) ( NN fuel ) ) ) ) ) ) ) ) ) )

While major oil companies have been experimenting with cleaner-burning gasoline blends for years only Atlantic Richfield Co. is now marketing a lower-emission gasoline for older cars currently running on leaded fuel


( SINV ( S-TPC-2 ( NP-SBJ ( DT The ) ( JJ initial ) ( ADJP ( QP ( CD 11 ) ( CD million ) ) ) ( NN research ) ( NN program ) ) ( VP ( MD will ) ( VP ( VB conduct ) ( NP ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ extensive ) ) ( NN testing ) ) ( PP-1 ( TO to ) ( NP ( NN date ) ) ) ( PP ( IN of ) ( NP ( VBN reformulated ) ( NNS gasolines ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Joe ) ( NNP Colucci ) ) ( NP ( NP ( NN head ) ) ( PP ( IN of ) ( NP ( NNS fuels ) ( CC and ) ( NNS lubricants ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP General ) ( NNPS Motors ) ( NNP Corp. ) ( NN research ) ( NNS laboratories ) ) ) ) ) )

The initial 11 million research program will conduct the most extensive testing to date of reformulated gasolines said Joe Colucci head of fuels and lubricants at General Motors Corp. research laboratories


( S ( NP-SBJ ( PRP It ) ) ( VP ( MD will ) ( VP ( VB compare ) ( NP ( NP ( CD 21 ) ( JJ different ) ( NNS blends ) ) ( PP ( IN of ) ( NP ( NNS gasolines ) ) ) ) ( PP-CLR ( IN with ) ( NP ( NP ( CD three ) ( NNS mixtures ) ) ( PP ( IN of ) ( NP ( ADJP ( QP ( IN up ) ( TO to ) ( CD 85 ) ) ( NN % ) ) ( NN methanol ) ) ) ) ) ) ) )

It will compare 21 different blends of gasolines with three mixtures of up to 85 % methanol


( S ( NP-SBJ ( NP ( NP ( DT A ) ( JJ second ) ( NN phase ) ) ( PP ( IN of ) ( NP ( NN research ) ) ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBZ is ) ( ADVP-TMP ( RB still ) ) ( VP ( VBG being ) ( VP ( VBN planned ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB test ) ( NP ( VBN reformulated ) ( NNS gasolines ) ) ( PP-LOC-CLR ( IN on ) ( NP ( NP ( JJR newer ) ( NN engine ) ( NNS technologies ) ) ( ADVP-TMP ( RB now ) ) ( VP ( VBG being ) ( VP ( VBN developed ) ( PP-PRP ( IN for ) ( NP ( NP ( NN use ) ) ( PP-LOC ( IN in ) ( NP ( CD 1992 ) ( CC or ) ( CD 1993 ) ( NNS cars ) ) ) ) ) ) ) ) ) ) ) )

A second phase of research which is still being planned will test reformulated gasolines on newer engine technologies now being developed for use in 1992 or 1993 cars


( S ( NP-SBJ ( EX There ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT no ) ( NN cost ) ( NN estimate ) ) ( PP ( IN for ) ( NP ( DT the ) ( JJ second ) ( NN phase ) ) ) ) ) )

There was no cost estimate for the second phase


( SINV ( S-TPC-1 ( NP-SBJ ( DT The ) ( JJ whole ) ( NN idea ) ( RB here ) ) ( VP ( VBZ is ) ( SBAR-PRD ( S ( NP-SBJ ( DT the ) ( NN automobile ) ( CC and ) ( NN oil ) ( NNS companies ) ) ( VP ( VBP have ) ( NP ( JJ joint ) ( NNS customers ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Keith ) ( NNP McHenry ) ) ( NP ( NP ( DT a ) ( JJ senior ) ( NN vice ) ( NN president ) ) ( PP ( IN of ) ( NP ( NN technology ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Amoco ) ( NNP Corp ) ) ) ) ) )

The whole idea here is the automobile and oil companies have joint customers said Keith McHenry a senior vice president of technology at Amoco Corp


( S ( CC And ) ( NP-SBJ ( PRP we ) ) ( VP ( VBP are ) ( VP ( VBG looking ) ( PP-CLR ( IN for ) ( NP ( NP ( DT the ) ( ADJP ( RBS most ) ( JJ cost-effective ) ) ( NN way ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB clean ) ( PRT ( RP up ) ) ( NP ( DT the ) ( NN air ) ) ) ) ) ) ) ) ) ) )

And we are looking for the most cost-effective way to clean up the air


( S ( CC But ) ( NP-SBJ ( NP ( NNP David ) ( NNP Hawkins ) ) ( NP ( NP ( DT an ) ( JJ environmental ) ( NN lawyer ) ) ( PP ( IN with ) ( NP ( DT the ) ( NNP Natural ) ( NNPS Resources ) ( NNP Defense ) ( NNP Council ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN research ) ) ( VP ( VBZ appears ) ( ADVP ( RB merely ) ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( NP ( DT a ) ( NN way ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB promote ) ( NP ( VBN reformulated ) ( NN gasoline ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

But David Hawkins an environmental lawyer with the Natural Resources Defense Council said the research appears merely to be a way to promote reformulated gasoline


( S ( NP-SBJ ( NN Oil ) ( CC and ) ( NN auto ) ( NNS companies ) ) ( VP ( VBD supported ) ( NP ( NP ( DT a ) ( NN move ) ) ( PP-LOC ( IN on ) ( NP ( NNP Capitol ) ( NNP Hill ) ) ) ( NP-TMP ( JJ last ) ( NN week ) ) ( S-1 ( VP ( TO to ) ( VP ( VB gut ) ( NP ( NP ( NNP Mr. ) ( NNP Bush ) ( POS 's ) ) ( NNS plans ) ( S ( VP ( TO to ) ( VP ( VB require ) ( S ( NP-SBJ-2 ( NN auto ) ( NNS makers ) ) ( VP ( TO to ) ( VP ( VB begin ) ( S ( VP ( VBG selling ) ( NP ( JJ alternative-fueled ) ( NNS cars ) ) ) ) ( PP-TMP ( IN by ) ( NP ( CD 1995 ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Oil and auto companies supported a move on Capitol Hill last week to gut Mr. Bush 's plans to require auto makers to begin selling alternative-fueled cars by 1995


( S ( ADVP ( RB Instead ) ) ( NP-SBJ ( DT a ) ( NNP House ) ( NN subcommittee ) ) ( VP ( VBD adopted ) ( NP ( NP ( DT a ) ( NNS clean-fuels ) ( NN program ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( ADVP ( RB specifically ) ) ( VP ( VBZ mentions ) ( NP ( VBN reformulated ) ( NN gasoline ) ) ( PP-CLR ( IN as ) ( NP ( DT an ) ( NN alternative ) ) ) ) ) ) ) ) )

Instead a House subcommittee adopted a clean-fuels program that specifically mentions reformulated gasoline as an alternative


( S ( NP-SBJ ( DT The ) ( NNP Bush ) ( NN administration ) ) ( VP ( VBZ has ) ( VP ( VBN said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( MD will ) ( VP ( VB try ) ( S ( VP ( TO to ) ( VP ( VB resurrect ) ( NP ( PRP$ its ) ( NN plan ) ) ) ) ) ( SBAR-TMP-2 ( WHADVP ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NNP House ) ( NNP Energy ) ( CC and ) ( NNP Commerce ) ( NNP Committee ) ) ( VP ( VBZ takes ) ( PRT ( RP up ) ) ( NP ( DT a ) ( JJ comprehensive ) ( JJ clean-air ) ( NN bill ) ) ) ) ) ) ) ) ) ) ) )

The Bush administration has said it will try to resurrect its plan when the House Energy and Commerce Committee takes up a comprehensive clean-air bill


( S ( NP-SBJ-2 ( NNP Stephen ) ( NNP N. ) ( NNP Wertheimer ) ) ( VP ( VBD was ) ( VP ( VBN named ) ( S ( NP-PRD ( NP ( NP ( VBG managing ) ( NN director ) ) ) ( CC and ) ( NP ( NP ( NN group ) ( NN head ) ) ) ( PP-1 ( IN of ) ( NP ( NP ( NP ( NN investment ) ( NN banking ) ) ( PP-LOC ( IN in ) ( NP ( NNP Asia ) ) ) ) ( VP ( VBN based ) ( PP-LOC-CLR ( IN in ) ( NP ( NNP Tokyo ) ) ) ) ) ) ) ) ) ) )

Stephen N. Wertheimer was named managing director and group head of investment banking in Asia based in Tokyo


( S ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Wertheimer ) ) ( ADJP ( NP ( CD 38 ) ( NNS years ) ) ( JJ old ) ) ) ( VP ( VBD had ) ( VP ( VBN been ) ( NP-PRD ( NP ( DT a ) ( JJ first ) ( NN vice ) ( NN president ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( JJ industrial ) ( NN group ) ) ( PP-LOC ( IN in ) ( NP ( NN investment ) ( NN banking ) ) ) ) ) ) ) ) )

Mr. Wertheimer 38 years old had been a first vice president in the industrial group in investment banking


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBZ succeeds ) ( NP ( NP ( NNP Everett ) ( NNP Meyers ) ) ( SBAR ( WHNP-1 ( WP who ) ) ( S ( VP ( VBD resigned ) ( PP-TMP ( IN in ) ( NP ( NNP May ) ) ) ) ) ) ) ) )

He succeeds Everett Meyers who resigned in May


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN inverse ) ( NN trading ) ( NN relationship ) ) ( PP ( IN between ) ( NP ( NNS bonds ) ( CC and ) ( NNS stocks ) ) ) ) ( VP ( VBD was ) ( VP ( VBN interrupted ) ( NP-TMP ( NN yesterday ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NNS bonds ) ) ( VP ( VBD fell ) ( PP ( IN despite ) ( NP ( NP ( DT a ) ( JJ modest ) ( NN decline ) ) ( PP-LOC ( IN in ) ( NP ( NN stock ) ( NNS prices ) ) ) ) ) ) ) ) ) ) )

The inverse trading relationship between bonds and stocks was interrupted yesterday as bonds fell despite a modest decline in stock prices


( S ( CC But ) ( NP-SBJ-1 ( NN bond ) ( NNS investors ) ) ( VP ( VBP continue ) ( S ( VP ( TO to ) ( VP ( VB keep ) ( NP ( DT a ) ( JJ close ) ( NN watch ) ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( JJ jittery ) ( NN stock ) ( NN market ) ) ) ) ) ) ) )

But bond investors continue to keep a close watch on the jittery stock market


( S ( PP-TMP ( IN In ) ( NP ( JJ early ) ( NN trading ) ) ) ( NP-SBJ ( NNS investors ) ) ( VP ( VBD were ) ( VP ( VBG bidding ) ( S ( NP-SBJ ( NN bond ) ( NNS prices ) ) ( ADJP-PRD ( JJR higher ) ) ) ( SBAR-TMP ( IN as ) ( S ( S ( NP-SBJ ( NNS stocks ) ) ( VP ( VBD tumbled ) ) ) ( CC and ) ( S ( NP-SBJ ( NNS fears ) ) ( VP ( VBD mounted ) ( SBAR-1 ( IN that ) ( S ( NP-SBJ-2 ( NP ( NNP Friday ) ( POS 's ) ) ( NN stock ) ( NN market ) ( NN debacle ) ) ( VP ( MD would ) ( VP ( VB be ) ( VP ( VBN repeated ) ) ) ) ) ) ) ) ) ) ) ) )

In early trading investors were bidding bond prices higher as stocks tumbled and fears mounted that Friday 's stock market debacle would be repeated


( S ( CC But ) ( NP-SBJ ( NP ( DT a ) ( JJ partial ) ( NN recovery ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD had ) ( VP ( VBN been ) ( ADVP-PRD ( IN down ) ( NP ( QP ( RBR more ) ( IN than ) ( CD 60 ) ) ( NNS points ) ) ) ( PP-TMP ( IN in ) ( NP ( NN midmorning ) ) ) ) ) ) ) ) ) ) ( VP ( VBD dashed ) ( NP ( DT those ) ( NNS expectations ) ) ) )

But a partial recovery in the Dow Jones Industrial Average which had been down more than 60 points in midmorning dashed those expectations


( S ( NP-SBJ-1 ( NN Treasury ) ( NNS bonds ) ) ( ADVP ( RB also ) ) ( VP ( VBD were ) ( VP ( VBN hurt ) ( PP-TMP ( ADVP ( RB late ) ) ( IN in ) ( NP ( DT the ) ( NN day ) ) ) ( PP ( IN by ) ( NP-LGS ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 4 ) ( CD billion ) ) ) ( NN offering ) ) ( PP ( IN by ) ( NP ( DT the ) ( NNP Tennessee ) ( NNP Valley ) ( NNP Authority ) ) ) ) ( CC and ) ( NP ( NP ( DT the ) ( NN prospect ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( JJ huge ) ( NN amount ) ) ( PP ( IN of ) ( NP ( JJ new ) ( NN agency ) ( NN debt ) ) ) ) ) ) ) ) ) ) )

Treasury bonds also were hurt late in the day by a 4 billion offering by the Tennessee Valley Authority and the prospect of a huge amount of new agency debt


( SINV ( S-TPC-2 ( NP-SBJ ( NN Bond ) ( NNS investors ) ) ( VP ( VBD were ) ( VP ( VBG hoping ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NN stock ) ( NNS prices ) ) ( VP ( MD would ) ( VP ( VB continue ) ( S ( VP ( TO to ) ( VP ( VB fall ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Roger ) ( RB Early ) ) ( NP ( NP ( DT a ) ( NN vice ) ( NN president ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Federated ) ( NNPS Investors ) ( NNP Inc. ) ) ( NP ( NNP Pittsburgh ) ) ) ) ) ) )

Bond investors were hoping that stock prices would continue to fall said Roger Early a vice president at Federated Investors Inc. Pittsburgh