( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ 's ) ( NP-PRD ( DT a ) ( JJ big ) ( NN number ) ) ) )

That 's a big number


( S ( NP-SBJ ( NNP Warner ) ) ( ADVP ( RB also ) ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( NN gain ) ) ( PP ( IN of ) ( NP ( QP ( RBR more ) ( IN than ) ( CD 13 ) ) ( NN % ) ) ) ( PP ( IN from ) ( NP ( NP ( NNS records ) ) ( CC and ) ( NP ( NN music ) ( NN publishing ) ) ) ) ) ( SBAR-ADV ( RB even ) ( IN though ) ( S ( NP-SBJ ( DT the ) ( JJ domestic ) ( NN record ) ( NN business ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ sluggish ) ) ( NP-TMP ( DT this ) ( NN summer ) ) ) ) ) ) )

Warner also had a gain of more than 13 % from records and music publishing even though the domestic record business was sluggish this summer


( S ( PP-TMP ( IN In ) ( NP ( DT the ) ( JJ year-ago ) ( JJ third ) ( NN quarter ) ) ) ( NP-SBJ ( NP ( NNP Time ) ) ( PP ( IN on ) ( NP ( PRP$ its ) ( JJ own ) ) ) ) ( VP ( VBD reported ) ( NP ( NP ( JJ net ) ( NN income ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 81 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 1.42 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) )

In the year-ago third quarter Time on its own reported net income of 81 million or 1.42 a share


( S ( NP-SBJ ( NP ( VBN Combined ) ( NN revenue ) ) ( PP-TMP ( IN for ) ( NP ( DT the ) ( JJS latest ) ( NN quarter ) ) ) ( PP ( IN of ) ( NP ( NNP Time ) ( NNP Warner ) ) ) ) ( VP ( VBD was ) ( NP-PRD ( QP ( CD 2.2 ) ( CD billion ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( DT the ) ( JJ year-ago ) ( NNP Time ) ( NN revenue ) ) ( PP ( IN of ) ( NP ( QP ( CD 1.1 ) ( CD billion ) ) ) ) ) ) ) ) )

Combined revenue for the latest quarter of Time Warner was 2.2 billion compared with the year-ago Time revenue of 1.1 billion


( S ( PP ( IN On ) ( NP ( DT a ) ( ADJP ( FW pro ) ( FW forma ) ) ( NN basis ) ) ) ( PP ( VBG including ) ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( NP ( NNP Warner ) ( POS 's ) ) ( NNS earnings ) ) ) ) ) ( NP-SBJ ( NNP Time ) ( NNP Warner ) ) ( VP ( VBD had ) ( NP ( NP ( DT a ) ( JJ third-quarter ) ( NN loss ) ) ( PP ( IN of ) ( NP ( QP ( CD 217 ) ( CD million ) ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 342 ) ( CD million ) ) ) ( NN loss ) ) ( ADVP-TMP ( NP ( DT a ) ( NN year ) ) ( RBR earlier ) ) ) ) ) ) )

On a pro forma basis including all of Warner 's earnings Time Warner had a third-quarter loss of 217 million compared with a 342 million loss a year earlier


( S ( PP ( IN On ) ( NP ( DT the ) ( JJ same ) ( NN basis ) ) ) ( NP-SBJ ( NN revenue ) ) ( VP ( VBD rose ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 2.7 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 2.2 ) ( CD billion ) ) ) ) ) )

On the same basis revenue rose to 2.7 billion from 2.2 billion


( S ( PP-TMP ( IN For ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ( NP-SBJ ( NP ( NNP Warner ) ( POS 's ) ) ( ADJP ( QP ( CD 106 ) ( CD million ) ) ) ( NN loss ) ) ( VP ( VBN compared ) ( PP-CLR ( IN with ) ( NP ( NP ( DT a ) ( JJ year-ago ) ( NN loss ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 113 ) ( CD million ) ) ) ( CC or ) ( NP ( NP ( CD 90 ) ( NNS cents ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ) ) ) ) )

For the third quarter Warner 's 106 million loss compared with a year-ago loss of 113 million or 90 cents a share


( S ( NP-SBJ ( NN Revenue ) ) ( VP ( VBD rose ) ( PP-SBJ ( TO to ) ( NP ( QP ( CD 1.5 ) ( CD billion ) ) ) ) ( PP-SBJ ( IN from ) ( NP ( QP ( CD 1.1 ) ( CD billion ) ) ) ) ) )

Revenue rose to 1.5 billion from 1.1 billion


( S ( NP-SBJ-2 ( DT The ) ( CD 1988 ) ( NNS figures ) ) ( VP ( VBD were ) ( VP ( VBN restated ) ( S-PRP ( VP ( TO to ) ( VP ( VB include ) ( NP ( NP ( DT the ) ( NNS results ) ) ( PP ( IN of ) ( NP ( NP ( NNP Lorimar ) ( NNPS Telepictures ) ( NNP Corp. ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( NP-SBJ ( NNP Warner ) ) ( VP ( VBD acquired ) ( PP-TMP ( IN in ) ( NP ( NNP January ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

The 1988 figures were restated to include the results of Lorimar Telepictures Corp. which Warner acquired in January


( S ( NP-SBJ ( NP ( NNP Time ) ( NNP Warner ) ( POS 's ) ) ( NN operating ) ( NNS earnings ) ) ( VP ( VBD got ) ( NP ( NP ( DT a ) ( NN boost ) ) ( PP ( IN from ) ( NP ( NP ( NNP Warner ) ( POS 's ) ) ( NN record ) ( NN box-office ) ( NNS results ) ) ) ) ) )

Time Warner 's operating earnings got a boost from Warner 's record box-office results


( S ( NP-SBJ ( NNP Batman ) ( RB alone ) ) ( VP ( VBZ has ) ( VP ( VBN racked ) ( PRT ( RP up ) ) ( NP ( NP ( QP ( RBR more ) ( IN than ) ( CD 247 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NN box-office ) ( NNS receipts ) ) ) ) ( PP-TMP ( TO to ) ( NP ( NN date ) ) ) ( S-ADV ( VP ( VBG making ) ( S ( NP-SBJ ( PRP it ) ) ( NP-PRD ( NP ( NNP Warner ) ( NNP Bros ) ) ( ADJP ( JJS largest ) ( VBG grossing ) ) ( NN film ) ( RB ever ) ) ) ) ) ) ) )

Batman alone has racked up more than 247 million in box-office receipts to date making it Warner Bros largest grossing film ever


( S ( NP-SBJ ( NNP Lethal ) ( NNP Weapon ) ( NNP II ) ) ( VP ( VBD was ) ( ADVP ( RB also ) ) ( NP-PRD ( DT a ) ( JJ big ) ( NN hit ) ) ) )

Lethal Weapon II was also a big hit


( S ( NP-SBJ ( NNP Warner ) ) ( ADVP ( RB also ) ) ( VP ( VBD contributed ) ( NP ( NP ( NN record ) ( NNS results ) ) ( PP ( IN from ) ( NP ( NP ( PRP$ its ) ( NN music ) ( NN business ) ) ( SBAR ( WHADVP-4 ( WRB where ) ) ( S-1 ( NP-SBJ-2 ( NP ( NN unit ) ( NNS sales ) ) ( PP ( IN of ) ( NP ( JJ compact ) ( NNS discs ) ) ) ) ( VP ( VBD rose ) ( NP-EXT ( QP ( JJR more ) ( IN than ) ( CD 50 ) ) ( NN % ) ) ( PP-TMP ( IN from ) ( ADVP ( NP ( DT a ) ( NN year ) ) ( IN ago ) ) ) ( PRN ( S ( NP-SBJ ( DT the ) ( NN company ) ) ( VP ( VBD said ) ) ) ) ( S-ADV ( VP ( VBN helped ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Prince ) ( POS 's ) ) ( NNP Batman ) ( NN soundtrack ) ) ) ) ) ) ) ) ) ) ) ) )

Warner also contributed record results from its music business where unit sales of compact discs rose more than 50 % from a year ago the company said helped by Prince 's Batman soundtrack


( S ( NP-SBJ ( NNP Time ) ( NNP Warner ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP$ its ) ( NN cable ) ( NN division ) ) ( VP ( VBD turned ) ( PRT ( RP in ) ) ( NP-PRD ( NP ( DT a ) ( ADJP ( CD 77 ) ( NN % ) ) ( NN increase ) ) ( PP ( IN in ) ( NP ( NN operating ) ( NN cash ) ( NN flow ) ) ) ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 166 ) ( CD million ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 94 ) ( CD million ) ) ) ) ( S-ADV ( VP ( VBG reflecting ) ( NP ( JJR higher ) ( NN per-subscriber ) ( NN revenue ) ) ) ) ) ) ) ) )

Time Warner said its cable division turned in a 77 % increase in operating cash flow to 166 million from 94 million reflecting higher per-subscriber revenue


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( DT the ) ( CD 1988 ) ( NNS results ) ) ( VP ( VBD included ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 20 ) ( CD million ) ) ) ( NN charge ) ) ( VP ( VBG reflecting ) ( NP ( NP ( DT a ) ( NN reserve ) ) ( PP ( IN for ) ( NP ( ADJP ( NN relocation ) ( VBN related ) ) ( NNS expenses ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP American ) ( NNP Television ) ( CC & ) ( NNPS Communications ) ( NNP Corp ) ) ) ) ) ) ) )

In addition the 1988 results included a 20 million charge reflecting a reserve for relocation related expenses at American Television & Communications Corp


( S ( PP ( IN On ) ( NP ( DT the ) ( JJ other ) ( NN hand ) ) ) ( NP-SBJ ( NNP Time ) ( NNP Warner ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( PRP$ its ) ( NN operating ) ( NN cash ) ( NN flow ) ) ) ( VP ( VBD declined ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN quarter ) ) ) ( PP-1 ( IN for ) ( NP ( NP ( PRP$ its ) ( NN magazine ) ( NN division ) ) ( NP ( PRP$ its ) ( NNS books ) ( NN division ) ) ( CC and ) ( NP ( DT the ) ( NNP Home ) ( NNP Box ) ( NNP Office ) ( VBG programming ) ( NN division ) ) ) ) ) ) ) ) )

On the other hand Time Warner said its operating cash flow declined in the quarter for its magazine division its books division and the Home Box Office programming division


( S ( PP-LOC ( IN In ) ( NP ( NNS magazines ) ) ) ( NP-SBJ-1 ( NP ( JJR higher ) ( NN advertising ) ( NNS revenues ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Sports ) ( NNP Illustrated ) ) ( CC and ) ( NP ( NNP Fortune ) ) ) ) ) ( VP ( VBD were ) ( VP ( VBN offset ) ( PP ( IN by ) ( NP-LGS ( NP ( JJR lower ) ( NN ad ) ( NN revenue ) ) ( PP ( IN for ) ( NP ( JJ other ) ( JJ major ) ( NNS magazines ) ) ) ) ) ) ) )

In magazines higher advertising revenues at Sports Illustrated and Fortune were offset by lower ad revenue for other major magazines


( S ( NP-SBJ ( DT The ) ( VBG programming ) ( NN division ) ) ( VP ( VBD saw ) ( NP ( NP ( DT a ) ( NN decline ) ) ( PP ( IN in ) ( NP ( NN operating ) ( NN cash ) ( NN flow ) ) ) ) ( SBAR-PRP ( SBAR ( IN because ) ( S ( NP-SBJ ( DT the ) ( JJ year-ago ) ( NN quarter ) ) ( VP ( VBD included ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 12 ) ( CD million ) ) ) ( NN dividend ) ) ( PP ( IN from ) ( NP ( NNP Turner ) ( NNP Broadcasting ) ( NNP System ) ) ) ) ) ) ) ( CC and ) ( SBAR ( IN because ) ( S ( NP-SBJ ( DT the ) ( NN quarter ) ) ( VP ( VBZ includes ) ( NP ( NP ( NNS expenses ) ) ( VP ( VBN associated ) ( PP-CLR ( IN with ) ( NP ( NP ( DT the ) ( NAC-LOC ( NNP Nov. ) ( CD 15 ) ) ( NN launch ) ) ( PP ( IN of ) ( NP ( NP ( NNP HBO ) ( POS 's ) ) ( NNP Comedy ) ( NNP Channel ) ) ) ) ) ) ) ) ) ) ) ) )

The programming division saw a decline in operating cash flow because the year-ago quarter included a 12 million dividend from Turner Broadcasting System and because the quarter includes expenses associated with the Nov. 15 launch of HBO 's Comedy Channel


( S ( PP-LOC ( IN In ) ( NP ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ( JJ composite ) ( NN trading ) ) ) ( NP-SBJ ( NNP Time ) ( NNP Warner ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 138.625 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP ( IN up ) ( NP ( CD 1.875 ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NNP Warner ) ) ( VP ( VBD closed ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 63.875 ) ) ( NP-ADV ( DT a ) ( NN share ) ) ) ) ( ADVP ( IN up ) ( NP ( CD 12.5 ) ( NNS cents ) ) ) ) ) ) ) )

In New York Stock Exchange composite trading Time Warner closed at 138.625 a share up 1.875 while Warner closed at 63.875 a share up 12.5 cents


( S ( NP-SBJ ( NP ( NNP Eagle ) ( NNPS Clothes ) ( NNP Inc. ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ is ) ( VP ( VBG operating ) ( PP-LOC ( IN under ) ( NP ( NP ( NN Chapter ) ( CD 11 ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ federal ) ( NNP Bankruptcy ) ( NNP Code ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD reached ) ( NP ( NP ( DT an ) ( NN agreement ) ) ( PP ( IN with ) ( NP ( PRP$ its ) ( NNS creditors ) ) ) ) ) ) ) ) )

Eagle Clothes Inc. which is operating under Chapter 11 of the federal Bankruptcy Code said it reached an agreement with its creditors


( S ( PP-LOC ( IN Under ) ( NP ( DT the ) ( NN accord ) ) ) ( NP-SBJ ( NP ( NP ( NNP Albert ) ( NNP Roth ) ) ( NP ( NP ( NN chairman ) ) ( CC and ) ( NP ( NN chief ) ( NN executive ) ( NN officer ) ) ) ) ( CC and ) ( NP ( NP ( NNP Arthur ) ( NNP Chase ) ) ( NP ( NNP Sam ) ( NNP Beigel ) ) ( CC and ) ( NP ( NNP Louis ) ( NNP Polsky ) ) ) ) ( VP ( MD will ) ( VP ( VB resign ) ( PP-CLR ( IN as ) ( NP ( NP ( NNS officers ) ( CC and ) ( NNS directors ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN menswear ) ( NN retailer ) ) ) ) ) ) ) )

Under the accord Albert Roth chairman and chief executive officer and Arthur Chase Sam Beigel and Louis Polsky will resign as officers and directors of the menswear retailer


( S ( NP-SBJ-1 ( NP ( NNP Mr. ) ( NNP Roth ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( PP-PRD ( IN on ) ( NP ( NP ( NN leave ) ) ( PP ( IN from ) ( NP ( PRP$ his ) ( NNS posts ) ) ) ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN succeeded ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Geoffrie ) ( NNP D. ) ( NNP Lurie ) ) ( PP ( IN of ) ( NP ( NP ( NNP GDL ) ( NNP Management ) ( NNP Inc. ) ) ( SBAR ( WHNP-3 ( WDT which ) ) ( S ( VP ( VBZ is ) ( NP-PRD ( NP ( NNP Eagle ) ( POS 's ) ) ( NN crisis ) ( NN manager ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Roth who has been on leave from his posts will be succeeded by Geoffrie D. Lurie of GDL Management Inc. which is Eagle 's crisis manager


( S ( NP-SBJ ( NNP Mr. ) ( NNP Lurie ) ) ( VP ( VBZ is ) ( ADVP-TMP ( RB currently ) ) ( NP-PRD ( NN co-chief ) ( NN executive ) ) ) )

Mr. Lurie is currently co-chief executive


( S ( NP-SBJ ( NP ( NNP Arnold ) ( NNP Levine ) ) ( NP ( VBG acting ) ( NN co-chief ) ( NN executive ) ) ) ( VP ( MD will ) ( VP ( VB continue ) ( PP-CLR ( RB as ) ( NP ( NP ( JJ senior ) ( NN vice ) ( NN president ) ) ( CC and ) ( NP ( DT a ) ( NN board ) ( NN member ) ) ) ) ) ) )

Arnold Levine acting co-chief executive will continue as senior vice president and a board member


( S ( NP-SBJ ( NNP Eagle ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD received ) ( NP ( NP ( DT a ) ( NN commitment ) ) ( PP ( IN for ) ( NP ( NP ( QP ( RB as ) ( JJ much ) ( IN as ) ( CD 8 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NN financing ) ) ) ) ) ( PP ( IN from ) ( NP ( NNP Norfolk ) ( NNP Capital ) ( NNP Group ) ( NNP Inc ) ) ) ) ) ) ) ) )

Eagle also said it received a commitment for as much as 8 million in financing from Norfolk Capital Group Inc


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ ( NP ( DT a ) ( NNP Norfolk ) ( NN affiliate ) ) ( NP ( NNP York ) ( NNP Capital ) ( NNP Inc. ) ) ) ( VP ( MD will ) ( VP ( VP ( VB purchase ) ( NP ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNS interests ) ) ( PP ( IN of ) ( NP ( NP ( NNP Eagle ) ( POS 's ) ) ( VBN secured ) ( NNS lenders ) ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP total ) ( NP ( QP ( CD 11.5 ) ( CD million ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBP guarantee ) ( NP ( NP ( QP ( RB as ) ( RB much ) ( IN as ) ( CD 8.2 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NP ( NNS payments ) ) ( PP ( TO to ) ( NP ( NP ( NNP Eagle ) ( POS 's ) ) ( JJ unsecured ) ( NNS creditors ) ) ) ) ) ) ) ) ) )

In addition a Norfolk affiliate York Capital Inc. will purchase all of the interests of Eagle 's secured lenders which total 11.5 million and guarantee as much as 8.2 million in payments to Eagle 's unsecured creditors


( S ( S-TPC-2 ( NP-SBJ-1 ( NP ( DT A ) ( NN committee ) ) ( VP ( VBG representing ) ( NP ( DT the ) ( JJ unsecured ) ( NNS creditors ) ) ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB accept ) ( NP ( NP ( CD 24 ) ( NNS cents ) ) ( PP ( IN on ) ( NP ( DT the ) ( NN dollar ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Eagle ) ) ( VP ( VBD said ) ) )

A committee representing the unsecured creditors agreed to accept 24 cents on the dollar Eagle said


( S ( NP-SBJ ( DT The ) ( NN plan ) ) ( VP ( MD would ) ( VP ( VB extend ) ( NP ( NP ( DT the ) ( NN period ) ) ( SBAR ( WHPP-2 ( IN under ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NNP Eagle ) ) ( VP ( VBZ has ) ( NP ( NP ( DT the ) ( JJ exclusive ) ( NN right ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB file ) ( NP ( DT a ) ( NN reorganization ) ( NN plan ) ) ) ) ) ) ) ) ) ) ) ) ) )

The plan would extend the period under which Eagle has the exclusive right to file a reorganization plan


( S ( NP-SBJ ( PRP It ) ) ( VP ( MD would ) ( VP ( VP ( VB extinguish ) ( NP ( NP ( DT all ) ) ( PP ( IN of ) ( NP ( NP ( NNP Eagle ) ( POS 's ) ) ( VBG existing ) ( NN capital ) ( NN stock ) ) ) ) ) ( CC and ) ( VP ( VB issue ) ( NP ( JJ new ) ( NN stock ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NNP York ) ) ( PP ( IN as ) ( NP ( JJ sole ) ( NN holder ) ) ) ) ) ) ) ) )

It would extinguish all of Eagle 's existing capital stock and issue new stock to York as sole holder


( S ( NP-SBJ-2 ( NP ( DT A ) ( NN bankruptcy ) ( NN court ) ( NN hearing ) ) ) ( VP ( VBZ is ) ( VP ( VBN set ) ( PP-TMP ( IN for ) ( NP ( NNP Nov. ) ( CD 3 ) ) ) ( PP-1 ( IN on ) ( NP ( DT these ) ( NNS accords ) ) ) ) ) )

A bankruptcy court hearing is set for Nov. 3 on these accords


( S ( PP-LOC ( IN In ) ( NP ( NP ( PRP$ its ) ( NN bankruptcy-law ) ( NN petition ) ) ( VP ( VBN filed ) ( PP-LOC ( IN in ) ( NP ( NP ( NNP U.S. ) ( NNP Bankruptcy ) ( NNP Court ) ) ( PP-LOC ( IN in ) ( NP ( NNP Manhattan ) ) ) ) ) ) ) ) ( NP-SBJ ( NNP Eagle ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP$ its ) ( NNS problems ) ) ( VP ( VBD began ) ( PP-TMP ( IN in ) ( NP ( NP ( NP ( CD 1987 ) ) ( CC and ) ( NP ( RB early ) ( CD 1988 ) ) ) ( SBAR ( WHADVP ( WRB when ) ) ( S ( NP-SBJ ( NP ( PRP$ its ) ( JJ then-senior ) ( NN lender ) ) ( NP ( NNPS Bankers ) ( NNP Trust ) ( NNP Co. ) ) ) ( VP ( VBD reduced ) ( NP ( PRP$ its ) ( NN credit ) ( NN line ) ) ) ) ) ) ) ) ) ) ) )

In its bankruptcy-law petition filed in U.S. Bankruptcy Court in Manhattan Eagle said its problems began in 1987 and early 1988 when its then-senior lender Bankers Trust Co. reduced its credit line


( S ( PP-TMP ( IN In ) ( NP ( NNP September ) ( CD 1988 ) ) ) ( NP-SBJ ( NNP Eagle ) ) ( VP ( VBD acquired ) ( NP ( NP ( NNP Biny ) ( NNP Clothing ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( ADJP ( RB closely ) ( VBN held ) ) ( NNP New ) ( NNP York ) ( NN chain ) ) ( VP ( VBN operated ) ( PP-LOC ( IN under ) ( NP ( DT the ) ( NNP Bonds ) ( NN name ) ) ) ) ) ) ) )

In September 1988 Eagle acquired Biny Clothing Inc. a closely held New York chain operated under the Bonds name


( S ( S ( NP-SBJ ( NP ( NNP Eagle ) ( POS 's ) ) ( NN management ) ) ( VP ( VBD retired ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NNP Biny ) ( POS 's ) ) ( NN management ) ) ( VP ( VBD took ) ( NP ( NP ( NN control ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN company ) ) ) ) ) ) )

Eagle 's management retired and Biny 's management took control of the company


( S ( PP-TMP ( IN At ) ( NP ( DT the ) ( NN time ) ) ) ( NP-SBJ ( NNP Eagle ) ) ( VP ( VBD reached ) ( NP ( NP ( NP ( DT a ) ( JJ new ) ( NN credit ) ( NN agreement ) ) ( PP ( PP ( IN with ) ( NP ( NNPS Bankers ) ( NNP Trust ) ) ) ( CC and ) ( PP ( IN with ) ( NP ( NP ( NNP Bank ) ( NNP Leumi ) ( NNP Trust ) ( NNP Co. ) ) ( PP ( IN of ) ( NP ( NNP New ) ( NNP York ) ) ) ) ) ) ( PP ( IN for ) ( NP ( QP ( CD 8 ) ( CD million ) ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( JJ new ) ( VBN subordinated ) ( NN debt ) ( NN accord ) ) ( PP ( IN with ) ( NP ( NP ( NNP First ) ( NNP Century ) ( NNPS Partners ) ) ( CC and ) ( NP ( NNP Biny ) ( NN management ) ) ) ) ( PP ( IN for ) ( NP ( QP ( CD 2 ) ( CD million ) ) ) ) ) ) ) )

At the time Eagle reached a new credit agreement with Bankers Trust and with Bank Leumi Trust Co. of New York for 8 million and a new subordinated debt accord with First Century Partners and Biny management for 2 million


( S ( CC But ) ( NP-SBJ ( NNP Eagle ) ) ( VP ( VBD said ) ( SBAR ( S ( S ( NP-SBJ ( DT the ) ( NN financing ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ insufficient ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NNS sales ) ) ( PP-TMP ( IN during ) ( NP ( DT the ) ( JJ past ) ( JJ fiscal ) ( NN year ) ) ) ) ( VP ( VBD sagged ) ) ) ) ) ) )

But Eagle said the financing was insufficient and sales during the past fiscal year sagged


( S ( PP-LOC ( IN Under ) ( NP ( NN Chapter ) ( CD 11 ) ) ) ( NP-SBJ ( DT a ) ( NN company ) ) ( VP ( VBZ operates ) ( PP-LOC ( IN under ) ( NP ( NP ( NN protection ) ) ( PP ( IN from ) ( NP ( NP ( NNS creditors ) ( POS ' ) ) ( NNS lawsuits ) ) ) ) ) ( SBAR-TMP ( IN while ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ works ) ( PRT ( RP out ) ) ( NP ( DT a ) ( NN plan ) ( S ( VP ( TO to ) ( VP ( VB pay ) ( NP ( NNS debts ) ) ) ) ) ) ) ) ) ) )

Under Chapter 11 a company operates under protection from creditors ' lawsuits while it works out a plan to pay debts


( S ( NP-SBJ ( NNP Bausch ) ( CC & ) ( NNP Lomb ) ( NNP Inc. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP$ its ) ( NNS pharmaceuticals ) ( NN subsidiary ) ) ( VP ( VBD agreed ) ( S ( VP ( TO to ) ( VP ( VB supply ) ( NP ( NP ( NN collagen ) ( JJ corneal ) ( NNS shields ) ) ( PP ( IN for ) ( NP ( NN animal ) ( NN eye ) ( NN surgery ) ) ) ) ( PP-CLR ( TO to ) ( NP ( NP ( DT a ) ( NN unit ) ) ( PP ( IN of ) ( NP ( NNP International ) ( NNPS Minerals ) ( CC & ) ( NNP Chemical ) ( NNP Corp ) ) ) ) ) ) ) ) ) ) ) ) )

Bausch & Lomb Inc. said its pharmaceuticals subsidiary agreed to supply collagen corneal shields for animal eye surgery to a unit of International Minerals & Chemical Corp


( S ( NP-SBJ-1 ( NNS Terms ) ) ( VP ( VBD were ) ( RB n't ) ( VP ( VBN disclosed ) ) ) )

Terms were n't disclosed


( S ( NP-SBJ ( DT The ) ( NN agreement ) ) ( VP ( VBZ marks ) ( NP ( NP ( NP ( NNP Bausch ) ( CC & ) ( NNP Lomb ) ( POS 's ) ) ( JJ first ) ( NN venture ) ) ( VP ( VBG selling ) ( NP ( PRP$ its ) ( NN eye ) ( NN care ) ( NNS products ) ) ( PP-PRP ( IN for ) ( NP ( NP ( NN use ) ) ( PP ( IN by ) ( NP ( NNS veterinarians ) ) ) ) ) ) ) ) )

The agreement marks Bausch & Lomb 's first venture selling its eye care products for use by veterinarians


( S ( NP-SBJ ( DT The ) ( NN collagen ) ( JJ corneal ) ( NN shield ) ) ( VP ( VBZ helps ) ( VP ( VB speed ) ( NP ( NP ( NN healing ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN cornea ) ) ) ( PP-TMP ( IN after ) ( NP ( NN eye ) ( NN surgery ) ) ) ) ) ) )

The collagen corneal shield helps speed healing of the cornea after eye surgery


( S ( NP-SBJ-1 ( DT The ) ( NN product ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN distributed ) ( PP ( IN by ) ( NP-LGS ( NP ( NNP Pitman-Moore ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( NN subsidiary ) ) ( PP ( IN of ) ( NP ( NNP International ) ( NNPS Minerals ) ) ) ) ) ) ) ) ) )

The product will be distributed by Pitman-Moore Inc. a subsidiary of International Minerals


( S ( NP-SBJ ( NNP CONTROL ) ( NNP DATA ) ( NNP Corp. ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-3 ( PRP it ) ) ( VP ( VBZ is ) ( VP ( VBG offering ) ( S ( VP ( TO to ) ( VP ( VB purchase ) ( NP ( NP ( DT the ) ( ADJP ( QP ( CD 154.2 ) ( CD million ) ) ) ( NN amount ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( ADJP ( QP ( CD 12 ) ( CD 3\/4 ) ) ( NN % ) ) ( JJ senior ) ( NNS notes ) ) ( ADJP ( JJ due ) ( NP-TMP ( NNP June ) ( CD 15 ) ( CD 1991 ) ) ) ) ) ) ( PP-MNR ( IN at ) ( NP ( NN par ) ) ) ( PP-2 ( CC plus ) ( NP ( NP ( ADJP ( VBN accrued ) ) ( NN interest ) ) ( PP-1 ( TO to ) ( NP ( DT the ) ( NNP Dec. ) ( CD 8 ) ( NN purchase ) ( NN date ) ) ) ) ) ) ) ) ) ) ) ) ) )

CONTROL DATA Corp. said it is offering to purchase the 154.2 million amount of its 12 3\/4 % senior notes due June 15 1991 at par plus accrued interest to the Dec. 8 purchase date


( S ( NP-SBJ ( DT The ) ( NNP Minneapolis ) ( NN computer ) ( NNS systems ) ( CC and ) ( NNS services ) ( NN concern ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( DT the ) ( NN offer ) ) ( VP ( VBZ is ) ( VP ( VBN required ) ( PP-LOC ( IN under ) ( NP ( DT the ) ( JJ senior ) ( NN note ) ( NN indenture ) ) ) ( PP-PRP ( IN as ) ( NP ( NP ( DT a ) ( NN result ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Control ) ( NNP Data ) ( POS 's ) ) ( JJ recent ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NP ( PRP$ its ) ( NN disk ) ( NN drive ) ( NN subsidiary ) ) ( NP ( NNP Imprimis ) ) ) ) ( PP ( TO to ) ( NP ( NNP Seagate ) ( NNP Technology ) ( NNP Inc ) ) ) ) ) ) ) ) ) ) ) ) )

The Minneapolis computer systems and services concern said the offer is required under the senior note indenture as a result of Control Data 's recent sale of its disk drive subsidiary Imprimis to Seagate Technology Inc


( S ( NP-SBJ ( NP ( NNP Lloyd ) ( POS 's ) ) ( PP-LOC ( IN of ) ( NP ( NNP London ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ plans ) ( S ( VP ( TO to ) ( VP ( VB clamp ) ( PRT ( RP down ) ) ( PP-CLR ( IN on ) ( NP ( NP ( DT the ) ( NN ability ) ) ( PP ( IN of ) ( NP ( VBG underwriting ) ( NNS syndicates ) ) ) ( S-2 ( VP ( TO to ) ( VP ( VB leave ) ( S ( NP-SBJ ( PRP$ their ) ( JJ annual ) ( NNS accounts ) ) ( ADJP-PRD ( JJ open ) ) ) ( PP-TMP ( IN beyond ) ( NP ( DT the ) ( JJ customary ) ( CD three ) ( NNS years ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Lloyd 's of London said it plans to clamp down on the ability of underwriting syndicates to leave their annual accounts open beyond the customary three years


( S ( NP-SBJ-1 ( NP ( VBG Underwriting ) ( NNS syndicates ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NP ( NNP Lloyd ) ( POS 's ) ) ) ( NP ( NP ( DT the ) ( NN world ) ( POS 's ) ) ( JJS largest ) ( NN insurance ) ( NN market ) ) ) ) ) ( ADVP ( RB generally ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB close ) ( NP ( PRP$ their ) ( NNS accounts ) ) ( PP-TMP ( IN for ) ( NP ( CD three ) ( NNS years ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB allow ) ( PP-CLR ( IN for ) ( NP ( NP ( DT the ) ( NN filing ) ) ( PP ( IN of ) ( NP ( NNS claims ) ( CC and ) ( NN litigation ) ) ) ) ) ) ) ) ) ) )

Underwriting syndicates at Lloyd 's the world 's largest insurance market generally do n't close their accounts for three years to allow for the filing of claims and litigation


( S ( SBAR-TMP ( WHADVP-1 ( WRB When ) ) ( S ( NP-SBJ ( JJ such ) ( NNS claims ) ( CC and ) ( NN litigation ) ) ( VP ( VBP extend ) ( PP-TMP ( IN beyond ) ( NP ( DT the ) ( NN period ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( NNS syndicates ) ) ( VP ( MD can ) ( VP ( VB extend ) ( NP ( PRP$ their ) ( NN accounting ) ( NNS deadlines ) ) ) ) )

When such claims and litigation extend beyond the period the syndicates can extend their accounting deadlines


( S ( NP-SBJ ( NP ( NNP Lloyd ) ( POS 's ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( EX there ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB currently ) ) ( NP-PRD ( NP ( CD 115 ) ( JJ open ) ( NN account ) ( NNS years ) ) ( VP ( VBG involving ) ( NP ( NP ( CD 68 ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN market ) ( POS 's ) ) ( QP ( RB roughly ) ( CD 360 ) ) ( NNS syndicates ) ) ) ) ) ) ) ) ) ) )

Lloyd 's said there are currently 115 open account years involving 68 of the market 's roughly 360 syndicates


( S ( S-TPC-3 ( NP-SBJ-1 ( DT The ) ( JJ open-year ) ( NN accounting ) ( NN practice ) ) ( VP ( VBZ is ) ( VP ( ADVP ( RB widely ) ) ( VBN recognized ) ( PP-LOC ( IN within ) ( NP ( NP ( NNP Lloyd ) ( POS 's ) ) ) ) ( PP-CLR ( RB as ) ( PP ( IN of ) ( NP ( NP ( JJ serious ) ( NN concern ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( CD 31,329 ) ( NN member ) ( NNS investors ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( VP ( VBP underwrite ) ( NP ( NN insurance ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Lloyd ) ( POS 's ) ) ) ) ( PP-PRP ( IN in ) ( NP ( NP ( NN return ) ) ( PP ( IN for ) ( NP ( NN premium ) ( CC and ) ( NN investment ) ( NN income ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNP Lloyd ) ( POS 's ) ) ) ( VP ( VBD said ) ) )

The open-year accounting practice is widely recognized within Lloyd 's as of serious concern to the 31,329 member investors who underwrite insurance at Lloyd 's in return for premium and investment income Lloyd 's said


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN procedure ) ) ( VP ( VBZ causes ) ( NP ( JJ great ) ( NN uncertainty ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( DT an ) ( NN investor ) ) ( VP ( MD ca ) ( RB n't ) ( VP ( VB be ) ( ADJP-PRD ( JJ sure ) ( PP ( IN of ) ( NP ( PRP$ his ) ( CC or ) ( PRP$ her ) ( JJ individual ) ( NN liability ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NP ( NNP Lloyd ) ( POS 's ) ) ) ( VP ( VBD said ) ) )

The procedure causes great uncertainty because an investor ca n't be sure of his or her individual liability Lloyd 's said


( S ( PP ( IN As ) ( NP ( DT a ) ( NN result ) ) ) ( NP-SBJ ( DT the ) ( NN insurance ) ( NN market ) ) ( VP ( VBZ plans ) ( NP ( NP ( JJ new ) ( NNS measures ) ) ( SBAR-PRP ( S ( VP ( TO to ) ( VP ( VB restrict ) ( NP ( NP ( DT the ) ( NN ability ) ) ( PP ( IN of ) ( NP ( NN syndicate ) ( NNS officials ) ) ) ( S-2 ( VP ( TO to ) ( VP ( VB leave ) ( S ( NP-SBJ ( NNS years ) ) ( ADJP-PRD ( JJ open ) ) ) ) ) ) ) ) ) ) ) ) ) )

As a result the insurance market plans new measures to restrict the ability of syndicate officials to leave years open


( S ( NP-SBJ ( NNP Lloyd ) ( VBZ 's ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( PRP it ) ) ( VP ( VBZ expects ) ( S ( VP ( TO to ) ( VP ( VB enact ) ( NP ( NP ( JJ new ) ( NNS rules ) ) ( VP ( VBG mandating ) ( NP ( DT the ) ( NNS changes ) ) ) ) ( PP-TMP ( IN by ) ( NP ( NN year ) ( NN end ) ) ) ) ) ) ) ) ) ) )

Lloyd 's said it expects to enact new rules mandating the changes by year end


( S ( PP-LOC ( IN Under ) ( NP ( DT the ) ( JJ new ) ( NNS rules ) ) ) ( NP-SBJ-1 ( DT the ) ( NNS officials ) ) ( VP ( MD will ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VB secure ) ( NP ( NP ( NP ( JJ additional ) ( NN information ) ) ( CC and ) ( NP ( NP ( NNS reports ) ) ( PP ( IN from ) ( NP ( NNS actuaries ) ) ) ) ) ( PP ( VBG including ) ( NP ( NP ( DT an ) ( NN assessment ) ) ( PP ( IN of ) ( SBAR ( IN whether ) ( S ( NP-SBJ ( NNS officials ) ) ( VP ( VBP have ) ( VP ( VBN acted ) ( ADVP-MNR ( RB reasonably ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Under the new rules the officials will have to secure additional information and reports from actuaries including an assessment of whether officials have acted reasonably


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ-1 ( NNS officials ) ) ( VP ( MD will ) ( VP ( VB have ) ( S ( VP ( TO to ) ( VP ( VP ( VB get ) ( NP ( NP ( NNS quotes ) ) ( PP ( IN for ) ( NP ( JJ certain ) ( NN reinsurance ) ( NNS contracts ) ) ) ) ) ( CC and ) ( VP ( VB obtain ) ( NP ( NNS approvals ) ) ( PP ( IN from ) ( NP ( JJ other ) ( NN syndicate ) ( NNS directors ) ) ) ) ) ) ) ) ) )

In addition officials will have to get quotes for certain reinsurance contracts and obtain approvals from other syndicate directors


( S ( S ( NP-SBJ ( NN Bond ) ( NNS prices ) ) ( VP ( VBD took ) ( NP ( DT the ) ( JJ high ) ( NN road ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NN stock ) ( NNS prices ) ) ( VP ( VBD took ) ( NP ( DT the ) ( JJ low ) ( NN road ) ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NP ( NNS worries ) ) ) ( VP ( VBN mounted ) ( PP-1 ( IN about ) ( NP ( NP ( DT the ) ( NN economy ) ) ( CC and ) ( NP ( DT the ) ( NN junk ) ( NN bond ) ( NN market ) ) ) ) ) ) ) )

Bond prices took the high road and stock prices took the low road as worries mounted about the economy and the junk bond market


( S ( NP-SBJ ( DT The ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 26.23 ) ( NNS points ) ) ( PP-DIR ( TO to ) ( NP ( CD 2662.91 ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ sluggish ) ( NN trading ) ) ) ) )

The Dow Jones Industrial Average fell 26.23 points to 2662.91 in sluggish trading


( S ( CC But ) ( NP-SBJ ( JJ long-term ) ( NN Treasury ) ( NNS bonds ) ) ( VP ( VBD staged ) ( NP ( DT a ) ( JJ modest ) ( NN rally ) ) ( PP ( IN with ) ( S-NOM ( NP-SBJ ( NP ( NNS prices ) ) ( PP ( IN on ) ( NP ( JJS most ) ( NNS issues ) ) ) ) ( VP ( VBG rising ) ( NP ( NP ( QP ( IN about ) ( PDT half ) ( DT a ) ) ( NN point ) ) ( CC or ) ( NP ( NP ( CD 5 ) ) ( PP ( IN for ) ( NP ( DT each ) ( ADJP ( CD 1,000 ) ) ( NN face ) ( NN amount ) ) ) ) ) ) ) ) ) )

But long-term Treasury bonds staged a modest rally with prices on most issues rising about half a point or 5 for each 1,000 face amount


( S ( NP-SBJ ( DT The ) ( NN dollar ) ) ( VP ( VBD sagged ) ( PP ( IN against ) ( NP ( JJ other ) ( JJ major ) ( NNS currencies ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ lethargic ) ( NN trading ) ) ) ) )

The dollar sagged against other major currencies in lethargic trading


( S ( NP-SBJ ( NNS Traders ) ( CC and ) ( NNS analysts ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN divergence ) ) ( PP ( IN between ) ( NP ( DT the ) ( NN stock ) ( CC and ) ( NN bond ) ( NNS markets ) ) ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN sign ) ) ( PP ( IN of ) ( NP ( NP ( VBG growing ) ( NN unease ) ) ( PP ( IN about ) ( NP ( DT the ) ( JJ economic ) ( NN outlook ) ) ) ) ) ) ) ) ) ) )

Traders and analysts said the divergence between the stock and bond markets is a sign of growing unease about the economic outlook


( S ( S ( NP-SBJ ( DT A ) ( VBG sinking ) ( NN economy ) ) ( VP ( VP ( VBZ depresses ) ( NP-1 ( JJ corporate ) ( NNS earnings ) ) ) ( CC and ) ( VP ( RB thus ) ( NP=1 ( NN stock ) ( NNS prices ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ buoys ) ( NP ( NN bond ) ( NNS prices ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NN interest ) ( NNS rates ) ) ( VP ( VBP fall ) ) ) ) ) ) )

A sinking economy depresses corporate earnings and thus stock prices but it buoys bond prices as interest rates fall


( S ( NP-SBJ-2 ( DT That ) ( NN unease ) ) ( VP ( VBZ is ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB grow ) ( NP-TMP ( NP ( NP ( NN today ) ) ( SBAR ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ ( DT the ) ( NN government ) ) ( VP ( VBZ reports ) ( PP-CLR ( IN on ) ( NP ( NNP September ) ( JJ durable ) ( NNS goods ) ( NNS orders ) ) ) ) ) ) ) ( CC and ) ( RB again ) ( NP ( NP ( NNP Thursday ) ) ( SBAR ( WHADVP-4 ( WRB when ) ) ( S ( NP-SBJ-1 ( NP ( DT the ) ( JJ first ) ( NN assessment ) ) ( PP ( IN of ) ( NP ( JJ third-quarter ) ( JJ economic ) ( NN growth ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN released ) ) ) ) ) ) ) ) ) ) ) ) )

That unease is expected to grow today when the government reports on September durable goods orders and again Thursday when the first assessment of third-quarter economic growth is released


( S ( NP-SBJ ( NNS Analysts ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP think ) ( SBAR ( SBAR ( S ( NP-SBJ ( JJ durable ) ( NNS goods ) ( NNS orders ) ) ( VP ( VBD fell ) ( NP ( NP-EXT ( QP ( IN about ) ( CD 1 ) ) ( NN % ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( ADJP ( CD 3.9 ) ( NN % ) ) ( NN gain ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ) ) ) ) ) ) ) ( CC and ) ( SBAR ( DT that ) ( S ( NP-SBJ ( NP ( NN growth ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ third ) ( NN quarter ) ) ) ) ( VP ( VBD slowed ) ( PP-DIR ( TO to ) ( NP ( QP ( IN about ) ( CD 2.3 ) ) ( NN % ) ) ) ( PP-DIR ( IN from ) ( NP ( NP ( DT the ) ( JJ second ) ( NN quarter ) ( POS 's ) ) ( CD 2.5 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) )

Analysts say they think durable goods orders fell about 1 % compared with a 3.9 % gain in August and that growth in the third quarter slowed to about 2.3 % from the second quarter 's 2.5 %


( S ( NP-SBJ ( NP ( NP ( DT The ) ( NN stock ) ( NN market ) ( POS 's ) ) ( NN decline ) ) ( VP ( VBG coming ) ( PP-TMP ( IN after ) ( NP ( NP ( DT a ) ( NN record ) ( JJ weekly ) ( NN gain ) ) ( PP ( IN of ) ( NP ( CD 119.88 ) ( NNS points ) ) ) ) ) ) ) ( VP ( VBD surprised ) ( NP ( DT some ) ( NNS investors ) ) ) )

The stock market 's decline coming after a record weekly gain of 119.88 points surprised some investors


( S ( CC But ) ( NP-SBJ ( NP ( NNP A.C. ) ( NNP Moore ) ) ( NP ( NP ( NN director ) ) ( PP ( IN of ) ( NP ( NN research ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Argus ) ( NNP Research ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( JJ last ) ( NN week ) ( POS 's ) ) ( NN rally ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( JJ reflex ) ( NN reaction ) ) ( PP ( TO to ) ( NP ( DT the ) ( NAC-TMP ( NNP Oct. ) ( CD 13 ) ) ( NN stock ) ( NN market ) ( NN rout ) ) ) ) ) ) ) ) )

But A.C. Moore director of research at Argus Research said last week 's rally was a reflex reaction to the Oct. 13 stock market rout


( S-1 ( ADVP ( RB Overall ) ) ( PRN ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) ) ) ( NP-SBJ ( NP ( DT the ) ( NN trend ) ) ( PP-LOC ( IN in ) ( NP ( NN stock ) ( NNS prices ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( ADVP-PRD ( IN down ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( VBZ weakens ) ) ) ) ) ) )

Overall he said the trend in stock prices will be down as the economy weakens


( S ( S-TPC-1 ( NP-SBJ ( PRP We ) ) ( VP ( VBP think ) ( SBAR ( S ( NP-SBJ ( PRP we ) ) ( VP ( VBP 're ) ( PP-PRD ( IN on ) ( NP ( NN target ) ) ) ( PP ( IN in ) ( S-NOM ( VP ( VBG looking ) ( PP-CLR ( IN for ) ( NP ( VBN renewed ) ( JJ economic ) ( NN deterioration ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ) )

We think we 're on target in looking for renewed economic deterioration he said


( S ( S ( NP-SBJ-1 ( JJ Corporate ) ( NNS profits ) ) ( VP ( VBP are ) ( VP ( VBG going ) ( S ( VP ( TO to ) ( VP ( VB decrease ) ( ADVP ( ADVP ( RBR faster ) ) ( SBAR ( IN than ) ( S ( NP-SBJ ( NN interest ) ( NNS rates ) ) ( VP ( MD will ) ( VP ( VB fall ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( DT the ) ( NN probability ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( MD 'll ) ( VP ( VB see ) ( NP ( JJ negative ) ( JJ economic ) ( NN growth ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ fourth ) ( NN quarter ) ) ) ) ) ) ) ) ) )

Corporate profits are going to decrease faster than interest rates will fall and the probability is that we 'll see negative economic growth in the fourth quarter


( S ( S ( NP-SBJ ( NP ( NNP Hugh ) ( NNP Johnson ) ) ( NP ( NP ( NN chief ) ( NN investment ) ( NN officer ) ) ( PP-LOC ( IN at ) ( NP ( JJ First ) ( NNP Albany ) ( NNP Corp. ) ) ) ) ) ( VP ( VBD agreed ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT a ) ( VBG deteriorating ) ( NN economy ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ worrisome ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( JJ real ) ( NN concern ) ) ( PP ( IN among ) ( NP ( NN stock ) ( NNS investors ) ) ) ) ( VP ( VBZ is ) ( SBAR-PRD ( IN that ) ( S ( NP-SBJ ( DT some ) ( JJ new ) ( NN problem ) ) ( VP ( MD will ) ( VP ( VB crop ) ( PRT ( RP up ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN junk ) ( NN bond ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) )

Hugh Johnson chief investment officer at First Albany Corp. agreed that a deteriorating economy is worrisome but he said the real concern among stock investors is that some new problem will crop up in the junk bond market


( S ( PP-LOC ( IN In ) ( NP ( JJ major ) ( NN market ) ( NN activity ) ) ) ( NP-SBJ ( NNP Stock ) ( NNS prices ) ) ( VP ( VBD slumped ) ( PP-LOC ( IN in ) ( NP ( JJ sluggish ) ( NN trading ) ) ) ) )

In major market activity Stock prices slumped in sluggish trading


( S ( NP-SBJ ( NP ( NN Volume ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP New ) ( NNP York ) ( NNP Stock ) ( NNP Exchange ) ) ) ) ( VP ( VBD totaled ) ( NP ( QP ( CD 135.9 ) ( CD million ) ) ( NNS shares ) ) ) )

Volume on the New York Stock Exchange totaled 135.9 million shares


( S ( NP-SBJ ( NP ( VBG Declining ) ( NNS issues ) ) ( PP-LOC ( IN on ) ( NP ( DT the ) ( NNP Big ) ( NNP Board ) ) ) ) ( VP ( VBD were ) ( ADVP-PRD ( ADVP ( RB ahead ) ( PP ( IN of ) ( NP ( NNS gainers ) ) ) ) ( ADVP ( CD 1,012 ) ( TO to ) ( CD 501 ) ) ) ) )

Declining issues on the Big Board were ahead of gainers 1,012 to 501


( S ( NP-SBJ ( NN Bond ) ( NNS prices ) ) ( VP ( VBD rallied ) ) )

Bond prices rallied


( S ( NP-SBJ ( NP ( DT The ) ( NN yield ) ) ( PP ( IN on ) ( NP ( NP ( DT the ) ( NN Treasury ) ( POS 's ) ) ( NN benchmark ) ( JJ 30-year ) ( NN bond ) ) ) ) ( VP ( VBD slipped ) ( PP-DIR ( TO to ) ( NP ( CD 7.93 ) ( NN % ) ) ) ) )

The yield on the Treasury 's benchmark 30-year bond slipped to 7.93 %


( S ( NP-SBJ ( DT The ) ( NN dollar ) ) ( VP ( VBD weakened ) ( PP ( IN against ) ( NP ( RBS most ) ( JJ other ) ( JJ major ) ( NNS currencies ) ) ) ) )

The dollar weakened against most other major currencies


( S ( PP-LOC ( IN In ) ( NP ( JJ late ) ( NNP New ) ( NNP York ) ( NN trading ) ) ) ( NP-SBJ-1 ( DT the ) ( NN dollar ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( NP ( CD 1.8470 ) ( NNS marks ) ) ( CC and ) ( NP ( CD 141.90 ) ( NN yen ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( NP ( CD 1.8578 ) ( NNS marks ) ) ( CC and ) ( NP ( CD 142.43 ) ( NN yen ) ) ) ( NP-TMP ( JJ late ) ( NNP Friday ) ) ) ) ) ) ) ) ) )

In late New York trading the dollar was quoted at 1.8470 marks and 141.90 yen compared with 1.8578 marks and 142.43 yen late Friday


( S ( PP-TMP ( IN After ) ( S-NOM ( VP ( VBG being ) ( VP ( VBN whipsawed ) ( PP ( IN by ) ( NP-LGS ( DT a ) ( JJ volatile ) ( NN stock ) ( NN market ) ) ) ) ) ) ) ( NP-SBJ-2 ( NNP Treasury ) ( NNS bonds ) ) ( VP ( VBD closed ) ( ADVP-CLR ( JJR higher ) ) ) )

After being whipsawed by a volatile stock market Treasury bonds closed higher


( S ( CC But ) ( NP-SBJ ( NN junk ) ( NNS bonds ) ) ( VP ( VBD took ) ( NP ( JJR more ) ( NNS hits ) ) ) )

But junk bonds took more hits


( S ( ADVP-TMP ( RB Early ) ( PP ( IN in ) ( NP ( DT the ) ( NN day ) ) ) ) ( NP-SBJ ( NN bond ) ( NNS dealers ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NN trading ) ( NN volume ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ heavy ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ-1 ( JJ large ) ( JJ institutional ) ( NNS investors ) ) ( VP ( VBD scrambled ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( NP ( JJ long-term ) ( NNP Treasury ) ( NNS bonds ) ) ( PP-PRP ( IN on ) ( NP ( NN speculation ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( DT the ) ( NN stock ) ( NN market ) ( POS 's ) ) ( NN volatility ) ) ( VP ( MD would ) ( VP ( VB lead ) ( PP-CLR ( TO to ) ( NP ( DT a ) ( NN flight-to-quality ) ( NN rally ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Early in the day bond dealers said trading volume was heavy as large institutional investors scrambled to buy long-term Treasury bonds on speculation that the stock market 's volatility would lead to a flight-to-quality rally


( S ( NP-SBJ ( DT That ) ) ( VP ( VBZ happens ) ( SBAR-TMP ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ ( JJ nervous ) ( NN stock ) ( NNS investors ) ) ( VP ( VP ( VBP dump ) ( NP ( NNS equities ) ) ) ( CC and ) ( VP ( VB buy ) ( NP ( NP ( NNS Treasurys ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP are ) ( UCP-PRD ( ADJP-PRD ( JJR higher ) ( PP ( IN in ) ( NP ( NN quality ) ) ) ) ( CC and ) ( VP ( ADVP ( RB thus ) ) ( VBN considered ) ( S ( ADJP-PRD ( JJ safe ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

That happens when nervous stock investors dump equities and buy Treasurys which are higher in quality and thus considered safe


( SINV ( S-TPC-2 ( NP-SBJ-1 ( NP ( DT Some ) ( JJ retail ) ( NNS accounts ) ) ( PP ( JJ such ) ( IN as ) ( NP ( NP ( JJ commercial ) ( NNS banks ) ) ( CC and ) ( NP ( NN pension ) ( NNS funds ) ) ) ) ) ( VP ( VBD wanted ) ( S ( VP ( TO to ) ( VP ( VB get ) ( PP-CLR ( IN on ) ( NP ( DT the ) ( NN bandwagon ) ) ) ( SBAR-TMP ( IN before ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( ADJP-PRD ( RB too ) ( JJ late ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Sung ) ( NNP Won ) ( NNP Sohn ) ) ( NP ( NP ( NN chief ) ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( NP ( NNP Norwest ) ( NNP Corp. ) ) ( NP ( NNP Minneapolis ) ) ) ) ) ) )

Some retail accounts such as commercial banks and pension funds wanted to get on the bandwagon before it was too late said Sung Won Sohn chief economist at Norwest Corp. Minneapolis


( S ( PP-TMP ( IN At ) ( NP ( CD one ) ( NN point ) ) ) ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NN average ) ) ( VP ( VBD fell ) ( NP-EXT ( QP ( IN about ) ( CD 80 ) ) ( NNS points ) ) ( PP-PRP ( IN on ) ( NP ( NN news ) ( SBAR ( IN that ) ( S ( NP-SBJ-1 ( NNP UAL ) ( NNP Corp. ) ) ( VP ( VBD decided ) ( S ( VP ( TO to ) ( VP ( VB remain ) ( ADJP-PRD ( JJ independent ) ) ) ) ) ) ) ) ) ) ) )

At one point the Dow Jones Industrial average fell about 80 points on news that UAL Corp. decided to remain independent


( S ( PP ( IN In ) ( NP ( NN response ) ) ) ( NP-SBJ ( NNP Treasury ) ( NNS prices ) ) ( VP ( VBD soared ) ( NP-EXT ( NP ( QP ( CD 1 ) ( CD 1\/8 ) ) ( NNS points ) ) ( CC or ) ( NP ( NP ( QP ( IN about ) ( CD 11.25 ) ) ) ( PP ( IN for ) ( NP ( DT each ) ( ADJP ( CD 1,000 ) ) ( NN face ) ( NN amount ) ) ) ) ) ) )

In response Treasury prices soared 1 1\/8 points or about 11.25 for each 1,000 face amount


( S ( CC But ) ( NP-SBJ-1 ( NP ( DT the ) ( NNS gains ) ) ( PP-LOC ( IN in ) ( NP ( NNP Treasury ) ( NNS bonds ) ) ) ) ( VP ( VBD were ) ( VP ( VBN pared ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( NNS stocks ) ) ( VP ( VBD staged ) ( NP ( DT a ) ( JJ partial ) ( NN recovery ) ) ) ) ) ) ) )

But the gains in Treasury bonds were pared as stocks staged a partial recovery


( S ( NP-SBJ ( DT The ) ( JJ industrial ) ( NN average ) ) ( VP ( VBD ended ) ( PP-CLR ( IN at ) ( NP ( CD 2659.22 ) ) ) ( ADVP ( IN down ) ( NP ( CD 3.69 ) ( NNS points ) ) ) ) )

The industrial average ended at 2659.22 down 3.69 points


( S ( NP-SBJ ( NNS Economists ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN bond ) ( NN market ) ( POS 's ) ) ( NN strength ) ) ( ADVP ( RB also ) ) ( VP ( VBZ is ) ( NP-PRD ( DT a ) ( NN sign ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NNS investors ) ) ( VP ( VBP expect ) ( S ( NP-SBJ ( DT the ) ( NNP Federal ) ( NNP Reserve ) ) ( VP ( TO to ) ( VP ( VB cut ) ( NP ( NN interest ) ( NNS rates ) ) ( PP-LOC ( IN amid ) ( NP ( VBG growing ) ( NN evidence ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN economy ) ) ( VP ( VBZ is ) ( VP ( VBG slowing ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Economists said the bond market 's strength also is a sign that investors expect the Federal Reserve to cut interest rates amid growing evidence that the economy is slowing


( S ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB expect ) ( S ( NP-SBJ ( DT the ) ( NNP Fed ) ) ( VP ( TO to ) ( VP ( VB move ) ( ADVP-TMP ( RB right ) ( RB away ) ) ) ) ) ) ) ) ) ( NP-SBJ ( PRP they ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN case ) ) ( PP ( IN for ) ( NP ( JJR lower ) ( NNS rates ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG building ) ) ) ) ) ) )

While they do n't expect the Fed to move right away they say the case for lower rates is building


( S ( NP-TMP ( NN Yesterday ) ) ( PP ( IN for ) ( NP ( NN example ) ) ) ( NP-SBJ ( DT the ) ( NNP Commerce ) ( NNP Department ) ) ( VP ( VBD reported ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( JJ new ) ( NNS orders ) ) ( PP ( IN for ) ( NP ( JJ durable ) ( NNS goods ) ) ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 0.1 ) ( NN % ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( NN auto ) ( NNS makers ) ) ( VP ( VBD reported ) ( NP ( NN lackluster ) ( JJ mid-October ) ( NNS sales ) ) ) ) ) ) )

Yesterday for example the Commerce Department reported that new orders for durable goods fell 0.1 % while the nation 's auto makers reported lackluster mid-October sales


( S ( NP-SBJ ( NP ( DT The ) ( NNP Treasury ) ( POS 's ) ) ( JJ 30-year ) ( NN bond ) ) ( VP ( VBD ended ) ( ADVP-CLR ( NP ( QP ( IN over ) ( CD 1\/4 ) ) ( NN point ) ) ( JJR higher ) ) ) )

The Treasury 's 30-year bond ended over 1\/4 point higher


( S ( NP-SBJ ( ADJP ( JJ Municipal ) ( JJ mortgage-backed ) ( CC and ) ( JJ investment-grade ) ) ( JJ corporate ) ( NNS bonds ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 1\/8 ) ) ( PP-DIR ( TO to ) ( NP ( CD 1\/2 ) ( NN point ) ) ) ) )

Municipal mortgage-backed and investment-grade corporate bonds rose 1\/8 to 1\/2 point


( S ( CC But ) ( NP-SBJ ( ADJP ( JJ high-yield ) ( JJ high-risk ) ) ( NNS bonds ) ) ( VP ( VP ( VBD fell ) ( NP-EXT ( CD 1\/4 ) ) ( PP-DIR ( TO to ) ( NP ( CD 1\/2 ) ( NN point ) ) ) ( PP ( IN with ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ( ADVP-TMP ( RB early ) ( PP ( IN in ) ( NP ( DT the ) ( NN session ) ) ) ) ) ( CC and ) ( VP ( ADVP-TMP ( RB never ) ) ( VBD recovered ) ) ) )

But high-yield high-risk bonds fell 1\/4 to 1\/2 point with the stock market early in the session and never recovered


( S ( PP ( VBG According ) ( PP ( TO to ) ( NP ( NP ( DT a ) ( NN trader ) ) ( PP-LOC ( IN at ) ( NP ( NNP Drexel ) ( NNP Burnham ) ( NNP Lambert ) ( NNP Inc. ) ) ) ) ) ) ( NP-SBJ ( DT the ) ( ADJP ( JJS hardest ) ( VBN hit ) ) ( NN junk ) ( NNS bonds ) ) ( VP ( VBD were ) ( NP-PRD ( NP ( NP ( DT those ) ) ( VP ( VBN issued ) ( PP ( IN by ) ( NP-LGS ( NNP RJR ) ( NNP Holdings ) ( NNP Capital ) ( NNP Corp. ) ) ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP are ) ( NP-PRD ( DT the ) ( JJS easiest ) ( S ( VP ( TO to ) ( VP ( VB sell ) ) ) ) ) ) ) ) ) ) )

According to a trader at Drexel Burnham Lambert Inc. the hardest hit junk bonds were those issued by RJR Holdings Capital Corp. which are the easiest to sell


( S ( NP-SBJ ( NP ( NP ( NNP RJR ) ( POS 's ) ) ( ADJP ( CD 14.70 ) ( NN % ) ) ( NNS bonds ) ) ( ADJP ( JJ due ) ( NP-TMP ( CD 2007 ) ) ) ) ( VP ( VBD fell ) ( NP-EXT ( CD 2 ) ( CD 1\/2 ) ( NNS points ) ) ) )

RJR 's 14.70 % bonds due 2007 fell 2 1\/2 points


( S ( NP-SBJ ( NP ( NN Trading ) ( NN activity ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN junk ) ( NN market ) ) ) ) ( VP ( VBD was ) ( ADJP-PRD ( RB extremely ) ( JJ light ) ) ( SBAR-ADV ( IN as ) ( S ( NP-SBJ ( NNS dealers ) ) ( VP ( MD could ) ( RB n't ) ( VP ( VB find ) ( NP ( NP ( JJ enough ) ( NNS buyers ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB match ) ( NP ( NNS sellers ) ) ) ) ) ) ) ) ) ) ) ) )

Trading activity in the junk market was extremely light as dealers could n't find enough buyers to match sellers


( SINV ( S-TPC-4 ( SBAR-ADV ( IN While ) ( S ( NP-SBJ ( DT the ) ( NN stock ) ( NN market ) ) ( VP ( VBD was ) ( VP ( VBG falling ) ) ) ) ) ( NP-SBJ-2 ( RBS most ) ( NN junk ) ( NN bond ) ( NNS holders ) ) ( VP ( VBD were ) ( VP ( ADVP ( RB just ) ) ( VBG watching ) ( NP ( PRP it ) ) ( S ( VP ( RB not ) ( VBG knowing ) ( SBAR ( WHNP-1 ( WP what ) ) ( S ( VP ( TO to ) ( VP ( VB do ) ) ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Paul ) ( NNP Suckow ) ) ( NP ( NP ( NN director ) ) ( PP ( IN of ) ( NP ( NN fixed-income ) ( NNS securities ) ) ) ( PP-LOC ( IN at ) ( NP ( NNP Oppenheimer ) ( NNP Management ) ( NNP Corp ) ) ) ) ) )

While the stock market was falling most junk bond holders were just watching it not knowing what to do said Paul Suckow director of fixed-income securities at Oppenheimer Management Corp


( S ( NP-SBJ ( PRP It ) ) ( VP ( VBD was ) ( PP-PRD ( IN like ) ( S-NOM ( VP ( VBG driving ) ( PP ( IN down ) ( NP ( DT the ) ( NN highway ) ) ) ( S-ADV ( VP ( VBG watching ) ( NP ( DT a ) ( NN wreck ) ) ) ) ) ) ) ) )

It was like driving down the highway watching a wreck


( S ( NP-SBJ ( NN Everybody ) ) ( VP ( VBD was ) ( VP ( VBG rubber-necking ) ) ) )

Everybody was rubber-necking


( SINV ( VP-TPC-3 ( VBG Adding ) ( PP-CLR ( TO to ) ( NP ( NP ( DT the ) ( NN junk ) ( NN market ) ( POS 's ) ) ( NNS jitters ) ) ) ) ( VP ( VBD were ) ) ( NP-SBJ ( NNS reports ) ( SBAR ( IN that ) ( S ( NP-SBJ-2 ( NNP Donaldson ) ( NNP Lufkin ) ( CC & ) ( NNP Jenrette ) ( NNPS Securities ) ( NNP Corp. ) ) ( VP ( VP ( VBZ is ) ( VP ( VBG having ) ( NP ( NN trouble ) ) ( S ( VP ( VBG structuring ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 1.6 ) ( CD billion ) ) ) ( NN offering ) ) ( PP ( IN for ) ( NP ( NNP TW ) ( NNP Food ) ( NNPS Services ) ( NNP Inc. ) ) ) ) ) ) ) ) ( CC and ) ( VP ( MD will ) ( VP ( VP ( VB postpone ) ) ( CC or ) ( VP ( ADVP ( RB even ) ) ( VB cancel ) ) ( NP-1 ( DT the ) ( NN issue ) ) ) ) ) ) ) ) )

Adding to the junk market 's jitters were reports that Donaldson Lufkin & Jenrette Securities Corp. is having trouble structuring a 1.6 billion offering for TW Food Services Inc. and will postpone or even cancel the issue


( S ( NP-SBJ ( NNP TW ) ) ( VP ( VP ( VBZ is ) ( NP-PRD ( NP ( DT the ) ( JJS largest ) ( NN franchisee ) ) ( PP ( IN of ) ( NP ( NP ( NP ( NNP Hardee ) ( POS 's ) ) ) ( NP ( DT a ) ( NN fast-food ) ( NN restaurant ) ) ) ) ) ) ( CC and ) ( VP ( VBZ operates ) ( NP ( JJ several ) ( JJ other ) ( NN food ) ( NNS chains ) ) ) ) )

TW is the largest franchisee of Hardee 's a fast-food restaurant and operates several other food chains


( S ( NP-SBJ ( NNP Donaldson ) ( NNP Lufkin ) ) ( VP ( MD would ) ( RB n't ) ( VP ( VB comment ) ) ) )

Donaldson Lufkin would n't comment


( S ( NP-SBJ ( NN Credit ) ( NNS analysts ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNS investors ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ nervous ) ( PP ( IN about ) ( NP ( DT the ) ( NN issue ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBP say ) ( SBAR ( S ( NP-SBJ ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( NN ability ) ( S ( VP ( TO to ) ( VP ( VB meet ) ( NP ( NN debt ) ( NNS payments ) ) ) ) ) ) ( VP ( VBZ is ) ( ADJP-PRD ( JJ dependent ) ( PP ( IN on ) ( NP ( NP ( RB too ) ( JJ many ) ( NNS variables ) ) ( PP ( VBG including ) ( NP ( NP ( NP ( DT the ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NNS assets ) ) ) ) ( CC and ) ( NP ( DT the ) ( NN need ) ( S ( VP ( TO to ) ( VP ( VB mortgage ) ( NP ( NN property ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB retire ) ( NP ( DT some ) ( VBG existing ) ( NN debt ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Credit analysts said investors are nervous about the issue because they say the company 's ability to meet debt payments is dependent on too many variables including the sale of assets and the need to mortgage property to retire some existing debt


( S ( ADVP ( RB Also ) ) ( NP-SBJ ( DT the ) ( NNP TW ) ( NN offering ) ) ( VP ( VBZ includes ) ( NP ( NP ( ADJP ( JJ interest-deferred ) ( CC and ) ( JJ pay-in-kind ) ) ( NNS securities ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBP are ) ( ADVP-TMP ( RB currently ) ) ( ADJP-PRD ( JJ unpopular ) ) ) ) ) ) ) )

Also the TW offering includes interest-deferred and pay-in-kind securities which are currently unpopular


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ ( NNS investors ) ) ( VP ( VBD turned ) ( NP-PRD ( DT a ) ( JJ cold ) ( NN shoulder ) ) ( PP-CLR ( TO to ) ( NP ( NP ( NP ( DT the ) ( NNP Treasury ) ( POS 's ) ) ( NN sale ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 10 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( JJ new ) ( JJ two-year ) ( NNS notes ) ) ) ) ) ( NP-TMP ( NN yesterday ) ) ) ) ) )

Meanwhile investors turned a cold shoulder to the Treasury 's sale of 10 billion of new two-year notes yesterday


( SINV ( S-TPC-1 ( NP-SBJ ( NP ( PRP It ) ) ) ( VP ( VBZ 's ) ( RB not ) ( ADJP-PRD ( RB too ) ( JJ surprising ) ) ( SBAR-2 ( IN that ) ( S ( NP-SBJ ( DT the ) ( NN auction ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ sloppy ) ) ) ) ) ( S-ADV ( VP ( VBN given ) ( NP ( NP ( DT the ) ( NN volatility ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN bond ) ( NN market ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NNS stocks ) ) ) ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Robert ) ( NNP T. ) ( NNP McGee ) ) ( NP ( NP ( DT a ) ( JJ senior ) ( NN vice ) ( NN president ) ) ( PP-LOC ( IN at ) ( NP ( NNP Tokai ) ( NNP Bank ) ( NNP Ltd ) ) ) ) ) )

It 's not too surprising that the auction was sloppy given the volatility in the bond market because of stocks said Robert T. McGee a senior vice president at Tokai Bank Ltd


( S ( S ( NP-SBJ ( NNS People ) ) ( VP ( VBP are ) ( VP ( VBG looking ) ( PP ( JJ past ) ( NP ( NN supply ) ) ) ( PP-CLR ( TO to ) ( NP ( JJR lower ) ( NN interest ) ( NNS rates ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-2 ( PRP they ) ) ( VP ( VBP 're ) ( ADVP ( RB also ) ) ( ADJP-PRD ( VBN worried ) ( PP ( IN about ) ( S-NOM ( VP ( VBG being ) ( VP ( VBN whipsawed ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN volatility ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN stock ) ( NN market ) ) ) ) ) ) ) ) ) ) ) ) )

People are looking past supply to lower interest rates but they 're also worried about being whipsawed by the volatility in the stock market


( S ( NP-SBJ-1 ( DT The ) ( JJ new ) ( JJ two-year ) ( NNS notes ) ) ( VP ( VBD were ) ( VP ( VBN priced ) ( PP-CLR ( IN with ) ( NP ( NP ( DT an ) ( JJ average ) ( NN yield ) ) ( PP ( IN of ) ( NP ( CD 7.74 ) ( NN % ) ) ) ) ) ) ) )

The new two-year notes were priced with an average yield of 7.74 %


( S ( NP-SBJ ( DT That ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJR higher ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( ADJP ( QP ( CD 7.71 ) ( NN % ) ( TO to ) ( CD 7.73 ) ) ( NN % ) ) ( JJ average ) ( NN yield ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( NNS traders ) ) ( VP ( VBD had ) ( VP ( VBN expected ) ) ) ) ) ) ) ) ) )

That was higher than the 7.71 % to 7.73 % average yield that traders had expected


( S ( PP-LOC ( IN In ) ( NP ( JJ when-issued ) ( NN trading ) ) ) ( NP-SBJ-1 ( DT the ) ( NNS notes ) ) ( VP ( VBD were ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( NN price ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.78 ) ( NN % ) ) ) ) ) ) ) ) ) ) )

In when-issued trading the notes were quoted at a price to yield 7.78 %


( S ( NP-SBJ-1 ( JJ Sluggish ) ( NN demand ) ) ( VP ( VBD was ) ( ADVP ( RB also ) ) ( VP ( VBN evidenced ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( JJ weak ) ( CD 2.41-to-1 ) ( NN bid-to-cover ) ( NN ratio ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBD was ) ( ADJP-PRD ( JJR lower ) ( PP ( IN than ) ( NP ( NP ( DT the ) ( JJ average ) ( CD 2.79-to-1 ) ( NN ratio ) ) ( PP-LOC ( IN at ) ( NP ( DT the ) ( JJ last ) ( CD 12 ) ( JJ similar ) ( NNS auctions ) ) ) ) ) ) ) ) ) ) ) ) ) )

Sluggish demand was also evidenced by the weak 2.41-to-1 bid-to-cover ratio which was lower than the average 2.79-to-1 ratio at the last 12 similar auctions


( S ( NP-SBJ-3 ( NP ( DT The ) ( NN ratio ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ reflects ) ( NP ( NP ( DT the ) ( NN number ) ) ( PP ( IN of ) ( NP ( NNS bids ) ) ) ( SBAR ( S ( NP-SBJ ( DT the ) ( NNP Treasury ) ) ( VP ( VBZ receives ) ( PP ( IN for ) ( NP ( NP ( DT each ) ( NN bid ) ) ( VP ( VBN accepted ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN used ) ( S-CLR ( VP ( TO to ) ( VP ( VB gauge ) ( NP ( NN investor ) ( NN demand ) ) ) ) ) ) ) )

The ratio which reflects the number of bids the Treasury receives for each bid accepted is used to gauge investor demand


( S ( NP-SBJ ( NNS Dealers ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( NNS players ) ) ( VP ( VBD shied ) ( PRT ( RP away ) ) ( PP ( IN from ) ( NP ( DT the ) ( NN note ) ( NN sale ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP they ) ) ( VP ( VBD were ) ( ADJP-PRD ( VBN concerned ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NNS prices ) ) ( PP-TMP ( IN at ) ( NP ( NP ( DT the ) ( NN time ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN auction ) ) ) ) ) ) ( VP ( MD might ) ( VP ( VB erode ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT the ) ( NN stock ) ( NN market ) ) ( VP ( VP ( VBD staged ) ( NP ( DT a ) ( NN recovery ) ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( PP ( IN in ) ( NP ( NN fact ) ) ) ( VP ( VBD did ) ( VP ( VB happen ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Dealers said players shied away from the note sale because they were concerned that prices at the time of the auction might erode if the stock market staged a recovery which in fact did happen


( S ( NP-SBJ ( NP ( NN Individual ) ( CC and ) ( JJ Japanese ) ( NN participation ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( NN auction ) ) ) ) ( VP ( VBD was ) ( ADJP-PRD ( JJ disappointing ) ) ( PP ( VBG according ) ( PP ( TO to ) ( NP ( NNS dealers ) ) ) ) ) )

Individual and Japanese participation in the auction was disappointing according to dealers


( SINV ( S-TPC-2 ( NP-SBJ ( NP ( NN Interest ) ) ( PP ( IN by ) ( NP ( JJ Japanese ) ( NNS investors ) ) ) ) ( VP ( VBD was ) ( ADJP-PRD ( VBN limited ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Michael ) ( NNP Moran ) ) ( NP ( NP ( NN chief ) ( NN economist ) ) ( PP-LOC ( IN at ) ( NP ( NNP Daiwa ) ( NNPS Securities ) ( NNP America ) ( NNP Inc ) ) ) ) ) )

Interest by Japanese investors was limited said Michael Moran chief economist at Daiwa Securities America Inc


( S ( S ( NP-SBJ ( PRP They ) ) ( VP ( VBP are ) ( ADVP ( RB typically ) ) ( ADJP-PRD ( RB not ) ( JJ active ) ( PP ( IN in ) ( NP ( JJ two-year ) ( NN note ) ( NNS auctions ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-1 ( NP ( NN today ) ( POS 's ) ) ( NN participation ) ) ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN viewed ) ( PP-CLR ( IN as ) ( ADJP ( JJ lighter-than-normal ) ) ) ) ) ) ) )

They are typically not active in two-year note auctions but today 's participation could be viewed as lighter-than-normal


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NNP Mr. ) ( NNP Moran ) ) ( VP ( VBD added ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP Japanese ) ) ( ADVP ( RB generally ) ) ( VP ( VBP have ) ( NP ( NP ( DT a ) ( JJ positive ) ( NN view ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNP U.S. ) ( NN bond ) ( NN market ) ) ) ) ( PP-PRP ( IN because ) ( IN of ) ( NP ( NNS expectations ) ( SBAR ( IN that ) ( S ( S ( NP-SBJ ( DT the ) ( NN dollar ) ) ( VP ( MD will ) ( VP ( VB remain ) ( ADJP-PRD ( JJ strong ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NN interest ) ( NNS rates ) ) ( VP ( MD will ) ( VP ( VB decline ) ) ) ) ) ) ) ) ) ) ) ) )

However Mr. Moran added that the Japanese generally have a positive view of the U.S. bond market because of expectations that the dollar will remain strong and interest rates will decline


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD said ) ( S ( ADVP ( RB Possibly ) ) ( NP-SBJ-2 ( PRP they ) ) ( VP ( VBP 're ) ( VP ( VBG waiting ) ( S ( VP ( TO to ) ( VP ( VB buy ) ( PP-LOC ( IN at ) ( NP ( NP ( NP ( DT the ) ( PRN ( JJ quarterly ) ) ( NN refunding ) ) ( PP ( IN of ) ( NP ( NN government ) ( NN debt ) ) ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB be ) ( VP ( VBN held ) ( NP-TMP ( JJ next ) ( NN month ) ) ( PP ( IN by ) ( NP-LGS ( DT the ) ( NNP Treasury ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

He said Possibly they 're waiting to buy at the quarterly refunding of government debt to be held next month by the Treasury


( S ( NP-SBJ ( NP ( DT A ) ( NN trader ) ) ( PP-LOC ( IN at ) ( NP ( DT a ) ( JJ Japanese ) ( NN firm ) ) ) ) ( VP ( VBD estimated ) ( SBAR ( IN that ) ( S ( NP-SBJ ( DT the ) ( NNP Japanese ) ) ( VP ( VBD purchased ) ( NP ( NP ( QP ( DT no ) ( RBR more ) ( IN than ) ( CD 10 ) ) ( NN % ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ two-year ) ( NNS notes ) ) ) ) ) ) ) ) )

A trader at a Japanese firm estimated that the Japanese purchased no more than 10 % of the two-year notes


( NP ( NNP Treasury ) ( NNP Agency ) ( NNPS Securities ) )

Treasury Agency Securities


( S ( NP-TMP ( NN Today ) ) ( NP-SBJ ( NNS investors ) ) ( VP ( MD will ) ( VP ( VB focus ) ( PP-CLR ( IN on ) ( NP ( NP ( DT the ) ( JJ long-awaited ) ( NN auction ) ) ( PP ( IN of ) ( NP ( NP ( QP ( CD 4.5 ) ( CD billion ) ) ) ( PP ( IN of ) ( NP ( JJ 30-year ) ( NNS bonds ) ) ) ) ) ( PP ( IN by ) ( NP ( NNP Resolution ) ( NNP Funding ) ( NNP Corp ) ) ) ) ) ) ) )

Today investors will focus on the long-awaited auction of 4.5 billion of 30-year bonds by Resolution Funding Corp


( S ( NP-SBJ-3 ( NP ( DT The ) ( JJ initial ) ( NN bond ) ( VBG offering ) ) ( PP ( IN by ) ( NP ( NP ( DT the ) ( JJ new ) ( NN government ) ( NN agency ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD was ) ( VP ( VBN created ) ( S-PRP ( VP ( TO to ) ( VP ( VB help ) ( VP ( VB rescue ) ( NP ( NP ( DT the ) ( NN nation ) ( POS 's ) ) ( VBN troubled ) ( NNS thrifts ) ) ) ) ) ) ) ) ) ) ) ) ) ( VP ( VBZ is ) ( RB n't ) ( VP ( VBN expected ) ( S ( VP ( TO to ) ( VP ( VB see ) ( NP ( JJ robust ) ( NN demand ) ) ) ) ) ) ) )

The initial bond offering by the new government agency which was created to help rescue the nation 's troubled thrifts is n't expected to see robust demand


( S ( NP-SBJ ( NP ( NP ( DT A ) ( JJ small ) ( NN yield ) ( NN premium ) ) ( PP ( IN over ) ( NP ( JJ comparable ) ( NNS Treasurys ) ) ) ) ( CC and ) ( NP ( NP ( DT a ) ( NN lack ) ) ( PP ( IN of ) ( NP ( NN liquidity ) ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG hampering ) ( NP ( NP ( NNS dealers ) ( POS ' ) ) ( NNS efforts ) ( S ( VP ( TO to ) ( VP ( VB drum ) ( PRT ( RP up ) ) ( NP ( NP ( NN interest ) ) ( PP-LOC ( IN in ) ( NP ( DT the ) ( JJ so-called ) ( NN bailout ) ( NNS bonds ) ) ) ) ) ) ) ) ) ) )

A small yield premium over comparable Treasurys and a lack of liquidity is hampering dealers ' efforts to drum up interest in the so-called bailout bonds


( S ( PP-LOC ( IN In ) ( NP ( JJ when-issued ) ( NN trading ) ) ) ( NP-SBJ-1 ( DT the ) ( NNP Refcorp ) ( NNS bonds ) ) ( VP ( VBD were ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( NN price ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 8.17 ) ( NN % ) ) ) ) ) ) ) ) ) ) )

In when-issued trading the Refcorp bonds were quoted at a price to yield 8.17 %


( S ( NP-TMP ( NN Yesterday ) ) ( NP-SBJ-1 ( DT the ) ( NN benchmark ) ( JJ 30-year ) ( NN bond ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( ADVP-TMP ( RB late ) ) ( PP-CLR ( IN at ) ( NP ( NP ( NP ( CD 102 ) ( CD 18\/32 ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.89 ) ( NN % ) ) ) ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( CD 102 ) ( CD 9\/32 ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.93 ) ( NN % ) ) ( PP-TMP ( IN on ) ( NP ( NNP Monday ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Yesterday the benchmark 30-year bond was quoted late at 102 18\/32 to yield 7.89 % compared with 102 9\/32 to yield 7.93 % on Monday


( S ( NP-SBJ-1 ( DT The ) ( JJS latest ) ( JJ 10-year ) ( NN Treasury ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( NP ( CD 100 ) ( CD 22\/32 ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.88 ) ( NN % ) ) ) ) ) ) ) ( PP ( VBN compared ) ( PP ( IN with ) ( NP ( NP ( CD 100 ) ( CD 17\/32 ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.9 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) ) )

The latest 10-year Treasury was quoted at 100 22\/32 to yield 7.88 % compared with 100 17\/32 to yield 7.9 %


( S ( NP-SBJ ( JJ Short-term ) ( NNS rates ) ) ( VP ( VBD were ) ( ADJP-PRD ( JJ unchanged ) ( PP ( TO to ) ( ADJP ( RB slightly ) ( JJR lower ) ) ) ) ) )

Short-term rates were unchanged to slightly lower


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN discount ) ( NN rate ) ) ( PP ( IN on ) ( NP ( JJ three-month ) ( NNP Treasury ) ( NNS bills ) ) ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 7.52 ) ( NN % ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( JJ bond-equivalent ) ( NN yield ) ) ( PP ( IN of ) ( NP ( CD 7.75 ) ( NN % ) ) ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ-2 ( NP ( DT the ) ( NN rate ) ) ( PP ( IN on ) ( NP ( JJ six-month ) ( NNP Treasury ) ( NNS bills ) ) ) ) ( VP ( VBD was ) ( VP ( VBN quoted ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 7.47 ) ( NN % ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( NN yield ) ) ( PP ( IN of ) ( NP ( CD 7.85 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ) ) )

The discount rate on three-month Treasury bills was quoted at 7.52 % for a bond-equivalent yield of 7.75 % while the rate on six-month Treasury bills was quoted at 7.47 % for a yield of 7.85 %


( S ( NP-SBJ-1 ( NNS Rates ) ) ( VP ( VBP are ) ( VP ( VBN determined ) ( PP ( IN by ) ( NP-LGS ( NP ( DT the ) ( NN difference ) ) ( PP ( IN between ) ( NP ( NP ( DT the ) ( NN purchase ) ( NN price ) ) ( CC and ) ( NP ( NN face ) ( NN value ) ) ) ) ) ) ) ) )

Rates are determined by the difference between the purchase price and face value


( S ( ADVP ( RB Thus ) ) ( NP-SBJ ( JJR higher ) ( NN bidding ) ) ( VP ( VBZ narrows ) ( NP ( NP ( DT the ) ( NN investor ) ( POS 's ) ) ( NN return ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( JJR lower ) ( NN bidding ) ) ( VP ( VBZ widens ) ( NP ( PRP it ) ) ) ) ) ) )

Thus higher bidding narrows the investor 's return while lower bidding widens it


( NP ( NNP Corporate ) ( NNPS Issues ) )

Corporate Issues


( S ( NP-SBJ-1 ( JJ Several ) ( JJ blue-chip ) ( NNS companies ) ) ( VP ( VBD tapped ) ( NP ( DT the ) ( JJ new-issue ) ( NN market ) ) ( NP-TMP ( NN yesterday ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB take ) ( NP ( NN advantage ) ) ( PP-CLR ( IN of ) ( NP ( VBG falling ) ( NN interest ) ( NNS rates ) ) ) ) ) ) ) )

Several blue-chip companies tapped the new-issue market yesterday to take advantage of falling interest rates


( S ( NP-SBJ-1 ( NP ( CD Three ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( JJS largest ) ( NNS offerings ) ) ( PP ( IN by ) ( NP ( NP ( NNP Exxon ) ( NNP Capital ) ( NNP Corp. ) ) ( NP ( NNP Xerox ) ( NNP Corp. ) ) ( CC and ) ( NP ( NNP Citicorp ) ) ) ) ) ) ) ( VP ( VBD were ) ( VP ( VBN underwritten ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS groups ) ) ( VP ( VBN led ) ( PP ( IN by ) ( NP-LGS ( NNP Salomon ) ( NNPS Brothers ) ( NNP Inc ) ) ) ) ) ) ) ) )

Three of the largest offerings by Exxon Capital Corp. Xerox Corp. and Citicorp were underwritten by groups led by Salomon Brothers Inc


( S ( NP-SBJ ( NP ( NNP Exxon ) ( NNP Capital ) ) ( ADJP ( JJ long-rumored ) ( S ( VP ( TO to ) ( VP ( VB be ) ( NP-PRD ( DT a ) ( JJ potential ) ( NN debt ) ( NN issuer ) ) ) ) ) ) ) ( VP ( VBD offered ) ( NP ( NP ( QP ( CD 200 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( JJ 10-year ) ( NNS notes ) ) ( VP ( VBN priced ) ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 8.31 ) ( NN % ) ) ) ) ) ) ) ) ) ) )

Exxon Capital long-rumored to be a potential debt issuer offered 200 million of 10-year notes priced to yield 8.31 %


( S ( S ( NP-SBJ ( NNP Citicorp ) ) ( VP ( VBD issued ) ( NP ( NP ( QP ( CD 200 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( NP ( JJ seven-year ) ( NNS notes ) ) ( VP ( VBN priced ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 8.82 ) ( NN % ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NNP Xerox ) ) ( VP ( VBD priced ) ( NP-2 ( NP ( QP ( CD 150 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ six-year ) ( NNS notes ) ) ) ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 8.85 ) ( NN % ) ) ) ) ) ) ) )

Citicorp issued 200 million of seven-year notes priced to yield 8.82 % and Xerox priced 150 million of six-year notes to yield 8.85 %


( S ( ADVP-TMP ( RB Meanwhile ) ) ( NP-SBJ-1 ( NNP International ) ( NNP Business ) ( NNPS Machines ) ( NNP Corp. ) ) ( VP ( VBD paved ) ( NP ( NP ( DT the ) ( NN way ) ) ( PP ( IN for ) ( NP ( NP ( DT a ) ( NN visit ) ) ( PP ( TO to ) ( NP ( DT the ) ( NN credit ) ( NNS markets ) ) ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG filing ) ( NP ( NP ( DT a ) ( NN shelf ) ( NN registration ) ) ) ( PP-CLR ( IN with ) ( NP ( DT the ) ( NNPS Securities ) ( CC and ) ( NNP Exchange ) ( NNP Commission ) ) ) ( PP-2 ( IN for ) ( NP ( NP ( QP ( CD 800 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( JJ new ) ( NN debt ) ) ) ) ) ) ) ) ) )

Meanwhile International Business Machines Corp. paved the way for a visit to the credit markets by filing a shelf registration with the Securities and Exchange Commission for 800 million in new debt


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( PP-PRD ( IN in ) ( NP ( NP ( NN addition ) ) ( PP ( TO to ) ( NP ( NP ( NP ( NNP IBM ) ( POS 's ) ) ( VBG existing ) ( NN shelf ) ( NN registration ) ) ( SBAR ( WHPP-1 ( IN under ) ( WHNP ( WDT which ) ) ) ( S ( NP-SBJ ( NP ( QP ( CD 200 ) ( CD million ) ) ) ( PP ( IN in ) ( NP ( NN debt ) ( NNS securities ) ) ) ) ( VP ( VBP are ) ( ADJP-PRD ( JJ available ) ( PP ( IN for ) ( NP ( NN issuance ) ) ) ) ) ) ) ) ) ) ) ) )

This is in addition to IBM 's existing shelf registration under which 200 million in debt securities are available for issuance


( S ( PP-LOC ( IN In ) ( NP ( JJ secondary ) ( NN trading ) ) ) ( NP-SBJ ( JJ investment-grade ) ( JJ corporate ) ( NNS bonds ) ) ( VP ( VBD ended ) ( ADVP-CLR ( NP ( QP ( CD 1\/8 ) ( TO to ) ( CD 1\/4 ) ) ) ( JJR higher ) ) ) )

In secondary trading investment-grade corporate bonds ended 1\/8 to 1\/4 higher


Municipals


( S ( NP-SBJ ( ADJP ( RB Actively ) ( VBN traded ) ) ( JJ municipal ) ( NNS bonds ) ) ( VP ( VBD ended ) ( ADVP-CLR ( NP ( QP ( CD 1\/4 ) ( TO to ) ( CD 1\/2 ) ) ( NN point ) ) ( JJR higher ) ) ( PP-LOC ( IN in ) ( NP ( JJ brisk ) ( NN trading ) ) ) ( PP ( IN despite ) ( NP ( NP ( DT a ) ( NN flood ) ) ( PP ( IN of ) ( NP ( JJ new ) ( NN supply ) ) ) ) ) ) )

Actively traded municipal bonds ended 1\/4 to 1\/2 point higher in brisk trading despite a flood of new supply


( S ( NP-SBJ ( NP ( NP ( NNP New ) ( NNP Jersey ) ( NNP Turnpike ) ( NNP Authority ) ( POS 's ) ) ( ADJP ( CD 7.20 ) ( NN % ) ) ( NN issue ) ) ( PP ( IN of ) ( NP ( CD 2018 ) ) ) ) ( VP ( VBD finished ) ( ADVP ( NP ( CD 1\/4 ) ( NN point ) ) ( JJR stronger ) ) ( PP-CLR ( IN at ) ( NP ( NP ( QP ( CD 98 ) ( CD 1\/2 ) ) ( NN bid ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.32 ) ( NN % ) ) ) ) ) ) ) ) ) )

New Jersey Turnpike Authority 's 7.20 % issue of 2018 finished 1\/4 point stronger at 98 1\/2 bid to yield 7.32 %


( S ( NP-SBJ ( NNS Traders ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-1 ( NNS municipals ) ) ( VP ( VBD were ) ( VP ( VBN underpinned ) ( PP ( IN by ) ( NP-LGS ( NP ( NNS influences ) ) ( PP ( VBG including ) ( NP ( NP ( DT the ) ( NN climb ) ) ( PP-LOC ( IN in ) ( NP ( NNP Treasury ) ( NN issue ) ( NNS prices ) ) ) ) ) ) ) ) ) ) ) ) )

Traders said municipals were underpinned by influences including the climb in Treasury issue prices


( S ( S-TPC-1 ( ADVP ( RB Also ) ) ( NP-SBJ ( JJ municipal ) ( NNS bonds ) ) ( VP ( VBD lured ) ( NP ( VBG buying ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( DT the ) ( NN stock ) ( NN market ) ) ( VP ( VBZ remains ) ( ADJP-PRD ( JJ wobbly ) ) ) ) ) ) ) ( NP-SBJ ( NNS traders ) ) ( VP ( VBD contended ) ) )

Also municipal bonds lured buying because the stock market remains wobbly traders contended


( S ( S-TPC-2 ( ADVP ( RB Mainly ) ) ( ADVP ( RB though ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( DT a ) ( JJ favorable ) ( NN outlook ) ) ( PP ( IN for ) ( NP ( NP ( NP ( NN yesterday ) ( POS 's ) ) ( JJ new ) ( NN supply ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( VP ( VBD propped ) ( PRT ( RP up ) ) ( NP ( NNS municipals ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( DT some ) ( NNS traders ) ) ( VP ( VBD said ) ) )

Mainly though it was a favorable outlook for yesterday 's new supply that propped up municipals some traders said


( SINV ( PP-LOC-TPC-PRD-1 ( IN Among ) ( NP ( DT the ) ( JJ new ) ( NNS issues ) ) ) ( VP ( VBD was ) ) ( NP-SBJ ( NP ( NP ( NNP Massachusetts ) ( POS 's ) ) ( QP ( CD 230 ) ( CD million ) ) ) ( PP ( IN of ) ( NP ( JJ general ) ( NN obligation ) ( NNS bonds ) ) ) ) )

Among the new issues was Massachusetts 's 230 million of general obligation bonds


( S ( NP-SBJ-1 ( DT The ) ( NNS bonds ) ) ( VP ( VBD were ) ( VP ( VBN won ) ( PP ( IN by ) ( NP-LGS ( DT a ) ( NNP Goldman ) ( NNP Sachs ) ( CC & ) ( NNP Co. ) ( NN group ) ) ) ( PP ( IN with ) ( NP ( NP ( DT a ) ( JJ true ) ( NN interest ) ( NN cost ) ) ( PP ( IN of ) ( NP ( CD 7.17 ) ( NN % ) ) ) ) ) ) ) )

The bonds were won by a Goldman Sachs & Co. group with a true interest cost of 7.17 %


( S ( NP-SBJ-1 ( PRP They ) ) ( VP ( VBD were ) ( VP ( VBN priced ) ( S-CLR ( VP ( TO to ) ( VP ( VB yield ) ( PP-CLR ( PP ( IN from ) ( NP ( CD 6.00 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( CD 1990 ) ) ) ) ( PP ( TO to ) ( NP ( CD 7.20 ) ( NN % ) ) ( PP-TMP ( IN in ) ( NP ( CD 2009 ) ) ) ) ) ) ) ) ) ) )

They were priced to yield from 6.00 % in 1990 to 7.20 % in 2009


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NNP Massachusetts ) ( NN deal ) ) ( VP ( VBD had ) ( NP ( NP ( DT an ) ( JJ unsold ) ( NN balance ) ) ( PP ( IN of ) ( NP ( QP ( CD 84.3 ) ( CD million ) ) ) ) ) ( PP-LOC ( IN in ) ( NP ( JJ late ) ( NN trading ) ) ) ) ) ( NP-SBJ ( DT the ) ( NN underwriter ) ) ( VP ( VBD said ) ) )

The Massachusetts deal had an unsold balance of 84.3 million in late trading the underwriter said


( NP ( ADJP ( NN Mortgage ) ( NNP Asset-Backed ) ) ( NNPS Securities ) )

Mortgage Asset-Backed Securities


( S ( NP-SBJ ( NNP Mortgage ) ( NNS securities ) ) ( VP ( VBD gained ) ( NP ( QP ( CD 3\/32 ) ( TO to ) ( CD 9\/32 ) ) ( NN point ) ) ( PP-TMP ( IN after ) ( NP ( DT a ) ( JJ hectic ) ( NN session ) ) ) ( PP ( IN with ) ( NP ( NP ( NNP Government ) ( NNP National ) ( NNP Mortgage ) ( NNP Association ) ( ADJP ( CD 8 ) ( NN % ) ) ( NNS securities ) ) ( PP ( IN as ) ( NP ( DT the ) ( NN standout ) ( NN issue ) ) ) ) ) ) )

Mortgage securities gained 3\/32 to 9\/32 point after a hectic session with Government National Mortgage Association 8 % securities as the standout issue


( S ( NP-SBJ ( DT The ) ( NNP Ginnie ) ( NNP Mae ) ( NN issue ) ) ( VP ( VBD rose ) ( PP-LOC ( IN amid ) ( NP ( NP ( NN talk ) ) ( PP ( IN of ) ( NP ( NP ( JJ large ) ( NNS purchases ) ) ( PP ( IN of ) ( NP ( DT the ) ( NNS securities ) ) ) ( PP ( IN by ) ( NP ( JJ institutional ) ( NNS investors ) ) ) ) ) ) ) ) )

The Ginnie Mae issue rose amid talk of large purchases of the securities by institutional investors


( S ( NP-SBJ ( DT The ) ( JJ derivative ) ( NNS markets ) ) ( VP ( VBD remained ) ( ADJP-PRD ( JJ active ) ) ( SBAR-ADV ( IN as ) ( S ( S ( NP-SBJ-1 ( CD one ) ( JJ new ) ( NN issue ) ) ( VP ( VBD was ) ( VP ( VBN priced ) ) ) ) ( CC and ) ( S ( NP-SBJ ( NP ( NN talk ) ) ) ( VP ( VBN circulated ) ( PP-2 ( IN about ) ( NP ( NP ( JJR more ) ( NNS offerings ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( JJ next ) ( NN day ) ( CC or ) ( CD two ) ) ) ) ) ) ) ) ) ) )

The derivative markets remained active as one new issue was priced and talk circulated about more offerings in the next day or two


( S ( NP-SBJ ( DT The ) ( NNP Federal ) ( NNP Home ) ( NNP Loan ) ( NNP Mortgage ) ( NNP Corp. ) ) ( VP ( VBD issued ) ( NP ( NP ( DT a ) ( ADJP ( QP ( CD 500 ) ( CD million ) ) ) ( JJ real ) ( NN estate ) ( NN mortgage ) ( NN investment ) ( NN conduit ) ) ( VP ( VBN backed ) ( PP ( IN by ) ( NP-LGS ( PRP$ its ) ( ADJP ( QP ( CD 8 ) ( CD 1\/2 ) ) ( NN % ) ) ( NNS securities ) ) ) ) ) ) )

The Federal Home Loan Mortgage Corp. issued a 500 million real estate mortgage investment conduit backed by its 8 1\/2 % securities


( S ( PP-LOC ( IN In ) ( NP ( DT the ) ( JJ asset-backed ) ( NN market ) ) ) ( NP-SBJ-1 ( NP ( DT a ) ( JJ big ) ( NN offering ) ) ( PP ( IN of ) ( NP ( NNP Ford ) ( NNP Motor ) ( NNP Credit ) ( NNP Corp ) ( JJ auto-loan ) ( NNS securities ) ) ) ) ( VP ( VBD was ) ( VP ( VBN increased ) ( PP-CLR ( IN in ) ( NP ( NN size ) ) ) ( PP-TMP ( IN after ) ( NP ( JJ strong ) ( JJ institutional ) ( NN demand ) ) ) ) ) )

In the asset-backed market a big offering of Ford Motor Credit Corp auto-loan securities was increased in size after strong institutional demand


( S ( NP-SBJ-1 ( NP ( DT The ) ( NN deal ) ) ( PP ( IN by ) ( NP ( DT the ) ( NNP Ford ) ( NNP Motor ) ( NNP Co. ) ( NN unit ) ) ) ( VP ( VBN priced ) ( NP-TMP ( NNP Monday ) ) ) ) ( VP ( VBD was ) ( VP ( VBN increased ) ( PP-DIR ( TO to ) ( NP ( QP ( CD 3.05 ) ( CD billion ) ) ) ) ( PP-DIR ( IN from ) ( NP ( QP ( CD 2.58 ) ( CD billion ) ) ) ) ) ) )

The deal by the Ford Motor Co. unit priced Monday was increased to 3.05 billion from 2.58 billion


( S ( PP-LOC ( IN Among ) ( NP ( JJ major ) ( JJ pass-through ) ( NNS issues ) ) ) ( S ( NP-SBJ-1 ( NP ( NNP Ginnie ) ( NNP Mae ) ( ADJP ( CD 9 ) ( NN % ) ) ( NNS securities ) ) ( PP-TMP ( IN for ) ( NP ( NNP November ) ( NN delivery ) ) ) ) ( VP ( VBD ended ) ( PP-CLR ( IN at ) ( NP ( CD 98 ) ( CD 15\/32 ) ) ) ( ADVP ( IN up ) ( NP ( CD 5\/32 ) ) ) ( PP-TMP ( IN after ) ( S-NOM ( VP ( VBG touching ) ( NP ( NP ( DT an ) ( RB early ) ( JJ high ) ) ( PP ( IN of ) ( NP ( CD 98 ) ( CD 27\/32 ) ) ) ) ) ) ) ) ) ( S ( S ( NP-SBJ-2 ( ADJP ( CD 8 ) ( NN % ) ) ( NNS securities ) ) ( VP ( VBD were ) ( PP-PRD-3 ( IN at ) ( NP ( CD 94 ) ( CD 5\/32 ) ) ) ( ADVP-4 ( IN up ) ( NP ( CD 9\/32 ) ) ) ) ) ( S ( NP-SBJ=2 ( ADJP ( QP ( CD 9 ) ( CD 1\/2 ) ) ( NN % ) ) ( NNS securities ) ) ( PP-PRD=3 ( IN at ) ( NP ( CD 100 ) ( CD 15\/32 ) ) ) ( ADVP=4 ( IN up ) ( NP ( CD 4\/32 ) ) ) ) ( CC and ) ( S ( NP-SBJ=2 ( ADJP ( CD 10 ) ( JJ % ) ) ( NNS securities ) ) ( PP-PRD=3 ( IN at ) ( NP ( CD 102 ) ( CD 11\/32 ) ) ) ( ADVP=4 ( IN up ) ( NP ( CD 3\/32 ) ) ) ) ) )

Among major pass-through issues Ginnie Mae 9 % securities for November delivery ended at 98 15\/32 up 5\/32 after touching an early high of 98 27\/32 8 % securities were at 94 5\/32 up 9\/32 9 1\/2 % securities at 100 15\/32 up 4\/32 and 10 % securities at 102 11\/32 up 3\/32


( S ( NP-SBJ ( NNP Freddie ) ( NNP Mac ) ( ADJP ( CD 9 ) ( NN % ) ) ( NNS securities ) ) ( VP ( VBD were ) ( PP-PRD ( IN at ) ( NP ( CD 97 ) ( CD 21\/32 ) ) ) ( ADVP ( IN up ) ( NP ( CD 5\/32 ) ) ) ) )

Freddie Mac 9 % securities were at 97 21\/32 up 5\/32


( S ( NP-SBJ ( DT The ) ( NNP Ginnie ) ( NNP Mae ) ( ADJP ( CD 9 ) ( NN % ) ) ( NN issue ) ) ( VP ( VBD was ) ( VP ( VBG yielding ) ( NP ( CD 9.34 ) ( NN % ) ) ( PP ( TO to ) ( NP ( DT a ) ( JJ 12-year ) ( NN average ) ( NN life ) ( NN assumption ) ) ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NP ( DT the ) ( NN spread ) ) ( PP ( IN above ) ( NP ( DT the ) ( NN Treasury ) ( JJ 10-year ) ( NN note ) ) ) ) ( VP ( VBN held ) ( PP-LOC ( IN at ) ( NP ( CD 1.46 ) ( NN percentage ) ( NNS points ) ) ) ) ) ) ) ) )

The Ginnie Mae 9 % issue was yielding 9.34 % to a 12-year average life assumption as the spread above the Treasury 10-year note held at 1.46 percentage points


Foreign Bonds


( S ( NP-SBJ ( DT The ) ( NNP Eurodollar ) ( NN bond ) ( NN market ) ) ( VP ( VBD sprang ) ( PP-CLR ( TO to ) ( NP ( NN life ) ) ) ( ADVP-TMP ( RB late ) ( PP ( IN in ) ( NP ( DT the ) ( JJ European ) ( NN trading ) ( NN session ) ) ) ) ( SBAR-TMP ( IN after ) ( S ( NP-SBJ ( DT the ) ( NNP Dow ) ( NNP Jones ) ( NNP Industrial ) ( NNP Average ) ) ( VP ( VBD tumbled ) ) ) ) ) )

The Eurodollar bond market sprang to life late in the European trading session after the Dow Jones Industrial Average tumbled


( S ( S ( NP-SBJ-2 ( JJ Eurodollar ) ( NNS bonds ) ) ( VP ( VBP are ) ( ADVP-TMP ( RB often ) ) ( VP ( VBN issued ) ( PP ( IN by ) ( NP-LGS ( JJ foreign ) ( NNS corporations ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ-1 ( NN interest ) ( CC and ) ( NN principal ) ) ( VP ( VBP are ) ( VP ( VBN paid ) ( PP-MNR ( IN in ) ( NP ( NNS dollars ) ) ) ) ) ) )

Eurodollar bonds are often issued by foreign corporations but interest and principal are paid in dollars


( S ( NP-SBJ ( DT The ) ( NNS bonds ) ) ( VP ( VBD ended ) ( ADVP-CLR ( NP ( QP ( IN about ) ( CD 1\/2 ) ) ( NN point ) ) ( JJR higher ) ) ( NP-TMP ( NN yesterday ) ) ) )

The bonds ended about 1\/2 point higher yesterday


( S ( NP-SBJ ( NP ( NNS Prices ) ) ( PP ( IN of ) ( NP ( JJ European ) ( NN government ) ( NNS bonds ) ) ) ) ( ADVP ( RB also ) ) ( VP ( VBD rose ) ( SBAR-TMP ( IN as ) ( S ( NP-SBJ ( NNP U.S. ) ( NNS stocks ) ) ( VP ( VBD declined ) ) ) ) ) )

Prices of European government bonds also rose as U.S. stocks declined


( S ( NP-SBJ ( NP ( NP ( NNP West ) ( NNP Germany ) ( POS 's ) ) ( ADJP ( CD 7 ) ( NN % ) ) ( NN issue ) ) ( ADJP ( JJ due ) ( NP-TMP ( NNP October ) ( CD 1999 ) ) ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 0.13 ) ( NN point ) ) ( PP-DIR ( TO to ) ( NP ( CD 99.93 ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.01 ) ( NN % ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NP ( DT the ) ( ADJP ( QP ( CD 6 ) ( CD 3\/4 ) ) ( NN % ) ) ( NN issue ) ) ( ADJP ( JJ due ) ( NP-TMP ( NNP July ) ( CD 1994 ) ) ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 0.05 ) ) ( PP-DIR ( TO to ) ( NP ( CD 97.70 ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 7.33 ) ( NN % ) ) ) ) ) ) ) ) ) )

West Germany 's 7 % issue due October 1999 rose 0.13 point to 99.93 to yield 7.01 % while the 6 3\/4 % issue due July 1994 rose 0.05 to 97.70 to yield 7.33 %


( S ( NP-SBJ ( NP ( NP ( NNP Britain ) ( POS 's ) ) ( ADJP ( QP ( CD 11 ) ( CD 3\/4 ) ) ( NN % ) ) ( NN Treasury ) ( NN bond ) ) ( ADJP ( JJ due ) ( NP-TMP ( CD 2003\/2007 ) ) ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 17\/32 ) ) ( PP-DIR ( TO to ) ( NP ( CD 112 ) ( CD 6\/32 ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 10.05 ) ( NN % ) ) ) ) ) ( SBAR-ADV ( IN while ) ( S ( NP-SBJ ( NP ( DT the ) ( ADJP ( CD 12 ) ( NN % ) ) ( NNS notes ) ) ( ADJP ( JJ due ) ( NP-TMP ( CD 1995 ) ) ) ) ( VP ( VBD rose ) ( NP-EXT ( CD 11\/32 ) ) ( PP-DIR ( TO to ) ( NP ( CD 104 ) ( CD 2\/32 ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 10.93 ) ( NN % ) ) ) ) ) ) ) ) ) )

Britain 's 11 3\/4 % Treasury bond due 2003\/2007 rose 17\/32 to 112 6\/32 to yield 10.05 % while the 12 % notes due 1995 rose 11\/32 to 104 2\/32 to yield 10.93 %


( S ( PP-LOC ( IN In ) ( NP ( NNP Japan ) ) ) ( NP-SBJ ( NN government ) ( NN bond ) ( NNS prices ) ) ( VP ( VBD fell ) ) )

In Japan government bond prices fell


( S ( NP-SBJ ( NP ( DT The ) ( NN No. ) ( CD 111 ) ( ADJP ( CD 4.6 ) ( NN % ) ) ( NN bond ) ) ( ADJP ( JJ due ) ( NP-TMP ( CD 1998 ) ) ) ) ( VP ( VBD ended ) ( PP-LOC ( IN on ) ( NP ( NP ( NNS brokers ) ( POS ' ) ) ( NNS screens ) ) ) ( PP-CLR ( IN at ) ( NP ( CD 95.22 ) ) ) ( ADVP ( IN down ) ( NP ( CD 0.17 ) ( NN point ) ) ) ( S-ADV ( VP ( TO to ) ( VP ( VB yield ) ( NP ( CD 5.41 ) ( NN % ) ) ) ) ) ) )

The No. 111 4.6 % bond due 1998 ended on brokers ' screens at 95.22 down 0.17 point to yield 5.41 %


( S ( NP-SBJ-1 ( NP ( NNP Ronald ) ( NNP B. ) ( NNP Koenig ) ) ( ADJP ( NP ( CD 55 ) ( NNS years ) ) ( JJ old ) ) ) ( VP ( VBD was ) ( VP ( VBN named ) ( S ( NP-PRD ( NP ( DT a ) ( JJ senior ) ( VBG managing ) ( NN director ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NNP Gruntal ) ( CC & ) ( NNP Co. ) ( NN brokerage ) ( NN subsidiary ) ) ( PP ( IN of ) ( NP ( DT this ) ( NN insurance ) ( CC and ) ( JJ financial-services ) ( NN firm ) ) ) ) ) ) ) ) ) )

Ronald B. Koenig 55 years old was named a senior managing director of the Gruntal & Co. brokerage subsidiary of this insurance and financial-services firm


( S ( NP-SBJ ( NNP Mr. ) ( NNP Koenig ) ) ( VP ( MD will ) ( VP ( VB build ) ( NP ( NP ( DT the ) ( JJ corporate-finance ) ( CC and ) ( JJ investment-banking ) ( NN business ) ) ( PP ( IN of ) ( NP ( NP ( NNP Gruntal ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ has ) ( ADVP ( RB primarily ) ) ( VP ( VBN been ) ( NP-PRD ( DT a ) ( JJ retail-based ) ( NN firm ) ) ) ) ) ) ) ) ) ) ) )

Mr. Koenig will build the corporate-finance and investment-banking business of Gruntal which has primarily been a retail-based firm


( S ( NP-SBJ ( PRP He ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( NP ( NN chairman ) ) ( CC and ) ( NP ( JJ co-chief ) ( JJ executive ) ( NN officer ) ) ) ( PP ( IN of ) ( NP ( NNP Ladenburg ) ( NNP Thalmann ) ( CC & ) ( NNP Co. ) ) ) ) ( PP-TMP ( IN until ) ( NP ( NP ( NNP July ) ) ( SBAR ( WHADVP-3 ( WRB when ) ) ( S ( NP-SBJ-1 ( PRP he ) ) ( VP ( VBD was ) ( VP ( VBN named ) ( S ( NP-PRD ( NP ( NN co-chairman ) ) ( PP ( IN of ) ( NP ( DT the ) ( JJ investment-banking ) ( NN firm ) ) ) ) ) ( ADVP ( IN along ) ( PP ( IN with ) ( NP ( NP ( NNP Howard ) ( NNP L. ) ( NNP Blum ) ( NNP Jr. ) ) ( SBAR ( WHNP-2 ( WP who ) ) ( S ( ADVP ( RB then ) ) ( VP ( VBD became ) ( NP-PRD ( DT the ) ( JJ sole ) ( NN chief ) ( NN executive ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

He was chairman and co-chief executive officer of Ladenburg Thalmann & Co. until July when he was named co-chairman of the investment-banking firm along with Howard L. Blum Jr. who then became the sole chief executive


( S ( NP-TMP ( NN Yesterday ) ) ( NP-SBJ ( NP ( NNP Mr. ) ( NNP Blum ) ) ( NP ( CD 41 ) ) ) ( VP ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD was ) ( RB n't ) ( ADJP-PRD ( JJ aware ) ( PP ( IN of ) ( NP ( NP ( NNS plans ) ) ( PP-LOC ( IN at ) ( NP ( NNP Ladenburg ) ) ) ( S-1 ( VP ( TO to ) ( VP ( VB name ) ( NP ( NP ( DT a ) ( NN co-chairman ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB succeed ) ( NP ( NNP Mr. ) ( NNP Koenig ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ( CC and ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ-3 ( DT the ) ( NN board ) ) ( VP ( MD would ) ( VP ( VB need ) ( S ( VP ( TO to ) ( VP ( VB approve ) ( NP ( DT any ) ( NX ( NX ( NNS appointments ) ) ( CC or ) ( NX ( NN title ) ( NNS changes ) ) ) ) ) ) ) ) ) ) ) ) ) )

Yesterday Mr. Blum 41 said he was n't aware of plans at Ladenburg to name a co-chairman to succeed Mr. Koenig and said the board would need to approve any appointments or title changes


( S ( NP-SBJ ( NNP Mr. ) ( NNP Blum ) ) ( VP ( VBD added ) ( SBAR ( S ( S ( NP-SBJ ( PRP he ) ) ( VP ( VBD was ) ( RB n't ) ( ADJP-PRD ( VBN surprised ) ( SBAR ( S ( NP-SBJ ( NNP Mr. ) ( NNP Koenig ) ) ( VP ( VBD resigned ) ) ) ) ) ) ) ( CC but ) ( S ( NP-SBJ ( PRP$ his ) ( NN departure ) ) ( VP ( VBD was ) ( NP-PRD ( NP ( NN nothing ) ) ( SBAR ( WHNP-1 ( IN that ) ) ( S ( NP-SBJ ( PRP we ) ) ( VP ( VP ( VBD desired ) ) ( CC or ) ( VP ( VBD worked ) ( PP-CLR ( IN for ) ) ) ) ) ) ) ) ) ) ) ) )

Mr. Blum added he was n't surprised Mr. Koenig resigned but his departure was nothing that we desired or worked for


( S ( NP-SBJ ( NNP Mr. ) ( NNP Koenig ) ) ( VP ( VBD said ) ( S ( NP-SBJ ( PRP I ) ) ( VP ( ADVP ( RB just ) ) ( VBD got ) ( NP ( NP ( DT a ) ( JJ tremendous ) ( NN offer ) ) ( PP ( IN from ) ( NP ( NNP Gruntal ) ) ) ) ) ) ) )

Mr. Koenig said I just got a tremendous offer from Gruntal


( S ( NP-SBJ ( NP ( NNP Harken ) ( NNP Energy ) ( NNP Corp. ) ) ( PP ( IN of ) ( NP ( NNP Dallas ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD will ) ( VP ( VB drop ) ( NP ( NP ( PRP$ its ) ( ADJP ( QP ( JJ 11.75-a-share ) ( CC or ) ( CD 190 ) ( CD million ) ) ) ( NN offer ) ) ( PP ( IN for ) ( NP ( NNP Tesoro ) ( NNP Petroleum ) ( NNP Corp. ) ) ) ) ( SBAR-ADV ( IN if ) ( S ( NP-SBJ ( DT the ) ( CD two ) ( NNS companies ) ) ( VP ( VBP do ) ( RB n't ) ( VP ( VB have ) ( NP ( DT an ) ( NN agreement ) ( S ( VP ( TO to ) ( VP ( VB merge ) ) ) ) ) ( PP-TMP ( IN by ) ( NP ( NNP Dec. ) ( CD 15 ) ) ) ) ) ) ) ) ) ) ) ) )

Harken Energy Corp. of Dallas said it will drop its 11.75-a-share or 190 million offer for Tesoro Petroleum Corp. if the two companies do n't have an agreement to merge by Dec. 15


( S ( NP-SBJ ( NP ( NNP Harken ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBD made ) ( NP ( PRP$ its ) ( NN offer ) ) ( PP-TMP ( IN in ) ( NP ( NNP August ) ) ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( ADVP ( RB still ) ) ( VP ( VBZ is ) ( VP ( VBG awaiting ) ( NP ( NP ( DT a ) ( NN response ) ) ( PP ( TO to ) ( NP ( PRP$ its ) ( NN offer ) ) ) ( PP ( IN from ) ( NP ( NP ( NNP Tesoro ) ( POS 's ) ) ( NN board ) ) ) ) ) ) ) ) ) )

Harken which made its offer in August said it still is awaiting a response to its offer from Tesoro 's board


( S ( NP-SBJ ( NNP Harken ) ) ( ADVP ( RB also ) ) ( VP ( VBD said ) ( SBAR ( DT that ) ( S ( NP-SBJ-1 ( NP ( PRP$ its ) ( NN financing ) ) ( PP ( IN from ) ( NP ( NNPS Bankers ) ( NNP Trust ) ( NNP Co. ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN extended ) ( PP-TMP ( IN until ) ( NP ( NNP Dec. ) ( CD 15 ) ) ) ( S-PRP ( VP ( TO to ) ( VP ( VB give ) ( NP ( NP ( NNP Tesoro ) ( POS 's ) ) ( NN board ) ) ( NP ( NP ( NN time ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB consider ) ( NP ( DT the ) ( NN offer ) ) ( PP-LOC ( IN at ) ( NP ( NP ( DT a ) ( NNP Tesoro ) ( NN board ) ( NN meeting ) ) ( VP ( VBN scheduled ) ( PP-CLR ( IN for ) ( NP ( NNP mid-November ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

Harken also said that its financing from Bankers Trust Co. has been extended until Dec. 15 to give Tesoro 's board time to consider the offer at a Tesoro board meeting scheduled for mid-November


( S ( NP-SBJ ( NP ( NNP Harken ) ) ( SBAR ( WHNP-1 ( WDT which ) ) ( S ( VP ( VBZ owns ) ( NP ( QP ( IN about ) ( CD 800 ) ) ( NN retail ) ( NN gas ) ( NNS stations ) ) ) ) ) ) ( VP ( VBZ has ) ( VP ( VBN said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB particularly ) ( JJ interested ) ( PP ( IN in ) ( NP ( NP ( NNP Tesoro ) ( POS 's ) ) ( NN refinery ) ) ) ) ( SBAR-PRP ( IN because ) ( S ( NP-SBJ ( PRP it ) ) ( VP ( MD would ) ( VP ( VB fill ) ( NP ( NP ( DT a ) ( NN gap ) ) ( PP-LOC ( IN in ) ( NP ( PRP$ its ) ( NN business ) ) ) ) ) ) ) ) ) ) ) ) ) )

Harken which owns about 800 retail gas stations has said it is particularly interested in Tesoro 's refinery because it would fill a gap in its business


( S ( ADVP ( RB However ) ) ( NP-SBJ ( NP ( NNP Tesoro ) ) ( VP ( VBN based ) ( PP-CLR-LOC ( IN in ) ( NP ( NNP Houston ) ) ) ) ) ( ADVP ( RB already ) ) ( VP ( VBZ has ) ( VP ( VBN rejected ) ( NP ( DT a ) ( NN suitor ) ) ( PP-TMP ( IN in ) ( NP ( DT the ) ( NN past ) ( NN year ) ) ) ) ) )

However Tesoro based in Houston already has rejected a suitor in the past year


( S ( NP-SBJ ( NP ( NNP Silicon ) ( NNP Graphics ) ( NNP Inc. ) ) ( NP ( NP ( DT a ) ( JJ fast-growing ) ( NN maker ) ) ( PP ( IN of ) ( NP ( NN computer ) ( NNS workstations ) ) ) ) ) ( VP ( VBD said ) ( SBAR ( S ( NP-SBJ ( PRP it ) ) ( VP ( VBD landed ) ( NP ( NP ( CD two ) ( JJ federal ) ( NN government ) ( NNS contracts ) ) ( ADJP ( JJ worth ) ( NP ( NP ( QP ( RBR more ) ( IN than ) ( CD 100 ) ( CD million ) ) ) ( PP-TMP ( IN over ) ( NP ( DT the ) ( JJ next ) ( CD five ) ( NNS years ) ) ) ) ) ) ) ) ) ) )

Silicon Graphics Inc. a fast-growing maker of computer workstations said it landed two federal government contracts worth more than 100 million over the next five years


( S ( NP-SBJ-1 ( CD One ) ( NN award ) ) ( VP ( VP ( VBZ is ) ( NP-PRD ( NP ( NN part ) ) ( PP ( IN of ) ( NP ( NP ( DT a ) ( NAC ( NNP Department ) ( PP ( IN of ) ( NP ( NNP Defense ) ) ) ) ( NN contract ) ) ( PP ( TO to ) ( NP ( NNP Loral ) ( NNP Rolm ) ( NNP Mil-Spec ) ( NNPS Computers ) ) ) ) ) ) ) ( CC and ) ( VP ( MD could ) ( VP ( VB be ) ( VP ( VBN valued ) ( PP-CLR ( IN at ) ( NP ( NP ( QP ( RBR more ) ( IN than ) ( CD 100 ) ( CD million ) ) ) ( PP-TMP ( IN over ) ( NP ( CD five ) ( NNS years ) ) ) ) ) ) ) ) ) )

One award is part of a Department of Defense contract to Loral Rolm Mil-Spec Computers and could be valued at more than 100 million over five years


( S ( NP-SBJ ( DT The ) ( JJ other ) ) ( VP ( VBZ involves ) ( NP ( NP ( DT the ) ) ( NN sale ) ( PP ( IN of ) ( NP ( NP ( QP ( IN about ) ( CD 35 ) ) ) ( PP ( IN of ) ( NP ( NP ( DT the ) ( NN company ) ( POS 's ) ) ( JJ high-end ) ( NNS workstations ) ) ) ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( NNP National ) ( NNPS Institutes ) ) ( PP ( IN of ) ( NP ( NNP Health ) ) ) ) ) ) ) )

The other involves the sale of about 35 of the company 's high-end workstations to the National Institutes of Health


( S ( NP-SBJ-1 ( NP ( DT The ) ( NNS models ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBD cost ) ( NP ( NP ( QP ( IN about ) ( CD 75,000 ) ) ) ( NP-ADV ( DT each ) ) ) ) ) ) ) ( VP ( MD will ) ( VP ( VB be ) ( VP ( VBN used ) ( PP-CLR ( IN in ) ( NP ( NN research ) ) ) ) ) ) )

The models which cost about 75,000 each will be used in research


( S ( S-TPC-1 ( NP-SBJ ( DT The ) ( NNS awards ) ) ( VP ( VBP are ) ( NP-PRD ( NN evidence ) ( SBAR ( IN that ) ( S ( NP-SBJ ( NP ( NP ( NNP Silicon ) ( NNP Graphics ) ( POS ' ) ) ( NN approach ) ) ( PP ( TO to ) ( NP ( NN computer ) ( NNS graphics ) ) ) ) ( VP ( VBZ is ) ( VP ( VBG catching ) ( PRT ( RP on ) ) ( PP-CLR ( IN with ) ( NP ( NP ( NNS users ) ) ( PP ( IN of ) ( NP ( JJ powerful ) ( NN desktop ) ( NNS computers ) ) ) ) ) ) ) ) ) ) ) ) ( NP-SBJ ( NNS analysts ) ) ( VP ( VBD said ) ) )

The awards are evidence that Silicon Graphics ' approach to computer graphics is catching on with users of powerful desktop computers analysts said


( SINV ( S-TPC-1 ( NP-SBJ ( DT The ) ( NN company ) ) ( VP ( VBZ 's ) ( PP-PRD ( IN on ) ( NP ( DT a ) ( NN roll ) ) ) ) ) ( VP ( VBD said ) ) ( NP-SBJ ( NP ( NNP Robert ) ( NNP Herwick ) ) ( NP ( NP ( DT an ) ( NN analyst ) ) ( PP-LOC ( IN at ) ( NP ( NNP Hambrecht ) ( CC & ) ( NNP Quist ) ) ) ) ) )

The company 's on a roll said Robert Herwick an analyst at Hambrecht & Quist


( S ( NP-SBJ ( RB No ) ( JJ other ) ( NN computer ) ( NN vendor ) ) ( VP ( VBZ offers ) ( NP ( NP ( NNS graphics ) ( NN performance ) ) ( ADJP ( DT that ) ( JJ good ) ) ) ( PP ( IN for ) ( NP ( PRP$ their ) ( NN price ) ) ) ) )

No other computer vendor offers graphics performance that good for their price


( S ( PP-LOC ( IN In ) ( NP ( NP ( DT the ) ( NN battle ) ) ( SBAR ( S ( VP ( TO to ) ( VP ( VB supply ) ( NP ( NN desktop ) ( NNS computers ) ) ( PP ( IN for ) ( NP ( NP ( NNS researchers ) ) ( CC and ) ( NP ( NN design ) ( NNS engineers ) ) ) ) ) ) ) ) ) ) ( NP-SBJ-1 ( NP ( JJS most ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN attention ) ) ) ) ( VP ( VBZ is ) ( VP ( VBN given ) ( PP-DTV ( TO to ) ( NP ( NP ( DT the ) ( JJS biggest ) ( NNS competitors ) ) ( NP ( NP ( NP ( NNP Sun ) ( NNPS Microsystems ) ( NNP Inc. ) ) ( NP ( NNP Hewlett-Packard ) ( NNP Co. ) ) ( CC and ) ( NP ( NNP Digital ) ( NNP Equipment ) ( NNP Corp. ) ) ) ( SBAR ( WHNP-2 ( WDT which ) ) ( S ( VP ( VBP make ) ( NP ( NP ( NNS computers ) ) ( VP ( ADVP ( RB mainly ) ) ( VBN aimed ) ( PP-CLR ( IN at ) ( NP ( NP ( DT a ) ( JJ wide ) ( NN range ) ) ( PP ( IN of ) ( NP ( UCP ( NN engineering ) ( CC and ) ( JJ scientific ) ) ( NNS needs ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

In the battle to supply desktop computers for researchers and design engineers most of the attention is given to the biggest competitors Sun Microsystems Inc. Hewlett-Packard Co. and Digital Equipment Corp. which make computers mainly aimed at a wide range of engineering and scientific needs


( S ( NP-SBJ ( NNP Silicon ) ( NNP Graphics ) ) ( PP ( IN on ) ( NP ( DT the ) ( JJ other ) ( NN hand ) ) ) ( VP ( VBZ has ) ( VP ( VBN targeted ) ( NP ( NP ( DT a ) ( JJ specific ) ( NN niche ) ) ) ( PP-TMP ( IN since ) ( NP ( NP ( PRP$ its ) ( NN inception ) ) ( PP-TMP ( IN in ) ( NP ( CD 1982 ) ) ) ) ) ( SBAR-1 ( WHNP-3 ( WDT which ) ) ( S ( VP ( VBZ has ) ( VP ( VBN been ) ( VP ( VBN dubbed ) ( PP ( IN by ) ( NP-LGS ( DT some ) ) ) ( PP-CLR ( IN as ) ( NP ( JJ motion-picture ) ( NN computing ) ) ) ) ) ) ) ) ) ) )

Silicon Graphics on the other hand has targeted a specific niche since its inception in 1982 which has been dubbed by some as motion-picture computing


( S ( NP-SBJ ( DT This ) ) ( VP ( VBZ is ) ( NP-PRD ( NP ( DT a ) ( NN style ) ) ( PP ( IN of ) ( NP ( JJ visual ) ( NN computing ) ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBZ provides ) ( NP ( NP ( JJ three-dimensional ) ( NN color ) ( NNS models ) ) ( PP ( IN of ) ( NP ( NP ( NN everything ) ) ( PP ( PP ( IN from ) ( NP ( NP ( DT the ) ( NN inside ) ) ( PP ( IN of ) ( NP ( DT a ) ( NN house ) ) ) ) ) ( PP ( TO to ) ( NP ( NP ( DT the ) ( JJS latest ) ) ( PP-LOC ( IN in ) ( NP ( NP ( NNS women ) ( POS 's ) ) ( NN fashion ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

This is a style of visual computing that provides three-dimensional color models of everything from the inside of a house to the latest in women 's fashion


( S ( SBAR-ADV ( NNP Though ) ( S ( NP-SBJ ( NNP Silicon ) ( NNP Graphics ) ) ( VP ( VBZ is ) ( ADJP-PRD ( RB much ) ( JJR smaller ) ( PP ( IN than ) ( NP ( NNP Digital ) ( NNP Hewlett ) ( CC and ) ( NNP Sun ) ) ) ) ) ) ) ( NP-SBJ ( PRP it ) ) ( VP ( VBZ has ) ( VP ( VBN emerged ) ( PP-TMP ( IN in ) ( NP ( JJ recent ) ( NNS years ) ) ) ( PP-CLR ( IN as ) ( NP ( NP ( DT a ) ( VBN feared ) ( NN adversary ) ) ( PP-LOC ( IN in ) ( NP ( NP ( DT this ) ( NNS graphics ) ( NN portion ) ) ( PP ( IN of ) ( NP ( DT the ) ( NN workstation ) ( NN market ) ) ) ) ) ) ) ) ) )

Though Silicon Graphics is much smaller than Digital Hewlett and Sun it has emerged in recent years as a feared adversary in this graphics portion of the workstation market


( S ( PP ( IN In ) ( NP ( NN addition ) ) ) ( NP-SBJ-1 ( DT the ) ( NN company ) ) ( VP ( VBZ has ) ( VP ( VBN made ) ( S ( NP-SBJ ( PRP it ) ) ( ADJP-PRD ( JJ tough ) ( PP ( IN on ) ( NP ( NNS competitors ) ) ) ) ) ( PP-MNR ( IN by ) ( S-NOM ( VP ( VBG offering ) ( NP ( NP ( DT a ) ( NN stream ) ) ( PP ( IN of ) ( NP ( NN desktop ) ( NNS computers ) ) ) ) ( PP-CLR ( IN at ) ( NP ( ADJP ( RB sharply ) ( JJR lower ) ) ( NNS prices ) ) ) ) ) ) ) ) )

In addition the company has made it tough on competitors by offering a stream of desktop computers at sharply lower prices


( S ( ADVP-TMP ( NP ( DT A ) ( NN year ) ) ( IN ago ) ) ( NP-SBJ ( NNP Silicon ) ( NNP Graphics ) ) ( VP ( VBD introduced ) ( NP ( NP ( DT a ) ( NN model ) ) ( VP ( VBN priced ) ( PP-CLR ( IN at ) ( NP ( NP ( CD 15,000 ) ) ( ADJP ( ADJP ( RB almost ) ( RB as ) ( JJ cheap ) ) ( PP ( IN as ) ( NP ( NP ( NN mainstream ) ( NNS workstations ) ) ( SBAR ( WHNP-1 ( WDT that ) ) ( S ( VP ( VBP do ) ( RB n't ) ( VP ( VB offer ) ( NP ( JJ special ) ( NNS graphics ) ( NNS features ) ) ) ) ) ) ) ) ) ) ) ) ) ) )

A year ago Silicon Graphics introduced a model priced at 15,000 almost as cheap as mainstream workstations that do n't offer special graphics features