1
 Wham!
5001
List

2
 Bam!
5001
List

3
 Twice in two weeks the unraveling of the on-again, off-again UAL buy-out slammed the stock market.
5002
span

4
 Now, stock prices seem to be in a general retreat.
5003
span

5
 Since peaking at 2791.41 on Oct. 9,
5003
circumstance

6
 the Dow Jones Industrial Average has lost 194.69 points, or 7%,
5006
span

7
 closing Friday at 2596.72, down 17.01.
6
cause

8
 The number of issues
5008
span

9
 falling on the New York Stock Exchange each day 
8
elaboration-object-attribute-e

10
is eclipsing the number of gainers.
5009
Same-Unit

11
 And the number of stocks 
5011
span

12
hitting new lows 
11
elaboration-object-attribute-e

13
far outstrips the number 
5013
span

14
setting new highs.
13
elaboration-object-attribute-e

15
 But why should an iffy $6.79 billion leveraged buy-out deal shake the foundations of the entire stock market?
5015
Question-Answer

16
 Opinions vary
5016
span

17
 about how important the UAL deal was to the market's health,
16
elaboration-object-attribute-e

18
 but analysts generally agree
5020
attribution

19
 that the market gyrations 
5019
span

20
created as the UAL plan crumbled 
19
elaboration-object-attribute-e

21
revealed a fundamental change in investor psychology.
5020
Same-Unit

22
 If this had happened a few months ago 
5023
span

23
when the atmosphere was still very positive 
22
elaboration-additional-e

24
it wouldn't have been greeted with anything like the impact it has had over the past two weeks,
5024
Same-Unit

25
 says Dennis Jarrett, a market strategist at Kidder Peabody.
5024
attribution

26
 There are, of course, analysts 
5027
span

27
who view the near-panic
5028
span

28
 that briefly swept through investors on Oct. 13 and again on Oct. 24
27
elaboration-object-attribute-e

29
 as momentary lapses of good judgment 
5030
span

30
that have only temporarily undermined a healthy stock market.
29
elaboration-object-attribute-e

31
 Sure, price action is volatile 
5032
List

32
and that's scary, 
5032
List

33
but all-in-all stocks are still a good place to be,
5033
span

34
 they suggest.
5033
attribution

35
 The reaction to the UAL debacle is mindless, 
5036
span

36
says John Connolly, chief market strategist at Dean Witter.
35
attribution

37
 UAL is a small deal
5038
span

38
 as far as the overall market is concerned.
37
circumstance

39
 The only way
5040
span

40
 you can make it a big deal 
39
elaboration-object-attribute-e

41
is to draw linkages
5042
span

42
 that just don't make sense.
41
elaboration-object-attribute-e

43
 He suggests, for example, 
5045
attribution

44
that investors may have assumed 
5047
attribution

45
that
5047
Same-Unit

46
 just because UAL couldn't get financing, 
47
circumstance

47
no leveraged buy-outs can get financing.
5046
span

48
 Carried even further,
5050
elaboration-additional

49
 some investors assumed 
5054
attribution

50
that 
5054
Same-Unit

51
since leveraged buy-outs are the only thing 
5051
span

52
propping up stock prices,
51
elaboration-object-attribute-e

53
 the market would collapse 
5052
span

54
if no more LBOs could be done.
5052
condition

55
 There will still be deals, 
5056
span

56
argues Mr. Connolly. 
55
attribution

57
There may not be as many 
5058
List

58
and the buyers may not get away with some of the things 
5059
span

59
they've done in the past, 
58
elaboration-object-attribute-e

60
but deals won't disappear.
5060
Contrast

61
 He forecasts 
5063
attribution

62
that the emphasis in mergers and acquisitions may soon return to what he calls strategic deals,
5063
span

63
 in which somebody is taking over a company
5064
span

64
 not to milk the cash flow, 
63
purpose

65
but because it's a good fit.
5064
reason

66
 And 
5069
Same-Unit

67
even without deals, 
5067
circumstance

68
Mr. Connolly figures 
69
attribution

69
the market would remain healthy. 
5067
span

70
He notes, for instance, 
5072
attribution

71
that there hasn't been a merger or acquisition among the 30 stocks in the Dow Jones Industrial Average since 1986, 
72
antithesis

72
yet that average only three weeks ago hit a record high.
5072
span

73
 Those stocks are up 
5074
Cause-Result

74
because their earnings are up 
5075
List

75
and their dividends are up, 
5075
List

76
he says.
5074
attribution

77
 Even the volatility 
5078
span

78
created by stock index arbitrage and other computer-driven trading strategies
77
elaboration-object-attribute-e

79
 isn't entirely bad, in Mr. Connolly's view. 
5079
Same-Unit

80
For the long-term investor 
5081
span

81
who picks stocks carefully,
80
elaboration-object-attribute-e

82
 the price volatility can provide welcome buying opportunities 
5083
span

83
as short-term players scramble frantically 
5084
span

84
to sell stocks in a matter of minutes.
83
purpose

85
 Who can make the better decision, the guy 
5086
span

86
who has 10 seconds 
5087
span

87
to decide what to do 
5211
span

88
or the guy with all the time in the world?
5088
Same-Unit

89
 he says.
5088
attribution

90
 What on earth does the UAL deal have to do with the price of Walmart,
5091
span

91
 which I was able to buy on Oct. 16 at a very attractive price?
90
elaboration-additional-e

92
 Kidder Peabody's Mr. Jarrett also sees some benefits to the stock market's recent drop.
5093
span

93
 We've run into a market 
5094
span

94
that was beginning to run out of steam 
5095
List

95
and get frothy, 
5095
List

96
he says.
5094
attribution

97
 The balloon had been blown up so big 
5098
span

98
that 
5101
Same-Unit

99
when somebody came along with a pin 
5099
span

100
-- in this case the UAL deal -- 
99
elaboration-general-specific-e

101
we got a little pop.
5100
span

102
 The pop sobered up investors 
5103
span

103
who had been getting a little too ebullient, 
102
elaboration-object-attribute-e

104
says Mr. Jarrett.
5103
attribution

105
 It provided an excuse 
5106
span

106
for people to get back to reality 
5107
List

107
and to look at the economic data, especially the third-quarter economic numbers, 
5107
List

108
and to realize 
109
attribution

109
that we can't continue to gloss over what is going on in the junk bond market.
5108
span

110
 But he figures 
5111
attribution

111
that at current levels the stock market is comfortably valued, 
5111
span

112
even with the economy obviously slowing.
111
circumstance

113
 Just because we've got some realism back in the market doesn't mean it's going lower from here, 
5112
span

114
he says.
113
attribution

115
 The bottom line is that it's healthy to have this kind of sideways activity, especially after a 30% gain in stock values over the past 12 months.
5112
elaboration-additional

116
 He's now estimating 
117
attribution

117
that after a period of consolidation, the Dow Jones Industrial Average will once again forge new highs.
5115
span

118
 Maybe, maybe not.
5117
span

119
 Abby Joseph Cohen, a market strategist at Drexel Burnham Lambert, isn't nearly so sanguine about the market's chances 
5118
span

120
of surging to new highs anytime soon.
119
elaboration-object-attribute-e

121
 Her view is that stock prices have three major props: 
5120
span

122
merger and buy-out proposals, earnings and the economic outlook.
121
elaboration-set-member-e

123
 At current levels of economic activity and earnings, stocks are fairly valued, 
5122
span

124
she says.
123
attribution

125
 But any chance 
5124
span

126
for prices to surge above fair value 
125
elaboration-object-attribute-e

127
lies in the speculation 
5126
span

128
that accompanies a vigorous merger and buy-out business,
127
elaboration-object-attribute-e

129
 and UAL has obviously put a damper on that.
5126
circumstance

130
 Stocks aren't cheap anymore,
5129
List

131
 there have been some judicial and legislative changes in the merger area 
5129
List

132
and all of this changes the arithmetic of deals,
5129
List

133
 she says.
5129
attribution

134
 I'm not saying 
135
attribution

135
they've stopped altogether,
5132
span

136
 but future deals are going to be structured differently 
137
result

137
and bids probably won't be as high.
5134
span

138
 But that's not the only problem for stocks.
5136
span

139
 The other two props 
5139
span

140
-- earnings and the economic outlook -- 
139
elaboration-set-member-e

141
are troubling, too.
5138
Same-Unit

142
 M&A is getting all the headlines right now,
5141
Contrast

143
 but these other things have been building up more gradually, 
5141
Contrast

144
she says.
5141
attribution

145
 Third-quarter earnings have been generally disappointing 
5146
circumstance

146
and with economic data
5145
span

147
 showing a clear slowing,
146
elaboration-object-attribute-e

148
 the outlook for earnings in the fourth quarter and all of 1990 is getting worse.
5146
Same-Unit

149
 There are a lot more downward than upward revisions 
5147
List

150
and it looks like people are questioning corporate profits as a means of support for stock prices, 
5147
List

151
she says.
5147
attribution

152
 With all this, can stock prices hold their own?
5150
Question-Answer

153
 The question is unanswerable at this point, 
154
attribution

154
she says.
5212
span

155
 It depends on what happens.
5153
span

156
 If the economy slips into a recession, 
157
condition

157
then this isn't a level that's going to hold.
5154
span

158
 Friday's Market Activity 
5156
TextualOrganization
SectionTitle
159
 Stock prices tumbled for a third consecutive day 
5157
span
SectionText
160
as earnings disappointments, a sluggish economy and a fragile junk bond market continued to weigh on investors.
159
circumstance

161
 The Dow Jones Industrial Average fell 17.01 points to 2596.72 in active trading.
5159
List

162
 Volume on the New York Stock Exchange totaled 170,330,000 shares.
5159
List

163
 Declining issues on the Big Board were far ahead of gainers, 1,108 to 416.
5159
List

164
 For the week the Dow Jones Industrial Average sank 92.42 points, or 3.4%.
5159
List

165
 Oil stocks escaped the brunt of Friday's selling 
5160
List

166
and several were able to post gains, 
5161
span

167
including Chevron, 
5162
span

168
which rose 5/8 to 66 3/8 in Big Board composite trading of 2.4 million shares.
167
elaboration-additional-e

169
 The stock's advance reflected ongoing speculation 
5164
span

170
that Pennzoil is accumulating a stake in the company,
169
elaboration-object-attribute-e

171
 according to Dow Jones Professional Investor Report.
5164
attribution

172
 Both companies declined to comment on the rumors,
5168
antithesis

173
 but several industry analysts told the Professional Investor Report 
5169
attribution

174
they believed 
5170
attribution

175
it was plausible that Pennzoil may be buying Chevron shares as a prelude 
5170
span

176
to pushing for a restructuring of the company.
175
elaboration-object-attribute-e

177
 USX gained 1/2 to 33 3/8 on a report in Business Week magazine 
5171
span

178
that investor Carl Icahn is said to have raised his stake in the oil and steel company to just about 15%.
177
elaboration-object-attribute-e

179
 Earlier this month, Mr. Icahn boosted his USX stake to 13.4%.
5171
elaboration-additional

180
 Elsewhere in the oil sector, Exxon rallied 7/8 to 45 3/4; 
5173
List

181
Amoco rose 1/8 to 47; 
5173
List

182
Texaco was unchanged at 51 3/4, 
5173
List

183
and Atlantic Richfield fell 1 5/8 to 99 1/2.
5173
List

184
 Mobil, 
5174
span

185
which said 
186
attribution

186
it plans to cut its exploration and production work force by about 8% in a restructuring, 
5175
span

187
dropped 5/8 to 56 1/8.
5176
Same-Unit

188
 The precious metals sector outgained other Dow Jones industry groups by a wide margin for the second consecutive session.
5177
span

189
 Hecla Mining rose 5/8 to 14; 
5178
List

190
Battle Mountain Gold climbed 3/4 to 16 3/4; 
5178
List

191
Homestake Mining rose 1 1/8 to 16 7/8; 
5178
List

192
Lac Minerals added 5/8 to 11; 
5178
List

193
Placer Dome went up 7/8 to 16 3/4, 
5178
List

194
and ASA Ltd. jumped 3 5/8 to 49 5/8. 
5178
List

195
 Gold mining stocks 
5180
span

196
traded on the American Stock Exchange 
195
elaboration-object-attribute-e

197
also showed strength.
5181
Same-Unit

198
 Echo Bay Mines rose 5/8 to 15 7/8; 
5183
List

199
Pegasus Gold advanced 1 1/2 to 12, 
5183
List

200
and Corona Class A gained 1/2 to 7 1/2.
5183
List

201
 Unisys dropped 3/4 to 16 1/4 
5184
span

202
after posting a third-quarter loss of $4.25 a share, 
5214
span

203
including restructuring charges,
202
example-e

204
 but other important technology issues were mixed.
5186
span

205
 Compaq Computer, 
5188
span

206
which had lost 8 5/8 Thursday 
5189
span

207
following a disappointing quarterly report,
206
circumstance

208
 gained 5/8 to 100 5/8.
5190
Same-Unit

209
 International Business Machines dropped 7/8 to 99 7/8.
5191
List

210
 Digital Equipment tacked on 1 1/8 to 89 1/8, 
5191
List

211
and Hewlett-Packard fell 3/8 to 49 3/8.
5191
List

212
 Dividend-related trading swelled volume in Merrill Lynch,
5192
span

213
 which closed unchanged at 28 3/8 
5193
span

214
as 2.7 million shares changed hands.
213
circumstance

215
 The stock has a 3.5% dividend yield 
5195
List

216
and goes ex-dividend today.
5195
List

217
 Erbamont advanced 1 1/8 to 36 1/2 on 1.9 million shares.
5196
span

218
 Montedison,
5197
span

219
 which owns about 72% of the company's common stock,
218
elaboration-additional-e

220
 agreed to buy the rest for $37 a share.
5198
Same-Unit

221
 Himont, another majority-owned unit of Montedison, added 1 1/4 to 47 1/8.
5198
elaboration-additional

222
 Milton Roy jumped 2 to 18 3/8.
5200
span

223
 Crane said 
5202
attribution

224
it holds an 8.9% stake in the company 
225
circumstance

225
and may seek control.
5202
span

226
 Crane dropped 1 1/8 to 21 1/8.
5200
elaboration-additional

227
 Comprehensive Care, 
5204
span

228
which terminated its agreement 
5205
span

229
to merge with First Hospital,
228
elaboration-object-attribute-e

230
 dropped 7/8 to 3 7/8.
5206
Same-Unit

231
 The company's decision was made 
5208
span

232
after First Hospital failed to obtain financing for its offer.
231
circumstance

5001
multinuc
3
comment

5002
span
4
circumstance

5003
span
5004
span

5004
span
5006
circumstance

5005
span
5007
span

5006
span
5005
span

5007
span
5014
span

5008
span
5009
Same-Unit

5009
multinuc
5010
List

5010
multinuc
5005
elaboration-additional

5011
span
5012
Same-Unit

5012
multinuc
5010
List

5013
span
5012
Same-Unit

5014
span
5155
TextualOrganization
Text
5015
multinuc
5007
elaboration-additional

5016
span
5018
antithesis

5017
span
5021
span

5018
span
5017
span

5019
span
5020
Same-Unit

5020
multinuc
5018
span

5021
span
5015
Question-Answer

5022
span
5026
List

5023
span
5024
Same-Unit

5024
multinuc
5025
span

5025
span
5022
span

5026
multinuc
5017
explanation-argumentative

5027
span
5031
span

5028
span
5029
Same-Unit

5029
multinuc
26
elaboration-object-attribute-e

5030
span
5029
Same-Unit

5031
span
5026
List

5032
multinuc
33
concession

5033
span
5034
span

5034
span
5035
span

5035
span
5027
evaluation-s

5036
span
5037
span

5037
span
5092
List

5038
span
5039
span

5039
span
5036
elaboration-additional

5040
span
5041
Same-Unit

5041
multinuc
5209
span

5042
span
5041
Same-Unit

5043
span



5044
span
5210
span

5045
span
5044
span

5046
span
5047
Same-Unit

5047
multinuc
5045
span

5048
span



5049
span
5055
span

5050
span
5049
span

5051
span
53
circumstance

5052
span
5053
span

5053
span
5054
Same-Unit

5054
multinuc
5050
span

5055
span
5044
elaboration-additional

5056
span
5057
span

5057
span
5061
span

5058
multinuc
5060
Contrast

5059
span
5058
List

5060
multinuc
5056
elaboration-additional

5061
span
5049
explanation-argumentative

5062
span
5066
span

5063
span
5062
span

5064
span
5065
span

5065
span
62
elaboration-additional-e

5066
span
5057
elaboration-additional

5067
span
5068
span

5068
span
5069
Same-Unit

5069
multinuc
5070
span

5070
span
5062
elaboration-additional

5071
span
5073
span

5072
span
5071
span

5073
span
5069
example

5074
multinuc
5076
span

5075
multinuc
5074
Cause-Result

5076
span
5077
span

5077
span
5071
explanation-argumentative

5078
span
5079
Same-Unit

5079
multinuc
5080
span

5080
span
5076
elaboration-additional

5081
span
5082
Same-Unit

5082
multinuc
5085
span

5083
span
5082
Same-Unit

5084
span
82
circumstance

5085
span
5079
elaboration-additional

5086
span
5088
Same-Unit

5087
span
87
circumstance

5088
multinuc
5089
span

5089
span
5090
List

5090
multinuc
5082
rhetorical-question

5091
span
5090
List

5092
multinuc
5034
explanation-argumentative

5093
span
5092
List

5094
span
5096
span

5095
multinuc
93
elaboration-object-attribute-e

5096
span
5097
span

5097
span
5109
Contrast

5098
span
5102
span

5099
span
101
circumstance

5100
span
5101
Same-Unit

5101
multinuc
97
consequence-s

5102
span
5096
elaboration-additional

5103
span
5104
span

5104
span
5105
span

5105
span
5098
elaboration-additional

5106
span
5104
explanation-argumentative

5107
multinuc
105
elaboration-object-attribute-e

5108
span
5107
List

5109
multinuc
92
explanation-argumentative

5110
span
5114
span

5111
span
5110
span

5112
span
5113
span

5113
span
5111
explanation-argumentative

5114
span
5109
Contrast

5115
span
5116
span

5116
span
5110
elaboration-additional

5117
span
5115
comment

5118
span
5119
span

5119
span
118
explanation-argumentative

5120
span
5121
span

5121
span
5128
span

5122
span
5125
antithesis

5123
span
5120
evaluation-s

5124
span
5125
Same-Unit

5125
multinuc
5123
span

5126
span
5127
span

5127
span
5125
Same-Unit

5128
span
5135
span

5129
multinuc
5130
span

5130
span
5131
span

5131
span
5121
explanation-argumentative

5132
span
5134
antithesis

5133
span
5130
elaboration-additional

5134
span
5133
span

5135
span
5118
explanation-argumentative

5136
span
5140
span

5137
span
5138
Same-Unit

5138
multinuc
138
explanation-argumentative

5139
span
5137
span

5140
span
5128
evaluation-s

5141
multinuc
5142
span

5142
span
5143
List

5143
multinuc
5136
elaboration-additional

5144
span
5143
List

5145
span
5146
Same-Unit

5146
multinuc
5144
span

5147
multinuc
5148
span

5148
span
5149
span

5149
span
5143
List

5150
multinuc
5148
elaboration-additional

5151
span



5152
span



5153
span
5212
elaboration-additional

5154
span
155
elaboration-additional

5155
multinuc



5156
multinuc
5155
TextualOrganization

5157
span
5158
span

5158
span
5156
TextualOrganization

5159
multinuc
5157
explanation-argumentative

5160
multinuc
5163
span

5161
span
5160
List

5162
span
166
example-e

5163
span
5166
span

5164
span
5165
span

5165
span
5160
elaboration-additional

5166
span
5159
List

5167
span
5163
elaboration-additional

5168
span
5167
span

5169
span
5168
span

5170
span
5169
span

5171
span
5172
span

5172
span
5159
List

5173
multinuc
5159
List

5174
span
5176
Same-Unit

5175
span
184
elaboration-additional-e

5176
multinuc
5173
List

5177
span
5179
span

5178
multinuc
188
elaboration-general-specific

5179
span
5173
List

5180
span
5181
Same-Unit

5181
multinuc
5182
span

5182
span
5177
elaboration-additional

5183
multinuc
5181
elaboration-general-specific

5184
span
204
antithesis

5185
span



5186
span
5187
span

5187
span
5173
List

5188
span
5190
Same-Unit

5189
span
205
elaboration-additional-e

5190
multinuc
5191
List

5191
multinuc
5186
example

5192
span
5194
span

5193
span
212
elaboration-additional-e

5194
span
5173
List

5195
multinuc
5192
elaboration-additional

5196
span
5173
List

5197
span
5198
Same-Unit

5198
multinuc
5199
span

5199
span
217
elaboration-additional

5200
span
5203
span

5201
span
222
elaboration-additional

5202
span
5201
span

5203
span
5173
List

5204
span
5206
Same-Unit

5205
span
227
elaboration-additional-e

5206
multinuc
5207
span

5207
span
5173
List

5208
span
5206
elaboration-additional

5209
span
5038
explanation-argumentative

5210
span
5041
example

5211
span
85
elaboration-object-attribute-e

5212
span
5213
span

5213
span
5150
Question-Answer

5214
span
201
circumstance

