1
 Investors dumped stocks of big companies
5126
span

2
 whose earnings fluctuate with the economy.
1
elaboration-object-attribute-e

3
 Many of those cyclical issues are in the Dow Jones Industrial Average,
5002
span

4
 which fell 26.23 to 2662.91.
3
elaboration-additional-e

5
 Declining issues on the New York Stock Exchange outpaced advancers, 1,012 to 501.
5002
elaboration-additional

6
 Recession fears are springing up again among investors.
5005
consequence-n

7
 Analysts say 
8
attribution

8
that the selling of cyclical stocks yesterday will be followed by a sell-off in shares of companies with big debt loads on their balance sheets.
5005
span

9
 In an economic slowdown, heavy debt loads reduce the flexibility of companies
5010
span

10
 because cash
5008
span

11
 that would normally be used
5007
span

12
 to keep the company buoyant
11
purpose

13
 must be diverted to interest payments.
5009
Same-Unit

14
 On the other hand, investors beat a clear path yesterday to blue-chip issues with proven earnings growth records.
5014
span

15
 Among the 30 Dow industrials, they bought McDonald's, Coca-Cola Co. and Procter & Gamble
5013
List

16
 and sold Aluminum Co. of America.
5013
List

17
 In another sign of slowdown fears, investors dumped technology shares.
5015
Contrast

18
 Many money managers are bracing for a decline in stocks of companies with big debt loads on their balance sheets.
5018
span

19
 The junk bond market is being taken apart
5016
span

20
 because of recession fears,
19
explanation-argumentative

21
 said J. David Mills, senior vice president at Boston Company Advisers.
5016
attribution

22
 Under this scrutiny, the first thing 
5019
span

23
you do 
22
elaboration-object-attribute-e

24
is sell your cyclical stocks
5020
Same-Unit

25
 and the second thing 
5021
span

26
you do 
25
elaboration-object-attribute-e

27
is sell your over-leveraged companies.
5022
Same-Unit

28
 In fact, much of the buying in blue chips yesterday was a pursuit of companies with lower debt levels.
5114
span

29
 In a recent investment letter
5028
span

30
 entitled Winners of the `Leverage Wars, ' 
29
elaboration-object-attribute-e

31
 Edward Kerschner, chairman of PaineWebber's investment policy committee, suggested
5029
Same-Unit

32
 that investors buy stocks of companies 
5027
span

33
that have avoided loading up on debt.
32
elaboration-object-attribute-e

34
 We're saying
35
attribution

35
 companies have to pay increasing attention to balance sheets,
5031
span

36
 said Mr. Kerschner.
5031
attribution

37
 He suggested
38
attribution

38
 that investors buy the shares of Great Atlantic & Pacific Tea, J. Baker, McDonald's, Philip Morris and Sara Lee.
5034
span

39
 He said
40
attribution

40
 that all of these companies will be able to compete fiercely in an economic downturn.
5035
span

41
 McDonald's has long-term debt
5037
span

42
 equaling 91% of shareholder equity currently,
41
elaboration-object-attribute-e

43
 but Mr. Kerschner said
44
attribution

44
 the company is carrying real estate assets at about $2.6 billion below their real value.
5040
span

45
 Coca-Cola climbed 1 3/8 to 72 1/8;
5043
List

46
 McDonald's added 1 to 31 3/8,
5043
List

47
 and Procter & Gamble gained 3/4 to 130 5/8.
5043
List

48
 A&P fell 1 1/4 to 57 5/8,
5043
List

49
 and J. Baker gained 3/8 to 21 1/4.
5043
List

50
 Philip Morris slipped 1/2 to 43 7/8,
5043
List

51
 while Sara Lee closed unchanged at 60 1/8.
5043
List

52
 According to Salomon Brothers' stub stock index of 20 companies 
5046
span

53
whose debt is giant
5045
span

54
 compared with shareholder equity,
53
comparison

55
 investors are already beginning to retreat from shares of debt-laden companies.
5047
span

56
 From January to early September, the index of stub stocks
5050
span

57
 -- the tiny portion of equity 
5048
span

58
that's publicly traded 
5049
span

59
following a recapitalization --
58
circumstance

60
 outperformed Standard & Poor's 500-stock index by about 20%.
5051
Same-Unit

61
 But
5053
Same-Unit

62
 starting in early September,
63
circumstance

63
 the index started to slide 
5052
span

64
and now stands about even with the S&P 500.
5054
List

65
 Stocks
5055
span

66
 that have a high default risk 
65
elaboration-object-attribute-e

67
have started to underperform those stocks
5056
span

68
 that have a lower default risk,
67
elaboration-object-attribute-e

69
 said Eric Sorenson, director of quantitative analysis at Salomon Brothers.
5057
attribution

70
 Companies
5061
span

71
 that have the most exposure to the business cycle 
70
elaboration-object-attribute-e

72
have underperformed since late last summer.
5062
Same-Unit

73
 Union Carbide,
5066
span

74
 whose third-quarter earnings dropped about 35% from a year earlier 
5065
List

75
and fell short of analysts' expectations,
5065
List

76
 declined 1/2 to 24 1/2.
5067
Same-Unit

77
 Also, Exxon went down 3/8 to 45 3/4
5068
List

78
 and Allied-Signal lost 7/8 to 35 1/8
5068
List

79
 even though the companies' results for the quarter were in line with forecasts.
5068
concession

80
 Other weak blue-chip issues included Chevron,
5070
span

81
 which went down 2 to 64 7/8 in Big Board composite trading of 1.3 million shares;
80
elaboration-object-attribute-e

82
 Goodyear Tire & Rubber, off 1 1/2 to 46 3/4, and American Express, down 3/4 to 37 1/4.
5071
Same-Unit

83
 Texas Instruments,
5073
span

84
 which had reported Friday 
85
attribution

85
that third-quarter earnings fell more than 30% from the year-ago level,
5072
span

86
 went down 2 1/8 to 33 on 1.1 million shares.
5074
Same-Unit

87
 Motorola, another major semiconductor producer, dropped 1 1/8 to 57 1/2.
5118
List

88
 Pinnacle West Capital,
5075
span

89
 whose earnings have been hurt by continued problems at its MeraBank unit,
88
elaboration-object-attribute-e

90
 fell 1 5/8 to 9 1/8 on 2.1 million shares
5076
Same-Unit

91
 to lead the Big Board's list of most active issues.
5076
elaboration-additional

92
 Growing pressures on the Arizona real-estate market are affecting the thrift;
5080
circumstance

93
 Pinnacle West told Dow Jones Professional Investor Report
5079
attribution

94
 it may consider filing for Chapter 11 bankruptcy protection
5079
span

95
 if it can't reach an agreement with federal regulators
5078
span

96
 to provide additional capital to MeraBank.
95
elaboration-object-attribute-e

97
 Hercules dropped 2 5/8 to 41 3/4 on one million shares
5083
span

98
 -- about six times its average daily trading volume --
97
elaboration-additional-e

99
 after a disappointing third-quarter earnings report.
5084
Same-Unit

100
 Merrill Lynch and Prudential-Bache Securities both lowered the stock's investment rating 
5085
span

101
immediately after the results were issued Friday,
100
circumstance

102
 according to PIR.
5085
attribution

103
 Elsewhere in the chemicals sector, Dow Chemical fell 1 1/4 to 97 1/2,
5088
List

104
 Monsanto lost 1 7/8 to 118,
5088
List

105
 B.F. Goodrich slipped 2 1/4 to 44 3/4
5088
List

106
 and Olin slid 1 to 57 3/4.
5088
List

107
 Other stocks
5091
span

108
 hurt by earnings-related selling
107
elaboration-object-attribute-e

109
 included Tandy,
5090
span

110
 which dropped 1 3/8 to 44,
109
elaboration-object-attribute-e

111
 and Eaton,
5089
span

112
 which retreated 2 1/2 to 57 1/2.
111
elaboration-object-attribute-e

113
 Third-quarter earnings at both companies were below analysts' forecasts.
5092
elaboration-additional

114
 After declining about 41% last week,
115
temporal-after

115
 UAL advanced 9 7/8 to 178 3/8 on 1.1 million shares on anticipation of a revised takeover offer from a labor-management group for the parent company of United Airlines.
5094
span

116
 However, Delta Air Lines fell 1 1/2 to 67 1/2
5095
List

117
 and USAir Group dropped 3/4 to 42 1/2.
5095
List

118
 Ramada gained 7/8 to 11 1/4
5098
span

119
 after revamping the terms of its restructuring plan,
5097
span

120
 which calls for the company to sell its hotel operations for $540 million and spin off its casino business to shareholders.
119
elaboration-object-attribute-e

121
 The revision follows last month's withdrawal of a $400 million junk-bond offering for the new casino company, Aztar Corp.
5097
elaboration-additional

122
 Mead gained 1 to 37 7/8.
5104
span

123
 USA Today reported 
5102
attribution

124
that the Rales brothers, Washington, D.C.-based investors
5101
span

125
 who made an unsuccessful offer
5100
span

126
 to acquire Interco last year,
125
elaboration-object-attribute-e

127
 have bought nearly 3% of Mead's common shares.
5102
Same-Unit

128
 Entertainment and media stocks generally escaped the market's slide as well.
5106
span

129
 Paramount Communications rose 5/8 to 58 3/4,
5105
List

130
 Time Warner climbed 1 7/8 to 138 5/8,
5105
List

131
 Walt Disney advanced 3 1/8 to 127 1/2,
5105
List

132
 MCA rose 1 1/8 to 65 5/8
5105
List

133
 and McGraw-Hill added 1/2 to 67 1/8.
5105
List

134
 The American Stock Exchange Market Value Index lost 3.11 to 379.46.
5107
span

135
 Volume totaled 10,450,000 shares.
134
elaboration-additional

136
 Carnival Cruise Lines Class A fell 1 3/4 to 20 3/4.
5131
span

137
 The company said 
5110
attribution

138
it had been notified unofficially that Waertsilae Marine Industries, a Finnish shipyard 
5109
span

139
building three cruise ships for the company,
138
elaboration-object-attribute-e

140
 is having financial trouble 
5108
span

141
and may already have filed for bankruptcy.
140
hypothetical

5001
span



5002
span
5004
span

5003
span
5012
span

5004
span
5126
elaboration-additional

5005
span
5006
span

5006
span
5011
span

5007
span
10
elaboration-object-attribute-e

5008
span
5009
Same-Unit

5009
multinuc
9
explanation-argumentative

5010
span
5006
explanation-argumentative

5011
span
5003
elaboration-additional

5012
span
5015
Contrast

5013
multinuc
14
evidence

5014
span
5015
Contrast

5015
multinuc
5123
span

5016
span
5017
span

5017
span
18
elaboration-additional

5018
span
5025
span

5019
span
5020
Same-Unit

5020
multinuc
5023
Sequence

5021
span
5022
Same-Unit

5022
multinuc
5023
Sequence

5023
multinuc
5018
contingency

5024
span



5025
span
5117
span

5026
span



5027
span
5127
span

5028
span
5029
Same-Unit

5029
multinuc
5027
attribution

5030
span



5031
span
5032
span

5032
span
5127
restatement

5033
span



5034
span
5036
span

5035
span
5042
span

5036
span
5128
elaboration-general-specific

5037
span
5041
Contrast

5038
span



5039
span
28
elaboration-additional

5040
span
5041
Contrast

5041
multinuc
5035
example

5042
span
5116
span

5043
multinuc
5042
elaboration-set-member

5044
span



5045
span
52
elaboration-object-attribute-e

5046
span
55
attribution

5047
span
5064
span

5048
span
56
definition

5049
span
57
elaboration-object-attribute-e

5050
span
5051
Same-Unit

5051
multinuc
5059
Contrast

5052
span
5053
Same-Unit

5053
multinuc
5054
List

5054
multinuc
5059
Contrast

5055
span
5057
Same-Unit

5056
span
5057
Same-Unit

5057
multinuc
5058
span

5058
span
5063
span

5059
multinuc
5063
interpretation-n

5060
span
5047
elaboration-additional

5061
span
5062
Same-Unit

5062
multinuc
5058
elaboration-additional

5063
span
5060
span

5064
span
5117
elaboration-additional

5065
multinuc
73
elaboration-additional-e

5066
span
5067
Same-Unit

5067
multinuc
5118
List

5068
multinuc
5129
span

5069
span



5070
span
5071
Same-Unit

5071
multinuc
5118
List

5072
span
83
elaboration-additional-e

5073
span
5074
Same-Unit

5074
multinuc
5118
List

5075
span
5076
Same-Unit

5076
multinuc
5077
span

5077
span
5082
span

5078
span
94
condition

5079
span
5080
span

5080
span
5081
span

5081
span
5077
elaboration-additional

5082
span
5118
List

5083
span
5084
Same-Unit

5084
multinuc
5087
span

5085
span
5086
span

5086
span
5084
elaboration-additional

5087
span
5118
List

5088
multinuc
5118
List

5089
span
5092
Same-Unit

5090
span
5092
Same-Unit

5091
span
5092
Same-Unit

5092
multinuc
5093
span

5093
span
5118
List

5094
span
5096
Comparison

5095
multinuc
5096
Comparison

5096
multinuc
5120
List

5097
span
5099
span

5098
span
5120
List

5099
span
118
consequence-s

5100
span
124
elaboration-object-attribute-e

5101
span
5102
Same-Unit

5102
multinuc
5103
span

5103
span
122
elaboration-additional

5104
span
5120
List

5105
multinuc
128
example

5106
span
5120
List

5107
span
5121
span

5108
span
5110
Same-Unit

5109
span
5110
Same-Unit

5110
multinuc
5111
span

5111
span
136
explanation-argumentative

5112
span



5113
span



5114
span
5025
evidence

5115
span



5116
span
5034
reason

5117
span
5119
span

5118
multinuc
5122
Contrast

5119
span
5015
elaboration-additional

5120
multinuc
5122
Contrast

5121
span
5124
elaboration-additional

5122
multinuc
5123
elaboration-additional

5123
span
5124
span

5124
span
5125
span

5125
span



5126
span
5003
span

5127
span
5128
span

5128
span
5039
span

5129
span
5118
List

5130
span



5131
span
5107
elaboration-set-member

