The Herald Statesman from Yonkers, New York • 21

SECTION NYSE C2 Mutuals C3 Nasdaq C2 CLASSIFIED INSIDE Gannett Westchester NewspapersSaturday, May 5, 1990 Markets Results spur interest rate drop arid bond rally -Unemployment ParcarX vmttkyca, taasonaty adusad 5F NYSE index tion of the economy compiled each month by the National Association of Purchasing Management. Earlier this week, the NAPM's index showed the industrial sector expanded in April for th first time in a year, -L Meanwhile, New York, officials 'said the civiliiui unemployment rate for the' state was 4.9 percent in April, little changed from 5.0 percent in February and March: A survey of econpmic conditions across the country by the Federal Reserve's 12 regional bulks said this week that overall economic activity continues to expand slowly in April. Janet L. Norwood, commissioner of Labor Statistics, told the Joint Economic Committee that neither of the department's survey. of payrolls or of households showed significant employment change from March to April, despite the continued hiring of workers for the decennial census.

Taken together, the data for the past two months appear to paint a very weak employment picture, in which the number of jobs may seem to have Up 1.40 to 185.37 to fall, sparking a major bond market rally. Prices rose as rates on TJ.S. Treasury bonds, notes and bills fell by between 0.15 and 0.25 percentage The Treasury's benchmark 30-year bond climbed 1 points, or $18.25 for every. $1,000 face amount, in oncof the year's biggest rallies. Its yield, whichfalls when prices tumbled to 8.81 percent from 8.97 percent late Thursday.

My hunch would be that any seiiti- -ment atthe Fed toward (raising interest, rates) has been squashed, said Ray Stone of Stone McCarthy, a financial markets research firm. A number of government and private analysts cautioned, however, that the weak growth in payroll jobs in March and April is misleading and due more to unusually rapid increases in employment earlier in the year than economic weakness since then. One government economist also said the payroll numbers were not in line with other recent reports on new orders for manufactured goods or the monthly index covering conditions in the industrial por By John M. Berry Tha.WasiiingtonPoat WASHINGTON The nation's' civilian unemployment rate rose to 5.4. percent last month while the number of new payroll jobs stayed very low for the second month in a row, the Labor Department reported yesterday.

Tbe news that the number of workers -on U.S. payrolls rose by only 68,000 and that it would have follen except that the Census Bureau added 78,000 employees last month was interpreted, by many investors and traders as a sign that the American economy is a good deal weaker than they had thought Manufacturing payrolls fell by 22,000, the twelfth drop in the last 13 months, with total foctory employment down by about 300,000 over that period. Construction payrolls dropped by nearly 100,000, the second sharp decline in a row. Since a weaker economy would tend to reduce inflationary pressures and. make the Federal Reserve less likely to raise short-term interest rates, the Labor Department report caused interest rates Up 2.82 to 338.39 NASDAQ Up 3.17 to 428.61 AMEX index Up 0.76 to 345.73 Stocks The Dow yesterday rose 14.19 points to 2,710.36.

April '89 Mu. '90 April 90 5.3 1 1 5.21 1 5.4 AP Sauna: U.S. Dapl. ot Labor i New York Merc U.S. crude fell 1 cent yesterday per barrel.

Interoet rates The Treasury 's 30-year bond rose $1 6.25 per )1 ,000 as Its yield fell to 8.81 percent from 8.97 percent on Thursday. Rose in New York yesterday to 158.30yen from 158.05. i 3 Caldors in region spiced up Owen Hal Staff Writer When three Caldor stores celebrate grand reopenings today, shoppers will find the newly remodeled stores have stepped into the 90s. Holly berry red, white and dove gray, from the front checkouts to the walls now set the theme at the discount department stores in Bedford Hills, Pelham Manor and Danbury, Conn. Caldor, a 118-store chain, was bought in November 1989 by Cal Holdings a company formed by Odyssey Partners, L.P.; Caldor senior management and Donaldson; Lufkin Jenrette Capital Corp.

The new management teams strategy was that capital spending, once targeted primarily for new store openings, would now go to store fixtures, personnel training and the chainwide price scanning that went into effect last year. Depending on how well sales improve at the refurbished stores, the entire Caldor chain will be renovated sooner or later. Now in its 39th year, Caldor posted sales volume of $1.6 billion in 1989. The Bedford Hills store at 777 Bedford Road was originally two stores separated by a supermarket when it expanded after its 1964 opening. Ten years ago it became a stogie unit when the supermarket dosed.

Laura Lombardo, a Bedford resident who was shopping at the store yesterday for odds and ends. and baby things said, It seems airier, you can move around more. Janet Moy of Pleasantville said she didnt know the store was dime over until her husband brought it to her attention. I come here all the time to buy clothes and household Items," she said. Although she thinks the help is too stow and the checkout wait too tong, Chappaqua resident Ann Savage said, I shop here often for everything.

Its good it's been done ovgr, it looks better. Distinctive new touches are most apparent at the Gitano Shop where the clothing assortments are bordered by unusual fix tu ring and Seidman: Real pain ahead By Dam Skidmore The Associated Press WASHINGTON Departing savings and loan cleanup boss L. William Seidman said yesterday that real pain is yet to come in the bailout and urged patience with his successor. All the evidence to date is that the costs will exceed those originally estimated, he told a House Banking Committee task force on the SkL bailout. We are operating now in markets where interest rates are going up and property values are going down, he said.

Panel members lavished praise on the 69-year-old regulator, who often is at odds with the administration and is being nudged out ju chairman of the Federal Deposit Insurance Corp. and the Resolution Trust Corp. The FDIC insures bank and thrift institution deposits; the RTC conducts the SkL bailout At Seid man's suggestion. President Bush is turning to William Taylor, the Federal Reserve Board's director of bank supervision, to take over the position Panel members welcomed the prospect of Taylor's appointment cautiously, but questioned whether he would match Seidman as an independent voice. Seidman asked them not to judge Taylors performance too quickly.

Dcmt be impatient This is a tong, hard job. It isnt going to be accomplished anytime soon, he said. The real pain of. whats taking place, mi everything from increased government borrowing to the effect cm real estate markets, is still being felt I think it is very important that no one expect by this time next year well all feel great Seidman said. But Rep.

Bruce Vento, chairman of the task force, said, I worry about the independence of the FDIC and the RTC. I worry about ftiture policy decisions driven by political spin control. And Rep. Charles Schumer, berated the administration for its willingness to let Seidman go. He said Taylor, despite his ability, would fell without stronger administration support.

I think the administration. be on its hands hnd knees begging you to stay. The messenger shouldnt be blamed for the bad news, Schumer told Seidman. I-Fell50 cents an ounce yesterday in New York to More on the markets, CS Dow adds to gains Stock prices capped off a week of slow but steady gains with a broad advance yesterday, responding to a big surprise in the government's latest report on employment The Dow Jones average of 30 industrials rose 14.19 to 2,710.36, stretching its gain for the week to 65.31 points. Advancing issues outnumbered declines by better than 2 to 1 in nationwide trading of New York Stock Exchange-listed stocks, with 1,020 up, 465 down and 480 unchanged.

Volume on the floor of the Big Board came to 140.55 million shares against 145.57 million in the previous session. CampMu units losa $2B Federated Department Stores Inc. and sister Allied Stores Corp. posted net losses totaling more than $2.1 billion in their fourth fiscal quarters, largely because of a write-down stemming from their bankruptcy reorganization. The companies, which own nearly 280 U.S.

department stores such as Bloomingd ale's. Rich's and Lazarus, also reported that excluding non-operating charges, they posted operating profits for both the fourth quarter and foil fiscal year ended Feb. 3. Separately, the companies' parent -Campeau Corp. said it had proposed a business plan to its bondholders that includes the sale of real estate assets and a temporary halt in its interest payments.

Big Blua gats $40011 contract IBM said yesterday it received a $400 million contract to supply up to 55,000 personal computers to a European travel agent network, one of IBM's largest such contracts ever. IBMs West German subsidiary will supply the computers to the Amadeus network over a three-year period, the Madrid, Spain-based travel reservation system said. The agreement is one of the largest volume-purchasing contracts ever received by Armonk-based IBM based on the number of computers involved, said Win Pierlo, assistant general manager of IBM Germany. Amadeus is a partnership of 21 European airlines, the French and West German national railroads and a West German tour operator. Mahed Caktors In Bedford HIHa.

problem, the analyst said. The chain has eight stores in Westchester and Putnam, making it the region's largest discount retailer. The other remodeled stores are: Pelham Manor, a two-level, 170,000 square-foot-stord at 847 Pelham Parkway, taken over by Caldor in 1981 when (Corvette's went out of business. The Danbury unit on Route 7 and White Turkey Road, Brookfield, a store, first opened in 1961 and renovated several times. I A store in Levittown, L.I.

is also celebrating a reopening. The Norwalk, mass merchandiser embarked on its remodeling program last to its Yonkers store. logo treatments with a centerpiece entrance topped by video monitors featuring continuous music and viewing of apparel modeling. The Sight Sound department encloses electronics and photo merchandise in its own -section with its own register. Laser scanning is standard in all registers throughout the store for fester checkout: While theprice scanning and physical improvements are a plus, they are not enough, according to Maurice Levenson, a retail analyst with Tarrytown-based Axe-Houghton Management Inc.

Ive seen the best run discount chains in the country and by comparison there is still tots to da Pricing is haphazard. They are not consistent in pricing against competition, and that could be a I 1 i i I v. Breeden sees complications in new testimony by Milken Pepsis cut at Hardees and Canteen Trade ministers from the United States, Japan, Europe and Canada remained for apart on a variety of Issues yesterday as they wrapped up three days of negotiations on a global free trade pact Negotiators insisted the meetings had been productive in better defining areas of disagreement. Qrwyhound suffers $5511 loss Greyhound Lines Inc. said yesterday it lost $55J million in the first quarter and would mi million, of dollars in payments due in coming weeks because of problems related to a strike by bus drivers.

Greyhound said it misted abort $5 million in lease payments due in April and would not mnfcn a $9.75 million interest payment due May 15. Fixed-rate mortgage cflmb Fixed-rate home mortgages are currently averaging 10.67 percent, their highest rate in nearly a year, according to a national survey released yesterday by the Federal Home Loan Mortgage Corp. Tim the soft drink supplier for its 5,400 restaurants, dumping Pepsi -Cola after an association of more than six years. Pepsi -Cola a subsidiary of Iur-chase-based PepsiCo maintains its headquarters in Somers. T' Karen Randall, a spokeswoman for TW Services, said her company's 465 Hardees restaurants have been offering several Coca-Cola drinks along with the Pepsi brand and, in some cases, Pepsi's Mountain Dew.

But she said the company decided I that consolidating its business with -CocA-Cola would improve operating efficiency. She declined to say how much business Pepsi-Cola stands to lose as a result of the decision. The changeover will take several months. TW Services said it also had designated Coca-Cola as the primarjrsupplicr for its Canteen contract food service operations. The Canteen division has more than 1,600 accounts at sites ranging from school cafeterias to industrial vending machines, some of which had been serving Coca-Cola products along with other soft drinks.

they want to have them, Securities and Exchange Commission Chairman Richard C. Breeden said. Before Milken to called to testify before Congress -pAnething he re-, fUsed to do two years ago the sub- poena must be approved by the foil House committee. Milken, once head of Drexel ham Lambert' Inc. 's high-risk, high- yield bond department, up to 28 years in prison when be is sentenced in -New York on Oct Asked if the SEC would oppose having Milken testily before he iir sentenced, Breeden said: "If you had immunized testimony before a point in time that the plea agreement, end the settlement bo-comea Irrevocable on the date of sentencing, then It does create potential for introducing complications into the By John M.

Doyle Tho Associated Prsss WASHINGTON Congressional testimony by convicted junk bond financier Michael Milken before he is sentenced could complicate the securities fraud case, the nations top securities regulator said yesterday. The oversight and investigations subcommittee of the House Energy and Commerce Committee voted unanimously Tuesday to subpoena Milken, who pleaded guilty to six. felonies and agreed to pay $600 million in penalties last month. If Milken receives immunity from the panel, nothing he says at a congressional hearing could be used against him in state or federal courts. I think well try to work with Congress to make sura they understand the status of the case as they consider what hearings they wish to have and when Tho Associated Pieas TW Services one of the nation's largest food service companies, said yesterday that it was dropping PepsiCola Cb.

predicts from its 465 Hardees restaurants. Coca-Cola Co. had primary supplier for those restaurants and will continue in that role, the Spartanburg, S.C. -based company said. TW Serviced5isthe largest franchisee of Hardee's Food Systems which owns or franchises 3,300 restaurants nationwide and already counts Coca-Cola as its primary soft drink syrup supplier.

As a Hardees franchisee, TW Services was free to make its own arrangements on soft drinks for its restaurants. Earlier this week. Burger King Corp. said it planned to switch to Coca-Cola as I OMORROWftJWRURDAT.