And in the long term, he says, the higher entry point and the narrow trading range could combine to make the pound "uncompetitive" in Europe, squeezing the sales and earnings of Britain's key manufacturing companies over the next several years.

The company realized that this will squeeze earnings this quarter and probably will remain a problem into 1998, Mr. Horen said.

But share prices of oil and oilfield-service companies fell yesterday as analysts and investors calculated that lower retail prices could squeeze earnings.

Mr. Whitlow said the very large transport plane presented both positives and negatives for Boeing: While it would create a huge new market opportunity in the long term, it would require significant research and development spending that would squeeze earnings in the short term.

As a result, sales were lower than expected, squeezing earnings.

Competition turned savage, squeezing profit margins, earnings and the stock prices of most chains.

Analysts said that while a protracted strike would squeeze earnings in the fourth quarter, the main effect would be to postpone a few deliveries.

That effort has squeezed earnings this quarter and will again next quarter, he said, "but if they can achieve that, along with the acquisition of D.E.C., it puts them in a very powerful position in the computer industry."