Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.banks From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: banks Fri, Feb 21 1992 Date: Fri, 21 Feb 92 06:00:50 EST Message-ID: DECISIONLINE: Banking & Economy USA TODAY Update Feb. 21-23, 1992 Source: USA TODAY:Gannett National Information Network USA'S TRADE DEFICIT PLUNGES: The USA's trade deficit shrank by a surprising 35% last year, the Commerce Department reported Thursday. A 7.2% surge in exports, to a record $421.9 billion, and a 1% drop in imports to $88.1 billion cut the trade deficit to $66.2 billion last year. The gap between imports and exports of commodities and manufactured goods was the narrowest since a $52.4 billion deficit in 1983. REDUCTION WILL NOT CONTINUE: Most economists say this year the USA's trade deficit will not experience anywhere near the 35% drop it saw last year. Reason: The U.S. economy is likely to pick up strength this year, increasing demand for imports. J. Antonio Villamil, chief economist at the Commerce Department, says the deficit could range from $55 billion to $75 billion. STOCKS JUMP THURSDAY: Stocks surged to a new record high Thursday on renewed optimism about an economic recovery. The Dow Jones industrial average jumped 50.32 points, or 1.6%, to 3280.64, just topping the previous record close of 3276.83, set nine days ago. Other indexes also jumped, though not to record levels. On the New York Stock Exchange, winners bested losers 1,158 to 593. TRANSPORTS LEAD CHARGE: Some of the biggest gains among stock Thursday were in stocks that do well in the initial phase of a recovery, such as transportation companies. The Dow transportation average rose 42.79 points to 1467.68. "That's clear-cut evidence investors are making a bet the economy will improve later this year," says Carmine Grigoli, portfolio strategist at brokerage First Boston Corp. RECORD FAILURES IN 1991: Insurance, financial and real estate firms led the way to a record year for business failures in 1991, according to a Dun & Bradstreet survey. Business failures jumped 44% to 87,266 last year, following a 21% jump in 1990, as the recession and heavy debt took a toll on businesses. Failures among insurance, financial and real estate related firms were up 53.5% last year. UNEMPLOYMENT CLAIMS RISE: The Labor Department reported Thursday that first-time claims for unemployment benefits jumped 18,000 to 452,000 the week ended Feb. 8., after two weeks of declines. The four-week average of claims rose to 449,000 from 446,000. Claims above the 400,000 level indicate a recessionary economy. Analysts say claims may grow, as unemployment could hit 7.5% before improving. OIL PRICES GAIN SLIGHTLY: There was little change in oil prices in a slow day of trading Thursday. Light sweet crude oil for delivery in March settled at $18.54 per barrel, up 13 cents, at the New York Mercantile Exchange. Crude oil to be delivered in later months finished about where it had closed on Wednesday. MUTUAL FUND ASSETS FALL: Assets of the nation's 587 money market mutual funds fell $16.01 billion in the past week, the Investment Company Institute said Thursday. The decline, to $497.61 billion in the seven-day period ended Wednesday, followed a $4.63 billion increase in the funds' assets the previous week, according to the Washington-based mutual fund trade group. NET INCOME DOWN AT HONDA: Honda is the latest big Japanese firm to report sagging earnings. The car and motorcycle maker said net income last quarter fell 36% from a year earlier to $86 million despite a revenue increase of 2.7% to $8 billion. Last week, Toyota reported a 34% drop in earnings last year. NICHOLAS RESIGNS FROM TIME: Nicholas J. Nicholas Jr. abruptly resigned Thursday as co-CEO of media giant Time Warner. Nicholas, who was to take the helm of the company from co-CEO Steven J. Ross after 1994, says he quit because of unspecified strategic differences with Time Warner's board and management. The announcement was made after the New York Stock Exchange closed. Time Warner shares closed at $97 7:8, down 3:8. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Friday at 3280.64, after closing up 50.32 Thursday. The New York Stock Exchange composite opens at 228.60, up 2.85. The American Stock Exchange market value opens at 412.86, up 5.40. The NASDAQ OTC composite opens at 632.23, up 9.82. DOLLAR OPENS MIXED: The dollar opens mixed on foreign markets Friday. It opens at 0.5707 British pounds, down from 0.5701; 5.5897 French francs, down from 5.6006; 128.70 Japanese yen, up from 128.10; and 1.6435 German marks, down from 1.6470. (As of 3 p.m. Thursday. Source: First American Bank of New York.) 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Banking & Economy Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002210000D0221 LEGA- R G Symington-before-subcommittee......... A D0221 This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM