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 Thu, Feb 27 1992 Date: Thu, 27 Feb 92 06:04:26 EST Message-ID: DECISIONLINE: Banking & Economy USA TODAY Update Feb. 27, 1992 Source: USA TODAY:Gannett National Information Network DURABLE GOODS ORDERS RISE: Orders for durable goods rose 1.5% in January, the Commerce Department said Wednesday. Orders for durable goods - big-ticket items ranging from cars to refrigerators, expected to last more than three years - rose to $119.6 billion last month from $117.8 billion in December when orders plunged 5.1%. Orders had posted gains of 0.6% in November and 2.7% in October. INCREASE SEEN AS HOPEFUL: Though some economists said January's 1.5% gain in orders for durable goods was not strong enough to indicate a broad recovery, others saw the increase as a glimmer of hope for a recovery. David Mullins, vice-chairman of the Federal Reserve Board, said he expects first-quarter growth to be flat or negative but said the economy should pick up by midyear. TREASURY AUCTION SUCCESSFUL: Wednesday's Treasury auction of $9.8 billion in five-year T-notes went over well. The Treasury received $31.8 billion in bids for the offering, more than three times the amount offered. "It was the first good auction all month," says David Blitzer, chief economist at Standard & Poor's. The five-year T-notes yielded an average 6.75%, up from 6.28% at the last auction a month ago. RATES FALL ON AUCTION NEWS: Strong demand for five-year notes at a Treasury auction pushed interest rates down Wednesday. The yield on the bellwether 30-year Treasury bond dropped to 7.84% from 7.94% Tuesday. The 10-year T-note yield fell to 7.33 from 7.45%. A reduction in long-term rates is seen as positive sign for the economy because mortgage rates closely track 10-year T-note yields. STOCKS RECOVER WEDNESDAY: Stocks rose Wednesday on good economic news, making up for Tuesday's drop in the Dow of 24.59 points. The Dow Jones industrial average added 25.49 points to 3283.32, barely beating its record 3282.42 Monday. Other stock indexes rose. Advancers beat decliners 1,141 to 578 on the New York Stock exchange, where volume was 241.5 million shares. CD YIELDS MIXED: Bank certificate of deposit yields were mixed in the week ending Wednesday, `Bank Rate Monitor' said. Average yields: Six-month, 3.90% vs. 3.89%; 1-year, 4.12% vs. 4.11%; 2 1:2-year, 4.83% vs. 4.82%; 5-year, 5.91% vs. 5.87%. COMMITTEE VOTES FOR GREENSPAN: The Senate Banking Committee Wednesday voted 20-1 in favor of a second term for Federal Reserve Chairman Alan Greenspan. The nomination goes to the full Senate for a final vote, where it is expected to be approved. Alfonse D'Amato, R-N.Y., voted against him, saying Greenspan has been too slow bringing down interest rates. RECORD EARNINGS FOR WAL-MART: Discount retailer Wal-Mart charged ahead last year, ignoring the recession. The USA's largest retailer posted record earnings and revenue for the year ended Jan. 31., with net income rising 25% to $1.61 billion or $1.40 a share from $1.29 billion or $1.14 a share a year earlier. Revenue jumped 35% to $43.9 billion from $32.6 billion. Wal-Mart stock rose 2 3:8 to $53 7:8 Wednesday. TWO RETAILERS FILE CHAPTER 11: Retailers McCrory Corp. and West Coast Video filed for Chapter 11 bankruptcy protection Wednesday. McCrory, a discount chain that includes J.J. Newberry and Kress, cited the troubled economy and difficulty getting financing to meet creditor's demands as reasons for filing. West Coast Video, the USA's second largest video chain, said the filing will not affect operations. OIL PRICES MIXED: Oil prices finished mostly down Wednesday. Light sweet crude oil for delivery in April settled at $18.46 a barrel, down 2 cents, at the New York Mercantile Exchange. Home heating oil for delivery in March settled at 50.87 cents a gallon, down .48 cent. Unleaded gasoline for delivery in March settled at 54.57 cents a gallon, up .88 cent. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Thursday at 3283.32, after closing up 25.49 Wednesday. The New York Stock Exchange composite opens at 229.23, up 2.55. The American Stock Exchange market value opens at 413.97, up 4.19. The NASDAQ OTC composite opens at 632.40, up 11.00. DOLLAR OPENS MOSTLY DOWN: The dollar opens mixed on foreign markets Thursday. It opens at 0.5721 British pounds, down from 0.5742; 5.6389 French francs, up from 5.6178; 129.35 Japanese yen, down from 129.82; and 1.6495 German marks, down from 1.6565. (As of 3 p.m. Wednesday. 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. 08:0002270000D0227 LEGA- R G Retirees-to-have-hearing.............. A D0227 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