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 Mon, Mar 9 1992 Date: Mon, 9 Mar 92 05:46:24 EST Message-ID: 03-09 0000 DECISIONLINE: Banking & Economy USA TODAY Update March 9, 1992 Source: USA TODAY:Gannett National Information Network UNEMPLOYMENT, JOBS UP IN FEB.: The Labor Department delivered a mixed monthly unemployment report Friday. The department said that its survey of households put the jobless rate at 7.3% in February, a sharp 0.2% rise to its highest mark since July 1985. However, a survey of businesses showed a seasonally adjusted 164,000 jobs were added to the economy last month, with most - some 133,000 jobs - added by retailers. STOCKS OFF ON JOBS REPORT: The Dow Jones average of 30 industrials lost 46.07 points last week as stock prices fell for the third straight session Friday. The Dow fell 19.90 points to 3,221.60 Friday on news that the nation's unemployment rate rose 0.2% in February to 7.3%. Declining issues outnumbered advances 1,087 to 610 on the New York Stock Exchange, where volume came to an estimated 185.04 million shares. STALL COULD STICK: The stock market stall that began in mid-January could stick for a few months. Investors are struggling to shift from buying stocks because of falling interest rates to buying because of an economic recovery. "The transition from one to the other is marked by some sort of correction," says analyst Robert Doll. Since Jan. 14, the Dow hasn't closed below 3221 or above 3291 - a range of 70 points. TIME TO BUY IS NOW: Analyst Robert Doll is among many who say investors should focus on prospects for a recovery and not worry about short-term problems caused by a slight rise in rates. By the time proof of an earnings rebound arrives - most likely when second-quarter earnings reports begin to appear in July - there's a good chance many stocks will be much higher. "This isn't a time to sit on your hands," Doll says. MORTGAGE RATES UP FOR WEEK: The average thirty-year, fixed-rate mortgage hit 8.85% last week, up from 8.83% the week before and the highest since last October, according to a Federal Home Loan Mortgage Corp. survey released Friday. It was the highest rate since mortgages averaged 8.91% during the week ending Oct. 25. Rates have been rising since they dropped to 8.23% during the week ending Jan. 10. FREDDIE MAC TO SELL STOCK: Shares of the Federal Home Loan Mortgage Corp. soared 7 1:4 to $120 Friday after the federally sponsored housing company said it will sell its stock directly to the public for the first time. Freddie Mac's board approved issuing as much as $750 million in preferred stock to be traded on the New York Stock Exchange. Previously, only federally insured S&Ls sold shares to the public. XOMA MAY BE FOR SALE: Biotech firm XOMA has been exploring the possible sale of part or all of the company with Pfizer or Johnson & Johnson or both, USA TODAY columnist Dan Dorfman reports Monday. Any deal must await Food and Drug Administration approval to XOMA's E-5 drug. XOMA CEO Steve Mendell says he's discussed a range of alternatives involving XOMA with various companies. But he wouldn't identify them. LUMBER FIGHT MAY BE ON: The Commerce Department preliminarily ruled that a 14.5% import duty is needed to offset Canadian subsidies on wood shipped to the USA. The Commerce Department and the U.S. International Trade Commission will make a final review by summer. Canada says it doesn't subsidize its lumber exports. BOEING ISSUES WARNING: Boeing sent notice Friday to about 2,400 workers that they are likely to be laid off within two months unless new positions can be found for them in the company. The cuts are part of a previously announced reduction of 8,000 jobs. Boeing said another round of layoff notices may go out early next month. GOLD DOWN, SILVER UP: Gold prices moved modestly lower Friday. On the Commodity Exchange in New York, gold bullion for current delivery closed at $349.50 a troy ounce, $1.90 lower than Thursday's settlement price. Republic National Bank quoted a bid of $349.25 for a troy ounce of gold as of 4 p.m. EDT, down $2.20. On New York's Comex, silver bullion settled at $4.152 a troy ounce, up from $4.133 Thursday. GASOLINE DRIVES PRICES DOWN: Energy futures mostly fell Friday, with plunging gasoline prices driving prices lower. Light sweet crude oil for delivery in April settled at $18.51 per barrel, down 4 cents, at the New York Mercantile Exchange. For the week, sweet crude fell 17 cents a barrel on contracts for next-month delivery. Unleaded gasoline for April delivery fell 1.59 cents to 57.73 cents a gallon. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Monday at 3221.60, after closing down 19.90 points Friday. The New York Stock Exchange composite opens at 223.79, down 1.13. The American Stock Exchange market value opens at 407.95, down 2.29. The NASDAQ OTC composite opens at 615.95, down 6.02. 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Banking & Economy Editor: William Snoddy. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes violates federal law. 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