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, Mar 20 1992 Date: Fri, 20 Mar 92 05:44:41 EST Message-ID: 03-20 0000 DECISIONLINE: Banking & Economy USA TODAY Update March 20-22, 1992 Source: USA TODAY:Gannett National Information Network NEW UNEMPLOYMENT CLAIMS FALL: The number of people filing for new unemployment benefits fell 27,000 to 433,000 the week ended March 7, the Labor Department said Thursday. Though the drop was larger than expected, economists say it's still too early to predict an upturn in the job market. The four-week average of claims, considered more accurate than the weekly volatile numbers, fell to 447,000 from 451,750. STOCKS GAIN THURSDAY: Stocks gained slightly in slow trading Thursday prior to Friday's triple expiration of stock options, stock-index options and stock-index futures. The Dow Jones industrial average rose 7.15 points to 3261.40. Most other indexes gained slightly. Advancers bested decliners 926 to 781 on the New York Stock Exchange, where volume was 197 million shares. FED BOARD TO VOTE ON MERGER: The Federal Reserve Board meets Monday to vote on the proposed merger of California banks BankAmerica and Security Pacific. The vote is the final hurdle for the merger. BankAmerica said Thursday it will cut up to 12,000 jobs within three years after merging with Security Pacific. The merger would create the second-largest U.S. bank after Citicorp. BOND YIELDS FALL: Yields on 30-year Treasury bonds fell to 7.96% Thursday, ending five days above the 8% mark. The yields closed at 8.01% Wednesday. Bond prices closed higher, pushing yields down, on news that the United States may be preparing to attack Iraq. Military action makes U.S. securities attractive as a safe haven to investors. TRADE DEFICIT DROPS: The USA's merchandise trade deficit narrowed 3.9% in January to $5.8 billion from $6 billion in December, the Commerce Department said Thursday. Commerce Secretary Barbara Franklin says the long-term trend in exports remains strong despite January's 1% decline to $35.5 billion. Imports fell 1.4% from December to $41.3 billion, helped by cheaper foreign oil prices. JAPAN ANNOUNCES CAR CUT: Japanese automakers announced Thursday a slight cut in the number of cars they will ship to the USA. The new quota is 1.65 million for Japanese fiscal year 1992, which begins April 1. While that is a 28% cut from the current limit of 2.3 million, it is just 5% fewer cars than the estimated 1.73 million Japan shipped here in fiscal '91, which ends March 31. LIBYA EMBARGO SENDS PRICES UP: Energy prices climbed moderately higher Thursday as the increasing possibility of an air embargo against Libya spurred buying. Light sweet crude for delivery in April added 22 cents to settle at $19.29 per barrel on the New York Mercantile Exchange. The gain more than compensated for Wednesday's drop of 17 cents. Oil for delivery in later months advanced by similar amounts. EARNINGS ESTIMATES CUT IN JAPAN: Major securities companies in Japan have cut their estimates for the current fiscal year's earnings, as the stock market has slumped and financial scandals have rocked the country. According to forecasts by brokerages, 10 out of 14 major securities firms will post a combined pre-tax losses of 217.8 billion yen, or $1.65 billion, for the fiscal year ending March 31. GOLD CLOSES HIGHER: Gold prices closed higher Thursday for the first time in a week, but are still at their lowest levels in almost six years. Gold closed on the New York Commodity Exchange at $338.80 a troy ounce, up 40 cents from Wednesday. Republic National Bank later quoted a price of $338.75, up 35 cents. HOUSING IS MORE AFFORDABLE: Housing in America became more affordable as 1991 ended, with some of the best opportunities found in the Midwest, according to a survey released Thursday by the National Association of Home Builders. Nationally, households earning the median income were able to afford 37.9% of the homes offered for sale during the final quarter of 1991, up from 34.8% a year earlier. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Friday at 3261.40, after closing up 7.15 Thursday. The New York Stock Exchange composite opens at 226.25, up 0.31. The American Stock Exchange market value opens at 402.17, up 1.20. The NASDAQ OTC composite opens at 625.96, up 1.02. DOLLAR OPENS UP: The dollar opens up on foreign markets Friday. It opens at 0.5855 British pounds, up from 0.5780; 5.6485 French francs, up from 5.6030; 133.54 Japanese yen, up from 131.95; and 1.6710 German marks, up from 1.6500. (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. 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