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 Tue, Mar 31 1992 Date: Tue, 31 Mar 92 05:49:46 EST Message-ID: 03-31 0000 DECISIONLINE: Banking & Economy USA TODAY Update March 31, 1992 Source: USA TODAY:Gannett National Information Network ECONOMISTS URGE ACTION: A highly-regarded group of 100 economists urged President Bush, Congress and the Federal Reserve to act quickly to boost the economy before it falters. "By doing nothing, we risk prolonged stagnation, feeble recovery or worse, no recovery at all," says Marshall Pomer, a University of California professor who put together the group. FED SHOULD PUSH RATES DOWN: In a letter Monday to President Bush, members of Congress and Fed Chairman Alan Greenpsan, a group of 100 economists called for further moves by the Fed to lower interest rates. It also recommends tax credits for business investment and a $50 billion spending program aimed at improving schools and rebuilding roads, bridges and other parts of the nation's infrastructure. STOCK FUNDS SOAR: Stock funds had a record-breaking month in February, attracted $7.5 billion, the Investment Company Institute reported Monday. Stock and bond funds combined took in $15.7 billion, the most since January 1987. Investors looking for high returns on individual retirement accounts are behind much of the rush to funds, says Steve Norwitz of T. Rowe Price Associates. DOW STARTS WEEK WITH GAIN: Gains by several blue-chip stocks enabled the Dow to squeeze out a gain Monday, but the market in general was down on the lightest trading day in months. The Dow Jones industrial average rose 3.80 points to 3235.24. Other averages were down. On the New York Stock Exchange, declining issues beat gainers 922 to 712. Volume was 134 million shares - lowest since the day after Thanksgiving. BLUE-CHIP GAINS BOOST DOW: Disney, up 2 7:8 to $150 5:8, and Merck, up 1 1:8 to $147, helped push the Dow to a small gain for the day Monday. Analysts said institutions bought stocks that have strong track records to polish their portfolios before the end of the first quarter Tuesday. Volume was very light, as investors are waiting for economic reports due later this week. NEW HOME SALES FALL: The Commerce Department Monday reported disappointing figures for sales of new single-family homes. Sales fell 2.7% last month after shooting up 11.1% in January. Sales totaled 613,000 at a seasonally adjusted annual rate, down from 630,000 in January. Sales were up only in the Northeast. The median price of new homes sold in February was $117,000, down 4.9% from January. CONFIDENCE INDEX HIGHER: Cahners Economics said Monday its business confidence index rose to 65.4 in March from 65.1 in February. Readings above 50 indicate businesses are optimistic. The index has been rising since January. Cahners says the rise indicates the economy has regained momentum and is poised for a broad recovery. DISCOUNT RATE UNCHANGED: The Treasury Department sold $11.4 billion in three-month bills at an average discount rate of 4.08%, unchanged from last week. Another $11.4 billion was sold in six-month bills at an average discount rate of 4.19%, down from 4.27% last week. OIL PRICES RISE: Crude oil prices rose slightly in hesitant trading Monday. Light sweet crude oil for delivery in May settled at $19.25 per barrel, up 9 cents, on the New York Mercantile Exchange. Unleaded gasoline for delivery in April settled at 58.45 cents a gallon, down .03 cent. Home heating oil for delivery in April settled at 53.06 cents a gallon, up .85 cent. BANKS URGE CHANGE: A coalition of powerful banking firms is urging Congress to allow them to open branches across state lines. The Coalition for Interstate Banking and Branching includes NationsBank, Bank of Boston, Mellon Bank and other unnamed institutions. Last year, Congress rejected a bill containing provisions allowing for interstate banking. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Tuesday at 3235.24, after closing up 3.80 Monday. The New York Stock Exchange composite opens at 222.99, down 0.32. The American Stock Exchange market value opens at 393.61, down 0.75. The NASDAQ OTC composite opens at 602.07, down 2.60. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mixed on foreign markets Tuesday. It opens at 0.5759 British pounds, up from 0.5743; 5.5920 French francs, down from 5.6085; 132.68 Japanese yen, down from 133.17; and 1.6455 German marks, down from 1.6400. (As of 3 p.m. Monday. 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. 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