Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.banks From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: banks Tue, Jul 14 1992 Date: Tue, 14 Jul 92 05:08:58 EDT Message-ID: 07-14 0000 DECISIONLINE: Banking & Economy USA TODAY Update July 14, 1992 Source: USA TODAY:Gannett National Information Network STOCKS HIGHER IN THIN VOLUME: The stock market was broadly higher in light trading Monday but investors were cautious ahead of key economic data. The Dow Jones average of 30 industrials rose 6.75 points to 3337.31. Winners beat losers 997 to 738 on the New York Stock Exchange, where volume was light at 149 million shares. Investors were cautious ahead of Tuesday's reports on retail sales and consumer prices. SAVERS PULLING OUT OF BANKS: Dwindling interest rates on saving vehicles are prompting savers to pull their money out of bank accounts and money market funds to spend the cash. Money market mutual funds now pay an average 3.35%, down from 5.5% a year ago and 9.2% in May 1989, a recent peak. Six-month certificates of deposit pay an average 3.7% now, vs. 5.9% a year ago and 9.3% at their May 1989 peak. CHRYSLER TO RESTRUCTURE DEBT: Chrysler Chairman Lee Iacocca says the automaker expects to complete the restructuring of its finance unit's $6.8 billion in debt by the end of July. Iacocca says most of the 160 banks it is negotiating with on Chrysler Financial's revolving credit have signed up and that he's optimistic about wrapping up the deal. He wouldn't say how many banks were still negotiating with Chrysler. JAPAN'S TRADE SURPLUS GROWS: Japan's trade surplus with the world jumped 24% to nearly $9 billion in June, the 18th straight month the gap widened from a year earlier. Japan's trade surplus with the USA grew 18% in June from a year earlier to $3.2 billion. Exports to the USA rose 7.5% from a year earlier to $7.6 billion, while imports from the USA increased just 0.8% to $4.4 billion. FANNIE MAE'S EARNINGS SOAR: A record $67 billion in portfolio purchases and mortgage-backed security issues boosted earnings for Federal National Mortgage Corp. 21% in the second quarter. Net income climbed to $402 million or $1.47 a share from $332 million or $1.21 a share a year earlier. Fannie Mae said the $67 billion helped offset a drop in profits caused by a boom in mortgage refinancings at lower rates. J.P. MORGAN'S EARNINGS RISE: J.P. Morgan Monday reported net income of $385 million, or $1.94 a share, for the second quarter. That compared with earnings of $231 million, or $1.17 a share, for the same period in 1991. Net interest revenue at the nation's fifth-largest banking company and parent of Morgan Guaranty & Trust Co. was up 23% to $434 million. Morgan's operating expenses grew by 27%. DELINQUENT LOANS DOWN AT CHASE: Chase Manhattan Corp. Monday reported second-quarter net income of $152 million, or 83 cents a share, vs. $132 million, or 80 cents a share, in the same quarter in 1991. Outstanding delinquent loans totaled $4.5 billion for the second quarter, down slightly from $4.6 billion the year before; net loan charge-offs were $297 million, less than half of the $682 million of a year before. FIRST CHICAGO NET UP SLIGHTLY: First Chicago Corp. Monday reported net income of $68.2 million, or 79 cents a share, for the quarter, compared to $57.3 million, or 73 cents a share, for 1991's second quarter. The nation's 10th biggest bank said its net interest income rose 9% to $300.9 million, but that was offset partially by a 17% increase in its loan loss provision to $105 million. TREASURY AUCTION: Interest rates on six-month Treasury securities fell in Monday's auction to the lowest level in 29 years. Rates on three-month bills fell to a 20-year low. The Treasury Department sold $11.7 billion in six-month bills at an average discount rate of 3.31%, down from 3.32% last week - the lowest rate since July 8, 1963. GOLD UP, SILVER DOWN A BIT: Gold was up, but silver slid Monday. Gold bullion for current delivery on the New York Commodity Exchange was quoted at $349.10 a troy ounce, up 80 cents. Republic National Bank of New York quoted the metal at $348.70, up 70 cents. Gold rose in London. Silver bullion fell in London to $3.93 from $3.94. On the Comex, silver for current delivery was quoted at $3.919, down a penny. NAT. GAS LEADS CRUDE HIGHER: Energy futures prices were mostly higher Monday, with natural gas showing the strongest gains. Light sweet crude oil for delivery in August settled at $21.36 per barrel, up 8 cents, at the New York Mercantile Exchange. Natural gas for delivery in August shot up 6.9 cents per 1,000 cubic feet, to $1.722. Many utilities increase their use of natural gas in the summer to meet electricity demands. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Tuesday at 3337.31 after closing up 6.75 Monday. The New York Stock Exchange composite opens at 228.04, up 0.16. The American Stock Exchange market value opens at 383.14, up 0.82. The NASDAQ OTC composite opens at 570.22, up 2.42. DOLLAR OPENS DOWNOVERSEAS: The dollar opens down on Tuesday. It opens at 0.5187 British pounds, down from 0.5204; 4.9890 French francs, down from 5.0700; 1.4770 German marks, down from 1.4943; and 124.89 Japanese yen, down from 125.24. (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: William Snoddy. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes violates federal law. 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