Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.banks,americast.usa-today.banks From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: banks Fri, Oct 9 1992 Date: Fri, 9 Oct 92 04:40:11 EDT Message-ID: 10-09 0000 DECISIONLINE: Banking & Economy USA TODAY Update Oct. 9-11, 1992 Source: USA TODAY:Gannett National Information Network JOBLESS CLAIMS DECLINE: The number of new claims for unemployment benefits fell in late September for the first time in six weeks, the government reported Thursday. But the number stayed at a level analysts say portrays a stagnant jobs picture. The Labor Department said the number of first-time claims for unemployment insurance declined by 24,000, to 400,000, during the week ended Sept. 26. PRICE-CUTTING MAY CONTINUE: Price-cutting rescued the back-to-school season for retailers, meaning consumers can look forward to more markdowns in the holiday season. A Salomon Bros. index of 15 major retailers showed an average 7.5% jump in September revenue, the biggest increase since April. "You have to offer something unique or on sale" in September, says stock analyst Wayne Hood. FANNIE MAE EARNINGS UP: The Federal National Mortgage Association said third-quarter earnings rose 18% to a record $412.9 million because of strong growth in its mortgage securities business. Earnings were $1.51 a share, compared with $350.7 million, or $1.28 a share, during the third quarter of 1991. For the first nine months of the year, the company earned $1.2 billion, up from $1.0 billion in 1991. NASD SUSPENDS GRAHAM: The National Association of Securities Dealers Thursday expelled Graham Securities Corp., fined the company $250,000 and suspended the company president from the securities industry for six months. The Louisiana firm violated securities rules through the promotion and sales of funds for Prudential-Bache Securities, the NASD said. Graham settled customer suits for $5 million. SAVINGS BONDS ARE POPULAR: Savers bought more than $2 billion in U.S. Savings Bonds last month, the highest September total ever. As other interest rates have fallen, savers have been drawn to savings bonds, which can guarantee a 6% minimum interest. The average five-year certificate of deposit is paying 5.24%. In the fiscal year ended Sept. 30, bond purchases were $13.6 billion, 48% more than the year before. GERMAN MARK IS TOP CURRENCY: More than $190 billion worth of currencies are traded daily in U.S. currency markets, according to the Federal Reserve Bank of New York. Dollars are traded most often with the German mark - 34% of all trades. The Japanese yen is the next most popular, at 23%. Other transactions: British pounds, 9%; Swiss francs, 8%; and Canadian dollars, 3%. BUY AND BUY AGAIN: Peter Anderson of IDS Advisory is bucking common trains of thought and arguing for putting all investment money into stocks. The head of the Minneapolis investment giant sees some short-term rocky periods, but predicts "a big year-end rally that should spill over into early '93." He says investors should "buy today and buy more tomorrow." NEVER MIND COMMON WISDOM: IDS Advisory has kicked off a risky move, going on a $700 million buying binge. It wants to cut reserves in U.S. stock portfolios from big cash to no cash in the next few weeks. IDS' Peter Anderson is betting on a year-end rally on the stock market despite the strong likelihood of continued chaos in the European currencies and stock and bond markets. LONG BONDS FALL: The yield on 30-year Treasury bonds fell to 7.44% from 7.48% Thursday. The discount rate on three-month Treasury bills fell to 2.78% from 2.81%. The dollar strengthened. Light sweet crude oil rose 10 cents to $21.99 a barrel on the New York Mercantile Exchange. GOLD MIXED, SILVER UP: Precious metals generally were up Thursday. On the Comex, gold bullion for current delivery fell $1.10 to $349.90 a troy ounce. Republic National Bank said gold fell 85 cents to $349.75. But gold rose in London to $350.75, up from $350.60. On the Comex, silver bullion for current delivery settled at $3.732, up from $3.723. Silver rose in London to $3.78, up from $3.75. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3176.03 Friday after closing up 23.78 Thursday. The New York Stock Exchange composite opens at 224.62, up 1.78. The American Stock Exchange market value opens at 367.01, up 0.13. The NASDAQ OTC composite opens at 573.88, up 4.68. DOLLAR OPENS UP OVERSEAS: The dollar opens up on Friday. It opens at 0.5951 British pounds, up from 0.5838; 5.0190 French francs, up from 4.9060; 1.4790 German marks, up from 1.4470; and 121.50 Japanese yen, up from 120.27. (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: Beth Mann. (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