Path: bloom-picayune.mit.edu!snorkelwacker.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 Tue, Nov 3 1992 Date: Tue, 3 Nov 92 04:59:46 EST Message-ID: 11-03 0000 DECISIONLINE: Banking & Economy USA TODAY Update Nov. 3, 1992 Source: USA TODAY:Gannett National Information Network BUSINESS ACTIVITY UP SLIGHTLY: Economic reports came out Monday, the last reports people will hear before voting. Numbers were not too extreme. Business activity picked up slightly last month at U.S. factories, the National Association of Purchasing Management said. Its business index, a gauge of manufacturing's health, rose to 50.6% from 49% in September. PRODUCTION AND ORDERS RISE: A mark of 50% on the National Association of Purchasing Management's index indicates that manufacturing is expanding. Monday, the association reported an index of 50.6%. Production and orders rose last month, it said, pushing the index up. But factory employment fell slightly, as did prices paid for raw materials and equipment - all signs of weak demand. SEPTEMBER CONSTRUCTION JUMPS: The Department of Commerce said Monday that work was begun in September on construction projects worth $428.5 billion at an annual rate. That's up 1.3% from the value of August's ground breakings. The increase, largest since a 1.4% rise last April, made up for a 1.1% drop in August from July. Much of the increase was sparked by home construction. BOND RATES DROP: The variable rate paid on Series EE Savings Bonds fell with a thud Monday. The Treasury Department cut the rate to 5.04% from 5.58%. The market-based rate is changed twice a year, Nov. 1 and May. 1. The drop was expected. The rate is set at 85% of the average market yield of five-year Treasury securities the previous six months, and that yield has been falling. EXECS MAKE ENDORSEMENTS: Corporate leaders are tripping over each other this year to publicly endorse their favorite presidential candidate. So far, Bill Clinton and George Bush are neck-and-neck in the pinstriped popularity poll. Each claims hundreds of CEOs of large- and medium-sized companies are in his camp. Ross Perot, the most experienced businessman in the bunch, won't release his list. COMPUTER EXECS BACK CLINTON: Business has long embraced the Republican party. But this year, many execs who traditionally vote Republican are backing Clinton. Apple Computer's John Sculley, Hewlett-Packard's John Young and Compaq Computer's Ben Rosen say Democratic presidential candidate Bill Clinton has a better plan than President Bush for reviving the economy and the computer industry. All three are Republicans. PRE-ELECTION MARKET JUMPS: Stocks jumped Monday on hopes that the economy will get stronger after the election. But if history is any guide on how stocks perform after a presidential election, the market between now and year-end could be ho-hum. Traders believe that the end of the election will give a boost to consumer confidence no matter who wins. They figure a rise in confidence will lift stocks. MUTUAL FUND YIELDS ARE DOWN: Money market mutual fund yields are in the cellar. But if a money fund's yield is in the sub-basement, it may be because its fund charges too much for expenses. The average money fund yield was 2.74% the week ended Wednesday, according to IBC:Donoghue's Money Fund Report. That's the lowest ever. Some fund yields are at 1.13%, such as Van Eck. All bottom-dwellers have high expenses. CITICORP SELLS MORTGAGES: Citicorp is selling $1 billion in mortgages without recourse to the Federal National Mortgage Association. "Without recourse" means the bank has no obligation to buy back the loans if they sour - which means it doesn't have to set aside capital as a cushion against the prospect of the loans going bad. Fannie's willingness to buy the loans is a sign that Citicorp problems are easing. DUAL-TRADING FACES VOTE: Members of the Chicago Mercantile Exchange Thursday will vote on a proposal to repeal a 2-year-old exchange rule banning dual-trading on most futures contracts. The controversial practice was sanctioned by legislation that reauthorizes the Commodity Futures Trading Commission. Chicago's exchange is the only one that forbids brokers from simultaneously trading for themselves and clients. TREASURY SELLS SHORT BILLS: The Treasury Department Monday sold $11.8 billion in three-month bills at an average discount rate of 3.05%, up from 2.97% last week. It sold $11.8 billion in six-month bills at an average discount rate of 3.27%, up from 3.22% last week. GOLD UP, SILVER MIXED: On the New York Commodity Exchange, gold bullion for current delivery rose 50 cents Monday to a $339.90 troy ounce. But Republic National Bank said gold slipped 70 cents an ounce to a late bid price of $338.80. Silver prices were mixed. On New York's Comex, silver bullion for current delivery settled at $3.781 a troy ounce, up from $3.751 on Friday. In London it was unchanged at $3.77. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3262.21 Tuesday after closing up 35.93 Monday. The New York Stock Exchange composite opens at 232.48, up 1.91. The American Stock Exchange market value opens at 382.70, up 0.98. The NASDAQ OTC composite opens at 607.57, up 2.40. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly up on Tuesday. It opens at 0.6538 British pounds, up from 0.6408; 5.3170 French francs, up from 5.2205; 1.5698 German marks, up from 1.5385; and 123.64 Japanese yen, down from 123.87. (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: 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