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 Thu, Mar 5 1992 Date: Thu, 5 Mar 92 05:55:52 EST Message-ID: 03-05 0000 DECISIONLINE: Banking & Economy USA TODAY Update March 5, 1992 Source: USA TODAY:Gannett National Information Network FACTORY ORDERS RECOVER: Factory orders rose 0.4% in January after plunging 3.7% in December, the Commerce Department said Wednesday. Orders totaled a seasonally adjusted $235 billion, up from $234 billion in December. January's rise, the third increase in four months, was fueled by a big jump in orders for long-lasting durable goods such as airplanes and autos. BUSINESSES MORE OPTIMISTIC: A survey by the U.S. Chamber of Commerce shows that business optimism rose dramaticaly from December to February. The Chamber's business confidence index, measuring businesses' outlook on the economy, sales and employment, rose to 59.1 in February from 39.3 in December. The survey of 7,924 businesses found that 47.4% think the economy is headed up the next six months vs. 17.6% in December. CAR, TRUCK SALES FALL: Troubles remain for U.S. automakers, who are looking to recover from a two-year sales slump. Sales of U.S.-built and imported cars and trucks fell 10% in the Feb. 21-29 period from a weak 1991 performance. There was some good news. February car and truck sales were up 8.7% from 1991. Also, Toyota, Nissan and Honda reported healthy hikes in February, with Lexus up 89.3%. GEPHARDT CALLS FOR CALM: The House Energy and Commerce Committee begins work Thursday on a bill that could cut Japanese auto sales in the U.S. by 25% over the next five years, amid a call for calm by the measure's sponsor. Rep. Richard Gephardt, D-Mo., troubled by recent bashing by both countries, is appealing for calm in U.S.-Japan relations. Gephardt says, "This is dangerous and detrimental ... to the world." STOCKS FALL WEDNESDAY: A sell-off in the last hour of trading Wednesday pushed the Dow down considerably following Tuesday's record high. The Dow Jones industrial average lost 21.69 points to 3268.56. Other broader market indexes also fell. Losing stocks beat winners 1,065 to 613 on the New York Stock Exchange, where volume was 208.91 million shares. SELL PROGRAMS HURT DOW: Computerized sell programs triggered when the Dow failed to reach 3300. Hesitation among traders willing to buy before Friday's unemployment report and the success of Pat Buchanan contributed to a 21-point drop in the Dow Wednesday. Analysts say hopes of recovery could be scrapped if the unemployment figure is higher than expected. MOODY'S DOWNGRADES IBM DEBT: Bond-rating agency Moody's downgraded about $18 billion in IBM long-term debt Wednesday two notches from the top Aaa to Aa2. The rating, which is still among the highest, was lowered due to concerns about IBM's competitiveness and profitability, Moody's said. IBM says it is disappointed with the downgrade but believes the impact on its financing will be minimal. WITTER CHARGED WITH LAUNDERING: David Witter, owner of investment firm Huntington Witter & Co., and grandson of brokerage founder Dean Witter, has been charged with moving $113,000 overseas and trying to launder $1 million through a pawn shop. A prosecutor said at one point he offered to launder as much as $10 million for undercover agents posing as drug dealers. Arraignment was set for March 13. DELTA CUTTING COSTS: Delta Air Lines is trying to cut costs to reduce damage from the recession, which has devastated industry earnings. Chairman Ronald Allen says Delta has decided to retire its aging fleet of DC-9s by the end of this year - about a year ahead of schedule - and is slowing its expansion in Asia. Another cost-cutting possibility: Delaying delivery of new jets, which would hurt aircraft makers. CRUDE PRICES FALL: Oil prices were mixed Wednesday as the market digested supply figures. Light sweet crude oil for delivery in April settled at $18.63 a barrel, down 1 cent, on the New York Mercantile Exchange. Later contract months were higher. Lower-grade sour crude for May delivery fell 4 cents to $15.96 a barrel. Tuesday, the American Petroleum Institute said the USA's crude supply rose last week. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Thursday at 3268.56, after closing down 21.69 Wednesday. The New York Stock Exchange composite opens at 226.66, down 1.77. The American Stock Exchange market value opens at 413.39, down 2.10. The NASDAQ OTC composite opens at 630.29, down 3.96. DOLLAR OPENS UP: The dollar opens up on foreign markets Thursday. It opens at 0.5804 British pounds, up from 0.5755; 5.6370 French francs, up from 5.5617; 131.90 Japanese yen, up from 130.87; and 1.6702 German marks, up from 1.6580. (As of 3 p.m. Wednesday. 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