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 19 1992 Date: Thu, 19 Mar 92 05:57:39 EST Message-ID: 03-19 0000 DECISIONLINE: Banking & Economy USA TODAY Update March 19, 1992 Source: USA TODAY:Gannett National Information Network FED REGIONAL REPORT POSITIVE: The Federal Reserve Wednesday released its first positive regional economic report since last summer. A slow recovery was seen across almost all regions and in many industries. Among the Fed's findings: Nearly all regions "report some improvement in economic conditions" from late January through early March; retail sales, home sales and manufacturing were all stronger. MIXED REACTIONS TO REPORT: Reactions to the Federal Reserve's optimistic regional economic report Wednesday were mixed. Robert Brusca, chief economist at Nikko Securities Co. International, says, "I think we have a recovery going here." But White House chief economist says, "We've had two months of noticeable improvement ... but we need that to continue longer" before a recovery is assured. AMEX OPENS NEW MARKET: The American Stock Exchange Wednesday heralded the beginning of its Emerging Company Marketplace, which allows small, young companies to trade on the exchange. Twenty-two companies that would not have previously met Amex listing criteria began trading under the ECM, called an incubator market by the exchange, Wednesday. The 22 companies represent only $100 million in annual revenue. OIL PRICES FALL: Oil prices finished down Wednesday in trading on the New York Mercantile Exchange. Light sweet crude for delivery in April settled at $19.07 per barrel, off 17 cents. Oil for delivery in later months also declined. Lower-grade sour crude for May delivery ended the Mercantile Exchange session at $16.35 a barrel, down 15 cents from Tuesday. GOLD CONTINUES DOWN: Gold prices, which are at a six year low, continued down in New York Wednesday. Gold closed on the New York Commodity Exchange at $338.40 a troy ounce, down $1.70 from Tuesday. Although some buyers were interested in gold at its current depressed price, they were hesitant to make major commitments because of fears the metal will remain weak. DOW HAS SLIGHT LOSS: Investors remained uncertain Wednesday about the direction of the economy, despite a favorable report by the Federal Reserve Board, causing stocks to fall slightly. The Dow Jones industrial average fell 1.79 points to 3254.25. Small stocks edged higher. Advancers beat decliners 917 to 798 on the New York Stock Exchange, where volume was 194.1 million shares. MARKET DOESN'T REACT: Despite a recent string of good economic news, the stock market has remained quiet. Though the Dow is only 36 points below its record close of 3290.25 March 3, the average also is only up 85.42 points (3%) for the year. Analysts say that worries persist that the economic recovery will be weak and will not lead to significantly higher corporate profits. NBD ANNOUNCES BUYOUT: Detroit's NBD Bancorp Wednesday announced plans to buy Indianapolis' INB Financial for more than $850 million in stock. After the deal is complete - along with another NBD deal to buy Summcorp - the resulting firm will be the USA's 15th largest bank company with assets of $40 billion. INB stockholders will receive 1.6 NBD shares for each of their shares. CD YIELDS RISE: Bank certificate of deposit yields rose in the week ending Wednesday, according to `Bank Rate Monitor.' Average yields: Six-month, 3.90% vs. 3.89%; 1-year, 4.15% vs. 4.13%; 2 1:2-year, 4.92% vs. 4.89%; 5-year, 6.06% vs. 6%. JAPAN MAY CUT QUOTA: Japan may cut its quota on auto exports to the USA to 1.6 million cars a year from 2.3 million cars a year, Reuter news service reports. Japan is expected to announce the cut in its self-imposed quota soon. Autos make up three-fourths of the USA's trade deficit with Japan. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Thursday at 3254.25, after closing down 1.79 Wednesday. The New York Stock Exchange composite opens at 225.94, down 0.07. The American Stock Exchange market value opens at 400.97, down 4.67. The NASDAQ OTC composite opens at 624.94, up 1.67. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mixed on foreign markets Thursday. It opens at 0.5780 British pounds, down from 5.6390; 5.6030 French francs, down from 5.6390; 131.95 Japanese yen, down from 132.85; and 1.6500 German marks, up from 1.6455. (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