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 Fri, Mar 27 1992 Date: Fri, 27 Mar 92 05:43:21 EST Message-ID: 03-27 0000 DECISIONLINE: Banking & Economy USA TODAY Update March 27-29, 1992 Source: USA TODAY:Gannett National Information Network GDP REVISED DOWNWARD: The Commerce Department revised its estimate of fourth-quarter gross domestic product sharply downward Thursday. Gross domestic product - the value of goods and services produced in the USA - grew at a meager 0.4% annual rate last quarter from third-quarter '91, down from an estimated growth of 0.8%. The revision means that from the end of 1990 through the end of 1991, GDP grew just 0.3%. ECONOMISTS EXPECT GROWTH: According to 50 economists surveyed by Blue Chip Economic Indicators, growth lies ahead for the Gross Domestic Product. After a rise of only 0.4% this quarter, the economists say growth in GDP will be 2.4% in the second quarter; 3.3% in the third; and 3.4% growth in the fourth quarter. UNEMPLOYMENT CLAIMS RISE: The Labor Department reported Thursday that new claims for unemployment rose to 447,000 in the week ended March 14 from 432,000 the previous week. The report shows there were 3.3 million people collecting unemployment benefits in mid-March out of 9.2 million unemployed workers. Those figures do not include 1.1 million discouraged workers, who have stopped looking for work. DOW RISES THURSDAY: Stocks broke a three-day string of losses Thursday in slow trading. The Dow Jones industrial average rose 8.28 points to 3267.67. Losing stocks edged winners 842 to 765 on the New York Stock Exchange, where volume was 176.72 million shares. Analysts said investors are waiting for the start of the second quarter, which comes Wednesday. STEINBERG OPTIMISTIC: Despite discouraging reports Thursday on gross domestic product and new unemployment claims, it still looks like a weak pick-up in economic activity started in January, says Bruce Steinberg, economist at Merrill Lynch. Signs of recovery include: February's 164,000-increase in jobs and 9.3% rise in sales of existing homes. Also, retail revenue rose 1.3% in February and 2.1% in January. IACCOCA ABOUT TO CASH IN: Sticking around is about to start paying off for Chrysler CEO Lee Iaccoca, thanks to a special bonus plan drawn up by Chrysler's board in 1990. The bonus gives the retiring CEO 62,500 shares of Chrysler stock for each quarter he works beyond Dec. 31, 1991, which could be worth $6 million. For the first quarter of '91, it means $1.1 million at Thursday's closing price of $17 5:8 a share. CORPORATE PROFITS DOWN: U.S. corporate profits fell 4.5% last year to $188 billion, the third straight annual drop, the Commerce Department said Thursday. Earnings fell 4.6% in 1990 and 1.9% in 1989. Profits rose 0.4% in last year's fourth quarter, well below the third quarter's 3.8% rise. Analysts say the improving economy will lift earnings this year, but not dramatically due to the sluggish recovery. SEC TO LOOK AT TRADING ERROR: The Securities and Exchange Commission is looking into a trading error made by Salomon Bros. Wednesday that resulted in a loss of more than 15 points in the Dow Jones industrial average. Salomon says it "made an error" executing a customer's program order. Allegedly, a clerk sold 11 million shares of stock (worth several hundred million dollars) - instead of $11 million worth of shares. BREEDEN PLEASED BY NOTIFICATION: Securities and Exchange Commission Chairman Richard Breeden says his agency will examine a major trading error made by Salomon Bros. Wednesday, but added that at least "unlike some occasions in the past, the firm did promptly notify us." Salomon was sharply criticized for failing to disclose that it had improperly bid at Treasury auctions last year. OIL PRICES RISE: Oil prices rose in slow trading at the New York Mercantile Exchange Thursday. Light sweet crude oil for delivery in May settled at $19.28 a barrel, up 9 cents. Unleaded gasoline for delivery in April settled at 58.55 cents a gallon, up .87 cent. Home heating oil for delivery in April settled at 52.81 cents a gallon, up .02 cent. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Friday at 3267.67, after closing up 8.28 Thursday. The New York Stock Exchange composite opens at 225.49, up 0.10. The American Stock Exchange market value opens at 398.86, down 1.43. The NASDAQ OTC composite opens at 615.40, down 4.08. DOLLAR OPENS UP: The dollar opens up on foreign markets Friday. It opens at 0.5804 British pounds, up from 0.5780; 5.6125 French francs, up from 5.6060; 134.01 Japanese yen, up from 133.37; and 1.6620 German marks, up from 1.6528. (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: 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