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 Wed, Apr 1 1992 Date: Wed, 1 Apr 92 05:43:26 EST Message-ID: 04-01 0000 DECISIONLINE: Banking & Economy USA TODAY Update April 1, 1992 Source: USA TODAY:Gannett National Information Network CONSUMERS MORE CONFIDENT: Consumer confidence - a leading player in the economy's health - jumped in March. Economists say if that optimism leads to increased consumer spending, the economy should prosper in the next few months. Tuesday, the Conference Board said its consumer confidence index rose to 54 from 47.3 in February. The index is still low. A reading below 70 means the economy could still be in recession. LEADING INDICATORS UP: The Commerce Department reported Tuesday that its index of leading indicators rose 0.8% in February - its second straight monthly gain. The index forecasts economic activity six to nine months ahead. Seven of 11 index components rose. The most important: A longer workweek at factories; an increase in the nation's money supply. DOW EDGES HIGHER: Stocks stayed on the positive side for the second straight day Tuesday, but just barely. The Dow Jones industrial average edged up 0.23 points to 3235.47. Broader indexes finished higher but well below their session highs. Volume improved to 183 million shares on the New York Stock Exchange, where gainers bested losers 897 to 797. MARKET DIRECTION UNCERTAIN: Analysts said Tuesday action on the stock market was hard to judge in terms of a direction for stocks. Nikko Securities economist Robert Brusca says positive economic reports out Tuesday suggest an end of the recession. But the news wasn't enough to sustain the higher prices for stocks, which already reflect a recovery. JOBS HARD TO FIND: An economic recovery may be under way, but times are still hard for the USA's unemployed, according to a new report. The study released Tuesday by Sen. Lloyd Bentsen, D-Texas, says people who have lost jobs this recession are less likely to find work than at any time since 1983, when the jobless rate was 9.6%, according to the study by Harvard economist James Medoff. H-P TO HIRE: There was some good employment news Tuesday, as Hewlett-Packard said it expects to boost the workforce at its Boise, Idaho, plant 11% thanks to a jump in sales of laser printers, which are made in Boise. The electronics maker says about 400 jobs will be added to the 3,600-worker force the next six months. STOCK GROUPS REBOUND: The stock groups that did best in the first quarter are those that will benefit from an economic recovery, such as regional banks, real estate-related companies, retailers and technology companies. They were down last year due to the recession and are now benefiting from renewed optimism. The winners of 1991 are hurting in 1992. Among them: Biotech and health care companies. IPOS HIT ALL-TIME HIGH: Initial public offerings of stock hit a record the first quarter, passing the all-time high set the fourth quarter. IPOs raised nearly $11 billion in the USA the first three months this year, eclipsing the $10.2 billion raised in 1991's fourth quarter, Securities Data Corp. says. IPO's raised just $2.7 billion the first quarter last year. BOJ CUTS DISCOUNT RATE: The Bank of Japan cut its discount rate Wednesday to 3.75% from 4.5% in an effort to stimulate Japan's sluggish economy. Japan's Fed counterpart cut its discount rate three times last year but weak corporate profits and a big drop in the Tokyo stock market put pressure on the BOJ to cut the key rate again. In Tokyo Wednesday, the Nikkei average plunged 764.16 points to 18,581.79. OIL PRICES HIGHER: Oil prices rose Tuesday. Light sweet crude oil for delivery in May settled at $19.44 per barrel, up 19 cents from Monday, on the New York Mercantile Exchange. Unleaded gasoline for delivery in April settled at 58.76 cents a gallon, up 0.31 cent. Home heating oil for delivery in April settled at 53.73 cents a gallon, up 0.67 cent. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Wednesday at 3235.47, after closing up 0.23 Tuesday. The New York Stock Exchange composite opens at 223.25, up 0.26. The American Stock Exchange market value opens at 395.04, up 1.43. The NASDAQ OTC composite opens at 603.77, up 1.70. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mixed on foreign markets Wednesday. It opens at 0.5759 British pounds, unchanged; 5.5765 French francs, down from 5.5920; 132.85 Japanese yen, up from 132.68; and 1.6436 German marks, down from 1.6455. (As of 3 p.m. Tuesday. 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