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, Apr 16 1992 Date: Thu, 16 Apr 92 05:42:24 EDT Message-ID: 04-16 0000 DECISIONLINE: Banking & Economy USA TODAY Update April 16, 1992 Source: USA TODAY:Gannett National Information Network STOCK RALLY PICKS UP STEAM: The stock rally that started last Thursday after the Federal Reserve pushed down a key interest rate continued Wednesday, spurred by good earnings news. The Dow Jones industrial average jumped 47.63 points (1.4%) to 3353.76. Other market indexes also gained. Advancing stocks swamped decliners 1,111 to 651 on the New York Stock Exchange, where volume was a heavy 230 million shares. GOOD NEWS IS GOOD AGAIN: Investors, no longer concerned that good economic news will lead to higher interest rates, are reacting the way they should to positive reports - by pushing stocks higher. "The market has gotten over a hump," says analyst Michael Sherman of Shearson Lehman Bros. "The Fed's recent cut bought some time for good news to be good news." FACTORY PRODUCTION RISES: Production at the nation's factories, mines and utilities rose 0.2% last month, according to the Federal Reserve's index of industrial production, released Wednesday. The slight rise in the index for March followed a 0.5% gain in February and four consecutive months of small declines. The February and March gains were the first back-to-back gains since June and July. REPORTS DUE THURSDAY: Two economic reports due out Thursday should help give an indication of the economy's direction, analysts say. The Labor Department reports initial claims for unemployment benefits for the week ended April 4. Claims fell 24,000 to 432,000 the week ended March 28. Also, the Commerce Department reports the U.S. trade deficit for February. AT&T HAS STRONG QUARTER: AT&T said Wednesday its first-quarter net income rose 16.6%, to $883 million from $758 million in last year's first quarter on revenue of $15.38 billion, due to growth in long-distance calling. Earnings per share rose to 67 cents from 59 cents in the year-ago quarter. COKE CHAIRMAN DEFENDS PAY: Coca-Cola Chairman Roberto Goizueta told shareholders at Wednesday's annual meeting that he deserved last year's pay package of nearly $88 million. He pointed out that Coke stock has risen 14-fold in the last 10 years. He became chairman in 1981. Coke also said first-quarter net earnings rose 19% to $383 million, 58 cents a share, from $321 million, 48 cents a share, a year earlier. RETAILERS DOUBT RECOVERY: Despite the belief by most economists that the recession has ended, retailers are not convinced. Retail revenue has been rising slowly the past few months, but most retailers say they still need another strong month to feel they are out of the woods. Also, The National Retail Federation, in its March report, predicts any recovery in retail sales will lose steam by summer. BUSINESS SALES UP IN FEBRUARY: Business sales jumped in February while inventories were flat, a combination that help the recovering economy. The Commerce Department reported Wednesday that business sales - retail and wholesale - climbed 1.4% to a seasonally adjusted $545 billion in February, the sharpest increase in 10 months. Inventories were steady at $813 billion after falling 0.5% in January. OIL IMPORTS INCREASE: Oil imports jumped nearly 9%, while U.S. production fell to the lowest level since 1986, the American Petroleum Institute said Wednesday. Imports of crude oil and refined petroleum products rose 8.7% from a year earlier to 7.1 million barrels a day, continuing an upward trend started in January. Crude production dropped 2.8% to 7.3 million barrels a day in March. CD YIELDS FALL AFTER CUT: Bank certificate of deposit yields dropped after the Federal Reserve's discount rate cut last week, according to Bank Rate Monitor. Average yields for the week ending Wednesday: Six-month, 3.88% vs. 3.94%; 1-year, 4.14% vs. 4.18%; 2 1:2-year, 5.02% vs. 5.07%; 5-year, 6.16% vs. 6.18%. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Thursday at 3353.76, after closing up 47.63 Wednesday. The New York Stock Exchange composite opens at 229.15, up 1.84. The American Stock Exchange market value opens at 394.16, up 2.02. The NASDAQ OTC composite opens at 600.03, up 5.22. DOLLAR OPENS UP: The dollar opens mixed on foreign markets Thursday. It opens at 0..5700 British pounds, down from 0.5669; 5.6175 French francs, up from 5.5950; 133.30 Japanese yen, up from 133.08; and 1.6630 German marks, up from 1.6527. (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