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, May 6 1992 Date: Wed, 6 May 92 05:32:34 EDT Message-ID: 05-06 0000 DECISIONLINE: Banking & Economy USA TODAY Update May 6, 1992 Source: USA TODAY:Gannett National Information Network PURCHASING EXECS OPTIMISTIC: Executives who buy supplies and raw materials for U.S. factories are far more optimistic about the direction of the economy than they were in November, according to a survey out Tuesday. The National Association of Purchasing Management's semiannual forecast found that 44% of 300 executives surveyed are optimistic or satisfied about the economic outlook, up from 13% in November. GROWTH SHOULD IMPROVE: By a wide margin, 60% to 19%, purchasing managers surveyed last month expect economic growth to be better, not worse, the first half of this year than the second half of last year. The National Association of Purchasing Management said Tuesday the other 21% expect no change. Also by a wide margin, 65% to 9%, managers expect the second half of 1992 to be better than the first half. TRUCKS LEAD SALES HIGHER: Major U.S. and Japanese carmakers say sales of cars and trucks rose 11% April 21-30 from the weak year-earlier period. Sales of pickup trucks, minivans and sport-utilities were the strongest. GM's truck sales rose 20% from a year earlier. Ford's truck sales jumped 19%, Chrysler's 57%. Chrysler led the way in minivan sales with a 47% increase. Car sales remained weak. BLUE-CHIP STOCKS, DOW FALL: Blue-chip stocks were out of favor Tuesday, as only 10 of the 30 Dow stocks rose. Traders swapped blue chips for other types of stocks. The Dow Jones industrial average, which set a record Monday, fell 18.78 points to 3359.35. Broader indexes were mostly higher. Gainers led decliners 935 to 783 on the New York Stock exchange, where volume was 201 million shares. MONEY NOT ENTERING MARKET: Traders took profits Tuesday by selling stocks of big, widely known companies and used the cash to pick up other stocks, including smaller company stocks. Analysts say little money is coming into the market. "The portfolio manager has to sell A to buy B, which is not the most bullish of circumstances," says Michael Metz, strategist at Oppenheimer. RUBLE TO BE CONVERTIBLE: Russia says it will allow the ruble to be converted to foreign currencies for the first time starting July 1, a major step toward a market economy and attracting more foreign investment. The ruble will start trading freely on international currency markets July 1 and should be fully convertible - meaning it will be bought and sold inside and outside Russia - by August, Russia says. AUCTION GOES SMOOTHLY: The first leg of the Treasury's quarterly sale of securities to finance the federal deficit was well-received by investors Tuesday. The Treasury sold $15 billion in three-year notes at an average yield of 5.96%, up from 5.54% at the last auction Feb. 11. The yield was the highest since three-year notes averaged 6% at the Nov. 5 auction. The quarterly auction runs through Thursday. GM EXECS HITTING THE ROAD: GM Chairman Robert Stempel and other top executives will be in Houston Wednesday to kick off a series of meetings with investors in which they will pitch the virtues of more than $2 billion in new GM common stock. Other scheduled stops are Los Angeles, Denver and New York. The proposed stock issue is the biggest in U.S. corporate history. SCHWAB OPENS NEW BRANCH: Discount broker Charles Schwab opened its first Hispanic Investment Center Tuesday in Miami. It targets more than 1.1 million Hispanics in south Florida and the USA's 23 million Hispanics. The broker provides a toll-free number - 800-257-1019 - that is answered in Spanish, then in English. OIL PRICES FALL: Oil prices fell Tuesday, reversing their year-high gains. Light sweet crude oil for delivery in June settled at $20.80 a barrel, down 32 cents, at the New York Mercantile Exchange. In the previous session, oil had risen 27 cents to its high point for the year. Lower-grade sour crude for delivery in June settled at $18.15 per barrel, down 32 cents. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Wednesday at 3359.35, after closing down 8.78 points Tuesday. The New York Stock Exchange composite opens at 229.50, up 0.08. The American Stock Exchange market value opens at 393.17, up 1.56. The NASDAQ OTC composite opens at 588.07, up 4.53. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Wednesday. It opens at 0.5602 British pounds, down from 0.5626; 5.5195 French francs, down from 5.5535; 1.6383 German marks, down from 1.6480; and 133.09 Japanese yen, down from 133.15. (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