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, May 7 1992 Date: Thu, 7 May 92 05:31:39 EDT Message-ID: 05-07 0000 DECISIONLINE: Banking & Economy USA TODAY Update May 7, 1992 Source: USA TODAY:Gannett National Information Network FED SAYS RECOVERY SPREADING: The economy is recovering in nearly every corner of the nation, the Federal Reserve reported Wednesday. The Fed said, "economic activity has increased further" since February and March, when conditions were already said to be improving. Among growth areas were manufacturing, consumer spending - except in California and parts of the Northeast - and home sales and construction. ECONOMISTS ENCOURAGED: Economists Wednesday were encouraged by the Federal Reserve's release of an upbeat assessment of the economy in most regions of the country. "This is another sign the recovery's become sufficiently widespread that there's something clearly there. It's real. It's not just a gleam in every economic forecaster's eye," says Robert Dederick, chief economist at Northern Trust. DOW UP ON T-BOND NEWS: Stocks gained Wednesday after a strong Treasury-bond auction suggested that interest rates won't rise soon. The Dow Jones industrial average gained 10.06 points to 3369.41. Broader indexes were marginally higher. Gainers outnumbered decliners 1,041 to 693 on the New York Stock Exchange, where volume was 199 million shares. AUTO EXECUTIVES TO MEET: Talks between executives of the Big Three car companies and Japan's five largest automakers, begun during a January trip by the U.S. auto executives and President Bush to Tokyo, will continue May 18 in Chicago. Topics that may be discussed: Increasing Japan's purchases of U.S. auto parts, and ways to help U.S. carmakers sell more cars in Japan. SECOND DAY OF AUCTION GOES WELL: Investor interest was strong during the second stage of the Treasury's quarterly sale Wednesday, traders said. Yields on the 10-year notes averaged 7.53%, up from 7.29% at the last auction Feb. 12. It was the highest yield since 10-year notes averaged 7.94% at the Aug. 7 auction. A total of $11.1 billion in notes were sold. Demand was strong as bids totaled $33.4 billion. EXTENDED TRADING ON NASDAQ: The NASDAQ over-the-counter stock market will keep its computerized Select Net service open an extra hour and a half by mid-June, closing at 5:30 p.m. EDT instead of 4 p.m., it was announced Wednesday. The service allows the exchange's designated market makers, who buy and sell stocks to keep the market smooth and for their own accounts, to trade among themselves. MOST CD YIELDS DOWN: Most bank certificate of deposit yields fell slightly in the week ending Wednesday, according to `Bank Rate Monitor.' Average yield: six-month, 3.82% vs. 3.84%; 1-year, 4.11% vs. 4.12%; 2 1:2-year, 5.02% vs. 5.04%; 5-year, 6.22% vs. 6.22%. EXISTING HOME PRICES RISE: Prices of existing homes sold the first three months of this year were 6.7% higher than the same period last year, the National Association of Realtors said Wednesday. According to the NAR, the median home price rose to $103,100, from $96,600 in first-quarter 1991, when recession and the gulf war kept many buyers out of the market. OIL PRICES FALL: Oil futures prices fell Wednesday at the New York Mercantile Exchange. Light sweet crude oil for delivery in June settled at $20.77 a barrel, down 3 cents. The market initially moved higher on a report out Tuesday indicating U.S. supplies of gasoline and home heating oil fell last week, but it was unable to sustain the rally and prices eased throughout the day. GOLD DOWN, SILVER MIXED: Gold prices were down and silver was mixed Wednesday. On the New York Commodity Exchange, gold bullion for current delivery settled at $337.20, down 30 cents. Republic National Bank quoted a late bid of $336.60, off 35 cents. On the Comex, silver bullion for current delivery settled at $4.066, up from $4.054. Silver fell in London to $4.06 from $4.08. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Thursday at 3369.41, after closing up 10.06 points Wednesday. The New York Stock Exchange composite opens at 229.56, up 0.06. The American Stock Exchange market value opens at 393.77, up 0.60. The NASDAQ OTC composite opens at 589.36, up 1.29. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Thursday. It opens at 0.5559 British pounds, down from 0.5602; 5.4775 French francs, down from 5.5195; 1.6263 German marks, down from 1.6383; and 132.55 Japanese yen, down from 133.09. (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