Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.banks From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: banks Tue, May 12 1992 Date: Tue, 12 May 92 05:10:23 EDT Message-ID: 05-12 0000 DECISIONLINE: Banking & Economy USA TODAY Update May 12, 1992 Source: USA TODAY:Gannett National Information Network JOB GROWTH IN SERVICES: Job growth will continue to be centered in the service sector of the economy, experts say. In April, 126,000 new jobs were created, mostly in service businesses. "The simple answer is (jobs will) occur where they are. Roughly 80% of non-farm employment is in services. That's where we'll see the jobs created," says Robert Brusca, chief economist at Nikko Securities Co. International. (For more, see special Jobs package below.) DOW CLIMBS TO RECORD: Blue-chip stocks hit a high Monday amid hopes for lower interest rates. The Dow Jones industrial average rose 28.17 points to a record 3397.58. Broader indexes were slightly higher. Advancers outnumbered decliners 1,100 to 660 on the New York Stock Exchange, where volume was 158 million shares. Volume was light ahead of government reports Tuesday and Wednesday on April inflation. SBA SURVEY OPTIMISTIC: Business is getting better and should keep improving, many small-business owners say. According to a Small Business Administration survey in mid-April, 60% of 453 small-business owners say activity improved the past three months and 73% expect continued improvement the next six months. Less than 10% said activity worsened the previous three months and 4% expect conditions to worsen. BANKS FORM COALITION: Six New York banks have formed the New York Mortgage Coalition to offer advice and low-down-payment mortgages for people in low- and moderate-income communities in New York. The banks: Chemical, Citibank, Chase Manhattan, Republic National, National Westminster and Banco Popular. L.A. LENDERS GET LOW GRADES: Twelve lenders in the Los Angeles area fared poorly in the legal test for serving poor and minority residents, a recent study by federal regulators says. The twelve lenders received the lowest rating under the Community Reinvestment Act, a federal law requiring banks and other lenders to prove they don't discriminate against low-income borrowers. DISCOUNT RATE DOWN: The Treasury Department sold $11.6 billion in three-month bills at an average discount rate of 3.64%, down from 3.65% last week. It also sold $11.7 billion in six-month bills at an average discount rate of 3.74%, vs. 3.78% last week. OIL GOES UP: In crude oil trading, the benchmark light sweet blend for June delivery rose 14 cents a barrel to $21 on the New York Mercantile Exchange Monday. Lower-quality sour crude for June delivery rose 14 cents a barrel, closing at $18.50. Wholesale unleaded gas rose .46 cent a gallon to close at 65.33 cents. SPECIAL PACKAGE ON JOBS: HEALTH CARE WILL LEAD THE WAY: Health care and other service jobs will be where the growth is in the coming months, economists say. Nurses and pharmacists will be among those most in demand this year, says Audrey Freedman, president of Manpower Plus, a consulting and research group in New York. Other hot occupations this year: electrical engineers, public-relations specialists and computer technicians. FACTORY EMPLOYMENT TO REBOUND: Some economists think factory employment could start a slow rebound before the end of the year. For evidence, they point to Friday's employment report and the increase in average weekly overtime hours at factories, from 3.7 hours in March to four hours last month. That's a sign that demand is forcing manufacturers to step up production, which will lead to the need for more workers. BIG DROP NOT EXPECTED: A big drop in the jobless rate is not likely soon, analysts say. The 52 economists surveyed late in April by Blue Chip Economic Indicators newsletter say the rate will be 6.9% at the end of this year and 6.4% at the end of next year. Top executives agree with the forecasts. "Employment growth is going to be slower than all of us would like," says H. Brewster Atwater, CEO of General Mills. (End of package.) DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Tuesday at 3397.58 after closing up 28.17 points Monday. The New York Stock Exchange composite opens at 230.47, up 1.27. The American Stock Exchange market value opens at 395.84, up 1.72. The NASDAQ OTC composite opens at 587.13, up 1.37. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Tuesday. It opens at 0.5577 British pounds, down from 0.5599; 5.5125 French francs, down from 5.5320; 1.6403 German marks, down from 1.6445; and 133.04 Japanese yen, down from 133.37. (As of 3 p.m. Monday. 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