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 Thu, May 14 1992 Date: Thu, 14 May 92 05:42:12 EDT Message-ID: 05-14 0000 DECISIONLINE: Banking & Economy USA TODAY Update May 14, 1992 Source: USA TODAY:Gannett National Information Network CONSUMER INFLATION LOW: The Labor Department reported Wednesday that consumer prices rose just 0.2% in April. A 0.7% drop in clothing prices, and food prices that remained unchanged, held down consumer inflation last month. So far this year, consumer prices have risen at just a 3.3% annual rate - barely higher than the modest 3.1% rise in prices last year. RETAIL REVENUE RISES: Retail revenue rose a strong 0.9% in April, The Commerce Department reported Wednesday. The rise was significantly higher than the 0.3% gain most economists expected and a strong recovery from March's 1% drop. The gain was sparked by a surprisingly large 2.6% boost from March in revenue at auto dealers. Revenue has risen three of the first four months this year. SLIGHT GAIN IN DOW WEDNESDAY: Stocks gained slightly in slow trading Wednesday. Analysts said investors were reluctant to make a bet without clear signs of lower rates or higher earnings. The Dow Jones industrial average added 6.86 points to 3391.98. Broader indexes were mixed. Advancing issues beat decliners 883 to 829 on the New York Stock Exchange, where volume was moderate at 176 million shares. SERVICE COMPANIES RECOVER: Service companies that had been badly hurt by the recession made a comeback last year, boosting net income almost 105, Fortune magazine says in its June 1 issue. The issue, out Monday, lists Fortune's 500 largest service companies. The top service companies earned $67 billion last year - $12 billion more than the industrials. WEEKLY EARNINGS DOWN: In a disappointing report Wednesday, the Labor Department said the average weekly earnings of U.S. workers fell 0.6% last month, after adjusting to exclude inflation and show the real change in income. A slightly shorter workweek for most workers pulled earnings down. FED MOVE IN QUESTION: The Federal Reserve may nudge down short-term interest rates soon because the recovery remains slow and inflation is no threat, many economists believe. But Fed watchers say the Fed could decide the economy doesn't need another push from lower rates. It even could move later this year to push rates higher if it thinks inflation could jump with a continued recovery, analysts say. CD YIELDS MIXED: Bank certificate of deposit yields were mixed in the week ending Wednesday, Bank Rate Monitor reports. Average yields: Six-month, 3.79% vs. 3.82%; 1-year, 4.10% vs. 4.11%; 2 1:2-year, 5.02% vs. 5.02%; 5-year, 6.22% vs. 6.22%. CAR, TRUCK SALES DOWN: Car and light-truck sales by five major automakers in the USA fell 2.3% in early May. Cars sold at a seasonally adjusted annual rate of 5.8 million May 1-10, up from 5.6 million a year earlier. GM sales fell 6%. Chrysler doesn't report 10-day sales, but Ward's Automotive Reports estimates sales rose 14%. Ford sales were up 5%. Honda sales fell 18% and Toyota sales slid 21%. GOLD UP, SILVER FLAT WEDNESDAY: Gold prices were higher and silver prices were flat Wednesday. On the New York Commodity Exchange, gold bullion for current delivery settled at $335.60 a troy ounce, up $30 cents from Tuesday. On New York's Comex, silver bullion settled at $4.086 a troy ounce, down from $4.089 on Tuesday. OIL DOWN SHARPLY: Oil prices fell sharply near the end of trading Wednesday. Light sweet crude oil for delivery in June settled at $20.76 per barrel, down 20 cents, on the New York Mercantile Exchange. Lower-grade sour crude for delivery in June settled at $18.28 per barrel, down 20 cents. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Thursday at 3391.98 after closing up 6.86 points Wednesday. The New York Stock Exchange composite opens at 229.44, down 0.01. The American Stock Exchange market value opens at 393.75, up 0.29. The NASDAQ OTC composite opens at 582.38, down 1.58. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Thursday. It opens at 0.5501 British pounds, down from 0.5515; 5.4210 French francs, down from 5.4460; 1.6160 German marks, down from 1.6226; and 129.98 Japanese yen, down from 130.38. (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