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 Fri, May 22 1992 Date: Fri, 22 May 92 05:21:01 EDT Message-ID: 05-22 0000 DECISIONLINE: Banking & Economy USA TODAY Update May 22-25, 1992 Source: USA TODAY:Gannett National Information Network DOW DOWN THURSDAY: Economic news and a report that the Federal Reserve will not move soon to push down interest rates pushed stocks down Thursday. The Dow Jones industrial average fell 15.13 points to 3378.71. Other indexes also slipped. Falling stocks swamped winners 1,125 to 585 on the New York Stock Exchange, where volume was 185 million shares. FED MOVE WAS KEY: Fading hopes for lower interest rates and the fact that the Dow failed to close above the psychologically important 3400 level Thursday were enough to stop what had been a weak rise in stocks, analysts say. The rally was in anticipation of a Federal Reserve interest-rate cut, says Lawrence Helfand, analyst at Rodman & Renshaw in Chicago. UNEMPLOYMENT CLAIMS DOWN: The Labor Department said Thursday that new claims for unemployment benefits fell by 20,000 to 406,000 in the week ended May 9. Claims remain high - anything above 400,000 is a sign of a weak economy. But their decline since March, when they averaged 442,000 a week, is a sign fewer workers are being laid off and some people are finding jobs, economists say. REPORT SAYS FED WON'T ACT: The Wall Street Journal reported Thursday that Federal Reserve policymakers decided this week not to push down short-term interest rates anytime soon, going against what many experts had predicted. The Journal, citing unnamed "people familiar" with Tuesday's meeting of Fed policymakers, said policymakers have decided the economy is strong enough that it doesn't need another boost. MONEY SUPPLY SURGES: The Federal Reserve said Thursday its M2 money supply measure - cash as well as deposits in checking accounts, savings accounts and money market mutual funds - rose $5.4 billion the week of May 11, to $3.5 trillion. The increase in M2 was twice what economists expected. BREEDEN MAKES FUND PROPOSALS: SEC Chairman Richard Breeden Thursday detailed proposals that would make it easier for small investors to buy into mutual funds and for small businesses to raise money through them. Among proposals: Allowing investors to buy into mutual funds without having to send away for a formal sales offering; and allowing brokers to negotiate commissions with customers. BROKERAGES TALK ABOUT MERGER: Officials of Primerica, parent of Smith Barney, said Thursday that they have held talks with General Electric, parent of Kidder Peabody, about merging the two units. But Primerica also said the talks ended with out a deal and Kidder Chairman Michael Carpenter reportedly told employees the same. An article in Thursday's The Wall Street Journal said GE is serious about selling Kidder. BUSH CHOOSES GILLERAN: James Gilleran, head of the California State Banking Department, is President Bush's choice to succeed Robert Clarke as comptroller of the currency. The Senate Banking Committee, which refused to approve a second term for Clarke, must confirm Gilleran. Some lawmakers, including committee Chairman Donald Riegle, D-Mich., said Clarke's supervision of banks was too lax. MORGAN STANLEY PROFITS UP: Morgan Stanley said Thursday that its first-quarter profits surged 16% to $1.62 a share from $1.54. But its stock dipped 1 5:8 to $50 3:4. The company admitted that trading and sales, though strong, were below the records of first-quarter 1991. Other brokerage stocks fell. Salomon Bros. lost 1 1:8 to $32 3:8 while Merrill Lynch sank 7:8 to $46 7:8. OIL PRICES RISE: Speculation that OPEC might keep production down this summer pushed oil prices higher Thursday. Light sweet crude oil for delivery in July settled at $20.90 a barrel, up 50 cents, at the New York Mercantile Exchange. Home heating oil for delivery in June settled at 56.08 cents a gallon, up .88 cent. GOLD DOWN, SILVER MIXED: Gold prices fell, and silver was mixed Thursday. On the New York Commodity Exchange, gold bullion for current delivery was $337.00 a troy ounce, down from $338.00. Later, Republic National Bank also quoted gold at $337.00, off 50 cents an ounce. On the Comex, silver bullion settled at $4.063 a troy ounce, down from $4.080. Silver rose in London to $4.08 a troy ounce from $4.07. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Friday at 3378.71, after closing down 15.13 Thursday. The New York Stock Exchange composite opens at 227.47, down 1.47. The American Stock Exchange market value opens at 391.63, down 0.52. The NASDAQ OTC composite opens at 579.10, down 1.19. DOLLAR OPENS UP OVERSEAS: The dollar opens up on foreign markets Friday. It opens at 0.5505 British pounds, up from 0.5472; 5.4265 French francs, up from 5.3920; 130.20 Japanese yen, up from 129.62; and 1.6241 German marks, up from 1.6032. (As of 3 p.m. Thursday. Source: First American Bank of New York.) ADVISORY: Decisionlines will not be published Monday, May 25, in observance of Memorial Day. Decisionlines will resume publication on Tuesday, May 26. 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