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 28 1992 Date: Thu, 28 May 92 05:21:26 EDT Message-ID: 05-28 0000 DECISIONLINE: Banking & Economy USA TODAY Update May 28, 1992 Source: USA TODAY:Gannett National Information Network DURABLE GOODS ORDERS UP: The Commerce Department reported Wednesday that orders for durable goods rose in April. It was the fourth straight rise - the longest in five years. Orders for goods expected to last three years or longer rose a strong 1.4% last month from March, led by a surge in orders for tanks and other military hardware. April orders totaled $125.4 billion. REPORT SHOWS SLUGGISH ECONOMY: Details in the Commerce Department's report Wednesday that orders for durable goods rose 1.4% last month underscore how sluggish the recovery remains, analysts say. While orders for defense goods soared 21.6% last month from March, orders for all other durables - such as cars, appliances and computers - were basically flat. They ticked up just 0.2%. ECONOMISTS EXPECT HIGHER GDP: The National Association of Business Economists said Wednesday that a panel of 44 of its members projects gross domestic product to grow at a 2.6% annual rate this quarter. Three months ago, the panel forecast 2.1% growth. Last quarter, GDP grew at a 2% annual rate, according to the government's first estimate. Commerce will revise that estimate Friday. REVISION SHOULD BE HIGHER: Economists expect the Commerce Department to announce a revision of the first quarter gross domestic product to reflect a 2.6% annual rate. Though a higher revision would be welcome, economists say growth at that pace also wouldn't be strong enough to generate the kind of increases in business that would persuade employers to sharply boost hiring. BUFFETT STEPPING DOWN: Warren Buffett Wednesday gave up one of two chairman-and-CEO posts with Salomon. He has held the posts during a 10-month rescue of Salomon resulting from the admission that it rigged Treasury-bond auctions. Buffett named Deryck Maughan chairman and CEO of Salomon's securities-brokerage subsidiary, Salomon Bros. Buffett, who held the post, remains chairman and CEO of parent Salomon Inc. DOW GAINS WEDNESDAY: Stocks edged higher Wednesday despite profit taking in oil shares which have been rising for two months and surged Tuesday. The Dow Jones industrial average rose 6.23 points to 3370.44. Other indexes also rose slightly. Advancers beat decliners 845 to 822 on the New York Stock Exchange, where volume was 182 million shares. QUIET DAY ON WALL STREET: Trading was quiet on Wall Street most of the day other than profit taking on oil stocks, said Susan Marker, trader at Janney Montgomery Scott. Says Hildegarde Zagorski, analyst at Prudential Securities: "Investors are trying to figure out what's ahead for the economy." For now, the market appears stuck "in a holding pattern," Zagorski said. OIL PRICES STEADY: Oil prices steadied Wednesday after Tuesday's unsettling $1-a-barrel jump that sent stocks down. Crude oil for July delivery fell eight cents Wednesday to $21.92 a barrel on the New York Mercantile Exchange. Tuesday, oil prices jumped $1.06 to $22 a barrel as traders reacted to news that Saudi Arabia was no longer resisting the call by other OPEC members for higher oil prices. CD YIELDS DOWN: Bank certificate of deposit yields fell in the week ending Wednesday, according to Bank Rate Monitor. Average yield: Six-month, 3.74% vs. 3.76%; 1-year, 4.06% vs. 4.07%; 2 1:2-year, 4.97% vs. 5.01%; and 5-year, 6.16% vs. 6.18%. GOLD, SILVER LOWER: Gold and silver prices were lower Wednesday. On the New York Commodity Exchange, gold bullion for current delivery settled at $338 a troy ounce, off 20 cents. Gold rose in London to $338.70 from $337.95. On the Comex, silver bullion for current delivery settled at $4.082, down from $4.087. In London the metal slipped to $4.09 from $4.10. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Thursday at 3370.44, after closing up 6.23 Wednesday. The New York Stock Exchange composite opens at 227.15, up 0.29. The American Stock Exchange market value opens at 391.85, down 0.04. The NASDAQ OTC composite opens at 577.35, up 1.70. DOLLAR OPENS UP: The dollar opens mixed on foreign markets Thursday. It opens at 0.5573 British pounds, up from 0.5483; 5.4785 French francs, up from 5.4205; 130.36 Japanese yen, up from 129.40; and 1.6375 German marks, up from 1.6127. (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