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 29 1992 Date: Fri, 29 May 92 05:20:41 EDT Message-ID: 05-29 0000 DECISIONLINE: Banking & Economy USA TODAY Update May 29-31, 1992 Source: USA TODAY:Gannett National Information Network PROGRAM BUYING PUSHES DOW UP: An eleventh-hour surge in program buying pushed blue-chip stocks to record highs Thursday. The Dow Jones industrial average jumped 27.99 points to 3398.43, the Dow's 21st record this year. Broader indexes also rose. Gainers outnumbered losers 999 to 683 on the New York Stock exchange on moderate volume of 195 million shares. SHORT-COVERING IS KEY: Before a late surge, stocks traded in a narrow range for most of the day Thursday, propped up by demand for blue chips but roiled by troubled airline and telecommunications issues. Most of the gains came on short-covering, or traders covering bets that stocks would fall, when the Dow broke 3380, says Janney Montgomery Scott trader Susan Marker. NEW UNEMPLOYMENT CLAIMS DOWN: The number of new claims for unemployment benefits fell to 403,000 the week ending May 16 from 407,000 the previous week, the Labor Department said Thursday. In the four weeks ended May 16, claims averaged 412,500 a week, almost unchanged from the 412,750 average the previous four weeks. But the four-week average has fallen substantially from the end of March, when it was 442,000. DROP IS ENCOURAGING SIGN: Economists were encouraged by the small drop in new claims for unemployment benefits last week to 403,000 from 407,000 the previous week because it was the second straight decline and a sign that claims may soon fall below the key 400,000 level. Labor Secretary Lynn Martin hailed the news as a sign of "the steady and clear improvement that is evident in the economy." INVESTORS TURN TO FUNDS: Investors poured $14.9 billion into stock and bond funds combined in April. Last month, stock-fund purchases were a record $7.5 billion and bond-fund purchases were close behind at $7.4 billion, the Investment Company Institute reported Thursday. The inflow was 67% higher than in April 1991. Fund executives said purchases have stayed strong in May, but are down from April. OIL HAS SLIGHT RISE: Crude oil prices appear to have settled after Tuesday's $1-a-barrel rise. Light sweet crude oil rose just 3 cents to $21.95 a barrel Thursday on the N.Y. Mercantile Exchange. Wednesday it fell eight cents. Home heating oil for delivery in June settled at 59.96 cents a gallon, up .65 cent, surpassing the previous high set Wednesday. MONEY SUPPLY PLUNGES: The Federal Reserve said Thursday its M-2 money supply measure tumbled $7.4 billion to $3.47 trillion in the week ending May 18. Economists say the decline indicates the money supply is growing more slowly than desired by the Federal Reserve, signaling weaker-than-expected economic growth. M-2 accounts for cash, deposits in savings and checking accounts and money market mutual funds. BANKAMERICA TO CLOSE BRANCHES: BankAmerica said Thursday it will close 82 branches in four states but wouldn't confirm a report in the San Francisco Chronicle that 300 branches in California will be shut. BankAmerica says that, as a result of its merger with Security Pacific, 21 branches will close in Arizona, seven in Nevada, 22 in Oregon and 32 in Washington. S&LS TO BE TAKEOVER TARGETS: Savings and loans will be the new hot target for takeovers and acquisitions says thrift-industry tracker Gerard Cassidy of Tucker Anthony. USA TODAY columnist Dan Dorfman reports that Cassidy says, "You could see a binge of S&L takeovers - maybe 30 to 40 over the next 12 to 18 months." Cassidy says buyouts of S&L's emerging from problems are replacing government sales of failed thrifts. GOLD, SILVER DOWN: Gold and silver prices fell Thursday. On the New York Commodity Exchange, gold bullion for current delivery settled at $337 a troy ounce, off $1.20 from Wednesday. Gold fell in London to $336.45 a troy ounce, from $338.70. On the Comex, silver bullion for current delivery settled at $4.054 a troy ounce, down from $4.082 on Wednesday. In London, silver slipped to $4.07 an ounce from $4.09. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Friday at 3398.43 after closing up 27.99 points Thursday. The New York Stock Exchange composite opens at 229.24, up 2.09. The American Stock Exchange market value opens at 392.30, up 0.45. The NASDAQ OTC composite opens at 580.49, up 3.14. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Friday. It opens at 0.5542 British pounds, down from 0.5573; 5.4660 French francs, down from 5.4785; 1.6285 German marks, down from 1.6375; and 129.45 Japanese yen, down from 130.36. (As of 3 p.m. Thursday. 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