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 Mon, Jun 1 1992 Date: Mon, 1 Jun 92 05:21:13 EDT Message-ID: 06-01 0000 DECISIONLINE: Banking & Economy USA TODAY Update June 1, 1992 Source: USA TODAY:Gannett National Information Network MORE PLAN TO HIRE IN QUARTER: Manpower, the world's largest temporary-help firm, reports Monday that of 15,000 businesses surveyed last month, 25% plan to add workers the third quarter and just 8% plan layoffs, the best spread in two years. The hiring figure is up 22% in last year's third quarter and 21% this quarter. Economists say most businesses that do hire will be small firms adding just a few people. HIRING PLANS WIDESPREAD: Businesses across the USA plan to do more hiring in the third quarter, according to a survey out Monday by Manpower. The biggest increase is expected in the Midwest, where 28% of firms surveyed plan to hire, while just 7% plan to fire. Manpower President Mitchell Fromstein says "the evidence of a recovery in hiring activity is present across all areas and business sectors." KEY REPORTS THIS WEEK: Several economic reports are due this week. Monday, the Commerce Department reports on consumer spending in April and the National Association of Purchasing Management details manufacturing in May. Tuesday, Commerce reports its index of leading indicators for April and sales of new homes. Commerce reports on factory orders in April Wednesday and Labor gives the May jobless report Friday. GOLD, OIL STOCK GROUPS RISE: Stock groups that have languished for over a year outpaced the market in May. Gold-miner stocks rose 10.6% last month through Thursday, far outstripping the market averages. Right behind gold stocks were oil-well equipment and services, natural gas and oil and gas drilling. Others that beat the Standard & Poor's 500 index included steel and miscellaneous metals. INVESTORS HUNT FOR CHEAP STOCKS: The surge in May of stock groups that have been doing poorly, such as gold and oil-related stocks, is largely a result of investors searching for stocks that hadn't already risen sharply, analysts say. "I think most investors think the market is overvalued, and it is hard to find something that looks cheap," says Hugh Johnson, chief investment officer at First Albany. RALLY FIZZLES, DOW OFF SLIGHTLY: After hovering above the 3,400 level most of the day Friday, the Dow Jones industrial average slipped 1.55 points to close the day at 3,396.88. The average, which set a record closing high on Thursday, finished the week with a net gain of 10.11 points. The late selling came in spite of generally favorable economic news. GDP REVISED HIGHER: The economy grew at a 2.4% annual rate last quarter, the Commerce Department said Friday. That's more robust than the government's first estimate and the strongest quarter of growth in three years. The initial estimate of gross domestic product, measuring output of goods and services, was 2%. Fourth-quarter GDP grew at an annual rate of just 0.4%. CORPORATE PROFITS RISE: The Commerce Department reported Friday that corporate profits surged 8% last quarter to an annual rate of $205 billion, the best quarterly showing in four years. Profits had risen at just a 0.1% annual rate in the last three months of 1991. For the year, they were down 4.6%, the third straight annual decline. LOAN DEMAND INCREASES: Major U.S. banks say loan demand from consumers and small and medium-size businesses grew the past three months. The Federal Reserve surveyed 57 banks in early May, representing nearly one-third of commercial banks' $3.1 trillion in assets. The Fed said that about twice as many domestic banks reported more willingness to provide consumer credit than in its January survey. MORTGAGE RATES UP: Mortgage rates rose last week after falling for four consecutive weeks, the Federal Home Loan Mortgage Corp. says. Fixed 30-year mortgage rates averaged 8.60%, up from 8.53% a week earlier. One-year adjustable rates: 5.96%, vs. 5.93%. OIL PRICES INCREASE: Oil futures rallied Friday to their highest close of the year. Light sweet crude oil for delivery in July settled at $22.11 a barrel, up 16 cents for the day and $1.17 for the week, on the New York Mercantile Exchange. Crude oil began the trading week Tuesday by soaring more than $1 a barrel to $22 after Saudi Arabia indicated it was willing to let crude prices rise this summer. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Monday at 3396.88 after closing down 1.55 points Friday. The New York Stock Exchange composite opens at 288.87, down 0.37. The American Stock Exchange market value opens at 394.69, up 2.39. The NASDAQ OTC composite opens at 585.31, up 4.82. 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