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 Wed, Jun 3 1992 Date: Wed, 3 Jun 92 05:20:41 EDT Message-ID: 06-03 0000 DECISIONLINE: Banking & Economy USA TODAY Update June 3, 1992 Source: USA TODAY:Gannett National Information Network LEADING INDICATORS UP IN APRIL: The Commerce Department said Tuesday that the index of leading indicators rose 0.4% in April from March, following a revised 0.4% gain in March. The index predicts economic activity six to nine months ahead. The fourth monthly increase was led by rising commodities prices, manufacturers' orders for consumer goods, consumer confidence and declining claims for unemployment benefits. NEW HOME SALES RISE: The government reported Tuesday that sales of new single-family homes rose just 1.3% in April from March to an annual rate of 530,000. That followed a 15.9% drop in March to a 523,000 annual rate. April's sales were well below January's and February's, when sales rates were 667,000 and 622,000, respectively. An estimated 51,000 new homes were actually sold in April. DOW DOWN TUESDAY: Monday's record-setting Dow close failed to attract more buyers to the market Tuesday. The Dow dropped 17.11 points to 3396.10, dragging the average back from its first close above 3400. Most other broader indexes also fell. Losing stocks beat winners 917 to 815 on the New York Stock Exchange, where volume was 203 million shares. LOAN DELINQUENCIES DOWN: Mortgage-loan delinquencies fell last quarter and are expected to drop further this quarter, the Mortgage Bankers Association said Tuesday. The MBA says 4.5% of mortgages were delinquent - payments 30 days or more late - vs. 4.8% the fourth quarter. The association attributed the third straight quarterly decline to the strengthening economy and a drop in mortgage rates. MORE OIL PUMPED IN MAY: About half of the 13 OPEC members pumped more oil than they were supposed to last month, a Reuters survey found. OPEC's output rose 200,000 barrels to 23.5 million barrels a day. Oil prices are the highest in six months following an OPEC agreement May 22 to keep third-quarter output relatively low. Light sweet crude oil rose 8 cents to $22.11 a barrel on the New York Mercantile Exchange. FDIC FUND HAS $7B LOSS: The government fund that insures bank deposits ended 1991 with a deficit of $7 billion - its first year in the red. At the end of 1990, the Federal Deposit Insurance Corp. fund had a surplus of $4 billion. The fund, used to pay off depositors when their banks fail, has been drained the past five years by more than 1,000 bank failures nationwide. HOUSE COMMITTEE PASSES BILL: Reacting to the Salomon Bros. bond trading scandal, a House committee Tuesday approved a bill that would give the Securities and Exchange Commission broader powers to fight abuse in the $2.3 trillion treasury securities market. The bill is opposed by the Treasury and the Federal Reserve Board who say more regulation of the market could boost the government's cost of borrowing money. GOLD, SILVER PRICES UP: Gold and silver prices rose Tuesday. On the New York Commodity Exchange, gold bullion for current delivery settled at $339.30 a troy ounce, up $1.50 from Monday. Gold rose in London to $338.65 a troy ounce from $337.15 late Monday. On New York's Comex, silver bullion for current delivery settled at $4.074 a troy ounce, up from $4.038 on Monday. MILKEN TESTIFIES: Deposed junk-bond king Michael Milken testified Tuesday in U.S. District Court in New York at the trial of a former Drexel Burnham Lambert colleague, Alan Rosenthal. Milken is testifying in an effort to get his 10-year prison sentence on securities fraud charges reduced. He said Rosenthal provided information and recorded illegal transactions but never executed them. BRISTOL-MYERS SQUIBB PLUNGES: Bristol-Myers Squibb said Tuesday that year-end price hikes backfired and its second-quarter net income will grow only in the "midsingle-digit range" - less than half what Wall Street expected - as a result. Shares of the drug and household-products maker plunged nearly 10% - 6 7:8 to $66 7:8 - on the news. Drug wholesalers have reduced buying to pare inventories. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Wednesday at 3396.10 after closing down 17.11 Tuesday. The New York Stock Exchange composite opens at 228.20, down 1.70. The American Stock Exchange market value opens at 393.95, down 0.89. The NASDAQ OTC composite opens at 589.18, up 0.81. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Wednesday. It opens at 0.5479 British pounds, down from 0.5490; 5.4233 French francs, up from 5.4140; 1.6055 German marks, down from 1.6119; and 127.31 Japanese yen, down from 127.41. (As of 3 p.m. Tuesday. 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