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 Tue, Jun 9 1992 Date: Tue, 9 Jun 92 05:19:54 EDT Message-ID: 06-09 0000 DECISIONLINE: Banking & Economy USA TODAY Update June 9, 1992 Source: USA TODAY:Gannett National Information Network DOW UP SLIGHTLY: Stocks rose slightly in slow trading Monday. The Dow Jones industrial average rose 5.45 points to 3404.14. Other indexes finished mixed. Decliners nudged advancers 887 to 827 on the New York Stock Exchange, where volume was a light 161 million shares. Analysts said many European investors were out for a holiday, which dampened U.S. trading activity. MARKET DIRECTION UNCERTAIN: Investors were not willing to place big bets on the direction of stocks Monday, leaving the Dow with just a slight gain in slow trading. "We're at an impasse," says Larry Wachtel, analyst at Prudential Securities. Traders say the absence of fresh economic data also restrained people from trading aggressively. But hopes for lower interest rates are keeping some from selling. OIL DOWN MONDAY: Light sweet crude oil for delivery in July settled at $22.44 per barrel, down 18 cents, at the New York Mercantile Exchange Tuesday. Oil opened lower and stayed down all day, with traders finding no news to motivate them. Volume was light. Home heating oil prices fell, with contracts for delivery in July settling at 61.31 cents a gallon, down .54 cent. GOLD MIXED, SILVER DOWN: Gold prices were mixed and silver prices were down Tuesday. On the New York Commodity Exchange, gold bullion for current delivery settled at $338.20 a troy ounce, off 50 cents. Gold rose in London to $338.75 from $338.65. On the Comex, silver bullion for current delivery settled at $4.041, down from $4.051. In London the metal slipped to $4.05 from $4.06. STOCKS DOWN WORLDWIDE: Markets around the world were down Monday. Tokyo stocks ended weaker in dull trading. London shares fell on thin volume as traders cut prices to try to attract buyers. The Frankfurt market, like others on the European continent, was closed Monday for a public holiday. Hong Kong stocks fell as investors took profits. GD ANNOUNCES BUYBACK: General Dynamics said Monday that it will buy back up to $975 million in stock. The USA's No. 2 defense contractor, behind McDonnell Douglas, says it will buy back 13 million shares - about 30% of its outstanding stock - for $65 3:8 to $75 each. In what's known as a Dutch auction, interested shareholders say what price they would accept within that range. CROWN FAMILY TO CUT STAKE: In a stock buyback announced Monday by General Dynamics, between 4.5 million and 4.9 million shares will be sold by a group of long-time large investors that includes the Crown family. The group said it must reduce its stake from 22% to 15% for tax reasons. On Wall Street Monday, investors bid General Dynamics up 5 3:8 to $71. PAPER DOES BETTER THAN GOLD: Salomon Bros.' annual investment survey, out Monday, found that in the past 12 months, bonds, stocks and T-bills did well, but old master paintings, gold and silver were losers. That trend could continue for years, says James Neel of Kemper Financial Services. "We're experiencing low inflation or moderate disinflation," Neel says. "Stocks and bonds do best in periods like that." RECENT OFFERINGS STRUGGLING: For the initial public offering Class of 1992, it's been a tough-luck year. Half of the 268 initial public offerings the first five months of this year now trade below their offer price, according to Securities Data. Average loss: 20%. About 40% trade above their offer price at an average gain of 18%. The remaining 10% are even. MILKEN LOST TOUCH: Jesse Kornbluth writes in the July issue of Vanity Fair that former king of junk bonds Michael Milken, who once ruled Wall Street only to plead guilty to six counts of securities fraud, simply lost touch with reality. "Milken's problem is that he's trapped in his own worldview, a universe away from the emotions and conflicts that rule other people," Kornbluth writes. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Tuesday at 3404.14 after closing up 5.45 points Monday. The New York Stock Exchange composite opens at 227.71, down 0.17. The American Stock Exchange market value opens at 396.43, down 0.73. The NASDAQ OTC composite opens at 582.01, down 3.42. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mixed on Tuesday. It opens at 0.5452 British pounds, down from 0.5454; 5.3500 French francs, up from 5.3435; 1.5855 German marks, down from 1.5890; and 127.11 Japanese yen, up from 126.75. (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