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, Aug 3 1992 Date: Mon, 3 Aug 92 03:33:15 EDT Message-ID: 08-03 0000 DECISIONLINE: Banking & Economy USA TODAY Update Aug. 3, 1992 Source: USA TODAY:Gannett National Information Network ADS REFLECT SOFT LABOR MARKET: A big week for economy watchers begins Monday with disappointing news. The Conference Board reports that its index of help wanted advertising held steady at 92 in June, almost unchanged from 93 in May. In June 1991, the index was at 96. It was at 160 before the recession began in July 1990. The index is a measure of help-wanted ads in newspapers around the USA. (For more, see special Economy package below.) PERSONAL INCOME GROWTH STALLS: Personal incomes were virtually unchanged at an annual rate of $5.02 trillion, a Commerce Department report said Friday. The income figure was not adjusted for inflation. Consumers nevertheless managed to increase spending a moderate 0.5% to a $4.07 trillion annual rate. In another report, the department said factories in June recorded a broad-based 2.3% jump in new orders. MORTGAGE RATES STOP DROPPING: The steep decline in mortgage rates has stopped. The average rate on 30-year fixed loans slipped only a hair last week to 8.05% from 8.08%, according to the Federal Home Loan Mortgage Corp. Average number of points: 1.7. One point is 1% of the loan amount paid upfront as a fee. MANY RATES LESS THAN 8%: Of 2,000 lenders surveyed each week by HSH Associates, 450 offer 30-year rates of less than 8% with 2 to 2.5 points. Expect the rate horizon to remain calm until Friday, when the government releases July's unemployment report. June's bad report sparked the latest round of rate-cutting. HOUSE BOOSTS MINIVAN TARIFF: As expected, the House voted Friday to boost tariffs on imported minivans to 25% despite criticism that the move would raise prices on U.S. minivans and sport-utility vehicles. The legislation would reclassify minivans and sport-utilities as light trucks, which carry a 25% import penalty, instead of as cars, which have just a 2.5% tariff. The bill has been sent to the Senate. ARTHUR ANDERSEN SUED: The Resolution Trust Corp. filed a $400 million lawsuit against Arthur Andersen & Co., charging the accounting firm with malpractice in the failure of Benjamin Franklin Savings Association, a Houston savings and loan. The thrift-cleanup agency says the lawsuit is the largest it has filed against an accounting or law firm. DOLLAR TRADES IN NARROW RANGE: The dollar declined Friday on world markets after trading in a very narrow range. The dollar should have drawn some support from a Commerce Department report that showed orders to U.S. factories jumped 2.3% in June. But the department also said personal income failed to grow in June. The dollar settled at 127.15 yen, down from 127.50. The British pound cost $1.9270, up from $1.9260. GOLD, SILVER ADVANCE: Precious metals rose Friday. On the Commodity Exchange, gold bullion for current delivery rose 90 cents to $357.40. Republic National Bank ended at $357.50, up 80 cents. Gold rose to $357.75 from $356.55 in London; to $357.80 from $356.10 in Zurich and to $357.67 from $356.59. Silver bullion settled at $3.927, up from $3.921, and in London, the metal rose to $3.94 from $3.92. ENERGY FUTURES MOSTLY HIGHER: Energy futures were mostly higher on the New York Mercantile Exchange Friday. September light sweet crude oil was 4 cents higher at $21.87 a barrel; August heating oil was .18 cent higher at 60.54 cents a gallon; August unleaded gasoline was .37 cent lower at 60.79 cents a gallon; and September natural gas was 4 cents lower at $1.892 per 1,000 cubic feet. SPECIAL PACKAGE ON ECONOMY: OUTLOOK NOT SO GOOD: Monday's news follows conflicting reports Friday on the health of the economy. While the Commerce Department said factory orders rose 2.3% in June, the Federal Reserve said personal incomes failed to grow that month. And personal spending rose only a modest 0.5% in June, the Fed said. If income growth doesn't pick up, economists say it's unlikely that personal spending will rise much. OTHER NEWS COMING THIS WEEK: The National Association of Purchasing Management releases its July business index Monday. The measure of manufacturing's strength will likely show continued slow growth in production and orders, say economists surveyed by MMS International. Also: Economists expect the Commerce on Tuesday will say its index of leading indicators fell 0.2% in June after rising 0.6% in May. BIG REPORT COMES FRIDAY: Wednesday, the Fed will publish its latest beige book - a look at the economies in the 12 Fed districts around the nation that is released eight times a year and named for its cover's color. Thursday, the Labor Department is expected to report that filing for unemployment benefits soared the week ended July 24. Labor will release its report on July unemployment Friday. (End of package.) DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Monday at 3393.78 after closing up 1.89 points Friday. The New York Stock Exchange composite opens at 233.15, up 0.26. The American Stock Exchange market value opens at 387.10, up 1.16. The NASDAQ OTC composite opens at 580.83, up 2.03. 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Banking & Economy Editor: Michele Coleman. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes 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