Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.banks From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: banks Wed, Apr 15 1992 Date: Wed, 15 Apr 92 05:42:41 EDT Message-ID: 04-15 0000 DECISIONLINE: Banking & Economy USA TODAY Update April 15, 1992 Source: USA TODAY:Gannett National Information Network RETAIL REVENUE DOWN IN MARCH: Retail revenue fell 0.4% in March from February to a seasonally adjusted $157.1 billion, the Commerce Department said Tuesday. The drop followed gains of 1.3% in February and 2.1% in January. It was the first month-to-month drop since October, but the decline was smaller than expected. Revenue for the first quarter was up 2.9% over the previous quarter, and the best quarterly gain since 1988. BIG-TICKET SALES HIGHER: Economists were encouraged that sales of big-ticket retail items were up in March, despite an overall drop in retail revenue of 0.4%. Details from last month's retail revenue report: Autos were up 0.3% after rising 2% in February; furniture store revenue rose 2.1% vs. a 0.7% February gain; department store sales fell 3% after surging 2.2% the previous month. DOW BREAKS 3300: The Dow broke the 3300 closing barrier for the first time Tuesday as good earnings news from IBM Ford and Alcoa pushed stocks higher. The Dow Jones industrial rose 36.23 points to 3306.13 in heavy trading. The broader market was higher. Gaining stocks outpaced losers 1,220 to 512 on the New York Stock Exchange, where volume was 231.1 million shares. RALLY CONTINUES: The Dow's 36-point gain Tuesday put the four-day rally at a 125-point gain. "You're in a bull market," says veteran market follower Lazslo Birinyi. Stocks started rallying Thursday after the Federal Reserve nudged a key interest rate lower. Now "investors realize that the Fed will do whatever it takes to get the recovery going," says David Shulman, chief stock strategies, Salomon Bros. RECORD QUARTER FOR BROKERAGES: Last year's surge in brokerage earnings continued in the first quarter as three of the biggest reported record earnings Tuesday. Results: PaineWebber's first-quarter net income soared 131% to $74 million, or $1.20 a share; Merrill Lynch said quarterly earnings jumped 54% to $278 million, or $2.39 a share; Charles Schwab said net income nearly tripled to $30 million, or 75 cents a share. IBM REPORTS 7% GAIN: IBM surprised investors and analysts Tuesday by reporting a 7% gain in first-quarter earnings. Big Blue said net income rose to $595 million, or $1.04 a share, from $556 million, or 97 cents a share, from ongoing operations a year earlier. The stock rose 3:4 to $88 1:4. BANC ONE ENDS BUYING SPREE: Banc One, which has been on a buying spree, said Tuesday it will make one more purchase then call off its takeover hunt. Tuesday, Banc One agreed to acquire Phoenix-based Valley National for $1.2 billion in stock. Already this year, Banc One has agreed to buy Team Bancshares in Texas and banks in Illinois, Indiana and Wisconsin, but said it will not pursue First City Bancorp of Texas. CAR, TRUCK SALES UP: Sales of cars and light trucks by five major automakers in the USA rose 4.2% in early April. Ford sales April 1-10 jumped 10%, buoyed by strong car and truck sales. Toyota sales soared 41% thanks to continued strength in Camry sales. GM sales dipped 2%. Chrysler doesn't report 10-day sales but Ward's Automotive Reports estimates sales rose 3%. Honda sales fell 9%. CAR EXECS NEGOTIATE MEETING: Leaders of Big Three U.S. car companies and Japanese car makers are working on setting a meeting in the next few weeks, reportedly in California or Arizona. Ford chairman Harold "Red" Poling says he hopes top executives can meet, and that the meetings go better than January's session in Tokyo. He says press reports then depicted U.S. carmakers as "going hat in hand and begging." DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Wednesday at 3306.13, after closing up 36.23 Tuesday. The New York Stock Exchange composite opens at 227.31, up 3.15. The American Stock Exchange market value opens at 392.14, up 3.25. The NASDAQ OTC composite opens at 594.81, up 6.66. DOLLAR OPENS MOSTLY DOWN: The dollar opens mixed on foreign markets Wednesday. It opens at 0.5669 British pounds, down from 0.5688; 5.5950 French francs, up from 5.5750; 133.08 Japanese yen, down from 133.37; and 1.6527 German marks, up from 1.6571. (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