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 Fri, Apr 17 1992 Date: Fri, 17 Apr 92 05:42:11 EDT Message-ID: 04-17 0000 DECISIONLINE: Banking & Economy USA TODAY Update April 17-19, 1992 Source: USA TODAY:Gannett National Information Network TRADE DEFICIT PLUNGES: Rising exports helped shrink the U.S. trade deficit 42% to $3.4 billion in February, lowest in almost nine years, the Commerce Department said Thursday. February's trade deficit - lowest since March 1983 - followed a $5.9 billion deficit in January. Exports surged 7% to $37.8 billion in February from January and imports fell 0.4% to $41.2 billion. LAWARE REVISES ESTIMATES: Federal Reserve Governor John LaWare Thursday voiced optimism about the economy's growth rate. LaWare said he now believes the economy grew at a 2% annual rate the first quarter, twice what he predicted a few weeks ago. For the year, gross domestic product could rise 2.5% to 3%, up from his earlier 2% forecast, he told Reuters news service. NEW UNEMPLOYMENT CLAIMS DOWN: New claims for unemployment benefits fell to 415,000 in the week ending April 4, down 18,000 from the previous week and the lowest number since the week ending Oct. 26. It was the second consecutive weekly drop. The less volatile four-week average fell to 427,750 from 442,000, lowest since November. CITIBANK CUTS CARD RATES: The nation's biggest bank and top credit-card issuer, Citibank, said Thursday it's cutting the interest rates it charges its best credit-card customers. Starting June 1, rates on Citibank's "classic" Visa and MasterCards will fall from 19.8% to 15.9%. Rates on its "preferred" Visa and MasterCards will slide from 16.8% to 13.9%. Other banks are expected to follow suit. GM STOCK RISES ON REPORT: General Motors' stock hit a 52-week high Thursday after the Wall Street Journal reported the automaker estimates it will post a small profit for the first quarter. GM shares rose 2 3:8 to $42 1:2. It would be the first quarterly gain for GM, which lost $2.47 in the fourth quarter, in seven quarters. Analysts say GM's earnings will be much improved, but they still expect losses. CLINTON BASHES BUSH POLICIES: Democratic presidential candidate Bill Clinton Thursday delivered and economic policy speech in which he bashed President Bush's economic record and called for "radical" economic policies to help the middle class and to combat foreign competition. He said the "single driving force" behind Republican economics has been "to keep taxes low on corporations and upper-income individuals." STOCKS PUSH HIGHER: The stock market added to its string of records Thursday as the Dow Jones industrial average pushed further into untouched territory. The Dow rose 12.74 points to 3366.50 - its third straight record. Other indexes were mixed. Losing stocks beat winners 898 to 805 on the New York Stock Exchange, where volume was 233 million shares. ECONOMIC CONCERNS EASE: Concerns over the strength of the economy have eased in the past week, thanks to a rate cut by the Federal Reserve and strong corporate earnings. Those things, combined with the recovery of Japanese stocks, have caused investors to push the Dow up 6% in the past six trading days. "Investors have breathed one big sigh of relief," says Jim Solloway, market strategist at Argus Research. MORE CEOS OPTIMISTIC: Two of three chief executive officers of the USA's fastest-growing companies say they are cautiously optimistic about the next 12 months, according to a Coopers & Lybrand survey out Thursday. In December, just 42% of the CEOs surveyed were optimistic about the economy. Also, only one CEO in 10 remains pessimistic about the economy's outlook. OIL UP THURSDAY, DOWN FOR WEEK: Crude oil and other energy futures prices closed higher at the Mercantile Exchange Thursday. Light sweet crude oil for May delivery rose 34 cents to $20.21 a barrel. For the week, crude fell 23 cents. May natural gas rose to $1.361 per 1,000 cubic feet, up 2.1 cents for the day and up .67 cent for the week. The petroleum market is closed for Good Friday. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Monday at 3366.50, after closing up 12.74 Friday. Markets are closed for Good Friday. The New York Stock Exchange composite opens at 228.90, down 0.25. The American Stock Exchange market value opens at 392.64, down 1.52. The NASDAQ OTC composite opens at 591.81, down 8.22. DOLLAR OPENS UP: The dollar opens up on foreign markets Friday. It opens at 0.5732 British pounds, up from 0.5669; 5.6375 French francs, up from 5.6175; 133.95 Japanese yen, up from 133.30; and 1.9510 German marks, down from 1.9515. (As of 3 p.m. Thursday. 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