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 Mon, Apr 27 1992 Date: Mon, 27 Apr 92 05:41:46 EDT Message-ID: 04-27 0000 DECISIONLINE: Banking & Economy USA TODAY Update April 27, 1992 Source: USA TODAY:Gannett National Information Network INVESTORS BUYING BANKS: USA TODAY columnist Dan Dorfman reports that big institutional investors are buying bank stocks. He reports tracking firm Indata says six banks were among this month's biggest buys through April 16. AT&T led the list, followed by Shawmut National, Westinghouse, Waste Management, Norwest, First Union, Sears, PepsiCo, EXEL, Fleet Norstar, Ford, Sherwin-Williams, PNC Financial and Mellon Bank. DOW DOWN FOR WEEK: The Dow Jones industrial average fell 24.15 to 3324.46 Friday. For the week, the Dow lost 42.04 points. A late computer-driven plunge in the blue chips brought the Dow down. Declining stocks outnumbered gainers 875 to 804 on volume of 198.77 million against 235.78 million shares on the New York Stock Exchange. RUSSIA TO BE ADMITTED: After being convinced Russia is moving towards a market economy, the International Monetary Fund Monday is expected to admit Russia as a member, opening the door for massive aid. World Bank Vice President Wilfried Thalwitz said Sunday, "I am totally convinced" Russia and the 14 other former Soviet republics are "dead serious about moving to a market economy. GM ANNOUNCES STOCK ISSUE: As part of an ongoing plan to breath new life into the company, General Motors announced Friday that it plans to issue 50 million additional shares of stock worth about $2 billion. Also, in an announcement shown to GM's 370,000 North American workers Friday, Chairman Robert Stempel announced plans to consolidate its five car making operations into one. REACTIONS MIXED: Reactions to GM's announcement Friday that it will issue 50 million additional shares of stock worth about $2 billion were mixed. The stock fell 2 3:4 to $39 5:8 on the news. "It's a good time for them to issue stock because auto stocks are in favor on Wall Street," says Frank Cappiello of investment-advisor firm McCullough, Andrews & Cappiello. "And GM needs the money." ECONOMY SHOULD GET BOOST: Though recent hiring by some small companies is not contributing dramatically to an improvement in the nation's jobless figures, the economy could get a boost in coming months. Business is picking up enough to convince those companies that it's safe to expand, and analysts say if the hiring continues, consumer confidence would rise as people see their friends and neighbors finding work. SMALL FIRMS HIRING: Evidence the past few months indicates a modest increase in hiring. In March, 19,000 jobs were added to payrolls. The February gain was 107,000. The number of people applying for unemployment benefits has fallen three straight weeks, indicating that layoffs are slowing. The hiring so far is coming just from thousands of small firms who are adding one or two employees. MORTGAGE RATES RISE: The average fixed rate on 30-year mortgages was 8.85% last week, up from 8.76% the week before, according to a national survey by the Federal Home Loan Mortgage Corp. It was the first rise after four consecutive weekly declines. On one-year adjustable rate mortgages, lenders were asking an average initial rate of 6.13%, up from 6.11% the week before. RTC HAS EMERGENCY FUND: The Resolution Trust Corp., which is supposed to be broke, has admitted it has $2 billion in emergency money. RTC spokesman Stephen Katsanos, who denied the fund was a secret, says the purpose of the "liquidity" fund - which is down from about $9 billion in 1989 - is to pay depositors in case massive withdrawals are made from a failed, but not yet closed, thrift. THRIFTS MERGED: Though officially broke, the RTC spent $48 million Friday to merge a sick South Dakota thrift - First Federal Savings Bank of South Dakota, in Rapid City - with a healthy one in North Dakota - Metropolitan Federal Bank, FSB, in Fargo. The RTC says it can no longer complete such mergers and blames Congress for failing to approve additional funding for the S&L bailout. ENERGY PRICES MOSTLY UP: Energy futures prices closed mostly higher in light and uneventful trading Friday. The June contract for light, sweet crude oil rose 11 cents to $20.22 a barrel on the New York Mercantile Exchange. The June contract for home heating oil fell .12 cent to 55.29 cents a gallon, but subsequent months moved higher. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Monday at 3324.46, after closing down 24.15 Friday. The New York Stock Exchange composite opens at 225.12, down 1.04. The American Stock Exchange market value opens at 385.98, down 0.28. The NASDAQ OTC composite opens at 572.90, down 3.16. 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