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 Tue, Apr 28 1992 Date: Tue, 28 Apr 92 05:41:28 EDT Message-ID: 04-28 0000 DECISIONLINE: Banking & Economy USA TODAY Update April 28, 1992 Source: USA TODAY:Gannett National Information Network DOW DOWN MONDAY: Rising interests rates helped send stock prices mostly lower Monday. The Dow Jones industrial average fell 19.90 points to 3304.56. The broader markets also lost ground. Losing issues outweighed winners 902 to 798 on the New York Stock Exchange, where trading activity was moderate at 172.9 million shares. Many investors are waiting for economic reports at the end of the week. HOUSING SALES REMAIN STRONG: The National Association of Realtors said Monday that existing houses sold at a seasonally adjusted annual rate of 3.49 million last month, the same as February and the fastest annual pace in three years. If that pace is sustained, 1992 would be the best year for existing home sales since 1988, which was the best year in that decade. HOUSING STRENGTH QUESTIONED: Monday's report that sales of existing homes remained strong in March was greeted with mixed reviews. "We believe we have finally turned the corner," said National Association of Realtors President Dorcas Helfant. But other experts caution that this could be just another blip, pointing to increases last May and June that fizzled in July back to their weak 1990 pace. CONFIDENCE IMPROVES IN APRIL: Business confidence improved in April for the fourth straight month, according to Cahners Economics business confidence index, which came out Monday. The index, which measures plans for hiring, production and inventories, rose 1.1 points to 66.5. Readings above 50 indicate businesses are optimistic. FIDELITY LIKES CITICORP: The nation's largest mutual fund company - Fidelity Investments -is a big fan of the nation's largest bank - Citibank. Bruce Herring, portfolio manager of Fidelity's Select Financial Services Fund says they own "closer to 10% than 5% of Citicorp." At Monday's close of $18 3:8 a share, 10% of Citicorp stock would be a $636 million stake. CITICORP LOOKS GOOD TO HERRING: Fidelity Investments has been aggressively buying Citcorp stock for the past few months, the mutual fund company says. Why portfolio manager Bruce Herring likes Citicorp: Operating expenses are going down; nonperforming loans were down $700 million the first quarter; and good consumer banking, which earned Citicorp $260 million in the first quarter. BANK LOANS STILL TIGHT: There's still a credit crunch, according to 38% of bank executives responding to a survey out Monday. A credit crunch was defined in the survey by Grant Thornton as an unwillingness or inability to make loans to qualified buyers at reasonable pricing and terms. Another 11% thinks there was a credit crunch - but it's over. DISCOUNT RATE HIGHER: The Treasury Department sold $11.5 billion in three-month bills at an average discount rate of 3.71% vs. 3.69% last week. It also sold $11.4 billion in six-month bills at an average discount rate of 3.85% vs. 3.86% last week. GM SUBSIDIARIES STRONG: In an encouraging sign for GM's overall results which come out Tuesday, GM's non-automotive subsidiaries reported stronger first-quarter earnings Monday. GM Hughes Electronics earnings jumped 20% to $181 million or 44 cents a share. Electronic Data Systems said earnings rose 25% to $133 million or 28 cents a share. GMAC said earnings fell to $354 million from $637 million a year earlier. OIL STARTS WEEK DOWN: Oil prices were down Monday. Light sweet crude oil for delivery in June settled at $20.29 a barrel, up 7 cents, at the New York Mercantile Exchange. Unleaded gasoline for delivery in May settled at 62.08 cents a gallon, down .09 cent. Home heating oil for delivery in May settled at 55.30 cents a gallon, up .01 cent. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Tuesday at 3304.56, after closing down 19.90 Monday. The New York Stock Exchange composite opens at 224.94, down 0.18. The American Stock Exchange market value opens at 384.98, down 1.00. The NASDAQ OTC composite opens at 566.94, down 5.95. DOLLAR OPENS MOSTLY DOWN: The dollar opens mixed on foreign markets Tuesday. It opens at 0.5633 British pounds, down from 0.5642; 5.5780 French francs, up from 5.5750; 133.18 Japanese yen, down from 134.15; and 1.6545 German marks, down from 1.6698. (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