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 Fri, May 15 1992 Date: Fri, 15 May 92 05:12:19 EDT Message-ID: 05-15 0000 DECISIONLINE: Banking & Economy USA TODAY Update May 15-17, 1992 Source: USA TODAY:Gannett National Information Network NEW UNEMPLOYMENT CLAIMS RISE: New claims for unemployment rose by 10,000 to 424,000 the week that ended May 2, the Labor Department said Thursday. It was the second week in a row the number has risen, evidence that the economic recovery remains weak. The four-week average of new claims, less volatile than the weekly numbers, rose for the first time since late March to 411,500 from 409,500. INVENTORIES, REVENUES UP: Business inventories and revenues rose in March, the Commerce Department reported Thursday. Commerce said inventories of manufacturers, retailers and wholesalers edged up 0.4% to a seasonally adjusted $816 billion after being flat in February. Business revenue grew 0.5% to a seasonally adjusted $548 billion after jumping 1.5% in February. M-2 UP MORE THAN EXPECTED: The Federal Reserve says its measure of the money supply, M-2, rose more than expected the week ending May 4, easing fears of a big drop in money growth. Economists say that eases pressure on the Fed to cut interest rates to stimulate the economy. M2, which includes cash, deposits in checking and savings accounts and money market mutual funds, rose $9.8 million to $3.5 billion. REPORT SENDS DOW DOWN: A report that new claims for unemployment benefits rose slightly, which usually does not have much of an impact on Wall Street, contributed to a drop in the Dow Wednesday. The Dow Jones industrial average sank 23.10 points to 3368.88. Other indexes were also off. Advancing issues trailed decliners 549 to 1,180 on the New York Stock Exchange, where volume was 200 million shares. BIG NEWS NEEDED TO LIFT DOW: Analysts say investors will need to see sharply higher earnings the rest of the year to push the Dow up much higher. Pete Keane, market analyst at Interstate:Johnson Lane, says the Dow has risen so high this year that "it'll now take a whole lot to kick it up any higher." But analysts say bad news could be really damaging, since investors have gotten used to good news and now expect it. AUTOMAKERS SUPPORT BILL: On the eve of meetings with Japanese automakers, Ford, Chrysler and General Motors all said Thursday that they favor at least parts of a House bill to cap Japan's U.S. sales at 1992 levels. That's expected to be 3.4 million cars and trucks, about 26% of the U.S. market. Japanese automakers suspect the bill, sponsored by Rep. Dan Rostenkowski, D-Ill., will be revised to cut their U.S. sales. ELECTION COULD ROIL MARKET: Money managers say not much will happen this summer on Wall Street, as investors wait to see the results of the political conventions, reports USA TODAY columnist Dan Dorfman. But the prospect of H. Ross Perot winning the election could send the Dow into a tailspin. Maceo Sloan, CEO of NCM Capital Management, says a Perot win would send the Dow down about 30% after the election. OIL FALLS ON OPEC SPECULATION: Speculation that Saudi Arabia will try to push OPEC's production ceiling higher sent oil prices lower Thursday. Light sweet crude oil for delivery in June settled at $20.55 per barrel, down 21 cents, on the New York Mercantile Exchange. Rumors circulating through the oil markets indicated the Saudis might try to hike the output ceiling by 1 million barrels a day, to about 24 million. GOLD, SILVER PRICES UP: Gold and silver prices rose Thursday. On the New York Commodity Exchange, gold bullion for current delivery settled at $338 a troy ounce, up $2.40 from Wednesday's close. Republic National Bank of New York quoted a late bid for gold of $337.35 an ounce, up $1.75. On the Comex, silver bullion for current delivery settled at $4.107 a troy ounce, up from $4.086 late Wednesday. SEC TO UNVEIL CHANGES: The Securities and Exchange Commission's staff next week unveils proposed changes to the Investment Company Act of 1940, governs the way mutual funds are managed and sold. Among the changes: A provision that would let investors negotiate sales charges. The SEC probably will release the changes during the annual meeting of the Investment Company Institute, which begins Wednesday. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Friday at 3368.88 after closing down 23.10 points Thursday. The New York Stock Exchange composite opens at 227.72, down 1.72. The American Stock Exchange market value opens at 391.79, down 1.96. The NASDAQ OTC composite opens at 576.46, down 5.92. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Tuesday. It opens at 0.5481 British pounds, down from 0.5501; 5.4015 French francs, down from 5.4210; 1.6012 German marks, down from 1.6160; and 130.05 Japanese yen, down from 129.98. (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