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 Wed, May 27 1992 Date: Wed, 27 May 92 05:20:54 EDT Message-ID: 05-27 0000 DECISIONLINE: Banking & Economy USA TODAY Update May 27, 1992 Source: USA TODAY:Gannett National Information Network CONSUMER CONFIDENCE RISES: The Conference Board reported Tuesday that its consumer confidence index rose to 71.6 in May from 65.1 in April, the third straight month it has risen. The index appears headed to the above-80 level that is a sure sign of a steadily growing economy, says Fabian Linden, executive director of the Conference Board's consumer research center. CONSUMERS STILL CAUTIOUS: Though the Conference Board's consumer confidence index has risen 50% from a 17-year low since February, there are still signs that consumers are cautious. In the Conference Board's May report, there was a slight rise in the percentage of consumers who plan to buy a car in the next six months. But there were slight declines in the numbers of those who plan to buy homes and appliances. DOW DOWN TUESDAY: A jump in the price of oil Tuesday boosted oil stocks, but hurt the rest of the market as fears of inflation were renewed. The Dow Jones industrial average fell 22.56 points to 3364.21. Other broader market indexes also slumped. Losing stocks beat winners 1,120 to 618 on the New York Stock Exchange, where trading was active at 197 million shares. OIL PRICES JUMP: Wall Street returned from the Memorial Day weekend Tuesday to the unwelcomed news that oil prices jumped to a six-month high due to fears of supply shortages. On the New York Mercantile Exchange, crude oil for July delivery shot up $1.06 Tuesday, to $22 a barrel. Traders and analysts worry that climbing oil prices could choke the USA's economic recovery and rekindle inflation. PARRY JOINS OPTIMISTS: Robert Parry, president of the Federal Reserve Bank of San Francisco, said Tuesday he expects the government to revise higher its estimate of gross domestic product growth from an annual rate of 2%, probably to more than 2.5%. Commerce Secretary Barbara Franklin and White House Chief Economist Michael Boskin have also predicted an upward revision. The report is due Friday. CAR, TRUCK SALES CLIMB: U.S. sales of cars and trucks by five major automakers jumped 6.5% in mid-May. The selling rate for U.S. built cars during the May 11-20 period was 6.8 million. Chrysler doesn't report 10-day sales but Ward's Automotive Reports estimates Chrysler sales jumped 25.4% Ford sales rose 12.4%, Toyota sales rose 3.2% and GM sales were up 1.8%. Honda had the only sales decline, down 15.4%. RATES RISE IN TUESDAY AUCTION: Interest rates on short-term Treasury securities rose in Tuesday's auction to the highest level in seven weeks. The Treasury sold $11.6 billion in three-month bills at an average discount rate of 3.75% vs. 3.61% last week. It sold $11.6 billion in six-month bills at an average discount rate of 3.90% vs. 3.71%. GOLD UP, SILVER MIXED TUESDAY: Gold prices rose, but silver prices were mixed Tuesday. On the New York Commodity Exchange, gold bullion for current delivery settled at $338.20 a troy ounce, up 30 cents. Gold fell in London to $337.95 from $338.00. On the Comex, silver bullion for current delivery settled at $4.087, up from $4.082. In London, silver fell to $4.10 from $4.11. EXISTING HOME SALES DOWN: The National Association of Realtors reported Tuesday that sales of existing homes fell 0.3% in April from March, to a seasonally adjusted annual rate of 3.5 million. It was the first decline in three months but followed a 14.8% plunge in new-home sales in March after a 7% drop a month earlier. The Commerce Department will release its April survey of new home sales next Tuesday. REVLON TO SELL STOCK: Cosmetics company Revlon said Tuesday that it plans to sell a 17.8% stake, 20 million shares, to investors at a proposed price of $19 a share. The offering could take place by midsummer. The shares will be of a company called New Revlon - which will include Revlon's core brands, including Revlon and Ultima II. A few unspecified assets and liabilities will remain with old Revlon. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Wednesday at 3364.21, after closing down 22.56 Tuesday. The New York Stock Exchange composite opens at 226.86, down 1.34. The American Stock Exchange market value opens at 391.89, down 0.57. The NASDAQ OTC composite opens at 575.65, down 4.65. DOLLAR OPENS MIXED: The dollar opens mixed on foreign markets Wednesday. It opens at 0.5483 British pounds, down from 0.5504; 5.4205 French francs, down from 5.4390; 129.40 Japanese yen, up from 129.28; and 1.6127 German marks, down from 1.6177. (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