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, Jun 5 1992 Date: Fri, 5 Jun 92 05:20:08 EDT Message-ID: 06-05 0000 DECISIONLINE: Banking & Economy USA TODAY Update June 5-7, 1992 Source: USA TODAY:Gannett National Information Network JOBLESS CLAIMS UP: The number of new people filing for unemployment benefits edged up 4,000 to 407,000 the week ended May 23, the Labor Department said Thursday. Though the rise was slightly higher than analysts expected, the less-volatile four-week average of claims fell for the second week in a row to 410,750 from 412,500. The Labor Department reports May unemployment figures Friday. STOCKS DECLINE SLIGHTLY: The stock market pulled back a bit Thursday, still wavering uncertainly around the 3400 level in the Dow Jones industrial average. The average of 30 blue chips, which had risen 10.89 points Wednesday, dropped 7.26 to 3399.73. Losing stocks outnumbered winners 942 to 762 on the New York Stock Exchange, where volume was 204 million shares. BUSINESSES PLAN TO SPEND MORE: Businesses plan to spend $554 billion on plants and equipment this year, up 4.7% from 1991, the Commerce Department says. The April-May survey of business investment plans found a slightly stronger spending outlook than the previous survey. In January and March, businesses planned to raise spending about 4.6%. Last year, business spending fell 0.6% from 1990. FED'S MONEY SUPPLY MEASURE DOWN: The Federal Reserve says its closely watched measure of the money supply, M-2, fell $10.7 billion the week of May 25 to $3.5 trillion. M-2 is cash, deposits in checking and savings accounts and money market mutual funds. The Fed says continued weak money supply growth is a drag on the economic recovery. SEVEN CHARGED IN SEC SCANDAL: The Securities and Exchange Commission Thursday charged seven prominent financial figures with making millions by trading on non-public tips in one of the biggest insider trading cases ever. The SEC says the men made at least $13 million on the scheme from 1987 to 1989. The case centers on Edward Downe Jr., an ex-Bear Stearns executive. Downe allegedly exchanged information with friends. RETAIL SALES LACKLUSTER: Most retailers Thursday reported lackluster sales in May at stores open a year or more. But No. 1 Wal-Mart said same-store sales rose 12%. Sales at No. 2 Kmart rose 1.8%, while sales at Sears, No. 3, were virtually flat. Among retailers showing better-than-average gains: Dollar General, up 18.3%; J.C. Penney, up 8.8%, Dayton-Hudson's Target discount chain, up 7%; Gap up 3%. AUTO STOCKS RALLY: Shares of the Big Three U.S. automakers hit 1992 highs Thursday on continued talk of a recovery and the previous day's report of healthy May car and truck sales. General Motors shares jumped 1 7:8 to $43 5:8, Ford rose 1 3:8 to $48 1:8, and Chrysler was up 3:4 at $20 5:8. More than 13 million shares of the trio, which have been on a roll all week, changed hands in Thursday trading. BANC ONE HAS `DISCIPLINE': Banc One officials say they won't be so willing to make acquisitions at any cost. Banc One has been criticized for paying too much for recent bank acquisitions - in April it paid $1.2 billion for Arizona's Vally National. "We do have the discipline to walk away from deals," Treasurer George Meiling told investors gathered at a conference sponsored by Alex. Brown & Sons. BANC ONE IS MOST PROFITABLE: When Banc One does buy a bank, the results usually are impressive. The company's earnings are usually well above the industry's. Last quarter, Banc One was the most profitable of the nation's 25 biggest banks. "We are in the business of buying banks," says Chairman John McCoy. "We take good to average banks and make them great banks." OIL HITS `92 HIGH: Oil prices mostly held their gains Thursday. Light sweet crude oil for delivery in July, which rose 32 cents the previous day, added another 5 cents to settle at $22.48 a barrel on the New York Mercantile Exchange, a high for the year. July unleaded gasoline settled at 67.17 cents a gallon, off .14 cent. Natural gas for July delivery settled at $1.609 per 1,000 cubic feet, up 2.3 cents. GOLD DOWN, SILVER MIXED: Gold fell, but silver was mixed Thursday. On the Commodity Exchange, gold bullion for current delivery settled at $338.60, off 10 cents. Republic National Bank quoted a bid of $338.40, also down 10 cents. Gold fell in London and Zurich. On the Comex, silver bullion for current delivery settled at $4.075, up from $4.058, but in London, silver fell to $4.06 from $4.08. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Friday at 3399.73 after closing down 7.26 Thursday. The New York Stock Exchange composite opens at 227.90, down 0.75. The American Stock Exchange market value opens at 397.18, up 1.53. The NASDAQ OTC composite opens at 588.26, down 1.67. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Friday. It opens at 0.5491 British pounds, down from 0.5502; 5.3935 French francs, down from 5.4005; 1.6020 German marks, down from 1.6042; and 127.68 Japanese yen, up from 127.65. (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: William Snoddy. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes 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