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, Jun 17 1992 Date: Wed, 17 Jun 92 05:19:38 EDT Message-ID: 06-17 0000 DECISIONLINE: Banking & Economy USA TODAY Update June 17, 1992 Source: USA TODAY:Gannett National Information Network MANUFACTURING OUTPUT HIGHER: Manufacturing output rose for the fourth straight month in May, the Federal Reserve reported Tuesday. Production at factories, mines and utilities rose 0.6% last month from April, with the biggest gain coming in auto and truck production, which rose 5.2%. Settlement of a strike at machinery maker Caterpillar also helped output. Factory output excluding utilities and mines rose 0.7%. HOUSING STARTS JUMP: Housing starts jumped 11% in May from April, with gains coming in every region of the country, the Commerce Department said Tuesday. Last month's increase - largest since a 19% jump in February 1991 - boosts the annual rate of new homes built to 1.2 million. The gain follows April's surprising 17.3% drop to an annual rate of 1.1 million. U.S. TRADE DEFICIT LOWER: The USA's current account deficit in the first quarter of 1992 fell to $5.3 billion from $7.2 billion in the fourth quarter. The decline in the broad measure of international flows of merchandise, investments and services was attributed mostly to cheaper foreign oil. The deficit on merchandise trade in the first quarter decreased to $17.5 billion from $18.5 billion. MARKET ANALYSTS CONCERNED: Market analysts are growing increasingly wary about the direction of stock prices. David Roche, global strategist in Morgan Stanley's London office, says U.S. stocks are about as high as they can go for a while. "Full to the brim," he says of the market in a June report. Also, in the past week Salomon Bros. analysts have downgraded several individual stocks and stock groups. STOCK-FUND ADDITIONS SLOW: Investors put $6 billion into stock funds in May, down 25% from April's influx, research firm AMG Data Services says. While the $6 billion figure is still high relative to the history of stock funds, it signals a slowdown by individual investors. "Momentum has shifted," says Robert Adler, president of AMG Data Services. This month, stock-fund sales are about even with May's level. INVESTORS CAUTIOUS: A survey released Tuesday by discount broker Quick & Reilly found that 61% of 544 clients polled agree with this statement: "There is too much economic uncertainty to be buying (stocks) actively right now." Among other results, 56% of those polled expect the market to stay flat or fall the next three months and 30% say the market has peaked for the year. STRONG S&L REPORT EXPECTED: Federal regulators are expected to report Wednesday that the USA's 2,064 savings and loans had record earnings last quarter. Office of Thrift Supervision Director Timothy Ryan is expected to report that 90% of S&Ls were profitable and S&Ls earned a record $1.6 billion, though initial results often are marked down later. For all of 1991, S&Ls earned just $1.8 billion. SELL PROGRAMS SINK DOW: Trading was slow on Wall Street most of the day Tuesday before computerized sell programs pulled stocks down in the last hour of trading. The Dow Jones industrial average fell 25.41 points to 3329.49, its lowest close in more than six weeks. Broader market indexes also slumped. Losing stocks beat winners 952 to 775 on the New York Stock Exchange, where volume was 194 million shares. GOLD DOWN, SILVER MIXED: Gold prices fell, and silver was mixed Tuesday. On the New York Commodity Exchange, gold bullion for current delivery settled at $342.20 a troy ounce, down 90 cents. Gold fell in London to $342.59 from $343. Silver bullion rose in London to $4.12 from $4.10. On the New York Comex, silver for current delivery settled at $4.096, down from $4.132. OIL PRICES DOWN: Oil prices fell in slow trading Tuesday. On the New York Mercantile Exchange, the price of benchmark light sweet crude for July delivery fell 6 cents a barrel to settle at $22.31, erasing a 6-cent gain. Wholesale home-heating oil for July delivery fell .24 cent to settle at 60.80 cents a gallon; wholesale unleaded gasoline for July delivery fell .34 cent to settle at 65.38 cents a gallon. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Wednesday at 3329.49 after closing down 25.41 Tuesday. The New York Stock Exchange composite opens at 224.72, down 0.90. The American Stock Exchange market value opens at 386.12, down 2.66. The NASDAQ OTC composite opens at 564.07, down 4.94. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Wednesday. It opens at 0.5366 British pounds, down from 0.5404; 5.2665 French francs, down from 5.3025; 1.5645 German marks, down from 1.5750; and 126.56 Japanese yen, up from 127.02. (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