Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.invest From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: invest Mon, Apr 13 1992 Date: Mon, 13 Apr 92 05:42:38 EDT Message-ID: 04-13 0000 DECISIONLINE: Personal Investing USA TODAY Update April 13, 1992 Source: USA TODAY:Gannett National Information Network BANKS OFFERING CALLABLE CDS: Some banks are offering a new certificate of deposit that gives savers higher rates but lets the bank back out of the deal at a later date. The CDs are called callable CDs because, like many corporate bonds, they let the issuer back out of the agreement after a period of time. The callable CDs let the bank terminate the CD after a year if the rate is higher than the bank wants to pay. (For more, see special CDs package below.) STOCK PRICES SURGE ON FED CUT: Stock prices rose Friday, lifted by the Federal Reserve's interest rate cut Thursday and sharp gains in the Tokyo and London markets. The Dow Jones average of 30 industrials Friday rose 30.41 to 3,255.37, but posted a 20.12-point loss for the week. In Tokyo, the Nikkei Stock Average surged 1,252.51 points (7.55%) - its fifth-biggest daily gain on record - to end the week at 17,850.66. BOND PRICES FALL: Bond prices fell Friday on bad news about consumer inflation, with the bellwether 30-year Treasury bond off a third of a point, or $3.44 per $1,000 face amount, pushing up its yield to 7.89% from 7.86% Thursday. The Labor Department said consumer prices shot up an unexpectedly sharp 0.5% in March, the biggest rise in 17 months, as prices for food, energy and clothing all posted big gains. NICHOLAS CASHES SOME CHIPS: One month after his unceremonious ouster as president and co-CEO of Time Warner, Nick Nicholas Jr. sold 48,686 shares of Time Warner common stock at $105.26 a share on March 17, according to filings with the Securities and Exchange Commission. The sale came just before Time Warner's stock price fell 9%. He still owns 59,272 shares, worth $5.9 million at Friday's closing price of $99 7:8. COLLEGE BOUND PROBED BY SEC: College test preparation service College Bound is under investigation by the Securities and Exchange Commission, reports USA TODAY. The paper says a court filing was made April 7 in connection with SEC efforts to obtain certain financial and accounting records. College Bound is expected to start turning over those records this week. Friday, its stock fell 5 3:4 to $7. MISLEADING REPORTS ALLEGED: The Securities and Exchange Commission's investigation into College Bound has turned up incidents of wrongdoing by the college test preparation service, reports USA TODAY in Monday's editions. In its filing, the SEC says staff members have reported information indicating, among other things, that College Bound may have filed SEC reports containing false and misleading information. PROXIES DECLARED NULL AND VOID: A ruling Friday by the U.S. District Court for the Middle District of North Carolina in a proxy fraud case brought by Louise Price Parsons against Jefferson-Pilot Corp. declared all proxies cast in favor of a 1990 amendment to a J-P stock option plan null and void. It also rescinds over 200,000 shares of stock awarded to certain officers and directors of the company in 1990 and 1991. GOLD HIGHER IN NEW YORK: Gold prices were higher Friday. On the New York Commodity Exchange, gold closed at $341.10 a troy ounce, up $1.60 from Thursday. Later, the Republic National Bank in New York quoted an ounce of gold bullion at $340.65, up $1.25. On New York's Comex, silver for current delivery settled $4.10 a troy ounce, down 5 cents from late Thursday. SPECIAL PACKAGE ON CDS: YIELDS ABOVE 6% OFFERED: Callable CDs allow a bank to attract depositors without the risk of paying higher-than-average rates for years. Wachovia Bank of Georgia's callable CD has a three-year term and yields 6.4%, about one-fifth of a percentage point above its regular CD offering. Enterprise National Bank in Palm Beach Gardens, Fla., offers a five-year CD that yields 6.9%. ENTERPRISE YIELD TOPS U.S. AVG.: Enterprise National Bank's 6.9% yield for its callable CD is about a half-percentage point more than the national five-year CD average, according to 100 Highest Yields newsletter. Its seven-year CD yields 7.2%, and its 10-year CD yields 7.4%. The bank accepts deposits only from those in the community. After a year, the bank can close the account with 30 days' notice. CDS A GOOD DEAL FOR SAVERS: The CDs can be a good deal for savers who are looking for the best rates - and don't mind having the plug pulled on the account. After all, the CDs can't be called for at least a year, and their rates are a lot higher than one-year CD rates. The current national average rate on one-year CDs is 4.2%. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Monday at 3255.37 after closing up 30.41 points Friday. The New York Stock Exchange composite opens at 223.27, up 2.17. The American Stock Exchange market value opens at 388.01, up 2.07. The NASDAQ OTC composite opens at 584.24, down 2.51. 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Personal Investing Editor: William Snoddy. (1-919-855-3491) 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