MARKET RALLY CONTINUES. A late round of buying pushed stock prices higher Monday, extending the rally that carried the market to a record high last week. The Dow Jones average of 30 industrials, up 113.59 points last week, rose another 7.83 to 3,035.33. Advancing issues slightly outnumbered declines in nationwide trading of New York Stock Exchange listed stocks, with 808 up, 750 down and 508 unchanged. T-BILLS UP. Interest rates on short-term Treasury securities rose Monday as the government auctioned $10-billion of three-month Treasury bills and $10-billion of six-month bills. The average discount rate for the three-month bill was 5.59 percent, up from 5.46 percent last week, while the average discount rate for the six-month bill was 5.71 percent, up from 5.65 percent. The discount rate understates the return to investors _ a yield of 5.76 percent on three-month bills and 5.98 percent on six-month bills. In a separate report, the Federal Reserve said Monday that the average yield for one-year Treasury bills fell to 6.13 percent last week, down from 6.15 percent the previous week.
Home prices jump;
ability to buy drops
The typical American family's ability to buy an existing home slipped in April because of a substantial increase in prices, a real estate trade group reported Monday.
The National Association of Realtors said its Housing Affordability Index dipped 1.9 percentage point to 111.4 following a $2,000 jump in the median price of a home.
The index means that a family earning the median income of $36,057 had 111.4 percent of the income needed to qualify for conventional financing covering 80 percent of a home with the median price of $100,200.
The median means half of the incomes totaled more and half less, or that half of the homes cost more and half less.
CONSTRUCTION SPENDING UP. Construction spending grew 0.8 percent in April, the government said Monday in a report that contained new evidence the housing industry has seen the worst of its hard times. But government spending, which represents more than 25 percent of all construction projects, fell for the second straight month. Overall, the Commerce Department said residential, non-residential and government spending totaled a seasonally adjusted annual rate of $392.6-billion, up from $389.3-billion in March. Although the April increase was the largest since a 2.2 percent gain in February 1990, spending in April was down 11.7 percent from the same month in 1990.
BANKERS ATTACK REFORM BILL. The Washington-based Independent Bankers Association, accelerating a campaign against the Bush Administration's bank reform bill, has asked the Federal Reserve Board to determine if NCNB Corp.'s Texas subsidiaries are meeting the credit needs of its communities under the Community Reinvestment Act. Community bankers say liberalized interstate banking laws will further strengthen the hand of large banks, leading depositors to move their savings into only the biggest institutions. The Charlotte, N.C.-based NCNB said it wrote $6.2-billion in new loans in Texas between 1988 and 1990, which represents a 10 percent growth rate compared with a 13 percent decline in lending by all other Texas banks during the same period.
GLENFED CEO RESIGNS. Keith P. Russell, Jr., president and chief operating officer of GLENFED Inc., the California-based parent of Glendale Federal Bank, resigned Monday to pursue other interests. Norman M. Coulson, chairman and chief executive officer, will assume Russell's duties. Glendale Federal operates 215 banking offices in California, Florida and Washington; 60 branches are in Florida. It held 5.67 percent of the state's thrift deposits at year-end 1990, making it second in market share in the state behind Great Western.
AIR TRAFFIC DROPS AGAIN. Passenger traffic at Tampa International Airport dropped 12 per cent in April, marking the fourth consecutive month of declining traffic. Domestic traffic decreased by 11 percent, international by 20 percent. Officials blamed the recession and cutbacks by Air Mexicana and Canadian airlines.
FLORIDA PROTESTS ENCORE. The Encore movie channel premiered in 46 states Monday with the Poseidon Adventure as attorneys skirmished in Florida over a billing method that forces cable customers to act if they don't want the service. Storer TV of Florida blacked out its Encore broadcasts in three test markets following an injunction striking down its "negative-option" billing plan, but parent Tele-Communications Inc. went ahead with its debut date. Florida Attorney General Bob Butterworth won the court order Saturday after charging Storer would violate Florida's unfair trade law by forcing customers to cancel the channel after a free month to avoid an otherwise automatic monthly fee. Monday, Miami-based Storer submitted a notice of appeal in West Palm Beach and Denver-based TCI sued the state in Tallahassee to stop it from intervening.
DOW 30 INDUSTRIALS 3035.33 +7.83
DOLLAR JAPANESE YEN 139.15 +0.85
BONDS 30-YEAR U.S. 8.33% +0.07