DOW FALLS AGAIN. Worries over rising interest rates helped push stock prices lower Friday as the market continued to retreat from its recent record highs. The Dow Jones average of 30 industrial stocks dropped 18.12 points to 2,976.74, stretching its loss for the week to 50.84 points. MORTGAGE RATES CLIMB. Fixed-rate home mortgages averaged 9.48 percent this week, up from 9.45 percent last week, according to a national survey released Friday by the Federal Home Loan Mortgage Corp. On one-year, adjustable-rate mortgages, lenders were asking an average initial rate of 7.24 percent this week, up from 7.17 percent last week.
Judge drops several
of Keating charges
A judge Friday dismissed 13 of 34 counts of securities fraud against Charles H. Keating Jr., ruling the Lincoln Savings operator couldn't have broken the law as stated in the case against him.
California Superior Judge Lance A. Ito also gave defense attorneys a chance in three weeks to again challenge the remaining counts. Those include the heart of the case _ that elderly investers were duped into buying risky junk bonds at Lincoln branches.
Lawyers for Keating on Friday urged the dismissal of all charges against Keating and his two co-defendants, saying they can't be held liable for junk-bond sales made by employees. But the judge didn't address their plea specifically.
CONSUMER BORROWING UP. Consumers increased their borrowing in April for the first time in five months, the government said Friday, in what analysts called another sign the economy is pulling out of recession. Outstanding consumer credit rose $1.7-billion after falling $4-billion from November through March, the Federal Reserve said. Consumer spending represents two-thirds of the nation's economic activity, and its revival is considered crucial to ending the recession. The biggest increase in April came in credit card debt, while auto loans were the only area to show a decline _ the fourth in a row.
SAVINGS BOND SALES SLIP. Sales of U.S. Savings Bonds fell 2.7 percent in May to $841-million after the interest rate declined, the government said Friday. Since May 1, the interest rate on bonds has been 6.57 percent, down from 7.19 percent in the previous six months.
MORGAN BUYS THRIFT. New York banking company J.P. Morgan on Friday won approval from the Resolution Trust Corp. to buy the deposits and some assets of the failed Investors Federal Savings Bank of Deerfield Beach. Morgan will operate as a newly chartered thrift to be called J.P. Morgan Florida Federal Savings Bank, based in Palm Beach, where Morgan already provides private banking services for the wealthy.
TARPON SPRINGS PICKS KIMMINS. Kimmins Recycling Corp. said Friday it has won a five-year contract to provide solid waste collection, disposal and recycling services to about 6,500 homes and 450 businesses in Tarpon Springs. The contract is expected to generate about $10-million in revenues. Kimmins is a subsidiary of Kimmins Environmental Service Corp. of Tampa.
DOW DOLLAR VS. YIELDS
30 INDUSTRIALS JAPANESE YEN 30-YEAR U.S. BOND
2976.74 140.35 yen 8.47%
-18.12 +1.07 +0.05