THE FEDERAL RESERVE Board, citing recent declines in oil prices and economic expansion, reduced its discount rate to 7 percent from 7 1/2 percent. Immediately, major banks began lowering their prime lending rates to 9 percent from 9 1/2 perecent.
THE NATION`S UNEMPLOYMENT rate jumped sharply to 7.3 percent in February, a one-month rise of six-tenths of a percentage point that was the biggest increase in the jobless rate in six years, the Labor Department said. THE GOVERNMENT`S INDEX of leading economic indicators fell 0.6 percent in January, the first decline in nine months.
SALES OF NEW HOMES climbed 4.4 percent in January. The month`s increase was the third in a row, after gains 12.9 percent in November and 0.3 percent in December.
CONSTRUCTION SPENDING rose a modest 0.9 percent in January, paced by strong figures for single-family homes and apartments.
RETAIL SALES IN FEBRUARY were generally weak, the nation`s major retailers reported. However, analysts said strong Easter season sales are expected.
NEW CAR SALES tumbled 26 percent in late February, with analysts blaming buyer confusion over changes in carmaker incentive plans.
FINANCIER RONALD NEWTON, a founder of E.S.M. Government Securities Inc., pleaded guilty to criminal fraud charges in Ohio. The collapse of E.S.M. triggered a crisis in the Ohio savings and loan industry.
INTERNATIONAL
BOTH WEST GERMANY and Japan cut their official bank-discount rates, moves seen as an effort to stimulate the world economy and prevent the U.S. trade imbalance from worsening.
EFFORTS TO SALVAGE the International Tin Council fell through once more, as Indonesia torpedoed talks to create a new company that would attempt to control prices.
ELECTROLUX, A SWEDISH appliance company that owns Tappan Co., made a $711 million offer for White Consolidated Industries, a U.S. appliance maker. White Consolidated`s board rejected sthe offer.
CHICAGO/MIDWEST
THE CHICAGO-AREA economy grew at a strong pace in February, as new orders and production surged, according to a survey of local purchasing executives. Their index of seven leading indicators jumped sharply, to 62 from 55 in January.
OFFICE VACANCIES WILL hit 15 percent in downtown Chicago and more than 30 percent in at least two suburban markets over the next two years, a study warned.
ST. LAWRENCE SEAWAY officials said tolls will be increased by 15 percent on the Canada-run section of the waterway when the 1986 shipping season opens in April.
MOODY`S INVESTORS Services raised its debt ratings of Continental Illinois Corp. and its Continental Illinois Overseas Financial Corp. subsidiary.
THE LEVY ORGANIZATION, a real estate and restaurant firm, said it will begin publishing an afternoon tabloid business newspaper containing closing stock market and commodity prices.
CORPORATE
CATERPILLAR TRACTOR CO. SAID IT PLANS TO CLOSE A MANUFACTURING PLANT IN MISSISSAUGA, CANADA, AND CONSOLIDATE OPERATIONS AT BRAMPTON, 18 MILES AWAY.
BANKAMERICA CORP. DIRECTORS REJECTED, FOR THE SECOND TIME IN LESS THAN A MONTH, A BID BY SANFORD WEILL, FORMER PRESIDENT
OF AMERICAN EXPRESS, TO BECOME HEAD OF BANKAMERICA. HE THEN WITHDREW THE OFFER.
GENERAL MOTORS CORP. ANNOUNCED PLANS TO BUY BACK 40 MILLION SHARES OF COMMON STOCK, WORTH ABOUT $1.95 BILLION.
MESA PARTNERSHIP AGREED TO ACQUIRE PIONEER CORP. FOR AN ESTIMATED $800 MILLION. THE AGREEMENT CALLS FOR MESA TO ISSUE
PARTNERSHIP UNITS TO PIONEER SHAREHOLDERS AND ASSUME ALL THE OIL AND GAS FIRM`S LIABILITIES.
PULITZER PUBLISHING CO. SAID IT DECIDED A $500 MILLION TAKEOVER OFFER FOR THE COMPANY BY FINANCIER A. ALFRED TAUBMAN WAS TOO LOW.
JARTRAN INC., A NATIONWIDE RENTER OF TRUCKS AND TRAILERS, FILED FOR CHAPTER 11 BANKRUPTCY.
INTEL CORP. AND ADVANCED MICRO DEVICES, TWO MAJOR SILICON VALLEY MAKERS OF SEMICONDUCTORS, RAISED PRICES ON CERTAIN MEMORY
CHIPS BY 25 PERCENT, CITING AN EASING OF COMPETITION BY THE JAPANESE BECAUSE OF A WEAKER DOLLAR.
MEDIA BARON RUPERT MURDOCH COMPLETED HIS $1.5 BILLION ACQUISITION OF SIX TV STATIONS, INCLUDING CHICAGO`S WFLD TV (CHANNEL 32) FROM
METROMEDIA INC. MARKETS
STOCKS: The Dow Jones industrial average finished down 9.23 points for the week, closing at 1699.83. The New York Stock Exchange index lost 0.36 point, to close at 130.38, while the American Stock Exchange index finished up 2.70 points at 260.05. The Nasdaq index of over-the-counter stocks closed up 2.71 points at 362.24. Composite volume of NYSE-listed stocks for the week, was 950.1 million shares, down from 982.4 million shares the preceding week.
BONDS: The Dow Jones bond index closed down 0.07 point at 89.21.
COMMODITIES: The Dow Jones index of commodity futures was up 1.10 point for the week, closing at 133.14, while the spot index was up 1.50 points, closing at 129.05.
