The Dow Jones average surged 42 points yesterday, closing at 2,930.20. Most observers attributed the run up to banks' lowering prime-interest rates following the Federal Reserve reduction of its discount rate to member banks. Lower rates stimulate business and offer less competition to stocks.
RECESSION REVIEW: A Baltimore paper goods distributor told me, "For the first time in 15 years my banker actually left his desk, came to my office, thanked me for my business and asked what more his bank could do for me. Banks must really be hurting." . . . On the "MacNeil-Lehrer NewsHour" Tuesday, after the Federal Reserve lowered the discount rate, two economists thought the recession would end this summer or fall, one predicted the summer of 1992 and one said, "It won't end until the government does something for the common man, not just big corporations." . . . Our Daily Bread soup kitchen, 200 W. Franklin St., now feeding more people than ever, needs sugar (lots of it), spaghetti sauce, salt, jelly, paper lunch bags, disposable razors and money.
LOCAL LINE: The Rothschild Co., for institutional funds under management, gained 9.1 percent in this year's first quarter vs. the Standard & Poor's 500-stock index 14.6 percent advance. But since its 1973 inception, Rothschild is ahead 813 percent -- a lot for 18 years; did you do as well? -- vs. the 640 percent S&P gain. The firm (539-4660) will mail details, charts, graphs, etc. In those 18 years, long-term government bonds gained 369 percent, 91-day T-bills were up 342 percent. All figures are "total return," gain plus income . . . Legg Mason will mail its latest Research Weekly, with a good story on Loyola Capital . . . .I will answer your money questions Saturday, noon to 1:20 p.m., on WBAL Radio . . . USF&G stock is written up under "Attractive Special Situations" in S&P Outlook, April 24. ("Has attraction for takeover-turnaround potential.")