Dow soars to another peak

The Ticker

April 16, 1992|By Julius Westheimer

Following Tuesday's 36-point surge, the Dow Jones average added 48 more points yesterday, closing at a record 3,353.76. Most observers believe lower interest rates, improved IBM earnings and investors "jumping on the bandwagon" triggered the latest rally.

WALL ST. WATCH: "Federal Reserve easing has certainly restored investors' confidence." (Geoffrey Dennis, investment strategist). . . . "Tiny Fed easing won't reverse the market correction." (Allen Sinai, economist). . . . "Don't be fooled by strength of 30 Dow Jones stocks. Most stocks are having their own correction. It's time for cash and caution." (Sy Harding Forecasts). . . . "Stocks act heavily and our indicators deteriorated faster than expected. Reduce positions." (BCA Foretrends). . . . "Investors have jitters about March quarterly earnings, anxiety not misplaced." (California Technology Letter). . . . "Our eclectic approach recognizes that the market's valuation remains high and could move higher if interest rates seem to be declining." (Smith Barney via Rick Faby, Lutherville office.). . . . "Bulls make money, bears make money, but hogs -- never." (Old Wall Street saying.)

LOCAL LINE: Tomorrow night, locally produced "Wall $treet Week with Louis Rukeyser" examines "Small Strong Stocks" with Carlene Murphy, portfolio manager, Strong Funds, and panelists Ralph Acampora, Frank Cappiello and Mr. Ticker. . . . Saturday, I will talk money with you, 8-9 a.m. Phone 467-WBAL. . . . T. Rowe Price is listed under "Elite Service" (top ranking) in Financial World's April 14 Annual Mutual Fund Survey. . . . In Argus' latest Electric Utility Rankings, Potomac Electric Power is listed under "Group 1: High Quality" and BG&E and Delmarva Power & Light fall under "Group 2: Good Quality." . . . Jack Laporte, portfolio manager, T. Rowe Price New Horizons Fund, is written up and pictured in Barron's, April 6. ("New Horizons is the largest small-cap fund in the United States.")

MORE LOCAL LINGO: Baltimore Security Analysts present M.J. Morrow, vice president, Federal Realty Investment Trust, on Wednesday Sheraton Downtown at noon . . . . Legg Mason will mail its Research Weekly, including this comment on Giant Food: "Washington-Baltimore area will continue to keep pressure on Giant's profit margins even as the economy improves; we are lowering our earnings estimate." . . . "Present stock market looks for a good 1992 profits increase, so there is vulnerability if profits don't improve." (Investment Counselors of Maryland). . . . "Fundamentals necessary for a sustained economic recovery are clearly more positive today." (Mercantile Safe Deposit & Trust Co.)

BALTIMORE & BEYOND: Legg Mason's Gerald Scheinker writes: "At his Nassau home in the Bahamas, mutual fund expert John Templeton told 20 of our brokers: (1) He likes fire, casualty and life insurance stocks such as Kemper, Aetna and Cigna; (2) he thinks the Hong Kong market is cheap; (3) he feels U.S. markets are slightly overvalued and (4) he's very concerned about possible collapse of the Japanese real estate market." Call Mr. Scheinker (486-8010) for more information. . . . "To get higher yields in spite of low interest rates, many investors are making riskier investments. Better: pay off old debts (car loans, etc.) to profit by paying less interest instead of trying to earn more." (Howard Safer, CPA, Nashville). . . . Banks and stock exchanges close tomorrow for Good Friday. . . . Sad note: "One out of every three children born this year will end up on welfare by age 18." ("McNeil Lehrer News Hour").

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