Dow Jones average leaps 2,357 points in decade

The Ticker

September 08, 1992|By Julius Westheimer

Falling after investors digested gloomy unemployment news, the Dow Jones average lost 10 points on Friday, closing at 3,281.93. But on Labor Day weekend 10 years ago the Dow stood at 925.15, about to vault 2,357 points, or 254 percent, in a decade.

WALL ST. WATCH: "Presidential election is creating downward stock bias. Looking back over 70 years, stocks fell in five of six instances in the three months prior to election when the incumbent party lost."(Zweig Forecast). . . "We still look for new highs in the Dow Jones 3,450 area." (Addison Report). . . "If market rally lasts through Labor Day, watch out. We intend to move to 100 percent cash." (California Technology Letter). . . "While many others can see 'rays of sunshine' because Dow holds up, we see more signs of a long-term bear market unfolding. As individual stocks deteriorate, it's obvious that all is not right on Wall Street." (Professional Tape Reader).

LOCAL LINE: "If you want to invest in quality intermediate-term bonds but prefer ease and diversification of mutual funds, consider the T. Rowe Price New Income Fund." (Laurie Kaplan in Personal Finance). . . U. S. Surgical stock, widely held in this area, is listed under "Excellent Short Sales" in Granville Market Letter. ("U. S. Surgical could break down through $66."). . . Loyola Federal is included under "Best Auto Loan and Mortgage Rates in Largest U. S. Cities" by H. S. H. Associates. (For details phone 1-800-UPDATES). . . Harry B. Gorfine & Co.'s Tax Report, including a section on new lump-sum distribution penalties, is yours by phoning 539-5474. . . McCormick is listed under "Four Appealing Mid-Capitalization Stocks" in S&P Outlook, Sept, 8.

HAPPY (?) BIRTHDAY: With mixed emotions I report that day before yesterday marked my 76th birthday. On the day I was born at 1807 Eutaw Place (now Bolton Hill area), Thursday, Sept. 6, 1916, the Dow Jones average closed at 94.51, so a quick arithmetical calculation -- nothing more, because most of the DJ stocks have changed -- shows that if my parents had invested $1,000 in the Dow index on that date, the investment would now be worth about $33,700.

LOOKING BACK: An invaluable reference volume, "The Dow Jones Reference Book, 1885-1970," shows that in September 1916, the 20 stocks in the Dow Jones industrial average were American Beet Sugar, American Can, American Car & Foundry, American Locomotive, American Smelting, American Sugar, American Tel & Tel, Anaconda Copper, Baldwin Locomotive, Central Leather, General Electric, Goodrich, Republic Iron & Steel, Studebaker, Texas Co., U. S. Rubber, U. S. Steel, Utah Copper, Westinghouse and Western Union.

LOOKING AHEAD: For comparison purposes on our changing economy, we note that today's Dow Jones industrial average, printed every day in The Wall Street Journal, consists of these 30 issues: Allied Signal, Alcoa, American Express, American Tel & Tel, Bethlehem Steel, Boeing, Caterpillar, Chevron, Coca-Cola, Disney, DuPont, Eastman Kodak, Exxon, General Electric, General Motors, Goodyear, I.B.M., International Paper, McDonalds, Merck, Minnesota Mining & Manufacturing, J. P. Morgan, Philip Morris, Procter & Gamble, Sears, Texaco, Union Carbide, United Technologies, Westinghouse and Woolworth.

SEPTEMBER SONGS: Regarding the above, to calculate the Dow Jones industrial average, the closing price of all 30 stocks is added up daily and divided by today's divisor which is 0.46268499. . . Kiplinger Washington Letter (Aug. 28) warns readers not to fall for talk of another business setback. . . LaLoggia'a Report, just received, warns readers, "Lack of Pre-Election Stock Rally is a Warning Sign.". . . On Sept. 19 the Federal Reserve Board will adopt rules requiring that before you buy a CD at a bank, S&L or credit union, you must be shown a list of all costs and be told exactly how interest is compounded." (Money, Sept.) Ticker Hint: daily compounding produces higher returns than other methods. . . Latest S&P Outlook says, "We're not yet out of the woods; while the market's steadier performance last week was encouraging, it's too soon to add to holdings.". . . Forbes' Sept. 14 572 page (!) 75th anniversary edition ($5), on newsstands this week, is worth buying. . . "Persisting advisory gloom could extend life of bull market." (Investor's Digest, just received)..."I had plastic surgery last week; I cut up my credit cards." (Henny Youngman.). . . "Not to decide is to decide not to." (Bits & Pieces). . . "Behold the turtle; he makes progress only when he sticks his neck out." (CNN News)

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