Dow continues Friday rally, gains 18 points

The Ticker

December 08, 1992|By Julius Westheimer

Adding to Friday's 12-point rally, the Dow Jones industrial average gained 18 more points yesterday to close at 3,307.33. Quiz: Where was the Dow index on Dec. 7, 1941, Pearl Harbor Day, 51 years ago yesterday? Read on.

CROSS SECTION: "Stocks have earned a rest, but the economy is improving and December and January are often banner months in the market." (Babson Investment Report) . . . "The market is looking for a road to take and that road will eventually lead to a bear market." (Yamamoto Forecast) . . . "The 12-month outlook continues to point to a 7 percent decline, and somewhere along the way we'll have a 10 percent drop." (The Big Picture) . . . "The stock market is that creation of man which humbles him the most." (1993 Stock Trader's Almanac)

MORE VIEWS: "Recent highs in the S&P 500 and NASDAQ haven't lost any momentum, yet the market isn't getting any less overbought. Our indicators are not improving, so let's not get overly exuberant here." (Deemer Technical Research) . . . "We expect 16 times earnings for 1993, and that's a fair valuation for stocks. Buy General Re and Intel." (Maceo Sloan) . . . "This will be thebest retail Christmas in five years. Buy Walmart, Home Depot, Dillard, Federated and Charming Shoppes." (Joseph Ellis, voted Wall Street's top retail analyst for the 16th time).

BALTIMORE BEAT: Bill Berkis sends along "The Time Chronicle," dated Sept. 21, 1916, with these figures: Loaf of bread 7 cents, pound of butter 39 cents, gallon of milk 36 cents, gallon of gas 14 cents, new home $3,395, new Ford auto $360, average annual income $1,359, ounce of gold $20, Dow Jones industrial average 106. . . . T. Rowe Price Small Cap Value Fund is mentioned favorably in Jay Schabacker's Mutual Fund Investing Letter. ("Under Clinton, look for an improved capital gains structure, possible tax exclusion for long-term investment and improved growth for small companies such as small capitalization firms in this fund.") . . . When I asked the owner of a suburban liquor store how business was and he responded, "Poor," I asked why. "It's not the recession," he responded, "it's Mothers Against Drunk Driving, a very effective group."

WORKPLACE WISDOM: "Tips To Help Re-Entry Women Land New Positions" in National Business Employment Weekly, Dec. 4-10, carries valuable hints. Excerpts: "The woman who forfeited her career goals 18 years ago to raise three children needn't feel insecure. . . . Turn your assumed shortcomings, such as lack of professional experience, into strengths that hiring managers appreciate. . . . The biggest mistake that re-entry women make is under-rating themselves. . . . It's fine to accept a job at the low end of the pay scale, but don't agree to be paid less than the prevailing rate. . . . Realize that all your nonpaid accomplishments are valuable. . . . If you don't own a word processor, have your resume professionally prepared. . . . When interviewing, don't wear the suit your mother bought you 20 years ago for your college graduation. Buy a business suit and a good pair of shoes for interviews."

DECEMBER DIARY: On Dec. 7, 1941, the day the Japanese attacked Pearl Harbor, the Dow Jones industrial average stood at 116.60. When World War II ended, Aug. 14, 1945, the Dow closed at 164.79. . . . Non-money note: A rare total eclipse of the moon occurs in this area tomorrow night, beginning around sunset. Look northeast for a shaded moonrise between 4 and 5 p.m. . . . In last week's flat stock market, these local issues hit 12-month highs: Loyola Capital, Signet, Martin Marietta, Micros Systems and Merry-Go-Round. . . .

"In a nutshell, low-turnover mutual funds have made more money and assumed less risk than have moderate-turnover funds, which in turn boast the same advantages over high-turnover funds." (Morningstar, a mutual fund tracking firm) . . . "Growth stocks that raise their dividends frequently and substantially include Abbott Labs, Bristol-Myers Squibb, Johnson & Johnson, Merck, Philip Morris, Quaker Oats, Ralston Purina and Sara Lee." (PaineWebber Viewpoint) . . .

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