Dow slips 7 points during heavy trading

Juliuis Westheimer

January 28, 1993|By Julius Westheimer

Snapping a four-day winning streak, the Dow Jones industrial average slipped 7.56 points on profit-taking yesterday, closing at 3,291.39. Big Board volume remained heavy, at 279 million shares.

LOCAL VIEWPOINTS: "Support for stocks may be found in rising profits which accompany economic recovery, improving investor sentiment and positive demand factors. Overall, we expect profits to expand nicely while price-earnings ratios contract in response to higher interest rates." (Richard Kodensky for Mercantile Safe Deposit & Trust Co.) The Mercantile's "Emphasis List" includes Bristol-Myers Squibb, Cooper Industries, Glatfelter, Lubrizol and Times Mirror . . . Rick Faby, Smith Barney, sends his firm's "Emerging Growth Stock Monthly" which comments, "Emerging growth stocks outperformed both the Dow Jones industrials and the S.& P. 500 index during December." Phone Mr. Faby (494-1853) for the 41-page report.

YOUR COMMENTS: Here are more of your postcard comments from our 1993 Dow Jones contest, now closed: "The economy will grow in spite of the election, adding 200 points from last year, so I'll say Dow Jones 3,513." (William Devilbiss, Glen Arm) . . . "I picked the number of the house I grew up in, namely 3,960." (Mary Mosetti) . . . "I predict a 6 percent increase over 1992 and that's DJ 3,507." (Thomas O'Connor) . . . "I expect a modest gain this year, closing at Dow Jones 3,429. An expected rise in interest rates and Clinton's first year will keep the market in check." (Alvin Freedman)

MORE PREDICTIONS: "I say 3,426, part of our anniversary date and better days under Clinton." (Gary Hoopengardner) . . . "Wizard Elaine Garzarelli says 16 to 17 percent-plus for 1993, so I'm being optimistic and picking 3,750." (Milton Goldberg) . . . "I picked my age at the beginning of 1993 (36) and at year-end (37), so it's 3,637." (John Smith, Catonsville) . . . "Usually near/ up and down and 'tween/ I'll hit it this year/ with 3,418." (B. Loretta Vaeth, Cockeysville) . . . "This year's Dow will be a big mix/ So I'm betting I'll hit with 3,456." (Frederick Vaeth Jr., Cockeysville) . . . "Your contest is a great idea. I say 3,388." (Oliver Travers, president, Schenuit Investments Inc.)

"UNCLE HENRY": Day after tomorrow, Jan. 30, marks the 123rd birthday of my uncle, Henry F. Westheimer who, in partnership with my father and another uncle, was a stock broker in Baltimore before and during the Depression. Once my father told me, "Son, your Uncle Henry was the smartest investment man I ever knew. In mid-October, 1929, when stocks were booming, he wrote out a thick batch of 'Sell' orders for his and his many customers' accounts, announced to everyone in the smoke-filled board room, 'I've decided to sell just about everything because I just read that thousands of unsold cars are backing up in Detroit,' and handed his orders to the telegrapher. He saved hundreds of thousands of dollars as the market crashed about two weeks later."

EXPERT'S PICKS: Here are 1993 stock selections of Louis Holland, whose 1992 picks on "Wall Street Week With Louis Rukeyser" ranked No. 3 of 27 panelists, returning a solid 26.7 percent total return (stock gain plus income): British Petroleum, Emerging Germany Fund, Future Germany Fund, General Motors, Merrill Lynch, New Germany Fund and Varian. He predicts a Dow Jones close of 3,000 this year. (We printed the 1993 selections of No. 1 and No. 2 panelists, Howard Colhoun and Greta Marshall, last Tuesday.)

BALTIMORE & BEYOND: Money magazine, February issue, lists these local financial institutions for best rates in the categories named: car loans: Loyola Federal Savings; home equity loans: Chase Bank of Maryland; 30-year adjustable-rate mortgages: Signet Mortgage; 30-year fixed-rate mortgages: Bank of Baltimore . . . Baltimore Security Analysts will be host to RJR Nabisco Vice President Hunt Whitacre, Wednesday, Stouffer Hotel at noon . . . You may "speed dial" for postage stamps ($3 charge) by calling 800-782-6724 . . . Did you realize that 27 percent of Social Security recipients have their checks automatically deposited into their bank accounts? . . . Westinghouse stock is listed under "Buy These Dow Jones Stocks For 1993 Profit" in Money magazine, February issue. Westinghouse is also named under "Five-Star Stocks: Buy List" in a recent S&P Outlook . . . Harry B. Gorfine & Co. (539-5474) will mail you its February Tax Report with a story, "How to Deduct Investment Interest." . . . Day after tomorrow, and every Saturday, I answer your "live" call-in questions on WBAL-TV (Channel 11) at 8:15 a.m., and every weekday morning at 6:45 a.m. Dial 481-8844.

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