Dow posts biggest 1-day gain in '93

The Ticker

February 04, 1993|By Julius Westheimer

Encouraged by higher corporate earnings and lower interest rates, investors pushed the Dow Jones industrial average to its biggest one-day gain of the year yesterday on heavy volume of 345 million shares. The Dow surged 45.12 points, to 3,373.79, and now stands only 39.42 points below its record high of 3,413.21. Other popular indexes reached record peaks yesterday.

WHAT THEY THINK: "This will be a tough market year although stocks will outperform bonds and bonds will outperform cash. I look for a 10-12 percent gain in stocks. I like Intel and Birmingham Steel." (Eddie Brown, Baltimore investment adviser) . . . "Long-term interest rates will decline as inflation continues to ease but short rates may rise. I'm bullish on stocks because with interest rates low, money needs a better home." (Martin Zweig) . . . "We don't have a stock quote machine in our offices because we don't concentrate on the short term. I favor firms with clean balance sheets and strong earnings, like Intel and Birmingham Steel. We visit managements, kick tires. Some favorites are CSS Industries in Philadelphia, and Blair Co." (Tom Putnam, president, FAM Value Fund, with an excellent record) Above comments on last Friday's "Wall Street Week with Louis Rukeyser."

WHAT YOU THINK: Here are comments from your predictions for the Dow Jones average at year-end: "As a result of low CD and savings rates, more people will invest in stocks. On Dec. 31 the Dow will close at 3,410" (Joseph Lerner) . . . "After weeks of analysis, Jenney, my granddaughter, chose a number 12 points greater than that chosen by that man of unquestionable integrity, ability, dedication and statesmanship, Louis Goldstein, so we can't be too far off with 3,487." (Louis Seeger) . . . "Since it's sunny here in Cancun, Mexico, I predict a sunny Dow close of 3,742.19." (Dr. Richard Lebow).

CITY THAT WRITES: More from your postcards: "Hopefully 3,538 will be the year-end Dow average and not how many more workers will get laid off at Westinghouse." (Randy Thomas, Reisterstown) . . . "President Clinton and Vice President Gore promised our fortunes will be more, so I predict the market will soar and close at 3,725." (Etta McKim, Glen Arm) . . . "President Clinton promises hope but it will take more than a year to straighten out the mess left by Bush. So my guess is 2,892, down 12.4 percent from January 1." (Larry Wagoner) . . . "Dow Jones 3,637 at year-end will make me very happy." (Stan Cochran, Reisterstown) . . . "The Dow will be driven up by better earnings and will close '93 at 3,727." (Gil Zemlak)

BALTIMORE BEAT: Every weekday this week and next, we look "Behind The Wall of Wall Street" on WBAL-TV (Channel 11) at 6:45 a.m., examining such basic topics as stocks, bonds, mutual funds, Treasury bills, the "small" investor, how to find and deal with brokers, etc. . . . The T. Rowe Price New Asia Fund is listed under "1992's Best Performers" in U.S. News & World Report's "Best Mutual Fund" issue dated Feb. 8 . . . Larry Sarbit, vice president, Investors Group Inc., will be guest of "Wall Street Week" Friday, with guest host Frank Cappiello and panelists Alan Bond, Gail Dudack and Mary Farrell . . . General Motors, with a large facility here, is one of Smith Barney's "Top Stock Picks for 1993." The firm's Rick Faby (494-1853) will mail you the full 32-page report . . . Baltimore Gas & Electric and Manor Care stocks hit 12-month highs in midweek trading.

FEBRUARY FINDINGS: "The long, severe decline in interest rates didn't produce a recovery in time to save George Bush but it virtually assures investors a 1993 bull market." (Charles Babin, managing director, BRS Capital Management, in Forbes, Feb. 1) . . . "When friends are in financial trouble, don't bother asking them if there's anything you can do. Just think of something appropriate and do it." (Leadership) . . . "A certain kind of opposition is a help, not a hindrance. Kites rise against the wind, not with it." (Bits & Pieces) . . . "A meeting is no substitute for progress." (CNBC News) . . . My uncle, a successful Baltimore merchant, once told me, "Never worry about customers who complain loudly; worry about those who silently leave and never come back." . . . "More or better isn't always the best way to success. Sometimes it's simply a matter of doing what needs to be done." (Bits & Pieces)

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