Dow backs off from peak volume is much lighter

The Ticker

February 09, 1993|By Julius Westheimer

Reversing a three-day surge of 113 points that carried it to a record high, the Dow Jones industrial average backed off yesterday, edging down 4.60 points and closing at 3,437.54. Volume declined to 242 million shares, much lighter than last week's average trading day.

LOOKING AHEAD: "I'm bullish, even after this strong week, and I think the market will keep going up. It's encouraging that the Dow Jones industrials finally caught up with other averages. And NASDAQ has taken a breather; that's good too. I always like to see rotation." (Gail Dudack, technician) . . . "This is definitely a bull market; it will continue as long as interest rates stay low, which they will. Inflation will stay down too. I like Pepsi, Coca-Cola and Procter & Gamble." (Mary Farrell) . . . "Some speculation is creeping into the market with the record number of initial public offerings. There's a perception that money is easy to make in Wall Street, and we'll have to watch that carefully." (Alan Bond, portfolio manager). Above comments from Friday's "Wall Street Week With Louis Rukeyser."

MARYLAND MAILBAG: Here are more of your comments in our Dow Jones forecasting contest: "The cooler the cheers for Clinton, the steeper the surge for stocks. Year-end it'll be Dow 3,835." (Sharon Thomas) . . . "Being logical hasn't gotten me anywhere, so illogically I'll pick 3,233 because the first two numbers plus the last two equals my age by Dec. 31." (Mary Abbott Jackson) . . . "With so many experts predicting peaks, I'll choose valleys, so I'll say 2,733. Thanks for your always interesting columns." (F. Garner Ranney) . . . "It's not like winning the lottery but for a free dinner, why not try? My guess is 3,241." (Audrey Nastvogel).

MARYLAND MEMOS: Legg Mason's new "Investor's Dozen of Recommended Stocks" includes A & W Brands, Baxter, Eli Lilly, First Commerce, GFC Financial, Humana, Instrument Systems, Magma Copper, Porta Systems, PSI Resources, Public Service Group and Telefonos de Mexico. The letter adds, "1993 is the Chinese Year of the Rooster and if investors are careful and selective, by year-end they'll have something to crow about." . . . Call PaineWebber's Marvin Fribush (576-3220) for his firm's 16-page "Rules of the New Game: New Opportunities and Long-Term Strategies for Investors" ... Gruntal & Co.'s Rex Rehfeld comments, "If interest rates are declining -- a condition that must continue for stocks to rise in a weak economy -- bonds may be a safer bet."

BALTIMORE & BEYOND: T. Rowe Price New America Fund is listed under "Best Funds for the Long Haul" in U.S. News & World Report, Feb. 8 . . . "Despite the substantial declines in short-term rates since November, these rates will probably decline further in the weeks just ahead." (Smith Barney, via Rick Faby) . . . Merck, Coca-Cola, General Electric and Sara Lee are listed under "Buys in High Quality Stocks" in S&P Outlook, Feb. 3 . . . If you had invested $10,000 in the Templeton Growth Fund in 1954, you would now have a value of $1,612,440, including reinvested dividends. (Recent Templeton magazine ad) . . . Think inflation is dead? Look at your recent medical, cable TV, movie ticket expenses, etc.

MIDWINTER MEMOS: Travel Tips: "Before you book at a hotel, check prices at both the toll-free reservation number and the hotel itself. Rates often differ . . . Negotiate your best deal before asking for other discounts, such as AAA and AARP . . . If you book your room weeks ahead of time, check rates again just before you travel. Rates may have dropped in the interim." (Dollar Stretcher) . . . "If IRS telephone bottlenecks bother you, call IRS at (800) 829-1040 between 8 and 9 a.m., Tuesday through Thursday." (Ernst & Young) . . . Money-Saver: "February brings big reductions in china, glass, silver, mattresses and bedding." ("52 Ways to Stretch a Buck" by Kenny Luck, $7.99) . . . "Best 'sell' signal for a stock: Sell when the 12-month earnings of a company decline." (Eugene Lerner, Northwestern University) . . . "At the end of our course on the Decline and Fall of the Roman Empire, little Bill Clinton stood up and said, 'If I had been emperor, Rome wouldn't have fallen.' " (Msgr. John O'Donnell, President Clinton's third-grade teacher).

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