Dow backs off, down 49.71 for week

The Ticker

February 16, 1993|By Julius Westheimer

The high-flying Dow Jones industrial average backed off from its Feb. 5 record closing high (3,442.14) in late trading last week, giving up 49.71 points for the week and closing at 3,392.43. Markets were closed yesterday in observance of Presidents Day.

FEBRUARY FORECASTS: "The January rally will continue through February and try for a Dow Jones high of 3,467." (Long and Short Forecast) . . . "Don't get carried away." (S.& P. Outlook). "A steady inflow of capital should keep the Dow on a slight upward bias." (Dessauer's Journal) . . "While we won't argue that stocks could go a little higher, the bearish camp is too tempting to pass up." (Grandich Letter) . . . "Given many favorable factors and mutual fund cash levels at nine percent, stocks remain bullishly poised." (Fund Profit Alert)

LOOKING AHEAD: The Kiplinger Washington Letter feels that business will grow a bit over 3 percent this year -- better than the average year -- and that profits will leap 15 to 20 percent. The letter also predicts that inflation will remain low, around 3 percent, but that short-term interest rates will edge higher as the year progresses . . . "Are baseball card investors facing the final out? Topps Co., the leading card maker, recently reported its first quarterly loss in a decade, pushing the stock price down 31 percent. The slump is caused by a market flooded by cards from Topps, Fleer, UpperDeck and others in recent years." (U.S. News & World Report, Feb. 15)

LOCAL HONOR ROLL: "1992 was an exceptional year for the locally based Greenspring Fund, which achieved a total return of 16.5 percent for the year. This return compares favorably with the 7.5 percent average return of all growth funds, as calculated by Lipper Analytical Services. This fund was selected by Lipper as 1992's best performing growth fund among funds with $10- $25 million in assets." (Michael Godack, who will send details if you phone him at 410-823-5353) . . . Rowe Price Small Cap Value Fund appears in the "Very Low" risk category in Mutual Forecaster, February, with a 52 percent gain in the past two years . . . In last week's "down" market, Mid-Atlantic Medical and Citizens Bancorp stocks touched new 12-month highs.

BALTIMORE BEAT: Ester Green, Primerica Financial Services, will send Maryland residents an excellent oversized paperback, "Common Sense: A Simple Plan for Financial Independence," if you phone her at 410-668-8160 . . . Baltimore Security Analysts host MCI Corp. Thursday with Douglas Maine, chief financial officer, as speaker, Downtown Sheraton at noon . . . Top money market yields are now at Custom Savings, Washington Savings Bank (Waldorf) and Chevy Chase Savings. Highest area CD yields are at Eastern Savings Bank, Custom Savings, Loyola Federal, Washington Savings Bank and Chevy Chase Savings. (Data from "100 Highest Yields.") . . . "Cyclical stocks still seem the most attractive based on earnings leverage. We expect a 'stock picker's market' in 1993, rather than a period of broad market changes." (Investment Counselors of Maryland).

WALL STREET WISDOM: "Not only have dividends generated by stocks been relatively stable from year to year, they have also increased more quickly than inflation. Since 1926, the annual income kicked off by the S.& P. 500-stock average has soared 1,700 percent, easily outpacing the 700 percent inflation rate." (From an excellent Wall Street Journal article, Feb. 12). An accompanying chart shows that over that same period, Treasury bill income inched up 7.3 percent.

MIDMONTH MEMOS: Want to save money? Newsletters on that topic include "The Penny Pincher," P.O. Box 809 Kings Park, N.Y. 11754, $12 for 12 issues. Guest columnists give the lowdown on job-hunting, coupons, etc. Also, "The Cheapskate Monthly," P.O. Box 2135, Paramount, Calif., $12.95 for 12 issues. Data on freebies and discounts. And "The Tightwad Gazette" (Villard Books, $9.99). Write to RRI Box 3570, Leeds, Maine, 04263, for a free sample of the newsletter. (Data from U.S. News & World Report, Feb. 15) . . . "You can't hoot with the owls all night and soar with the eagles in the morning." (Leadership) . . . "All progress has resulted from people who took unpopular positions." (Adlai Stevenson) . . . "The less one has to do, the less time one can find to do it in." (Lord Chesterfield) . . . "Car renters with recent accidents -- or drunk-driving convictions -- are being rejected by auto-rental firms." (CNN TV)

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