Dow off 22, but up 134 for quarter

The Ticker

April 01, 1993|By Julius Westheimer

Battered by a late selling wave, blue-chip stocks closed sharply lower yesterday. The Dow Jones industrial average fell 22.16 points, closing at 3,435.11. For the year's first quarter, the Dow was up 134 points, registering a 4 percent gain.

WALL STREET WISDOM: "Despite the recent decline in bond yields, this is still a good time to buy intermediate government bonds [five to 10 years] and 30-year Treasuries. Reasons: Yields now are still much more attractive than those of other low-risk investments such as money funds and bank deposits. Also, the economy isn't so strong that bond yields will rise very soon; in fact they'll probably drop first, making today's rates even more attractive." (Robert Giordano, research director, Goldman Sachs)

NOTES & QUOTES: Tomorrow night, "Wall Street Week With Louis Rukeyser" features Richard McCabe, chief market analyst, Merrill Lynch, and panelists Alan Bond, Gail Dudack and Bernadette Murphy. . . . An elderly lady told me, "Young man, at my age I don't want long-term bonds. I'm so old I don't even buy green bananas any more." . . . "It's always hardest to stay out of the stock market when everyone is talking about all the money they made, but when all is gloom and doom has historically been the best time to invest." (Rex Rehfeld, Gruntal & Co.)

TAKE YOUR CHOICE: "The argument that inflation is dead could not be farther from the truth. In fact, persistent strength in gold stocks is a warning that the universally complacent inflation attitude is incorrect." (LaLoggia's Special Situation Report) . . . The Kiplinger Washington Letter says that we should not be misled by recent high inflation numbers, adding that heavy retail discounting accounted for the latest CPI bulge.

INVESTMENT IDEA: "One company that will benefit from Clinton's program is Dreyfuss Corp. Higher tax rates proposed by the president make tax-exempt funds more attractive, and Dreyfuss is strong in this market." (Dow Theory Forecasts)

TAX TIPS: Under "What's Still Deductible for 1992," Business Week/Grant Thornton Co. lists: "Business gifts limited to $25 per recipient; health club dues, deductible in part only if used more than 50 percent for business; business meals 80 percent deductible,, and parties must establish a business purpose (you cannot deduct the cost of having guests unrelated to business); unreimbursed business expenses including business meals, mileage, travel costs, and the total must exceed 2 percent of your adjusted gross income."

APRIL SHOWERS: In response to more requests, here is the number for Bankcard Holders of America, a nonprofit organization which will send you, for $4, the lowest credit card rates in the U.S. Call 1 (703) 481-1110, Ext. 35, or write to Bankcard Holders of America, 560 Herndon Parkway, Suite 120, Herndon, Va. 22070. . . . If you want information on Black & Decker, Chesapeake Corp., Giant Food, Washington REIT and many other local stocks, phone Legg Mason's Gerald Scheinker (486-8010) for his firm's 26-page Mid-Atlantic Review. He will also mail a "Quarterly Health Care Monitor" with specific suggestions.

WALL STREET ROUNDUP: "Stocks will rise near-term because of higher earnings but bond prices will drift lower now. We're at the end of lower interest rates because the Fed is worried about inflation. Right now, I'd buy utilities and small-cap stocks." (Frank Cappiello) . . . "I'm encouraged by Wall Street's performance in the face of higher interest rates here and Russia's troubles abroad, and I think stocks will move even higher. In April, $110 billion of CDs will mature and people should be careful of switching with all their money from safe CDs to stocks." (Eddie Brown) . . . "Bank stocks have gone about as far up as they're going to go, but at this point I like the depressed drug stocks." (John Dessauer) . . . "Buy British Petroleum and avoid the refiners like Sun Oil and Marathon." (Frank Knuettel, voted Wall Street's No. 1 oil analyst). Above quotes from "Wall Street Week With Louis Rukeyser") . . . "Even though this market is overvalued, recent selling in drug stocks presents a fine opportunity for long-term gains. Investors should play the game by using health-care mutual funds; our top choice is Vanguard Health Care Fund." (Vic Szmyd's Monitor) . . . "Semi-Conductor Stocks Could Benefit by Rising Demand." (Smith Barney via Rick Faby. Phone 494-1853 for your copy.)

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