Dow index ekes out gain of 3.32 in light trading

The Ticker

July 13, 1993|By Julius Westheimer

Advancing for the fourth consecutive session, the Dow Jones industrial average inched ahead 3.32 points in comparatively light trading yesterday and closed at 3,524.38. Following a disappointing earnings report Duty Free International, widely held in this area, plunged six points to close at 20 1/8 .

ALL-STAR EXTRA: On the day of the first All-Star Game, Thursday, July 6, 1933 (Comiskey Park, Chicago), the Dow Jones industrial average stood at 104.98, in the early stages of a 21-year recovery from its all-time Depression low of 41.22 set one year before. (The pre-crash peak of 381.27 was reached on Sept. 3, 1929) . . . When the only All-Star Game was played in Baltimore (Memorial Stadium), on July 8, 1958, the Dow index closed at 480.00. On that day The Sun and Evening Sun each sold for 5 cents, a Trailways one-way bus fare to New York cost $5.50, you could buy a pair of glasses at Universal Optical for $10.50 and one night at Washington's fashionable Shoreham Hotel set you back only $6!

EXPERTS AT MIDYEAR: How do our local "experts" (bankers, brokers, media stars, etc.) stand at midyear with their stock market forecasts made on Jan. 1, 1993? (Ticker Jan. 12). Nearest to the June 30 Dow Jones closing figure of 3,516.08 was George Collins, CEO, T. Rowe Price (3,532), an eyelash-width ahead of these crystal ball gazers in a triple tie at 3,500: Mrs. Ticker (Dorrit K. Westheimer), Alan Walden (WBAL morning newscaster) and George Pinsch (my barber.) Chris Poindexter, CEO, BG&E, was one point behind at 3,499. Less than six months to go!

BALTIMORE BEAT: Mercantile Bankshares Corp. is the topic of a new Legg Mason report. Legg Mason's Gerald Scheinker (486-8010) says, "This is a top quality bank in our own back yard," and the report states, "We anticipate consistent, 10-12 percent annual growth in earnings per share, with below-average risk of negative surprises. We view it as a solid-long-term investment" . . . T. Rowe Price's New Asia, International Stock and Equity Income funds were listed under "Plotting a Course to a Secure Retirement" in the New York Times, July 10.

MARYLAND MEMOS: These stocks of local interest reached new 12-month highs last week: Martin Marietta, General Motors, Mid-Atlantic Medical, Potomac Electric Power and Marriott . . . Dean Witter's Rick Faby (547-7000) will mail "The Subtleties of the New Tax Bill Are Not So Subtle for Municipal Bond Investors." ("The proposed new rate levels will place many 31 percent ratepayers in the 36 percent bracket -- if taxable income exceeds $115,000 for a single return, $140,000 or more on a joint filing. Those with single or joint returns in excess of $250,000 pay an effective 39.6 percent rate.")

HOPEFULLY HELPFUL: "Track your automatic teller machine transactions carefully. If you learn of an unauthorized transfer and notify the bank within two days, you're only liable for $50 of the stolen amount. But after two days you can be liable for up to $500 if the bank proves you neglected to report the loss." (BankCard Holders of America) . . . "A survey of 400 top female executives suggests that corporate America's glass ceiling has risen a few floors. The percentage of women surveyed who hold the title of executive vice president more than doubled over the past decade." (Korn/Ferry and UCLA Graduate School of Management study.)

YOUR MONEY: S&P Outlook, July 7, lists these stocks under "Our Favorites Among 10-Year Total-Return Leaders: Highly Rewarding Investments": AFLAC, Century Telephone, Chubb, Coca-Cola, Crompton & Knowles, Federal National Mortgage, First Empire State, Gillette, Limited, Liz Claiborne, Old Kent Financial and Wm. Wrigley. The article goes on, "If you had invested $12,000 total in these issues 10 years ago you would now have, with dividends reinvested, $180,000 vs. only $56,000 in the S&P 500-stock index." . . . "Few subjects are as hard to force people to think about as retirement. When we're in our 20s and 30s, retirement seems like something for another generation to worry about. When we reach our 40s, retirement thinking forces us to confront the fact that we're getting older. At 50, it's getting late." (Dollar Stretching Ideas.)

STOCK WATCH: "The extremely favorable reading of our Valuation Indicator, combined with the bullish position of our Monetary Indicator, paves the way for a move to new highs in the second half of this year. Our new target is Dow Jones 3,700-3,800." (Bob Brinker's Marketimer) . . . "It begins to appear more and more as if this bull market will end with a whimper rather than a bang. Unless we see a significant decline from current levels, which in turn would allow significantly higher projections, our work shows little upside potential." (Peter Eliades' Stock Market Cycles)

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