Blue-chip stocks lead way as Dow rises to new high

The Ticker

January 20, 1994|By Julius Westheimer

Blue-chip stocks led the way as the Dow Jones industrial average rose to another record high yesterday. The Dow increased by 14.08 points to close at 3,884.37.

Despite a loss in technology shares, continued buying in such cyclical shares as mining, chemicals and papers gave the market a boost.

WINNERS' PICKS: Here are 1994 stock selections by last year's four top stock pickers on "Wall Street Week With Louis Rukeyser." These selections were submitted before Jan. 3, 1993. (1) William Waters: Buffets, Computer DataSystems, Genentech, Glencare Health Care Systems, HealthTrust, Horizon Healthcare, Media Vision Technology, Multicare, Summit Care, TNT Freightways, Telefonos de Mexico and 3-Com Corp. . . . (2) Elizabeth Dater: Automotive Industries, Catherine Stores, Chrysler, DeVry, For schner Group, Govett, Harcourt General, IHOP, New Age Media Fund, New York Times, Paging Network and Telefonos de Mexico. . . . (3) Michael Holland: Atlantic Richfield, Bristol-Myers Squibb, Chubb, Merck, Pennzoil and TIG Holdings. Read on.

GLOOMY SIDE: (4) Laszlo Birinyi's 1994 picks are all, in effect, "short" sales. Stated another way, Mr. Birinyi expects the following stocks and funds to drop in price this year: All-Pro Products, Argentina Fund, Centigram Communications, DSC Communications, Glenayre Technologies, Indonesia Fund, Newbridge Networks, Players International, Primadonna Resorts, Taiwan Fund, Turkish Investments Fund. And Mr. Birinyi recommends buying Hong Kong Index "puts." (A "put" is an option to sell. Your broker can explain these terms more fully.)

BELL-RINGER: "Out of the confusion of the 1984 breakup of AT&T comes the Equity Income Fund of AT&T. Alternately known as the AT&T stock fund, this unit investment trust was formed to give existing "Ma Bell" shareholders and new investors the opportunity to maintain an investment in all the Bell System firms via a single security. It is a mix of eight phone companies that a pre-1984 stockholder would now own, and it returned 15.6 percent annually for the last nine years. Its yield today is about 3.7 percent." (Dick Davis Digest.)

JANUARY JOURNAL: On the day President Clinton was inaugurated -- Jan. 20, 1993, one year ago today -- the Dow Jones average closed at 3,241.95. For today's level, see first paragraph above . . . If you haven't yet sent in your postcard for our 1994 Dow Jones contest, get busy. Complete rules appeared in Tuesday's Ticker, and we'll repeat them next week . . . Tomorrow night, Michael DeCarlo, portfolio manager, John Hancock Special Equities Fund, will be the guest on "Wall Street Week With Louis Rukeyser" in a program titled "A Hot Fund Manager." Panelists will be Frank Cappiello, Louis Holland and Robert Stovall . . . The latest Kiplinger Washington Letter says the Federal Reserve is likely to raise short-term interest rates about 4 percent (not four percentage points) next spring. The letter says that the Fed wants to head off inflation before the danger signals appear . . . And Investment Counselors of Maryland feels that "Interest rates have seen their lows because of a stronger recovery, rising inflation and a tighter Federal Reserve." . . . Under new regulations which take effect in 1995, customers and stockbrokers will have only three business days -- not five -- to pay for stock and bond purchases and sales. One solution is for customers to leave securities with their stockbrokers in what's called a "street name/money sweep" account. Your broker can supply the details.

LATE RESOLUTIONS: Money magazine, January, lists these financial resolutions to make (and keep) in 1994. Excerpts: (1) "Before putting a penny into an investment, I will know its risks as well as possible rewards. I won't make any investment this year unless I can answer this question: 'How much of my money can I lose with it?' (2) I will make sure my portfolio is diversified. I will divide money among money funds, intermediate government tax-free bonds, U.S. growth stocks and international mutual funds with demonstrated success records. (3) I will avoid 'once-in-a-lifetime' opportunities. If a broker uses that term, I will hang up and probably switch brokers. (4) I will not let fear of taxes determine my investment choices. I will remember that paying no taxes is worse than paying taxes. (5) I will set a target price on stocks I buy, and (6) I will keep tabs on my investments, remembering that nobody cares about my money as I do."

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