Dow drops 3.70 points after climbing during day

The Ticker

June 07, 1994|By Julius Westheimer

Following bond prices higher most of the day, stocks drifted lower late yesterday afternoon. The Dow Jones industrial average slipped 3.70 points, closing at 3,768.52.

The Dow index is now up 3,626 points, or 2,572 percent, since June 6, 1944. For further financial figures of D-Day week, see below.

MONEY SAVER: Speaking of stocks, did you realize that several hundred companies sell their stocks directly to investors without the buyer paying brokerage commissions? For example, you can buy stock directly from McDonald's, Pepsico, DuPont, AT&T, Baltimore Gas & Electric Co. and others by using a dividend reinvestment plan, or DRIP. (Phone BGE's shareholder services department at 410-783-5920 or the company's main number at 410-234-5000, for details of the local utility's procedure.) In most cases you must first buy at least one share through a broker. For further data, read "Buying Stocks Without A Broker" by Charles Carlson, editor of the DRIP Investor, a newsletter. For a free list of companies, write to the DRIP Newsletter, 7412 Calumet Ave., Hammond, Ind., 46324.

HOPEFULLY HELPFUL: "Adjust your income tax withholding -- if needed. Because new tax withholding tables took effect in January, many people will have more money withheld from their paychecks this year. Do a projection of your 1994 taxes, adjusting your withholding to match your projected 1994 income. This prevents you from making an interest-free loan to the government, an unnecessary waste of money." (Price Waterhouse's Personal Financial Services Group.)

MONEY MAGIC: "To tap the power of compounding, put time on your side. Start early! Consider a hypothetical Federal Employment Retirement System employee who earns $33,000 a year during a 40-year Federal career. It's hard to believe, but if the employee contributes to his/her account from age 25 to 35 -- and then stops -- the employee will end up with more money at age 65 than an employee who starts to contribute at 35 and contributes every year for the next 30 years." ("Highlights for Thrift Savings Plan Participants.")

ALL IN THE FAMILY: Want to start a family investment club? I recently read about a Midwestern club with 18 members, ages 19 to 94, which showed an average annual return of 29 percent for the past seven years vs. 11 percent for the S&P 500 stock index. The club's strategies: Read everything you can to spot hot companies; thoroughly research company finances before buying; look for steadily growing sales and earnings; read each year's annual reports to see if the CEO delivered what he/she promised; choose a low minimum monthly investment." (For help getting started, send for "Investors Manual: The Handbook for Learn-By-Doing Investing" ($18), National Association of Investors, 1515 E. Eleven Mile Road, Royal Oak, Mich. 48067.)

WORKPLACE WISDOM: "Career counseling is growing on college campuses. With white-collar downsizing still making headlines, 84 percent of colleges now offer career services to alumni." (U.S. News & World Report, June 6) . . . A new, good job seeker's book is "The 100 Best Jobs For the 1990s And Beyond" by Carol Kleiman ($5.50). ("Best jobs now include accountants, occupational therapists, and wholesale sales representatives.") . . . National Business Employment Weekly (June 5-11) runs a good story, "Demand Sizzles for Senior Executives." ("Worldwide demand for senior managers earning $100,000 or more rose 21 percent in 1994's first quarter. . . . Manager demand is greatest in financial and administrative areas, also in health care, biotechnology, chemicals and plastics. . . . Applicants have to be renaissance people -- able to do everything well.")

LOOKING BACK: On D-Day -- 50 years ago yesterday -- the Dow Jones industrial average closed at 142.21, up about 1/2 point from the prior day. Here are some newspaper items of that historic week: Some well-known Sun (3 cents) and Evening Sun (3 cents) by-lines included Thomas O'Neill (AEF Headquarters, Europe); Price Day (With the 5th Army, Rome); Philip Heisler -- he hired me for Ticker in 1977 -- and Dewey Fleming (Washington); Mark Watson and Lee McCardell (London). The Baltimore News-Post ("Largest Evening Circulation in the Entire South") featured overseas dispatches by its well-known columnist Louis Azrael. Ads in all three papers included Hess Shoes children's anklets 3 for $1; Bonwit Lennon ladies sheer cotton dresses $5; Hamburgers genuine Palm Beach pleated slacks for boys, guaranteed washable $3.95, and S.& N. Katz "Love's Dream Come True" diamond ring, $150.

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