Dow rallies early, sags, ekes out a small gain

The Ticker

June 23, 1994|By Julius Westheimer

Fading from a 25-point late-morning rally, the Dow Jones industrial average sagged to a nine-point gain around 3 p.m. yesterday, but then edged higher and finished with a 16.80-point advance, closing at 3,724.77.

But the Dow's slim gain offset only 16 percent of the previous three days' 103-point loss as investors became discouraged when the government took no decisive action to support the sagging dollar.

WALL ST. WISDOM: "Dividend reinvestment plans offer a painless way to build up a stock portfolio -- if you don't mind the prospect of a lot of bookkeeping." (Forbes, June 20) . . . "One promising strategy is to look for stocks of firms like Merck and McDonald's, both finding ways to boost profits without raising prices." (Money, July) . . . "Invest in international stock funds. Recent declines simply mean foreign funds are much better buys during this period." (Donoghue's MoneyLetter) . . . "Baron Rothchild's success formula: 'I never buy at the bottom and I always sell too soon.' " (1994 Stock Trader's Almanac.)

CAREER CORNER: Going on a company picnic or party this summer? A few suggestions from National Business Employment Weekly: "(1) Don't get drunk; have a beer or two and then switch to soft drinks. This routine will prevent you from saying foolish things. Your conduct will be remembered. (2) Be ++ discreet; while picnics are a great time to know co-workers better, remember that they're not your best friends. Don't reveal embarrassing personal secrets. (3) Network; use the occasion to make new contacts, but -- flirtation is out. (4) Leave while the picnic/party is in full swing; thank and compliment the employees who arranged the party."

HOPEFULLY HELPFUL: "You can move your IRA money to a new investment in two ways: (1) Direct transfer, where your money goes directly from the old IRA to the new. The new sponsor should help make this a painless maneuver. (2) Roll it over, where you withdraw funds from one IRA and personally move the money to the new account. Within 60 days of the time you get the money, it must be safely ensconced in a new IRA. Otherwise, the IRS considers the payout from the old IRA a distribution, subjecting the money to taxation and, if you're under age 59 1/2 , you'll be hit with a 10 percent penalty." (Kiplinger's Personal Finance Magazine)

MARYLAND MEMOS: Bethlehem Steel stock is listed under "Industries With Superior Potential: Steel To Remain Strong" in S&P Outlook, June 15. The text adds that Bethlehem and other steel stocks are "favored for appreciation over the intermediate term." . . . BankMaryland and Griffith Consumers stocks reached 12-month highs in early-week trading despite a sharply "down" stock market . . . PaineWebber's Marvin Fribush (576-3220) will mail his firm's latest "Money Notes" ("By moving some of your assets from your money fund into slightly longer-term investments such as three-, five- or 10-year Treasury notes, you can increase your return without tying up your principal for excessive periods of time.")

MONEY SAVERS: From a survey of 95,000 readers, Consumers Digest, July, lists the following "Budget Priced" hotels/motels for "Satisfaction Score," combining price, value, staff and condition. They are, in order from the top: Fairfield Inn, Budgetel, Cross Country Inn, Super 8, Red Roof, Suisse Chalet, Knights Inn, Travelodge, Days Inn, Econo Lodge and Motel 6. And under "Moderately Priced," in order: Homewood Suites, Residence Inn, Signature Inn, Hampton Inn, Drury Inn, Courtyard by Marriott, Shoney's, Outrigger, Red Lion and La Quinta. If you plan to travel this summer, see the magazine mentioned above for room rates, toll-free phone numbers, etc.)

CAN YOU HELP? Sister Eleanor Noil writes, "The Beans & Bread Meal Program is in desperate need of canned goods, especially canned vegetables, tuna and stews. Please publicize our desperate, immediate situation. Our address is 402 S. Bond St. in Fells Point. Ask your readers to call me at 732-2220 for food delivery dates, times, etc. . . . Along the same lines, Steven Tuttle asks us to refer readers to him for a unique way you can help Our Daily Bread soup kitchen. Call Mr. Tuttle at 625-2220 for details. (Ticker Note: Many people "down on their luck" are hungry in summer, too, not just at more publicized times like Thanksgiving and Christmas.)

YOU DECIDE: "Evidence is steadily mounting that a summer rally lies ahead." (Wall Street Generalist) . . . "The bear market in U.S. stocks is set to accelerate. Risk of a crash is very high." (Prechter's Global Market Perspective) . . . " This is clearly a sick-in-bed market that is totally bored with itself." (John Martone Letter) . . . "Many investors think stocks are headed lower, but the majority is generally wrong. The current bearishness could be indicating higher prices ahead." (Blue Chip Correlator) . . . "Investors are nervous and shunning stocks. We like that development and have actually become more aggressive." (S.A. Advisory) . . . "Many people compare the market with pari-mutuel betting, but in stocks, as in horse races, it pays to know the jockeys." (Laszlo Birinyi, consultant, in Forbes, July 4, just out.)

Coming next Tuesday: Investment lessons I have learned over 50 years, some from my father, a New York Stock Exchange member in Baltimore many years ago.

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