Dow climbs after its slide of 101 points

THE TICKER

September 27, 1994|By JULIUS WESTHEIMER

Regaining its balance after last week's 101-point slide, the Dow Jones industrial average climbed 17.49 points yesterday and closed at 3,849.24.

Despite a late-afternoon rally, investors appeared nervous as they awaited the interest-rate outcome of today's Federal Reserve's Open Market Committee meeting.

TAKE YOUR CHOICE: "Interest rates may be nowhere near their highs, and if you're bullish on the long-term trend of the stock market, you had better hope that the yield on the 30-year U.S. Treasury bond doesn't rise beyond the 7.75 to 7.8 area." (LaLoggia's Special Situation Report) Ticker Note: Yesterday the 30-year Treasury bond yielded 7.8 percent . . . "Stocks will move higher over the next year. Most professional advisers and the public think that the market will go lower, indicating that a large number of sellers have already left the stock markets. This provides a broad base that will move stocks ahead." (Market Forecast)

HOPEFULLY HELPFUL: "Buy tax-free bonds because higher tax rates enhance the value of tax-free investments. For someone in the 31 percent tax bracket, the top rate under the old law, a tax-free investment of 5 percent was equal to a taxable investment of 7.2 percent. But for an investor paying the top federal rate of 44 percent under the new law, a tax-free investment of 5 percent equals a taxable return of 8.9 percent, a big difference." (Tax Hotline, September.)

CUPID'S ARROW: "Is love in the air at your office? A slew of social trends are converging to encourage romance at work as never before. Surprising new research shows that this may be good for productivity." (From a cover story, "Getting Comfortable With Couples In The Workplace," in Fortune, Oct. 3.)

LOCAL LINE: T. Rowe Price is featured in an S&P Outlook, Sept. 21, story, "Mutual Fund Management Stocks Attractive." It reads, in part, "This Baltimore-based adviser should increase earnings faster than the industry because of its strength in 401(k)s and in international funds. Originally known as a growth stock manager, TRP now runs a fund family of stock, bonds and money market portfolios. Now under 15 times earnings, this stock has appeal for appreciation."

BALTIMORE BEAT: Money magazine, October, lists "Leading Borrowing Deals in Baltimore": Fixed-rate 30-year: National City Mortgage, 8.13 percent, 5 percent down, three points (410-573-5757); One-year adjustable: Crestar Bank, 4.75 percent, 10 percent down, three points (410-224-6829); Home-equity line: American National Savings, 6 per cent, prime plus one, 18 percent maximum (410-752-0400); Car loan: Fairfax Savings, 6.50 percent rate, 15 percent down, 60 months (410-265-7900).

FAVORITE STOCKS: Black Enterprise magazine, October ($3.50 and worth buying), runs a detailed cover story, "20 Favorite Stocks Worth Buying Now," the issues selected by a panel of stock brokers. Some familiar stocks are Banc One, Caterpillar, Eastman Kodak, Fluor, Campbell Soup, Cisco Systems, Nike, US Healthcare, Wells Fargo, Caremark International and First Chicago Corp. For some less-familiar favorites, and what the companies do, read on:

MORE "FAVORITES": Grupo Tribasa, second largest construction company in Mexico; Kenneth Cole, designers of men's shoes; Syntellect, marketer of interactive voice response systems; Broderbund Software, largest software maker in the "edutainment" industry; Clintas, which cleans and rents uniforms to industry; Envirotest Systems, tests autos for emission standards; Fiserve, provides data processing services to banks; Safeguard Scientific, a venture capital firm and Adobe Systems, a leader in printing-related software.

CREDIT CORNER: "When most people apply for credit cards, they plan to pay the bill each month, but they don't do that. This is now more costly as the prime rate jumped. Strategies for reducing debt: Pay off the highest-rate card first . . . If you're paying interest over 16 percent, request a lower rate; most issuers will lower your rate by two percentage points or more . . . Consider a tax-deductible home-equity loan for debt consolidation . . . Don't collect credit cards; owning six or more can get you turned down for more credit." (Gerri Detweiler, author, "The Ultimate Credit Handbook," $10.95.)

NOTES & QUOTES: This week's National Business Employment Weekly (Sept. 25-Oct. 1) runs two good stories, "Tips on Launching a Second Career" and "Job Market Improves for Engineers." Details coming in Thursday's Ticker . . . The Kiplinger Washington Letter says that Washington is one of the metropolitan areas that will add the most people between 1995 and 2015 . . . AMP, CSX Corp., Chrysler, Mobil Oil, Royal Dutch, Warner Lambert and Schering Plough are listed under "Stocks Ripe For Splits" in a recent S&P Outlook . . . "Think about setting up a private foundation before year-end; you can deduct the full value of publicly traded stock used to fund a private foundation this year." (Coopers & Lybrand)

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