Earnings lift Dow index toward its all-time high


October 20, 1994|By JULIUS WESTHEIMER

Propelled by strong third-quarter earnings reports, the Dow Jones industrial average inched closer yesterday to its all-time high. The Dow indicator climbed 18 1/2 points to close at 3,936.04, about 42 points below its peak of 3,978.36, set on Jan. 31. The Dow index swung about 50 points during yesterday's wild session.

NOTES & QUOTES: "Stock prices could post double-digit gains in 1995, since stocks score the biggest gains in the year before a presidential election. Since 1901, the Dow Jones average climbed 10.9 percent on average in the third year of presidential terms." (Ehrenkrantz King Nussbaum data) . . . "Women are expected to run 40 percent of U.S. small companies by the year 2000." (Small Business, November) . . . Under "The Leading Borrowing Deals in The Baltimore Area," Money magazine, November, names American Home Funding, Crestar Bank, Loyola Federal Savings and Fairfax Savings. The same publication names Eastern Savings Bank under "Best Savings Yields in the U.S."

BALTIMORE BEAT: Business Week, Oct. 24, lists T. Rowe Price Small Cap Value Fund under "Some Top Small-Capitalization Funds" . . . Tomorrow night, "Wall Street Week With Louis Rukeyser" is titled "Medium-Sized Stocks," with Christianna Wood, portfolio manager of the Burridge Group, as guest. Panelists will be Laszlo Birinyi, Frank Cappiello and Gail Dudack . . . On Wednesday, Nov. 2, the Baltimore Security Analysts Society conducts a panel, "Opportunities in Bankruptcy and Post-Bankruptcy Investing," with participants John Boland of Remnant Partners and Herbert Stiles of T. Rowe Price. The meeting is at the Radisson-Lord Baltimore Hotel at noon.

MORE LOCAL LINGO: Baltimore is ranked No. 6 under "How 24 U.S. Cities' Stocks Fared in the Third Quarter," in Money magazine, November. The chart shows Baltimore's stocks up 7 percent. (Cincinnati is the leader, ahead 11.3 percent, dTC Washington is worst at minus 1.7 percent.) In "The Mid-Atlantic" subdivision, the article features Manor Care, stating, in part, "When you think of $1.2 billion Manor Care (NYSE, $27), think beds -- lots of them. The nation's third-largest long-term-care provider, Manor Care runs a chain of 164 high-quality nursing homes in 28 states with a total of 22,000 beds. And the Silver Spring company also owns 2,412 hotels, with such well-known names as Comfort and Quality."

FALLING LEAVES: The latest Kiplinger Washington Letter predicts that President Clinton will propose a tax cut for middle-income families next year . . . "Today's investment lesson is that if you follow the lead of investors blindly -- even when they're billionaires like Warren Buffett and Lawrence Tisch -- sometimes you follow them off a cliff." (Allan Sloan, Newsday columnist and four-time winner of the prestigious Loeb Award for financial writing) . . . Want a booklet to protect yourself from traps in real estate, insurance, car repair, etc? Send $4.75 for "How to Protect Yourself Against Ripoffs" to 50-Plus Pre-Retirement Services, Code RO, 28 W. 23 St., New York, N.Y., 10010. Price includes shipping costs.

STAY THE COURSE: "Stock market investors have a special interest in the staying power of the U.S. business cycle. In the past, stock market profits have been typically concentrated in the youthful stages of a recovery. By the time six of the eight postwar U.S. expansions had reached their midpoints, stock prices had already posted at least 75 percent of their cyclical gains. And unless the current recovery lasts until May, 1998, its life is already half over." (James Stack, publisher, Investech Market Analyst)

HOPEFULLY HELPFUL: "If you have a diversified portfolio, chances are that at least one of your investments has soured over the past year. But the IRS tax codes permit various deductions on any investment loss. You can take this a step further by venturing into 'tax swaps.' These let you sell stocks and other securities at a loss, take the deduction, and reinvest what's left in the sort of business that you liked in the first place and still think will prosper in the future." (Fortune, Oct. 31). See your broker for details on tax-swapping, a valuable year-end strategy.

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