Final hours of trading rough on stocks


November 01, 1994|By JULIUS WESTHEIMER

Stock prices skidded in the final hour yesterday, with the Dow Jones industrial average giving up 22.54 points to close at 3,908.12. Most other indexes also edged lower. Tobacco stocks were especially weak, but many drug and pharmaceutical issues bucked the downtrend and ended with point-plus gains.

FROM THE TOP: Speaking of stocks, how do you think the 30 stocks in the Dow Jones industrial average performed in the last decade?

If you had invested $10,000 in each on Jan. 1, 1984, here is how you would have made out through Dec. 31, 1993. From the top: Disney $129,000; Coca-Cola $100,000; Merck $68,000; Philip Morris $62,000; McDonalds $55,000, J. P. Morgan $41,000; Procter & Gamble $40,000; General Electric $36,000; Exxon $34,000; Boeing $33,000; Goodyear $30,000; AT&T $29,000; Woolworth $29,000; Du Pont $28,000; Minnesota Mining $26,000. (Figures rounded. Data from Johnsons Charts, 1994.)

SURPRISE! Coming Thursday: The last decade's 15 worst Dow Jones performers, with a shocker when you read what former "glamour darling" came in dead last with a 54 percent loss since 1984.

AUTUMN ITEMS: Washington Savings Bank, Waldorf, is listed under "Highest Yields on Five-Year CDs" in the latest Bank Rate Monitor. . . . "Most coupons that come with General Mills' cereals (Wheaties, Total, Cheerios, etc.) are never redeemed." (USA Today) . . . "Beware lenders bearing ARMs; despite the hype, fixed mortgages are still the best deal." (Smart Money)

NOVEMBER NUGGETS: How has November performed in Wall Street? Over 43 years, this month has been a star performer, up 1.5 percent on average. Only December and January have done better . . . McCormick & Co. appears under "Favored Growth Stocks" in S&P Outlook, Oct. 26. (An accompanying chart shows that the local spice maker's stock climbed 400 percent in the last decade) . . . In the same publication, Procter & Gamble, with two facilities here, is listed under "Core Stocks for Long-Term Capital Appreciation."

BALTIMORE BEAT: After listing "The Top 10 Cities For Business," (Hong Kong, New York, London, Atlanta, Chicago, Singapore, Toronto, San Francisco, Frankfurt and Miami), Fortune, Nov. 14, names Baltimore under "The Rest of the Major Cities." The story reads, in part, "Baltimore's infrastructure strengths are truly global, including an international air terminal and advanced telecommunications facilities." . . . "Sun Stocks" reaching 12-month highs recently include Black & Decker, Citicorp, Danaher, Fusion Systems, Integrated Health and Micros Systems. General Motors slipped to a yearly low . . . Bell Atlantic, which serves our area, appears under "Income Stock Portfolio" in Personal Finance, November. The stock yields 5.3 percent.

CRUNCHING LEAVES: A partner and account executive of a top-performing New York investment advisory firm told me over the weekend, "When we acquire a new client, we now place about 40 percent of that money into international stocks and global mutual funds. And as for present clients, we're moving their portfolios in that direction." . . . "Merck is a classic case of a growth stock becoming a value stock. It is selling near historically low valuations and features a safe 3.1 percent dividend and a barely believable price-earnings ratio of 15. Buy it." (Dick Davis Digest)

LAST LINES: "People don't realize we've had a crash in bonds worse than the stock market crash of 1987." (Donald Marron, CEO, PaineWebber) . . . "Business trouble generally starts when people are afraid to talk to the boss, and ideas don't reach the top. And always be wary of 'latent competitors' -- companies charging in from seemingly unrelated fields." (Orit Gadiesh, CEO, Bain & Co.) . . . "People don't necessarily learn from experience. Because they don't, the public continues to gobble up IPOs, but smart investors continue to beat the market with low P/E stocks." (David Dreman, Forbes, Nov. 7) . . . "Stung by sizable losses in mutual funds, many households now eye higher interest rates on short-term Treasuries. Two-year yields are up three percentage points in the past year." (Business Week, Oct. 31)

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