Cheer over mild inflation of Oct. lifts market Dow up 18 points


November 17, 1994|By JULIUS WESTHEIMER

Although 30-year government bond prices dropped about half a point yesterday, the Dow Jones industrial average climbed 18.84 points to close at 3,845.20. Investors appeared cheered by the mild October inflation figures, showing that last month's Consumer Price Index edged up only 0.1 percent.

POST-ELECTION PATTER: "Nowhere do hearts leap higher at the sight of newly elected Republicans than on Wall Street." (Newsweek, Nov. 21, in a story, "The Morning After.") . . . The latest Kiplinger Washington Letter says tax relief will now be voted, including a $300-$500 child tax credit; also sharper tax cuts for middle-income people, a lower capital-gains tax, expansion of IRAs, etc. The letter adds that cuts must be offset by decreased spending or higher taxes elsewhere . . . "You're looking at a currency market that likes decisive measures, like the Republican victory in the elections." (David DeRosa, foreign-exchange trader, Swiss Bank Corp.) . . . "It's simple; stock prices should now rise because a capital-gains tax cut would raise the after-tax rate of return on your investment." (Joseph Liro, S. G. Warburg chief economist.)

BALTIMORE BEAT: Black & Decker is listed under "Market Value Added," in Fortune, Nov. 28, page 158. The article and list give details. The stock reached a 12-month high earlier this week . . . Tomorrow night, locally produced "Wall Street Week With Louis Rukeyser," now beginning its 25th year, is titled, "Retail Stocks for Christmas," with guest Joseph Ellis, Wall Street's top retail stock analyst, and panelists Elizabeth Dater, William Waters and Mary Farrell . . . The stock of Bell Atlantic, the phone company that serves this area, is listed under "Five-Star Stocks: Buy List," in S&P Outlook, Nov. 9.

MARYLAND MEMOS: According to Money, December, the "Leading Borrowing Deals" in this area are at First National Mortgage (fixed-rate 30-year); Crestar Bank (one-year adjustable); and American National (home-equity line and car loan) . . . The T. Rowe Price New Income Fund appears under "The 25 Best Bond Funds Have Low 12B-1 Fees," in Financial World, Nov. 22. ("The 12B-1 fee is an annual fee designed to help the fund company pay for distribution and marketing.")

HOPEFULLY HELPFUL: Final reminder: If you bring a check for at least $25 and/or a bag of groceries, I will give you personal, private, free investment advice this Saturday, 11 a.m. to 1 p.m., ,, at Our Daily Bread soup kitchen, 411 Cathedral St., at Mulberry, directly across from the Enoch Pratt Free Library. There's plenty of parking nearby. ODB desperately needs coffee, tea bags, peanut butter, canned vegetables, oatmeal (lots of it), dry cereal, sugar, plastic baggies, etc.

BITS & PIECES: If you're considering job-changing, read "Is It Time To Move On? How to Decide the Next Steps For Your Career," in the Nov. 13-19 issue of National Business Employment Weekly. ("Skipping the investigative part of your search for greener grass could prompt you to leap impulsively in the wrong direction.") . . . "If you sell a stock today, your taxes on any gain would be due next April 15. If you sell the stock on Jan. 1, your taxes would be due April 15, 1996 -- a year later. You would have the use of your money a year longer [but] don't let tax considerations alone dictate investment judgment." (Mark Griege, Dallas financial planner.)

NEW NAME IN TOWN: On Wed., Nov. 30, at the Stouffer Harborplace Hotel at noon, Baltimore Security Analysts feature "BGE," as the company is listed in the society's bulletin, which adds, "also known as B.G. & E., also known as Baltimore Gas & Electric." The speaker will be Christian Poindexter, chairman. The bulletin goes on, "With utilities at new lows and facing competition and regulatory changes, Chairman Poindexter will make a timely presentation on BGE's prospects. Does the new name reflect a new strategy?" (Your broker can take you as his/her guest, $30.)

LAST LINES: According to Forbes, Nov. 21, you can buy these stocks without paying a broker his/her commissions: Comsat, Dial, Exxon, Johnson Controls, Kerr-McGee, Mobil, Texaco and U.S. West. (Most have toll-free numbers; see the magazine, page 238) . . . I will answer your "money" questions on Saturday, 7:30-8 a.m. on WBAL Radio with Dan Rodricks, also at 8:15 a.m. on WBAL-TV (Channel 11) with Dave Durian . . . The SEC (Securities & Exchange Commission) has set up an investors' hot line, 800-732-0330. A recorded message will give you details on filing complaints, latest financial scams, arbitration and other matters . . . "Neither the fundamentalists nor the technicians have covered themselves with glory lately, but by my latest indicators the stock market trend is still up." (Laszlo Birinyi, president, financial counseling firm).

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