Dow reverses Friday's course, gains 38 points

Abruptly reversing course from Friday's 40 point slide, the Dow Jones industrial average gained 38 points yesterday to close at 3,174.41. Investors appeared cheered by Federal Reserve chief Alan Greenspan's weekend denial that the Fed had put monetary policy on hold until after the election.

WALL ST. WATCH: "The bull market isn't over. We're 7/8ths of the way down. There's too much pessimism for further declines. Think of opportunities now, don't get scared." (Frank Cappiello) . . . "This is just a normal-type correction, down about 10 percent. ++ A bearish herd instinct grips all the technicians at times like this. I'm just sitting still." (Maceo Sloan) . . . "This correction has farther to go. I worry about declining third-quarter earnings but stocks will move up in a few months and will reach new highs." (Louis Holland). Above quotations from Friday's "Wall Street Week with Louis Rukeyser.")


DIGGING DEEPER: Roger Engemann, the program's guest and a top mutual fund manager, said: "Just keep buying stocks with 15 percent annual earnings growth. Earnings growth never lets you down. The day for growth stocks never passes. And it's crucial to talk to corporations' managers to see how they answer your questions.

"This is a fantastic opportunity to buy stocks like Merck and Johnson & Johnson, both selling at only 10-15 times 1993 earnings. And the No. 1 U.S. firm is Wal-Mart. If you had bought 100 shares when it went public in 1970, for $1,650, you would now have 50,000 shares worth $3 million. It now sells at 15 times 1993 earnings and is still OK to buy."


MARYLAND MEMOS: Tomorrow, Baltimore Security Analysts host Hechinger Co., with John Hechinger, CEO and president, as speaker at the Stouffer Hotel at noon. (Coming Up: Black & Decker on Oct. 27 and Times Mirror on Nov. 5)...Locally, highest money market and CD yields are at Custom Savings, Washington Savings Bank (Waldorf), Chevy Chase Savings, Eastern Savings Bank, Loyola Federal. (Data from latest "100 Highest Yields.")

HOPEFULLY HELPFUL: In response to many requests, we reprint phone numbers to call for lowest credit card and mortgage rates. Be sure to ask fees when calling or writing. For lowest credit card rates, phone Bankcard Holders of America, 1-703-481-1110. The address is 560 Herndon Parkway, Herndon, 22070. The firm is a non-profit organization. For lowest mortgage rates, phone H.S.H. Associates at 1-800-UPDATES. The address is 1200 Route 23, Butler, N.J., 07405. This firm is a for-profit organization.

BE CAREFUL: Speaking of credit cards, here, according to Kiplinger's Personal Finance Magazine, are early warnings of debt problems: You don't know how much debt you have and you're afraid to add it up; you pay minimum amounts or less each month; you've reached your credit limits; you borrow for items you once bought for cash; you no longer contribute to savings; you've drawn from savings to pay regular bills; you are usually late in paying bills; this month's credit balances are higher than last month's and you've applied for more credit cards.

GETTING A JOB: National Business Employment Weekly, Oct. 9-15, contains a valuable article, "Beat the Competition With a 'Just-For You' Resume." Excerpts: "Most resumes are written the way the personnel department thinks, which means you won't get a response. . . . Instead, think the way managers (who make the real hiring decisions) think. . . . Answer these questions: Can this person do the job here? Is he someone we want to hire? Can she solve our problems? . . . Talk to industry contacts to find out specifics of your potential employer's needs. . . . For example, vTC tell how many people you supervised and how well you managed them. . . . When job hunting, think like the person at the top." The article is worth studying.

FALLING LEAVES: "It's too soon to expect great travel bargains in Europe as a result of the continent's currency problems. Airlines and hotels react slowly to changing interest rates." (Travel Smart) . . . "Americans know which presidential candidate will raise taxes: all three." (Business Week, Oct. 19) . . . "Richard Russell, technician, says we entered a bear market last Monday, Oct. 5, when the Dow Jones average closed below the magic 3,181.35." (Alan Abelson in Barron's, dated Oct. 12) . . . In the same Barron's, Ray Dalio, Bridgewater Associates president and seasoned observer, says we're in a depression, not just a recession . . . "Only discipline beats the market. Investors who apply a philosophy in an organized way are the only ones who beat the indexes." ("Get Rich Slowly" by William Spitz) . . . Coyne & McLean (phone 825-8300) will mail "How to Ease the Tax-Gathering Chore." . . . "Live beyond your means, then you're forced to work hard to succeed." (Edward G. Robinson) . . . "We make progress at night, while the politicians sleep." (Brazilian peasant proverb.)