After see-saw day, Dow adds 2.91 points Industrial average closes at 3,449.10


Trading in a narrow range all day, stocks edged higher yesterday. Helped by a 2 1/2 -point gain in General Electric, the Dow Jones industrial average added 2.91 points to close at 3,449.10. Contrariwise, Dow transports fell about 1 percent.

WALL STREET WISDOM: "When I was 10 years old my family went to Disney World. When we got back my parents said, 'We've got $5,000 to put in the stock market; what should we buy?' I said I thought we should invest in Walt Disney because it was so much fun, Delta Air Lines because it flew us there and General Motors because we had rented one of their cars. Good thing my parents listened. Over the next decade those three stocks soared and helped pay for my four years at Dartmouth College." (Stock adviser Alan Bond in the cover story of Black Enterprise, May issue.)

(I have appeared twice on "Wall Street Week" with Bond; when he told me he graduated from Dartmouth in 1983, I told him my Dartmouth diploma had the same last two numbers, but transposed.)

BALTIMORE BEAT: The Rothschild Co. funds, up 1,035 percent since 1973 inception vs. S&P; 500 stock index up 846 percent, gained 1.4 percent in this year's first quarter vs. S&P; advance of 4.4 percent. Rothschild's holdings are statistically held back on a comparative basis because they include stocks and bonds, whereas the S&P; index is composed 100 percent of stocks. Call Leon Raskin (539-4660) for complete explanations, charts, graphs, etc. . . . Baltimore Security Analysts will meet May 13 at the Hyatt Hotel at noon, and will hear Juliette Heintze, vice president, investor relations, for USAir. . . . Of interest to Marylanders, Westinghouse Electric Corp. is written up at length in Business Week, May 10. ("The company faces crucial strategic decisions, such as whether to stay in the $2.9 billion defense-electronics business or invest that money elsewhere.")

HOPEFULLY HELPFUL: "Over the years I've learned that it pays to stick to stocks showing relative strength. When taking a position in any industry group, it usually works out best if you concentrate on group

leaders. There'a always a tendency to want to buy stocks which haven't moved yet as opposed to those which look overpriced. But invariably the leaders are the leaders for a good reason and they continue to outperform others even when the laggards get going. And leaders give back less during corrections." (LaLoggia's Special Report)

MARYLAND MEMOS: Baltimore's USF&G; stock is mentioned in S&P; Outlook, May 5, as follows; "Shares of this property-casualty insurer appear fairly valued following sharp price rise." . . . Also locally, the Outlook says, "We expect T. Rowe Price strong first-quarter earnings trend to continue. Mutual fund management company is well-positioned in industry and enjoys diversified asset base." . . . Next week the government issues new three- and 10-year notes, also 30-year bonds. You may buy these issues through the Baltimore Federal Reserve branch with no commission, and interest is free of state and local taxes. Some can be bought with relatively small amounts of money. Call 576-3500 for details. . . . Although remaining very bearish on the overall stock market, Charles Allmon's "Growth Stock Outlook," published in Chevy Chase, is bullish on Bristol-Myers Squibb, explaining, "Revenues have risen for 37 straight years, dividends are up for 21 consecutive years and we continue to rate the stock a buy."

WALL STREET WATCH: "Stocks will now have to fight their way uphill, a long grind. The market is way ahead of itself." (Monte Gordon) . . . "The market needs lower interest rates or higher earnings, and we won't get much lower rates. At this point I like utilities." (Frank Cappiello) . . . "I like natural gas stocks now, like Unocal and Burlington Northern. Other favorites are Texas Instruments, Motorola and Intel. Our biggest holdings are Sears, Chrysler and Citibank." (Jeffrey Vinik, portfolio manager, Fidelity Magellan Fund). The above quotes are from "Wall Street Week With Louis Rukeyser" . . . "Despite our recently stated concerns over increasing risks in the market, we believe the drug sector offers tremendous opportunities for long-term investors. The drug industry is our country's premier business; we find it unfathomable that our government would willingly destroy America' most globally dominant industry." (Dick Davis Digest) . . . "Due to his record-breaking tax-hike proposals, President Clinton has been dubbed the greatest tax-free municipal bond salesman of all time. As a result, demand for tax-free securities is expected to remain very strong." (Select Portfolio) . . . "In light of the decline of RJR Nabisco, we reiterate our buy rating." (Argus Weekly Staff Report) . . . "For those seeking the next Intel, we recommend Quantum Corp., Applied Magnetics and Digital Equipment." (Personal Finance.)

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