Despite continuing higher interest rates, the Dow Jones industrial average regained about one-third of Friday's loss yesterday, climbing 34.90 points, to close at 3,906.32.
Investors who prefer bonds over stocks should call the Baltimore Federal Reserve Branch (576-3553) for details on new three- , 10- and 30-year notes and bonds being issued this week. Their interest is free of state and local taxes.
WHAT YOU THINK: From your contest postcards, here are more of your views about the future of the stock market: "My guess for year-end Dow Jones is 4,059." (Lois Leuba, previous winner) . . . "I predict 4,228 because we're a 'throw-away' economy and long-term consumables (cars, computers, machine tools, etc.) are at a cycle replacement point." (William Wheeler) . . . "I came very close last year, and would have won except for those last two days, so this year I forecast 4,747." (Henry Blum) . . . "I'm a stockbroker with Chapin, Davis, and I say 4,028; presidential cycle shows a bad second year with rising interest rates." (Dennis Benson) . . . "I never win your contest because I'm always too low. I predict Dow Jones 3,907 and I hope I lose again. By losing, I win." (Allan Shapiro.)
WHAT OTHERS THINK: "Friday's drop was healthy. Stocks could now undergo a 2 to 7 percent correction, but there'll be a robust rally thereafter. The Dow's 'fair value' is about 4,600 at the end of 1994." (Elaine Garzarelli, who "called" the 1987 crash) . . . "As the Dow approaches the psychological 4,000 barrier, there's an increasingly measurable risk of a 10 percent correction." (Gail Dudack, S. G. Warburg Research, last year's Ticker "expert" winner) . . . "Looking ahead, cash looks mighty good to me; the market is developing a 'smell' of a bull wobbling on its legs." (Contrarian's View) . . . "When Wall Street tells us that everything's coming up roses, the aroma in the air seems less American Beauty and more fertilizer." (Plain Talk Investor)
BALTIMORE BEAT: Dean Witter's Jack Rosenbloom will mail you his firm's "Finding Higher Yields in the Fixed Income and Equity Markets" and "Strategy Outlook for 1994" if you phone him at 547-7027 . . . Call Chapin, Davis' David Clogg (435-3200) for a bullish report on Interstate Bakeries . . . For "Tax Changes Proposed in President Clinton's Health Care Plan," call 539-5474 for Harry B. Gorfine & Co.'s February Tax Report . . . Regarding Bell Atlantic, which services this area, Legg Mason says, "We see continuing improvement in Bell Atlantic's region, particularly in line growth, value-added services and cellular growth."
MARYLAND MEMOS: Procter & Gamble, with two facilities in this area (Noxell and the Nicholson St. manufacturing plant), is listed under "Core Stocks for Long-Term Capital Appreciation" in S&P; Outlook, Feb. 2 . . . Stocks with local connections reaching 12-month highs in recent trading include General Motors, Marriott Host, Marriott International and T. Rowe Price. Potomac Electric Power slipped to a yearly low . . . Black & Decker is listed under "Housing-Related Stocks We Like" in a recent S&P; Outlook . . . The T. Rowe Price High-Yield Bond Fund gave a 12-month 21.8 percent total return (gain plus income), says Forbes, Feb. 14 issue.
NOSTALGIC NOTE: I note with regret the death of Thomas Tinsley, the founder of radio station WITH. He gave me my first financial broadcasting job in 1941, starting during the week his station went on the air. He assigned me a 15-minute financial newscast every Sunday, called "12:30 on Your Clock, 1230 on Your Dial," and he also arranged for me to have a front-row seat at a White House press conference of President Franklin D. Roosevelt. At one point FDR chided one reporter for being impertinent and ordered him to stand in the corner with a dunce cap on his head. There was little or no security then, just a White House card of admission, easily obtained by Mr. Tinsley.
IT'S MUTUAL: In response to many requests, here is a fresh listing of the top-performing mutual funds for the last five- and 10-year periods. In order, for five years: 20th Century Ultra, John Hancock Special Equity, Berger 100, CGM Capital Development, Fidelity Select Biotech. And for 10 years: CGM Capital Development, Merrill Lynch Pacific A, Prudential Utility B, Fidelity Magellan, Fidelity Contrafund. (Data from Standard & Poor's/Lipper Mutual Fund Profiles.)
HOPEFULLY HELPFUL: "Are you anticipating a hefty tax refund and you don't want to wait too long for Uncle Sam to pay up? By filing electronically, you can speed your return by several weeks. See a tax preparer." (Business Week, Feb. 7, from "Getting The IRS To Cough Up Quicker") . . . "Before buying a stock or a mutual fund, have a plan for selling it. Set both a 'target price,' at which you'll take profits, and a 'bailout price,' at which you'll sell if the shares drop in value." (Investor's World) . . . "Filing a short form will not protect you from an IRS audit, but it could cost you money -- money you might save with long-form deductions." (The Baby Boomers' Money Manual.)
FEBRUARY FINDINGS: If you're 60 or older and are interested in a variety of courses at 1,800 U.S. colleges and conference centers, write for a free catalog to Elderhostel, 75 Federal St., Boston, Mass. 02110 . . . The New Yorker, Feb. 7, runs a fascinating story about John Malone, who engineered the merger between Tele-Communications Inc., and Bell Atlantic. The story calls Malone "the most powerful man in television." . . . "Quality stocks at or near their 12-month lows include Coca-Cola, BancOne, First Alabama Bancshares, Florida Progress, Home Depot, Montana Power, U.S. Trust, Warner-Lambert and Washington Federal S&L.;" (S&P; Outlook.)