The Dow Jones industrial average finished an up-and-down )) session with a minor loss yesterday, slipping 2.02 points to close at 3,935.37. At the final bell, the Dow stood 43 points below its peak of 3,978.36, set Jan. 31, 1994.
Just before noon, the S&P; 500-stock index climbed to an intraday all-time high of 482.60, but backed off in later trading.
PICKS FROM PROS: The following opinions and stock selections are from top-performing mutual fund managers quoted in the cover story, "Best Mutual Funds," in U.S. News & World Report, )) Feb. 6: "Jeffrey Vinik, Fidelity Magellan Fund, says, 'The U.S. market in the '90s will be as good as Japan's was in the '80s. My favorite pick is Motorola.' Michael Price, Mutual Fund Series, feels, 'The market is expensive, but individual stocks are cheap. I like American Express, Sears and Eastman Kodak.'
"Janet McKinley, American Funds, states, 'A rising dollar threatens to make investing abroad less rewarding. Nevertheless, Argentine bonds are my favorite investments.' Frank Boggan and David Tripple of Pioneer II Fund say, 'This is a year to be cautious -- not one in which to take risks. Our favorite stock is Ambac.' "
HOPEFULLY HELPFUL: "Know all about your mutual fund. Phone or write and ask whether it uses derivatives and leverage. Dial 1-800- 555-1212 for your fund's phone number." (David Dreman, in Forbes) . . . "Many people make mistakes with their 401(k) investments by keeping most or all of their money in fixed-income investments, thinking they're playing it safe. Actually they're not, because bonds, CDs, T-bills, etc., are virtually certain to lose ground to inflation." (Money, February)
FEBRUARY FINDINGS: "Starting with 1994, a canceled check does not prove a tax deduction for a charitable contribution of cash or property of $250 or more at one time. You need a receipt from the organization. And if you attend a charity's dinner that costs over $75, you need a written record from the charity specifying how much you donated, and what was the cost of the dinner." (Price Waterhouse)
American Barrick, Bristol Myers Squibb, Merck and Placer Dome are recommended by nine newsletters followed by Hulbert Financial Digest . . . T. Rowe Price New Asia Fund is recommended by nine mutual fund newsletters. Nine is the maximum number of newsletters listed by Hulbert.
WHAT YOU WROTE: Here are more of your postcard comments in our 1995 Dow Jones forecasting contest: "My guess for year end is 4,050, the average of two newsletter solicitations I received." (Bernard Fox) . . . "The average return on the market in years ending in '5' has been about 35 percent, so I figure 5,357." (Harvey Kasoff) . . . "I'll predict Dow Jones 3,959 for this year end." (Lois Leuba, the 1992 contest winner)
"Most of the gain will come later in the year when interest rates level off, so I say 4,315." (Wes Flowers) . . . "My optimistic 4,439 forecast is based on analysis of the current market and past cycles. Thanks for excellent advice over the years." (Bertram Waskey) . . . "My prediction: 4,494. I took the percentage increase in the price of this 10-year-old postcard and applied it to today's Dow average, plus 14.3 percent." (Joe Dausch)
TEMPTING TREASURIES: "As interest rates on Treasury securities rise, it's wise to invest in them now. Reasons: Their returns rival those of many stocks, they are risk-free, they escape state and local taxes and Treasury securities are not just for 'giant' investors, as some are available from the government for as low as $1,000."(Deborah Rankin, author, "On Your Own: A Common Sense Way to Make Your Money Grow," $21.95)
Ticker Note: For further information on how and where to buy Treasury bills, notes and bonds -- and minimum amounts -- call the Federal Reserve, Baltimore Branch, 576-3500.
NOTES & QUOTES: Legg Mason's February "Investor's Dozen" includes Advanta, AT&T;, Carnival Corp., First Citizens Bancshares, HUBCO, Norwest Corp., Premark International, Premier Bancorp, Standard Federal Bank, TIG Holdings, Times Mirror and Wendy's. . . . "The Dow utility average made an impressive move recently, suggesting that the Fed is almost done with tightening." (Tomorrow's Stocks) . . . "Merck could well be the best-managed company in the world." (The Schott Letter)
BALTIMORE BITS: Tomorrow night, "Wall Street Week With Louis Rukeyser" is entitled "Investments From All Around," with guest Edward Villani, president and chief investment officer of Scudder, Stevens and Clark, and panelists Laszlo Birinyi, Harvey Eisen and Mary Farrell . . . Stocks of Bethlehem Steel and Signet Banking, both with major facilities in this area, appear under "Rising Stars" in S&P; Outlook, Feb. 1 . . . McCormick is listed under "Where We Expect 7 Percent-Plus Dividend Increases" in the same Outlook.
LAST LINES: "Think Before You Accept a Tempting Job Offer" in National Business Employment Weekly, Feb. 5-11, is worthwhile reading. ("Don't leave an on-site interview without asking to meet the people you'd be working with. . . . Be prepared to do additional research on each company before and after your interviews.") . . . Beginning next week, my afternoon WBAL Radio broadcast will air at about 4:30 p.m., replacing the current 4:52 and 5:52 time slots. The time of the 8:07 a.m. segment, "Your Money This Morning," remains unchanged. On Channel 11, I answer your questions every weekday at 6:15 a.m., Saturdays at 8:15 a.m., and on Mondays and Wednesdays in the expanded noon broadcast.