Although corporate earnings are on a downward...

Although corporate earnings are on a downward trend, the stock market rallied last week, apparently buoyed by the Federal Reserve Board’s lowering of the federal funds rate by a quarter-point to 8.25%.

This activity did not trickle down to San Diego stocks, however, as most continued to languish, said Irving Katz, director of research at Thomas Green/San Diego Securities.

Despite having adequate capital according to the tough new regulatory standards passed last summer by Congress, HomeFed stock continued to recede, falling $1.875 to close at $31.625. HomeFed is down 33% from its high of $47.50 reached last month.

Except for Cubic Corp., which gained $1.50 for the week after reporting strong fiscal-year earnings improvement to $2.44 per share, most of the local defense stocks continued in the doldrums.

A new low was recorded by Mission West Properties, which is controlled by Intermark, which likewise is selling near its year’s low.

Surprisingly, there were three new highs for the year last week: Magma Power at $25; Xytronyx at $10.50 and DH Technology at $14.50.

Good gains were also recorded by Advanced Marketing Services and Molecular Biosystems. On the downside, Mail Boxes Etc. fell $1.50.

WD-40 is scheduled to hold its annual meeting this Friday at 2 p.m. at Mission Valley Inn.