The Dow Approach - Wednesday May 8, 1996

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BTD 10
As Of 05/08/96

International Paper
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %>

General Motors
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %>

Chevron Corp
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %>

Minnesota Mining & Mfg
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %>

General Electric
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GE)") else Response.Write("(NYSE:GE)") end if %>

Du Pont de Nemours & Co.
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:DD)") else Response.Write("(NYSE:DD)") end if %>

Exxon
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %>

J.P. Morgan
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %>

Texaco
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:TX)") else Response.Write("(NYSE:TX)") end if %>

Philip Morris
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MO)") else Response.Write("(NYSE:MO)") end if %>

***NOTE: FOOLISH FOUR STOCKS ARE ITALICISED

The Daily Dow
Wednesday, May 8, 1996
by Robert Sheard

LEXINGTON, Ky. (May 8): And you wonder why we think market timing is futile? Let me tell you the story of a day in the life of this Fool. I woke up this morning, ready to start another Foolish day. My wife just finished her semester's grading so we planned to have a family breakfast out with our son on his way to pre-school, then go to the library to do some research, her on her book, me on some investment models.

Before we left, I logged on to the Fool to see if any more garbage was being flung Boring's way - a major injustice if there has ever been injustice done - and also to check on America Online's earnings. The Fool hadn't burned to the ground under the force of the flames from the Wise last night and AMER beat earnings - whoooo-boy!!! We set off.

I knew it was going to be one of those days when the Dow-mobile collapsed on the way to my son's pre-school. Yeah, it's got 141,000 miles on it, but it IS a 1987. What good is a car if it doesn't last 10 years? Anyway ... got the car to the shop, survived a few hours in the library and made it home in time to find the Dow down 75 points and AMER getting hammered ... groan!

"Oh well," I said ... "one of those days ... forget it and get to work." A couple of hours later, I turn on the tube and the market's UP 20??? Is it a misprint? Whew ... nutty day. Get back to work, find out the Dow-mobile just needs a vacuum hose replaced and a long-overdue tune-up. Turn on the news for the end-of-the-day numbers ... HUH? The market's UP 53??

Let's see, that means we had roughly a 130-point swing in the market. Let's get out the calculator ... 130 divided by 5400 ... hmm ... 2.4%. Does everyone remember their Shakespeare? "Sound and fury ... signifying ..." well, if not nothing, at least nothing significant. Bonds picked up a little and the long-bond yield dropped back below 7%, helping stocks bounce back, but round numbers and short-term movements don't mean much.

Now imagine trying to time today's action ... especially if you were trying to get through on Ceres' over-crowded phone lines. You'd be slitting your wrists. Is it worth it? Well, for you, maybe. For me? Nah. I'd be broke in a year if I tried to predict these kinds of short-term moves. Give me a little sanity with the nice mechanical Dow and Growth models, thank you. I may not triple my money in a quarter, but I won't triple my blood pressure on a day like today either. Or if I do, it's because of the Dow-mobile, not the market.

In Foolish Four news, Chevron was upgraded by Morgan Stanley from Neutral to Outperform. Chevron also confirmed that its Colombian appraisal well was disappointing but that the company will keep doing seismic tests before abandoning the area.

Eastman Kodak held its shareholders meeting today and CEO George Fisher did a little Foolish accounting. "The total return on your investment -- stock price appreciation plus dividends -- was 44% in 1995," Fisher told shareholders. "Beginning in 1994 and through the first quarter of '96, the total return was 85%. That's 26% better than the Dow Jones average of 30 industrials and 20% better than the Standard & Poor's 500."

Kodak also announced that it has received orders for 2 million of the new Advantix cameras, already surpassing this year's target. Kodak began producing the camera on April 22.

Stay sane, Fools, and think long term!

Transmitted: 5/8/96

The 30
Dow Stocks Allied Signal
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:ALD)") else Response.Write("(NYSE:ALD)") end if %> Alcoa
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:AA)") else Response.Write("(NYSE:AA)") end if %> American Express
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:AXP)") else Response.Write("(NYSE:AXP)") end if %> AT&T
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:T)") else Response.Write("(NYSE:T)") end if %> Bethlehem Steel
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:BS)") else Response.Write("(NYSE:BS)") end if %> Boeing
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:BA)") else Response.Write("(NYSE:BA)") end if %> Caterpillar
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CAT)") else Response.Write("(NYSE:CAT)") end if %> Chevron
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %> Coca-Cola
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:KO)") else Response.Write("(NYSE:KO)") end if %> Disney
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:DIS)") else Response.Write("(NYSE:DIS)") end if %> DuPont
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:DD)") else Response.Write("(NYSE:DD)") end if %> Eastman Kodak
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:EK)") else Response.Write("(NYSE:EK)") end if %> Exxon
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %> General Electric
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GE)") else Response.Write("(NYSE:GE)") end if %> General Motors
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %> Goodyear
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GT)") else Response.Write("(NYSE:GT)") end if %> IBM
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IBM)") else Response.Write("(NYSE:IBM)") end if %> International Paper
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %> McDonald's
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MCD)") else Response.Write("(NYSE:MCD)") end if %> Merck
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MRK)") else Response.Write("(NYSE:MRK)") end if %> 3M
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %> JP Morgan
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JP)") else Response.Write("(NYSE:JP)") end if %> Philip Morris
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MO)") else Response.Write("(NYSE:MO)") end if %> Proctor & Gamble
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:PG)") else Response.Write("(NYSE:PG)") end if %> Sears
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:S)") else Response.Write("(NYSE:S)") end if %> Texaco
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:TX)") else Response.Write("(NYSE:TX)") end if %> Union Carbide
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:UK)") else Response.Write("(NYSE:UK)") end if %> United Tech
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:UTX)") else Response.Write("(NYSE:UTX)") end if %> Westinghouse
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:WX)") else Response.Write("(NYSE:WX)") end if %> Woolworth
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:Z)") else Response.Write("(NYSE:Z)") end if %>

Today's Dow Numbers

THE FOOLISH FOUR MODEL (5/8/96)

Day Week Quarter Year History

Fool-4 1.93% -0.10% 0.47% 8.37% 8.37%

DJIA 0.98% -0.07% -2.02% 6.98% 6.98%

S&P 500 1.02% 0.49% -0.11% 4.68% 4.68%

NASDAQ 0.05% -0.11% 7.44% 12.46% 12.46%

Rec'd # Security In At Now Change

1/2/96 148 E. Kodak 67.00 75.88 13.25%

1/2/96 142 DuPont 69.88 78.63 12.52%

1/2/96 380 Chevron 52.38 56.63 8.11%

1/2/96 149 3M 66.38 64.38 -3.01%

Rec'd # Security Cost Value Change

1/2/96 148 E. Kodak $9,916.00 $11,229.50 $1,313.50

1/2/96 142 DuPont $9,922.25 $11,164.75 $1,242.50

1/2/96 380 Chevron $19,902.50 $21,517.50 $1,615.00

1/2/96 149 3M $9,889.88 $9,591.88 $(298.00)

CASH $682.44

TOTAL $54,186.07

Transmitted: 5/8/96

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