The Dow Approach - Friday, July 26, 1996

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BTD 10
As Of 07/26/96

#1
International Paper
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %>

#2
General Motors
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %>

#3
AT&T
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:T)") else Response.Write("(NYSE:T)") end if %>

#4
Chevron Corp
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %>

#5
Minnesota Mining & Mfg
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %>

#6
Du Pont de Nemours & Co.
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:DD)") else Response.Write("(NYSE:DD)") end if %>

#7
Exxon
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %>

#8
Texaco
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:TX)") else Response.Write("(NYSE:TX)") end if %>

#9
J.P. Morgan
<% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %>

#10
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
Friday, July 26, 1996
by Robert Sheard

ST. PETERSBURG, FL. (July 26): The Foolish Four limped up the final fairway today, spending cash on each weak shot. Chevron was down, Kodak was down, 3M and its spin-off were down. The only one of the foursome holding solid form approaching the last green was DuPont, still riding high after posting a great score (earnings) earlier this week. Adding to yesterday's stock upgrade festival on DuPont, Goldman Sachs also boosted the stock's rating today, from "market perform" to "market outperform."

On a day when the Dow 30 posted a decent gain, such a performance is a bit disappointing, but the Foolish Four held up reasonably well during the recent market correction. Five or six weeks ago, the Foolish Four had one or two percentage points on the market indices. After the decline and heading back into this week's slight recovery, though, the gap between the Dow 30 and our four stocks widened considerably.

Such a solid performance in an overall down market is why we argue that one shouldn't try to time the market, but rather, invest in the best stocks at any given time. Over time, eliminating the market timing aspect of the investment equation, such an approach has proven remarkably successful in both strong and weak markets.

I'll be on the road tomorrow, heading back to the Bluegrass, so look for the weekend updates for the Dow and Investing For Growth areas sometime Sunday afternoon. Enjoy the weekend, Fool!

Transmitted: 7/26/96

Today's Dow Numbers

THE FOOLISH FOUR MODEL (7/26/96)

Day Week Quarter Year History

Fool-4 -0.58% 0.19% -2.61% 10.10% 10.10%

DJIA 0.94% 0.85% -3.21% 6.96% 6.96%

S&P 500 0.75% -0.45% -5.18% 3.24% 3.24%

NASDAQ 1.60% -1.66% -8.91% 2.59% 2.59%

Bought # Stock In At Now Change

1/2/96 142 DuPont 69.88 80.50 15.21%

1/2/96 380 Chevron 52.38 57.75 10.26%

1/2/96 148 E. Kodak 67.00 73.13 9.14%

1/2/96 149 3M 63.76 63.38 -0.60%

7/16/96 14 Imation 26.16 21.50 -17.81%

Bought # Stock Cost Value Change

1/2/96 142 DuPont $9,922.25 $11,431.00 $1,508.75

1/2/96 380 Chevron $19,902.50 $21,945.00 $2,042.50

1/2/96 148 E. Kodak $9,916.00 $10,822.50 $906.50

1/2/96 149 3M $9,500.09 $9,442.88 $(57.22)

7/16/96 14 Imation $366.21 $301.00 $(65.21)

CASH $1,106.15

TOTAL $55,048.53

Transmitted: 7/26/96

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