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The Daily Dow LEXINGTON, KY. (September 16): Even though it faded a bit in last-hour trading, the Dow nevertheless scorched to another record high today, closing just below 5,900 and making the emotionally exciting (but realistically meaningless) 6,000 level seem within fairly easy grasping range. For our own concerns, Chevron and DuPont both had positive days, helping to boost the Foolish Four model, despite no movement for Kodak, 3M, or Imation.
DuPont's energy subsidiary, Conoco, announced today that it has brought production on-stream from the North Sea Banff oil field for a six-month test before commencing full development. The Banff field is expected to reach a peak of 35,000 barrels per day under the first phase of production. The early production system will be used for six months, both to recover oil and to gather data to optimize full development of the field, targeted for the first half of 1998.
And in news for our other energy company, Chevron announced that it will spend $200 million to double the capacity of existing paraxylene manufacturing facilities at its Pascagoula, Mississippi refinery. Chevron Chemical Co. foresees the worldwide paraxylene market growing more than seven percent annually for the remainder of the decade.
Chevron has been a producer and seller of paraxylene, an aromatic petrochemical derived from benzene, since the beginnings of the polyester market in the 1950s. And the company is expanding to take advantage of the growing demand by economies in the Pacific Rim and increased consumer demand in America for paraxylene-based plastic bottles and containers.
A couple of things to watch for Dow investors over the next several sessions. It's still unclear how the AT&T breakup will affect its status as a Dow high yielder. If the entire $1.32 dividend per share remains with AT&T after the Lucent spin-off (which will obviously reduce the stock price), then AT&T's membership in the high yield list of ten stocks will be solidified. If the cash dividend is split, though, it's possible the new yield can affect the stock's ranking considerably. I'm looking for details.
Also, Merck and International Paper continue to swap places for that final spot among the top ten. Each time they swap spots, the entire list gets shaken up a bit because the ordering criterion is share price for those top ten stocks. Don't let these seemingly frequent shifts throw you. Once you've bought your own Dow stocks, don't worry for the next 12 months what happens to the current rankings.
And if you buy one day, only to find the list changing the very next day, don't panic. You haven't made a mistake that you somehow need to "correct." All you can do is act on the knowledge you have at hand on the day you buy your stocks. And frankly, that's good enough with this approach. Enjoy the hassle-free approach. Stay Foolish!
Transmitted: 9/16/96 Today's Dow Numbers
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