The Daily Dow
Tuesday, September 24, 1996
by Robert Sheard

LEXINGTON, KY. (September 24): All right, I admit it. About 2:00, I caved in and turned on the television to catch the announcement that the Federal Reserve is leaving interest rates alone for now. I tried hard not to watch, but then I got hungry, went downstairs, and the remote kept calling me. "Click me. Just for a minute. You know you want to!"

And sure enough, the announcement came, the market partied for about 20 minutes, and then everything went back to the way it was before. All in all, a minor losing day for the Dow but a pretty strong day for technology stocks and the Nasdaq.

The big company news was today's announcement from AT&T that the company will miss its 3rd- and 4th-quarter earnings numbers by roughly 10%. And with its usual swiftness, the market shaved 10% off the top of AT&T's stock price. With today's drop and the Lucent Technologies spin-off impending, AT&T is virtually guaranteed a spot among the high-yield, low-price Dow stocks. And of course when things look the ugliest, that's precisely the time to buy these resilient giants.

In our own Foolish Four holdings, Chevron's chemical company and Saudi Industrial Venture Capital Group announced that they have formed a 50-50 joint venture company to build and operate a $650 million petrochemical complex in Al-Jubail, Saudi Arabia. The company will be known as Saudi Chevron Petrochemical, a Limited Liability Partnership. Construction is scheduled to be completed in mid-1999.

Also from the international oil patch, Conoco, DuPont's energy arm, got approval for the development of the Boulton gas field in the North Sea's southern basin. Boulton will start production in the second quarter of 1998.

Transmitted: 9/24/96

      THE FOOLISH FOUR MODEL (9/24/96)  

           Day    Week  Quarter  Year  History
Fool-4    0.04%   0.58%  5.64%  19.43%  19.43%
DJIA     -0.35%  -0.25%  3.88%  14.79%  14.79%
S&P 500  -0.13%  -0.21%  2.23%  11.31%  11.31%
NASDAQ    0.31%  -0.36%  2.55%  15.50%  15.50%


Bought  #    Stock     In At   Now   Change

1/2/96  142  DuPont    69.88  87.75  25.58%
1/2/96  380  Chevron   52.38  62.38  19.09%
1/2/96  148  E. Kodak  67.00  76.25  13.81%
1/2/96  149  3M        63.76  69.75   9.40%
7/16/96  14  Imation   26.16  24.88  -4.90%

Bought  #    Stock         Cost        Value      Change

1/2/96  142  DuPont      $9,922.25  $12,460.50  $2,538.25    
1/2/96  380  Chevron    $19,902.50  $23,702.50  $3,800.00    
1/2/96  148  E. Kodak    $9,916.00  $11,285.00  $1,369.00    
1/2/96  149  3M          $9,500.09  $10,392.75    $892.66   
7/16/96  14  Imation       $366.21     $348.25    $(17.96)  

      CASH      $1,524.50      
      TOTAL    $59,713.50      



Transmitted: 9/24/96

      
      

      
      

        

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