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The Daily Dow LEXINGTON, KY. (November 13): After a nervous morning, the Dow Jones Industrial Average surged into positive territory again, the eighth straight winning session. This morning the Producer Price Index number was a little daunting on the surface, with wholesale prices surging up 0.4% for October. But underneath the surface, when one excludes the food and energy sector, the so-called Core rate actually fell an unexpected 0.3%, which Wall Street read as a sign that inflation is still no serious threat.
And for confirmation of the steady-as-she-goes interpretation, the Federal Reserve opted to leave interest rates unchanged at today's Open Market Committee meeting. In fact, the conventional wisdom right now is that the Federal Reserve is unlikely to move rates anytime in the immediate future. So, blue chips recovered from early skittishness and set yet another record high.
Not so for the Foolish Four stocks, however. DuPont put a damper on the Foolish Four party amid rumors and speculation by traders about whether DuPont will spin off its energy division, Conoco. DuPont wouldn't comment on the activity in the stock today, citing company policy, but did declare that there is no scheduled analyst meeting. We'll see what comes of it soon enough. No sense in guessing. (DuPont also went ex-dividend this morning, adding a little cash to the model portfolio's coffers.)
In announced spin-off news, though, Westinghouse today surprised no one by declaring that it's splitting in two. The company will spin off its $4.6 billion industrial business to shareholders, a new company which will be called Westinghouse Electric Co., or Welco. Westinghouse will also make a public offering for up to 20% of the stock of Thermo King, its transport temperature control company. Thermo King will become a unit of Welco.
The remaining business at Westinghouse will be the $4.2 billion broadcasting company, now to be based in New York City, which includes TV and radio broadcaster CBS, Group W Satellite Communications, a cable TV marketing and distribution company, and Infinity Broadcasting (an impending acquisition). Chairman and CEO Michael Jordan will stay with the broadcasting branch.
Today's Dow Numbers Stock Change Bid ------------------- DD -2 15/16 92.94 CHV --- 65.38 MMM - 3/4 80.63 EK - 1/2 83.38 IMN +2 28.25
Day Month Year History
FOOL-4 -0.26% 2.12% 29.20% 29.20%
DJIA +0.13% 4.06% 22.61% 22.61%
S&P 500 +0.22% 3.67% 18.70% 18.70%
NASDAQ +0.33% 3.21% 19.82% 19.82%
Rec'd # Security In At Now Change
1/2/96 142 DuPont 69.88 92.94 33.01%
1/2/96 149 3M 63.76 80.63 26.45%
1/2/96 380 Chevron 52.38 65.38 24.82%
1/2/96 148 E. Kodak 67.00 83.38 24.44%
7/16/96 14 Imation 26.16 28.25 8.00%
Rec'd # Security In At Value Change
1/2/96 380 Chevron 19902.50 24842.50 $4940.00
1/2/96 142 DuPont 9922.25 13197.13 $3274.88
1/2/96 149 3M 9500.09 12013.13 $2513.04
1/2/96 148 E. Kodak 9916.00 12339.50 $2423.50
7/16/96 14 Imation 366.21 395.50 $29.29
CASH $1810.64
TOTAL $64598.39
Transmitted: 11/13/96 5:15 PM
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