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The Daily Dow
FOOL GLOBAL WIRE
by Robert Sheard (TMF Sheard)

LEXINGTON, KY. (May 13, 1997) -- Despite slowing retail sales (another piece of the economic pie that will help the Fed determine interest rates), the market just didn't have enough oomph left after yesterday's 123-point rally to go anywhere. Up a bit, down a bit, all in all, a do-nothing kind of session.

Under the surface of the calm market, though, there were some interesting currents of news affecting new or recent Foolish Four stocks. GOODYEAR TIRE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GT)") else Response.Write("(NYSE: GT)") end if %> just settled a 19-day strike, good news. But the company announced this morning that the strike cost the company some $50 million in lost production.

As a result, the company said it would miss the Wall Street expectations for the second quarter. Last year, Goodyear earned $1.22 per share and First Call's consensus estimate for this year's second quarter was $1.28. Interestingly enough, the stock gained 1% today. Whether the market had already accounted for the strike is hard to tell, but investors shrugged the report off.

In other Dow strike news, GENERAL MOTORS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GM)") else Response.Write("(NYSE: GM)") end if %> is now suffering a third strike. About 8,500 workers at a GM subsidiary which makes electric wiring for twenty auto makers worldwide walked off the job today. At issue in this strike are local pension and pay rates with Delphi Packard Electric Systems.

This makes the third strike against GM, with two different unions. I'm not making any predictions here, but this sounds like a classic "Dog." The news is very public and no one wants the stock. Often, by the time everyone has heard the bad news, the effect has long been factored into the stock price. We'll see how this plays out over the next twelve to eighteen months for the nation's largest auto maker.

(c) Copyright 1997, The Motley Fool. All rights reserved. This material is for personal use only. Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of The Motley Fool. ________________________________

The Current
BTD 10

  1. AT&T
    <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:T)") else Response.Write("(NYSE:T)") end if %>
  2. *Philip Morris
    <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MO)") else Response.Write("(NYSE:MO)") end if %>
  3. *Intl. Paper
    <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %>
  4. *General Motors
    <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %>
  5. *Exxon
    <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %>
  6. Chevron
    <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %>
  7. Eastman Kodak
    <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:EK)") else Response.Write("(NYSE:EK)") end if %>
  8. Minnesota Mining
    <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %>
  9. J.P. Morgan
    <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %>
  10. DuPont <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:DD)") else Response.Write("(NYSE:DD)") end if %>

NOTE: Foolish four stocks are preceded by an asterisk.
Updated Daily

1997 Foolish Four Model

Stock  Change   Last
--------------------
T    ---       32.88
GM   -1  7/8   56.88
CHV  -   1/4   72.50
MMM  -   3/4   91.63
               Day   Month    Year
        FOOL-4   -0.95%   1.44%  -3.11%
        DJIA     -0.19%   3.78%  12.81%
        S&P 500  -0.54%   3.97%  12.47%
        NASDAQ   -0.79%   5.78%   3.30%

    Rec'd   #  Security     In At       Now    Change
   1/2/97  153 Chevron       65.00     72.50    11.54%
   1/2/97  120 3M            83.00     91.63    10.39%
   1/2/97  179 Gen. Motor    55.75     56.88     2.02%
   1/2/97  479 AT&T          41.75     32.88   -21.26%


    Rec'd   #  Security     In At     Value    Change
   1/2/97  153 Chevron     9945.00  11092.50  $1147.50
   1/2/97  120 3M          9960.00  10995.00  $1035.00
   1/2/97  179 Gen. Motor  9979.25  10180.63   $201.38
   1/2/97  479 AT&T       19998.25  15747.13 -$4251.13


                             CASH    $431.29
                            TOTAL  $48446.54

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