The Daily Dow
Monday, May 19, 1997
by Robert Sheard (TMF Sheard)
LEXINGTON, KY. (May 19, 1997) -- Cautious optimism was the rule of order in the market today. With the Federal Reserve's Open Market Committee meeting slated for tomorrow, most "Fed watchers" are riding the fence on whether or not the Fed will raise short-term interest rates again this time.
The Fed last raised rates in March, the first hike in this cycle, and it's anybody's guess whether it will be followed up with a second hike tomorrow. The economic and inflation data has been "mixed" since the March hike. (Translation: no one knows for sure how to interpret it.) The inflation data remains wonderfully tame, yet the other economic data suggest the economy's still strong enough that a further move by the Fed is possible.
Here's my prediction: the Fed will meet tomorrow, and then again in July. (Bold, huh?)
For those of you with eagle eyes, thank you for catching my blunder this weekend. In the update to the 1997 Year-to-Date Dow returns, I failed to account for the recent 2-for-1 split in GENERAL ELECTRIC <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GE)") else Response.Write("(NYSE: GE)") end if %>. Obviously, the stock wasn't down 38% year-to-date, but rather, it's been one of the better Dow performers this year, up more than 20%. Sorry about that. Technology's wonderful, except when it isn't.
In other Dow news, AMERICAN EXPRESS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AXP)") else Response.Write("(NYSE: AXP)") end if %> jumped a little on the day, but more newsworthy is the story that the company convinced golf phenom Tiger Woods not to "leave home without it." Winner of five tournaments here in the states and another in Thailand since he turned pro late last year, Woods signed a 5-year endorsement contract with the financial services powerhouse for a reported $30 million. Woods is a key figure in NIKE's <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: NKE)") else Response.Write("(NYSE: NKE)") end if %> ad campaigns as well, of course. Woods reportedly signed for $350 gazillion with Nike when he turned pro. (Does the real figure matter at this point?) Makes his PGA-money-list-leading $1.3 million so far this year kind of pale, doesn't it? Hey Tiger, need a portfolio manager?
(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. ________________________________
Stock Change Last -------------------- T --- 33.38 GM + 3/8 55.88 CHV + 1/2 70.63 MMM - 1/8 91.38
Day Month Year
FOOL-4 +0.27% 1.28% -3.26%
DJIA +0.48% 3.14% 12.11%
S&P 500 +0.42% 3.98% 12.49%
NASDAQ +0.04% 6.38% 3.89%
Rec'd # Security In At Now Change
1/2/97 120 3M 83.00 91.38 10.09%
1/2/97 153 Chevron 65.00 70.63 8.65%
1/2/97 179 Gen. Motor 55.75 55.88 0.22%
1/2/97 479 AT&T 41.75 33.38 -20.06%
Rec'd # Security In At Value Change
1/2/97 120 3M 9960.00 10965.00 $1005.00
1/2/97 153 Chevron 9945.00 10805.63 $860.63
1/2/97 179 Gen. Motor 9979.25 10001.63 $22.38
1/2/97 479 AT&T 19998.25 15986.63 -$4011.63
CASH $609.53
TOTAL $48368.41