The Daily Dow
Monday, October 20, 1997
by Robert Sheard

LEXINGTON, KY. (Oct. 20, 1997) -- What a day for the Foolish Four. Sixty percent of the portfolio recorded big gains today, led by the over-weighted position in our January 1997 group, AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: T)") else Response.Write("(NYSE: T)") end if %>.

After months of uncertainty, AT&T announced a new chairman and CEO to replace outgoing chairman Robert Allen. C. Michael Armstrong, current chairman at HUGHES ELECTRONICS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: GMH)") else Response.Write("(NYSE: GMH)") end if %> will be taking over the top spot at AT&T effective
November 1.

Adding to investor relief was AT&T's better-than-  expected earnings for the quarter, also announced today. Earnings fell 15% from last year's level, but the 71 cents a share nevertheless beat the consensus estimates of 65 cents. The company also announced that it plans to have completed the sale of its Universal Card Services and customer solutions units by the middle of next year.

Representing 40% of the Foolish Four model portfolio, today's 5% jump in AT&T gave the lagging model returns a much-needed boost.

Also strong today was CHEVRON <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CHV)") else Response.Write("(NYSE: CHV)") end if %>, amid a very strong oil group. Chevron announced that it is selling its marketing interests in Gulf Oil (Great Britain) to Shell UK Ltd. The stock was up over three percent.

Even with two stocks staying out of today's Dow rally, it was a fine day for the Foolish Four portfolio. There's still a chance the model returns can overtake the market for 1997. Stay tuned.

(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. ________________________________


1997 Foolish Four Model
Stock  Change   Last
--------------------
T    +2  1/4   47.50
GM   +   7/16  69.88
CHV  +2  7/8   86.88
MMM  -   9/16  93.81


           Day   Month    Year
                  Day   Month    Year
        FOOL-4   +2.57%   4.98%  21.95%
        DJIA     +0.95%  -0.30%  22.85%
        S&P 500  +1.21%   0.88%  29.01%
        NASDAQ   +1.11%  -0.01%  30.55%

    Rec'd   #  Security     In At       Now    Change
   1/2/97  153 Chevron       65.00     86.88    33.65%
   1/2/97  179 Gen. Motor    55.75     69.88    25.34%
   1/2/97  479 AT&T          41.75     47.50    13.77%
   1/2/97  120 3M            83.00     93.81    13.03%


    Rec'd   #  Security     In At     Value    Change
   1/2/97  153 Chevron     9945.00  13291.88  $3346.88
   1/2/97  479 AT&T       19998.25  22752.50  $2754.25
   1/2/97  179 Gen. Motor  9979.25  12507.63  $2528.38
   1/2/97  120 3M          9960.00  11257.50  $1297.50


                             CASH   $1167.51
                            TOTAL  $60977.01