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Friday, January 24, 1997
The Daily Dow FOOL GLOBAL WIRE by Robert Sheard LEXINGTON, KY. (January 24) -- I was all set to make free and easy with jokes about today's market action being like bungee jumping until I heard that someone just died in a bungee jumping accident in preparations for the Super Bowl festivities in New Orleans. Not one to make light of any tragedy, I'll stick to a more sober tone today. After yesterday's record-setting volume on the New York Stock Exchange and last-hour drop, today's session picked up in the same fashion. The market dropped as much as 100 points, then recovered virtually all of the loss, only to drop some 70 points again once program trading curbs were lifted, bounce back a little, and ultimately settle for a 60-point loss. But is this really amazing volatility or have we just not become accustomed to the larger raw numbers associated with a market approaching 7,000? Just over two years ago, the market was under 4,000, so a 100-point drop for the Dow then meant quite a bit more than it does today in percentage terms. Two years ago, it would have represented a move of 2.5%. Today it's only the equivalent of a 1.4% change for the index. This significant difference in the percentage movements is what I referred to briefly in last night's report when I lamented the rules on program trading curbs being tied to a raw point value rather than a percentage move for the index. Perhaps I'm all wet here, though. One of the frequent warnings one hears from the perennial Bears who are anxious to see the end of this lengthy Bull run is that the market just doesn't have the same volatility it did years ago. When it returns, they argue, the tyros and small fries will stampede the exits. Perhaps their point about reduced volatility is true and is directly related to these static trading curbs which become more and more restrictive as the market grows year after year. Maybe less volatility is a boon, though; I don't know. But can you imagine 50-point program trading curbs with the Dow at 10,000? Every time IBM <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: IBM)") else Response.Write("(NYSE: IBM)") end if %> or PHILIP MORRIS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: MO)") else Response.Write("(NYSE: MO)") end if %> sneezes, the trading curbs kick in. Gezundheit!	The Current BTD 10 1. AT&T <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:T)") else Response.Write("(NYSE:T)") end if %> 2. *International Paper <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:IP)") else Response.Write("(NYSE:IP)") end if %> 3. *General Motors <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:GM)") else Response.Write("(NYSE:GM)") end if %> 4. *Chevron Corp <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:CHV)") else Response.Write("(NYSE:CHV)") end if %> 5. Minnesota Mining & Mfg <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MMM)") else Response.Write("(NYSE:MMM)") end if %> 6. Exxon <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %> 7. J.P. Morgan <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:JPM)") else Response.Write("(NYSE:JPM)") end if %> 8. DuPont <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:XON)") else Response.Write("(NYSE:XON)") end if %> 9. Texaco <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:TX)") else Response.Write("(NYSE:TX)") end if %> 10. Philip Morris <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE:MO)") else Response.Write("(NYSE:MO)") end if %> ***NOTE: FOOLISH FOUR STOCKS ARE PRECEDED BY AN ASTERISK AND ARE ITALICISED Last Update: 01/24/97
Today's Dow Numbers Stock Change Bid ------------------- T + 3/8 38.38 GM + 5/8 62.50 CHV + 1/4 66.13 MMM - 5/8 81.00 Day Month Year History FOOL-4 +0.52% -1.17% -1.17% 27.79% DJIA -0.88% 3.85% 3.85% 30.86% S&P 500 -0.91% 4.02% 4.02% 25.10% NASDAQ -1.05% 5.64% 5.64% 29.62% Rec'd # Security In At Now Change 1/2/96 198 Chevron 52.38 66.13 26.25% 1/2/96 155 3M 64.50 81.00 25.57% 1/2/97 231 Gen. Motor 55.75 62.50 12.11% 1/2/97 618 AT&T 41.75 38.38 -8.08% Rec'd # Security In At Value Change 1/2/96 198 Chevron 10370.25 13092.75 $2722.50 1/2/96 155 3M 9998.09 12555.00 $2556.91 1/2/97 231 Gen. Motor 12878.25 14437.50 $1559.25 1/2/97 618 AT&T 25801.50 23715.75 -$2085.75 CASH $91.60 TOTAL $63892.60 Transmitted: 1/24/97

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