Tabell’s Market Letter – December 06, 1963

Tabell’s Market Letter – December 06, 1963

Tabell's Market Letter - December 06, 1963
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., Walston &reo. Inc Memher,q Xell' YO/'k Stock Exchange NEW YORK SAN FRANCISCO LOS ANGELES PHILADELPHIA CHICAGO OFFICES COAST TO COAST AND OVElSEAS TABEll'S MARKET lETTER December 6, 1963 By the end of last week, the Dow-Jones Industrial average was again flirting with newall-time highs. Thursday's close of 763.86 was, indeed, a newall-time high closing, but Thursday's and Friday's intra-day highs were just under the all-time peak of 767.24. The market's emotional response to President Kennedy's assassination, and its equally emotional correction of that response have distorted recent stock market history. At 1 p. m. on November 22nd, the Dow was selling at 735.87. On November 26th, the next trading day, it opened at 738. 43. In other words, eliminating the panic selling which 11,.,,,,4 the assassination, we have a continuation of a rally which began in mid-November and has now carried to new highs. This rally neatly.fits the traditional.year.end pattern. What must be remembered is that the rally, so far, also fits perfectly into the pic- ture of a mature upswing which was evident long before November 22nd. Our breadth index reached a high at the end of August and was followed into new high territory by the Dow a days later. Since that time, although the market made new highs in six of nine weeks up to the end of October, the breadth index remained in a downtrend both on a daily and weekly basis. What is quite obviously taking place is that the advance to new highs is being led by fewer and fewer stocks. This is characteristic of an upswing nearing its peak. The following table shows the price of each of the thirty stocks in the Dow-Jones In- dustrial average at its 1963 high prior to November 22nd, and key dates following. It is in- teresting to note that although the averages are almost at new highs, only four stocks are above their previous peaks. Such stocks as American Can, American Tobacco, Anaconda, Chrysler, Standard Oil of California, United Aircraft and are considerably under their earlier highs. In other words, as we have poin e ious letters, a good many groups have already lost momentum. As ro 0 this, it is going to become increasingly difficult to sustain the rally, ev n ough stocks may move the averages higher. 1963 HiJLh To 111 Z'l Close N p Open Nov. 26th Close Dec. 5th Allied Chemical 55 1/4 Alum. Co. Amer. 703 8 W/8 cS)0 American Can 47 3 American Tel & T e l l O 53 61 41 1/8 140 553/8671/8 42 1/8 141 1/8 Anaconda Co. 5 45 Bethlehem Steel 4 29 1/2 Chrysler 9 3/4 78 3/4 DuPont, DeNemours 233 1/4 (al 220 Eastman Kodak 122 3/8 110 General Electric 85 1/4 75 3/8 General Foods 90 1/2 83 General Motors 91 3/8 743/4 Goodyear 433/8 383/4 International Harvester 63 1/8 553/8 International Nickel 681/4 613/4 International Paper 361/4 291/2 Johns Manville 51 1/2 46 Owens Illinois Glass 89 1/4 851/2 ProcterZ&rGambrer;;&..Ga8f3/8 . Sln'77 5/8 Sears Roebuck 101 7/8 Standard Oil of Calif. 691/4 91 1/8 571/8 Standard Oil of N.J. Swift & Co. Texaco Union Carbide United Aircraft U.S.Steel Westinghouse Elec. 733/8 443/8 741/2 1153/4 537/8 571/2 415/8 673/8 405/8 63 112 1/2 441/4 451/4 321/8 Woolworth DJ Ind. Aver. 80 1/2 767.24 76 3/4 711. 49 (al adj. for Genl. Motors distribution. 45 1/2 30 82 234 112 79 853/4 77 3/4 401/4 57 631/4 321/2 467/8 861/2 78 95 60 69 403/8 65 1/4 113 443/4 51 347/8 77 3/4 738.43 ANTHONY W. TABELL 44 1/4 30 1/2 90 3/8 248 118 3/4 83 1/8 861/2 791/4 41 1/2 59 1/8 653/4 33 491/2 86 1/4 80 991/4 60 727/8 42 3/8 67 1133/4 441/8 54 341/8 81 l/S 763.86 .. U'I 0 t;tl'lgllrn'tnnees IS to be construed us, fin offer to ReI! or R so lei Il 1011 n nny E'ell! I lib I 'fCII cl1 to hetein The Infm malion or completeness and the fllllllshlnl! lheleuf III not. and lImlcl no Cllcumstnnle; is to he rUllht!llOO 11.8, n relll'e..enta tlon by Walston & Co., Inc All expresSions or opinIOn are subject to chanJ.(C \\lthout notice Walston &. Co, In(', and Olflcenl, DllcctOls. Stockholtlers and Employees thereor, purchase, 8e\1 and may have an Interest In the seCUrities mentwned helem. 'ChltJ market letter is mtended lind prc..clItcd merely a .. a I!cnerat. mrormal commcntary on day to day market news and not as a complete annlysh! Add1twnnl mrOlmlilion ,th Ie,\led to Dny scrlll'lhe, l'dened to hCICln Will be rurnlshed upon request . \\\ 30\

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