Tabell’s Market Letter – May 06, 1977

Tabell’s Market Letter – May 06, 1977

Tabell's Market Letter - May 06, 1977
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j , iil.G CE fl..!l. ' S lRfr! & . RH'A; Gi.J PI1'Ub! 909 STATt RO …. O. PRINCLTON NLW JEUEV OHl.. .,O ntvr .. r. or t.'!Ff';t.P. NLW OKL1UC' 1 C,)ANUt JNL MEMOER AMERICAN STOCK EXCHANGE May 6, 197'-'-l A good deal of recent market discussion has centered around the difference in per- I formance of various market averages. We intend, therefore, as space permits, to discuss some aspects of the more widely-followed indicators. As a start on that process, we rec(mtly compiled the following table which shows the 30 Dow stocks, with their weight In that average, and the 30 heaviest-weighted stocks In the S & P 500. The list for each average shows the stock's weight in the other average and the difference in those two weights. 30 DDwJOtS STOCKS STOCK T IN OJlA .0 UIFf . I 30 AVltST.EIGHTED 1 1 1 .O D.II . ST OC &P 500 STOCKS X T IN S&P a l IT IN D0 JlA O.IF'F' , . ! d i 1., .j 1 OU POT DE NEMOuW 'Ide 1,00 li,li! 1 ! B i PflUCH F. GAMblE 5.71 1.07 4.bll 1 AMRICAN Tf & TtL GEERAL MOTORS CORP ,'Il 3,cl I .71 1 t.XXON CORP EATrA KOnAK CO 4,6t 1.78 3.06 I GeAl MOTORS COR MtNICAN TEL TEL 4, b,23 -1.11 I GENeRAL tLECTQIC CD SEARS kOEUCK CO ' n 1,57 2,80 I EASTMAN KODAK CO UNIO tAIU COP 4,lb a,!)!! 3,58 1 SEA5 IOEI'UCK CO ALUMINUM CO Of AMt N 4,011 0,32 3,J7 I STANDAID all IOIANA ITtNATluNAL PAE 1l.0 0,3 3.0 1 ROYAlOUTCH f'OLEU OWS lLLlOIS INL 3,'11 0,15 3,6 I HXACO l!C EHO CORP !.b!) .5, T1- O,Ob 1 MOBIL LOkI' MINNtSuTA MINING M 3,b2 0,\15 2.b7 1 DOw CHtMICAL CO GlNEkAL ELtCTRIC CD 3,5'1 1,64 1 ,14 I STAuAka OIL CALif UNITtD STATts STEEL 3,2'1 O,bl a,b6 I PROCH & ('AMALE AMH'JCA\ ekAr.,liS Jolt 0, 1!j r.,96 1 au PONT DE NtMOUNS ALLIu CHtMICAL CO 3,10 a,co 2,'10 1 MINNeSOTA MlING MFG AMEIC.N CAt CO c,S'I 0,12 2,71 I GULF all CORP STANOAO vIl CALIF i!.j 1,09 1 , T 1 ATLANTIC ICHFIEO UNITt TECHNOLDulES c.'1'1 0, 1 2.34 1 ORO MOTO CO bElhLtMtM STEEL COk .'1b O,e 2.21 I SCHI.UMfIGtR INTtNATNL ARVE5TE c,'1l 0,1 b 2,21 1 EVf.HHAutSE CO coJONS ANVILlE CORP 2,31 0,11 2.20 1 S'UL OIL GENEkAL FOUnS COMP c.ea O.eb 2,0' 1 AMfR1CAN HOME PROD INCU 2.eO 0,.51 1.8S 1 CATERPILLAR TAC10H ESMAK INC c,ttO 0,09 ., oil I COCA COLA CO TEUr.O INC 1, '13 1,1'1 0,7'1 1 HILLIPS pETROLEU wOllLoOklt F CO 1,11'1 0,12 GOUUYEA TIR & RUbR 1. 0.24 Cl1kY5ltF! ('OHP 1,SoS 0.16 1 .72 I MEkCt( 1\ co l/'C ,c1 1 I GEN TEL ELECTRONIC I.! 1 KRESGE S 5 CO lSTINGHOSE ELECT 1.21 O,e5 I.O.! I JOHNSON JOHhSON b,14 0,00 &,14 b,23 .52 1 ,71 3,11 3,&5 0.0& 3,ci 4,111 01,11 1,84 J,II -1,74 1,18 ,6b -3,08 1,7 ,37 -2.80 1,ii! 0.00 I, c2 1. C!0 O.ClO 1.20 1,1 1,'13 0,14 1,1& 0,00 I, 1& 1,15 0,00 1,15 1. 0'1 .83 -1,14 1,07 5,71 -4.&/1 I, 00 ',12 -!l.12 0.5 3.&2 -2,&1 O,eq 0,00 0,89 0,6'1 0,00 0,6'1 0,65 0.00 O,5 0.e3 0,00 O,B3 0,81 0,00 0,81 O,6/) 0.00 0,60 0.16 0.00 1'1,78 0,17 0,00 0.11 0,7& 0,00 0,76 O,bQ 0,00 O,&q D,b8 0,00 0,18 0,05 0,00 0,65 O,b5 0,00 0,&5 0,&11 0,00 0.&4 TOTAL That there should be differences in the performance of the two indicators is hardly surprising. The table for the Dow stocks shows that they account for only 28 of the weight of the S & P 500 and that 28 of the 30 carry a heavier weight in the Dow than they do in the S & P (largely due to the fact that the Dow contains fewer stocks and weights, effectively, by price). On the other hand, while the 30 most lmportant stocks in the capital-weighted S & P 500 account for 45 of the total weight in that average, 19 of these stocks are not in the Dow, including IBM, the most heavily-weighted company In the S & P. Furthermore, 9 of those 11 are weighted more lightly in the S & P than in the Dow. We will be commenting in future Issues on the construction of these and other Indices and the implications thereof for Investment pollcy. Dow-Jones Industrials (1200 p.m.) 937.58 S & P Composite (l200 p.m.) 99.61 ANTHONYW. TABELL DELAFIELD, HARVEY, TABELL Cumulative Index (5/5/77) 663.86 AWT/lb ,- .1 ;-j —————– ——————————– ! 1. I. 1'1 I ' ,. , ' I f , ,II ,01' I, ., I,t,'. j F, ,1. J,.. , I I ! . d r ,.. ' , I, . , .\, – ' ' I 1 ,I( , I. j y , 11 '. , ''''' ,,' .I I. , ,I, ,,,.I Ii. '''''!il' P'''I,tl wi I,,, II,.. r ,' ,., ,, II,,,1. , \' \VII. ' I, I .., I,,, ,I''', tol, ,,) 1101, f' I. , I. I' I ' , ,. 'I' I/. I ,II, I ' I. I ' , (.1, ' ,,/ I, ' ,\,,1' H,' 1., I I' l.t' I),,, 1,,' ,I, t -,J,,,),j J,,, 1.,1.1,,, ,,,11'01,,,,'1,,1 . t. 1,,,,,,.'.1,, . , . , , , I oI'Oj .,,',' I I , , . ' . ' I . ',.. I ,I, ' f 1,.k ' ''I I I y . ' ,,,,.,,,,,.,,, 1 , tI. i I,,, ,. ', ''',,( .I. I' ,',., ' I. I,ll., ' to .., 1 . ,,1. i ,I, I' ..1 ' ''I'\'.,\ ,,' ''''1'''',.,( ,- c' h,,,,,.v,\ '''Y ., II I .lill I I, I. '1'''.1 ,1111 110. ,II ,,,' ,,,.' ''' III ,,., '''' . ,,,I,,, I. III ,-, . I ,f.. .,(, ,,1 ,I, L. ' – -,. ,,' ' .. , i ! ' ,., ' ' ' . , I ' … ' I ' I , ' .I, ,II.' I i , ,. I ,I ,d i. I I

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