Tabell’s Market Letter – June 29, 1979

TABELL'S MARKET LETTER 909 STATE ROAD, PRINCETON NEW JERSEY 08540 DIVI910N OF MEMBER NEW YORK STOCK eXCHANoe, INC MEMBER AMERICAN STOCK EXCHANGE r– June 29, 1979 …. Interms. the,significt — the Dow'-Jories fa the venerableindicator since .. – 1959. Chrysler and Esmark left the Index and were replaced by IBM, America's largest enter- prise in terms of market value, and Merck & Company. A third change, which would have taken place anyway, was, ironically, statistically more important. Du Pont had been the !1lost heavily weighted component of the Dow, comprising in excess of 10t of the total weight of the Index. Its 3-for-1 split, effective today, brings that, weight below 31, a change which affects the average more than either of the two additions. IBM will now comprise just under 6 of the total weight in the Dow, comparable to its 6.4 weight in the S & P 500. It will not, however, be the largest Dow component as long as Procter & Gamble continues to have a higher price. Merck, with a 5.32. weight, will be the next largest component. The weights of some of the other larger components will continue to be similar to their respec- tive weights in the Standard & Poors. Exxon will account for 4.25 of the Dow versus 3.48 of the S & P, and General Motors for 4.81 and 2.52 respectively. It is interesting that the two additions almost exactly offset the du Pont split plus the two removals, thus necessitating only modest weight changes in the 27 other components. The following table shows the price with the old and new weights in the Dow and their changes for the 32 securities involved. (It is calculated as of Wednesday's close and will, there- fore, be modestly different from the official calculation made as of Thursday's close.) ST0C K —-' ALLIED CHEMICAL CORP ALUMINUM CO OF AMER AMERICAN BRANDS AMERICAN CAN CO AMERICAN TEL & TEL BETHLEHEM STEEL CORP CHRYSLER CORP DU PONT DE NEMOURS EASTMAN KODAK CO ESMARK INC EXXON CORP GENERAL ELECTRIC CO GENERAL FOODS CORP GENERAL MOTORS CORP GOODYEAR TIR & RUBBR INCO I BM INTERNATNL HARVESTER INTERNATIONAL PAPER JOHNS MANVILLE CORP MERCK & CO INC MINNESOTA MINING MFG OWENS ILLINOIS INC PROCTER & GAMBLE SEARS ROEBUCK CO STANDARD OIL CALIF TEXACO INC UNION CARBIDE CORP UNITED STATES STEEL UNITED TECHNOLOGIES WESTINGHOUSE ELECT WOOLWORTH FW CO PRICE 35.000 52.000 59.000 38.625 57.500 21.500 9.625 127.250 58.000 26.750 52.250 50.000 31. 500 59.125 16.250 20.750 73.500 39.125 45.250 24.375 65.500 56.500 19.000 77.000 19.000 47.875 26.625 37.625 21.750 37.125 19.625 26.625 OLD WEIGHT 2.89 4.29 4.87 3.19 4.74 1.77 0.79 10.49 4.78 2.21 4.31 4.12 2.60 4.88 1. 34 1.71 0.00 3.23 3.73 2.01 0.00 4.66 1. 57 6.35 1. 57 3.95 2.20 3.10 1. 79 3.06 1. 62 2. 20 NEW WEIGHT 2.84 4.23 4.80 3.14 4.67 1. 75 0.00 3.45 4.71 0.00 4.25 4.06 2.56 4.81 1. 32 1. 69 5.97 3.18 3.68 1. 98 5.32 4.59 1. 54 6.26 1. 54 3.89 2.16 3.06 1. 77 3.02 1. 59 2.16 CHANGE -0.04 -0.06 -0.07 -0.05 -0.07 -0.03 -0.79 -7.05 -0.07 -2.21 -0.06 -0.06 -0.04 -0.07 -0.02 -0.02 5.97 -0.05 -0.05 0.03 5.32 -0.07 -0.02 -0. 09 -0.02 -0.06 -0.03 -0.04 -0.03 -0.04 -0.02 -0.03 Dow-Jones Industrials (12 00 PM) S & P Composite (12 00 PM) Cumulative Index (6/29/79) AWTsla 840.96 102.62 724.76 ANTHONY W. T ABELL DELAFIELD, HARVEY, TAB ELL No ,Iclement or expreulon of opinion or any other matter hereH) contolned IS or 1 to be deemed 10 be, directly Of indirectly an offer or the soitcltatlon of on offer to buy or sell any security referred to or mentioned The matter presented merely fOf the converlence of the subscriber While '/Ie believe the sources of our mlormot,on to be reliable, we ,n no way represent or guarantee the occurocy thereof nor of the statements mude herein Any action to be taKen by the subscflber should be based on hIS own Inveshgotlon and Informahon Janney Montgomery Scott, Inc, 05 a corporation, and lIS offICers or employees, may now have, or 'nay laler tOKe, POSitions or trades In respect to any seCUrities mentioned m thiS or any future Issue, and such pOSition may be different from O'1y views now or hereafter expressed In thiS or ony other Issue Janney Montgomery Scott, Inc, whICh IS registered With the SEC as on mvestment adVisor, may give adVice to ItS mvestment adVisory ond othel I;I.Istomers mdependently of any statements mode m thl! or m any other hsue Further mformotlon on any security mentIOned herein IS available on request