Tabell’s Market Letter – March 27, 1986

Tabell’s Market Letter – March 27, 1986

Tabell's Market Letter - March 27, 1986
View Text Version (OCR)

m …… TABELL'S MARKET LETTER 600 ALEXANDER ROAD. PRINCETON. NEW JERSEY 08540 MEMBER NEW YORK STOCK EXCHANGE. INC MEMBER NATIONAL ASSOCIATION OF SECURiTiES DEALERS INC (609) 9872300 March 27, 1986 For the third week in a row the Dow Jones Industrial Average posted a record high, closing on Wednesday at 1810.70. Rotation of leadership is characteristic of the mature stages of most bull markets, and there. is. present!yJ,illlpleevtdence thatit…is ,ocquring in, tlJi,s. 9ne , .Thejollo.win,g .table list,s,1he. . . atwenty best and twenty 'worst performing of the 94 Standard & Poors'industry group indices on wee'klY- basis from the July 25 1984 low to March 19 1986, a period that fairly represents the latest upward leg of the current bull market and one clearly identified with the interest-sensitive sector of the stock market. For each of these groups we have also listed its rank and percentage change from the beginning of this year to date. The results are interesting. Included in the top twenty performers for this period are six groups (Savings & Loans, Property'Casualty Ins, Multi-line Ins, Banks-New York City, LIfe Insurance, Personal Loans) which are clearly associated with the above mentioned interest-sensitive sector of the market. These six groups from the beginning of this year. however, have in each instance underper- formed relative to the 94 S & P group universe. Although still up for the year, relative loss of momentum in this sector can be shown, and should continue to be monItored closely. Listed in the bottom twenty groups are seven energy-related groups which we know have all relatively performed poorly. Not only has this been true since the start of this last up leg of the advance but we find this also to be true even more recently since the first of the year. On the other hand, from the first of the year continued improvement in relative strength can be seen in the Auto, Building MaterIals and Brokerage stocks from the top twenty groups, while dram.atic improvement was shown in the Machine Tools and Steel groups in the bottom twenty groups. Contmued successful portfolio performance will be dependent on identifying these long term changes in group leadership as they evolve. M'.PERCENTAGE CHANGES THiU 1. 1986 FOR s,p INDUSTRY GROUP INDICES FROM JUl 25 1984 fROM DEC 31 1985 GROUP NANE TEXTILE APPAREL MFRS. POLLUTION CONTROL RANI , CHGoo 1 162.809 2 1508.571 RANI 1 CHGoo 30.294 11 22.189 SAYINGS , LOAN CDMPAMIES PRO'-ERTtSUALI TY—'liisiiAHte MULTI-LINE INSURANCE BANlS(NEW YORI CITt RETAIL SPECIALTY ,3146.336 n . .n. – , 140.411 128.190 7 125.421 . 7 2&.45l., 12 z4.101r 19 22.061 Z9 18.190 15 22.232 ENTERTAINMENT FOODS EltLUDING GEN. MOTORS 8 122.523 118.458 10 116.400 53 13.061 27 19.041 2 34.298 BEYERAGES BREWERS 11 111.801 .0 n.ll1 TRUtlERS TOYS LIH INSURANtE 12 111.289 13 111.015 14 105.359 18 22.186 ,.22 20.821 11.850 BLDG MATERIALS 15 103.909 11 25.008 GAMING COMPANIES I. 101.840 11 18.339 BROItERAGE FIRMS 11 99.919 1. 23.612 BROADCAST MEDIA 18 98.825 .5 15.548 PERSONAL LO, .. S 19 95.150 72 to.02e. tONlAtHER METAL 'LASS 20 91.448 2' 19… 658 . OJ!A SLP SOD .5 62 .. 993 5. 58.30t 15.600 .1 11.511 AUTO TRutlS PARTS 15 29.1H .0 11.684 REAL ESTATE INYESTMENT TRUSTS 1. 29 .. 119 50 14.862 DIU INTEGRATeD INTERNlTIDNAL 17 28.853 82 2 .. 648 COAL 18 25.116 78 1.841 ELECTRONItS-INSTRUMEHTlTION 19 25.224 5. 12.565 ELECTRONICS(SEMItONDUCTDRS,tONPO 80 22.924 61 10.386 AtHINE TOOLS NETAlS IStELLANEOUS OIL tOJIPOSlTE ,– INYESTENT COMPANIES EXtLUDING U.S .. STeEL 81 22.053 82 Zl.18B 13 23.665 15.320 – 1. -8' 16.111 . 84 …… 15.958 ' . -85 15.909 85 -l.B59 -3.044 25.082 .. , CANADIAN OIL GAS 8. 12.245 93 -15.690 STEEL B1 10.861 1. 9.339 HOSPITAL JlANEMENT tONPAHIES 88 6.865 19 5.6') DIU INTEGRATED DOMESTIt 8. 4.500 '1 -9.586 'OLD COMUNltA1ION EQUIP,MfRS OIL WELL EQUIPMENT AND SERVICE OIL CRUDE PRODUCERS OFFSHORE DRILLING '0 1.336 n91 -8.44) -20 .. 642 93 -22.839 -59.168 8' -0 .. 492 8' -5.192 9Z -12.049 -1 … 339 -39.B51 c — .' DOW-Jones Industrials (4 00 p. m.) 1821. 95 S & P Composite (400 p.m.) 240.05 Cumulative Index (3/26/86) 2594.75 ROBERT J. SIMPKINS, JR. DELAFIELD, HARVEY, TABELL INC. No statement or expression of opmlon or any other matter herem contained IS Of IS to be deemed to be directly or Indirectly, an offer or the soliCitation of an offer to buyor sell any security referred to or mentioned The matter IS presented merely for the convenlcnccof the subscrrber While we believe the sources of our InfOrmation to be reliable, we In noway represent oruaranteethe accuracy thereof nor of the statements made herem Any action to be taken by the SUbscriber should be based on hiS own rnvesllgatlon and Informatron Delafield, Harvey, Tabell Inc, as a corporation and lis offICers or employees, may now have or may later tae, positions or Irades In respect to any secuflhes mentioned In this or any future Issue, and such posItion may be eMlerent from any Views now or heteafler expressed m thIS or any other ISsue Delafield Harvey labell Inc, whICh IS regls/ered With the sec as an mestmenl adlsor, may gle adVICe tOltS Investment adVISOry and other customers Independently ot any statements made m thiS or III any other Issue Further mlormatlonon any security mentioned herein IS available on request

Download PDF