Tabell’s Market Letter – August 01, 1986

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) 987-2300 August I, 1986 1 – -'We-v01ced-!1i-Opiion 1astekth-atheDbw—was-pro)5abl.fl.n tRe process of fest1rig-lt- KpriI.'May — -'I – lows. and this week's action seemed to confirm that thesls. A spIke down to 1741.56, modestly below the May low. occured on Wednesday before the market rallied in the afternoon. The subsequent followthrough was unimpressIve, as has tended to be the case. Meanwhile. upside leadership continues to narrow. We noted last week that the best acting stocks, since the market began its decline early thIS month, have tended to be the disinflation-hedge issues. which have shown superior relative strength all year. However. in this group some stocks are beginning to peel off and correct quite sharply. as the follOWIng tables show. HIGH SINCE HIGH FO HIGH SINCE HIGH FO NAf'lE– 1gAT2IORP I/11B6 7/30/86 'CHANGE 15gg ;55 t NAME BEEsUALTY 1/1186 7/30/86 7.CHANGE igg g 8 AMERICAN ElECTJC PW AMERICAN HOME f'F.OD 30.00 29.63 -1,3 92.38 86.)8 -6.5 AHHAN50N HF CO AMERICAN CAflTAL liND 28.75 24.88 5,75 -10.4 !4.5 -!. ARCHER DANIELS I1II1LAN1 ASSOCIATED !IF.Y GOOls BALTiMORE GAS I EL BORDEN INC BRISTOL MYERS CO CPC INTEF.NATIONAL CAMPBELL SOUF CO CAF.TEF. HAWLEY HALE CENTF.AL I SOUTHWEST COCA COLA CO COMMONWEALTH EIIJSON CONAGRA INC. CON lISON CO Nf lNC DART I. AFT INC. DAYlON HU11SON CORP 20.25 66.63 36.25 51.00 86.50 74.00 66.50 38.50 34.75 44.8B 35.75 62.00 50.50 o5.BE' 58.50 19.13 60.00 34.75 46.2 76.88 68.2; 64.00 36.00 34.50 39.75 31.13 57.75 49.63 61.!5 46.25 -10.!i -9.9 -4.1 -9. -10 -1.8 -b.6 -6.5 -0.7 -11.4 -12.9 -6.1 -1.7 -7.0 -20.0 AMERICAN EXPRESS AMEF.ICAN GENEF.AL COF.F AMER INTERNATIONAL BANK BOSTON COF.P BANAHEF.ICA BANKM'IEF.ICAN F.EALlY INV BANKEF.S TF.UST NY COF.r BAF.NETT BNK Of rLA BENEFICIAL COF.F CIGNA CNA FINANCIAL CORF CAFITAL HOLVING COEf CHASE HANH(ITTAN COF.F CHEMICAL NEW YDF.t CHURES TF. 70.13 44.38 141.00 40.63 18.75 34.25 51.BB 60.3L ;S5 77.25 75.00 39.75 49.75 56.25 78.13 59.75 40.88 135.25 38.75 13.31 32.00 46.BB 56.00 48.25 61.!i0 56.75 33.00 38.75 44.50 71.63 -14.8 -7.1 -4.1 -4.6 -29.0 -6.6 -9.6 -7.2 -12 7 -20.4 -24. -14.8 -22.1 -20.9 -8,; DEHOIT EllISON CO 19.38 17.38 -10!' CITICORP 6.1. ,; 53 80 -15.!. DOHINION RESOUF.CES 49.S 47.88 -!.8 CONTIENTAL COF.F 55 00 44.38 -19.3 DUt-.E rOWEF. CO 49.50 48.50 -!.O EDWI'F.IIS G f. SONS 31.00 2'5.00 -19.4 FPL GROUf INC 35.75 34.75 -2.5 fINANCIAL COf\F MF.IC 17.25 8. -50.0 FElRAHI) DEPT STORE 89.75 82.75 -7.B rIf\ST ,OSTON COF.F 62.75 47.25 -24.7 GENEF.AL CINEh 59.00 45.!J0 -22.9 FIF.ST CHICAGO COF.P 34.88 29.50 -15,11 GENEf\AI. MIllS INC 89.00 86.75 -2. 1ST INTEF.STATE IlANCORr 67.38 61.50 -8.7 GERBER PRODUCTS CO ).63 42./5 -25.8 rIF.ST PlNNA COf 9.;-; 7.b3 -21.8 1-r—-Mo-C-OfP,—,…f;i55c–1'i!)7!!—'l!——l!I..,-mNbHn1—-;.c,rg-..-rg—2-,—— HOUSTON IND. KELLOGG CO. LILLY ELI f. CO 34.e8 58.75 83.50 34.88 54.00 76.88 0.0 -8.1 -7.1 GF.EAT WESTEN FIN JOHN HANCOC INC SEC HOUSEHOU' INT'l INC. 48.2 17.!5 117.00 44 00 16.7 42.13 -8.8 -2.9 -10.4 LIMITED INC. LOWEb HAY ltEfT STOF.ES MEF.CANTILE STORES LO MERGt-. 1 CO INC MIDDLE SOUTH UTIL NIAGARA MOHAWK FOWE NOF.THEF.tl STATES HIE OHIO HilSON CO PACIFIC GAS 1 ELEC PEPSICO INC PFIZER INC PHILADELPHIA ELECT PHIUF HOPRIS INC PILLSBURY CO PUB 5ERV INDIANA PUPLIC SERV E & G OUAKER OATS CO F.ALSTON fUF.INA CO REYNOLDS J INIS SARA LEE COF.F SCHERING FLOUGH INC SHITHLINE DECKMAN STHI\N CALIF EDISON SOUTHEF.N CO 34.25 41.0 44.11 117.00 10ll.8 14.38 25.50 38,00 20.75 2;.75 35,62 7.88 2!.88 76.88 82.38 13.50 44.25 84.7!i 77.00 55.13 7.1,6! 8B.00 105,38 35.88 26.13 30.63 30.00 36.50 106.50 106.00 13.00 23.00 38.00 20.00 2;,25 31,75 66,00 22.7 72.00 75.00 13.00 42.88 8!.00 71.2 2.7; 68.63 BJ,OO 9! 00 33,00 24.75 -10.6 -27,7 -17.3 -9.0 -0.4 -9.6 -9.8 D.O -2.6 -1.9 -10.4 -9.4 -0.; -b.3 -9,0 -3.7 -3.1 -3.2 -7.5 -4.3 -6.6 -5.7 -11.7 -!.4 -5.3 HUTTON E,F. 6f\OUF INHF.CAFITAL INC S!;'C INTEF.FIRSl Ol.F JEFFEF.50N FILOT COf LEHHAN CUF LINCOLN NATIONAL COF.F LOMAS & NETTLETON H!(, !1ANUFACTUF.CS HANO'JEF. HASS I1UTUAL INC INV Hf.LLON MEF.F.ILL LYNCH MONT60MEF.Y SH. INC SEC MONY MOf\lGAGE INVST HOF.GAN JF CO NCNfI t-IOl\THWE5T BANCOF.F FAINE WEflBEF. TES COMHEFCE BANt-. TF.ANSAHEI\lU. COhf' TF.AVEl.EF.S CORf' rfl-CONTINENTAL CORF U S FIG COF.FOATION USLIFE CORF WELLS FAf.GO HTG SAFEeO 44.13 !4.50 10.63 40.50 16.5 62.75 34.00 57.75 13.75 72,;0 43.3 23.13 9 88 90,,18 5.;( 40.50 44.75 28.88 40.13 !l,O 30.63 46 75 49.50 28 50 60.63 36.50 !3.88 5.18 .14.;0 15.7 ;3.8 32.13 44.25 12.38 ,9.15 34.00 22,13 0,50 87,88 48.25 38.;0 34.l3 17.5 35.13 4.-; JO.38 39.13 42.75 26 62 56.00 -17,3 -2.6 -491 -14.8 -3.1 -14.9 -5,; -23.4 -2.7 -17.' -!!.1 -4 .1 -J.8 -3.3 -13 1 -49 -!3.7 -40.3 -12.; -3.9 -0.8 -16,3 -13.6 '6.6 -76 SOUIBII COflP STERLING lI\UG INC SYNTEX 1'1.50 49.88 72.75 116.50 48.'0 67..' -4.1 -2,8 -7. ST PAUL AVERAGE 54.06 41.75 -!.8 -13,13 TEXAS UTILITIES CO TOYS-F.-US 3;.25 34.4! 33.25 31.88 -5.7 -7.4 UF'JOHN CO WAF.NEF.-LAHBERT CO 103.75 63.13 87.00 -16.1 58.88 -6.7 WRIGLEY j'l; JF. CO ZAYR CORr PRICE CO. 46.50 43.88 5S.71 43.75 36.00 40.50 -5.9 -17.9 -27.4 AVERAGE -8.0 The left-hand list above conSIsts of S & P 500 Issues m the Food. Drug. Retail. Tobacco and Electric Utility categories. showing theIr 1986 highs, their highs as of Wednesday, and the percentage change. The average-decline is 8 verses 6.8 for the S & P, relatively good performance since each stock is being measured against its yearly high. 33 of the 67 stocks have declined less than the S & P. However, Financial components of the 500. leaders through mId-summer. have shown considerably poorer recent action. The average decline for these stocks (brokerage issues are included). as shown by the right hand list. IS 13.8. Also only 19 of the 58 issues have performed better than the average. Clearly, It seems to us, thIS process of narrowing leadership must be reversed if current price levels are to be supported. AWTvfl Dow Jones Industrials S & P 500 Cumulative Index (July 31, 1986) 1777.56 236.62 3008.08 ANTHONY W. TABELL DELAFIELD, HARVEY, TABELL, INC. No statement or expression of opinion or any olhe' maIler tmrem contained IS or IS 10 be deemed 10 be directlY or mdlrectly an oller or tne sollc.tatlon of an oller to buy or sell any secunly referred 10 or mentioned The maller IS preented merely for tl'1o convenience of Ine SUbscriber While we beltee Ihe sources of our mformatlon to be reliable we In noway representor guarantee the accuracy hercol nor of !he statements made herem Any aCIlon to be taken by the subSCriber should be based on hiS own Investigation and mformal10n Delafield, Harvey, Tabell Inc, as a corporation and lIS officers or employees may now have, or may later take positions or \fades m respect to any seCUrities mentioned m thiS or anv future Issue, and such pOSI\lon may be different Irom a'ly views now or hereafter expressed m thiS Of any othellssue Delafteld Harvey Tabell Inc \,h.ch Is registered With Ihe SECas an mvestmenl adVisor may give advice to Its ,nvestment adVisory and olher customers mdependenHy 01 any slalements made rn thiS or In any other ISSue Further Information on any securrty mentioned herem IS available on request -.