Tabell’s Market Letter – November 21, 1958

Walston &Co. Inc NEW YORK Member New YOTk Stock Exchange SAN FRANCISCO LOS ANGELES PHILADELPHIA OFFICES COAST TO COAST CONNECTED BY DIRECT PRIVATE WIRE SYSTEM CHICAGO TABELL'S MARKET LETTER November 21, 1958 After reaching new high ground at 572.05 on Monday, the Dow-Jones Industrial ave – age spent theTfest of the week backing off and, under pressure of profit-taking, reached a low of 558. 16'on,Friday. Although the Dow, at this week's high, was close to fifty points above its 1955-1957 peaks, it is interesting to note that the advance to new highs has been far from universal. Of Sixty major industry groups covered by the Standard & Poor Grou averages, it is interesting to note that thirty-two as of November 12th were still selling below their 1956-1957 peaks. Also interesting is the constantly shifting character of mar ket leadership. Some groups exceeded previous peaks asearly as October, 1957. Others have'doneso -at -all'throu-gh-Iate-195 7-and -1-958. – -And-although the mar ke is now pushing into new high ground, certain groups have failed to make new highs since May of this year. The following table may be of use in showing the character of shifting market leade – ship. Tabulated below are Sixty of Standard & Poor's Group averages, listed in order of the date they penetrated their 1956-1957 high. For those groups which have not yet made new highs, the listing is in order of their percentage below the old peaks, The first colu shows the date, if any, on which the 1956-1957 high was first penetrated. The second column shows the 1958 high expressed as a percentage of the 1956-1957 high, and the third column shows the date the 1958 high was made. Date 1956-7 1958 High Date 1958 High As of High Exceeded 1956-7 High Made 1958 High Date 1 5 As of High 1956-7 Rig, Made Tobacco-Cigar … 10/2/57 Tobacco-Cig'ettsli 12/4/57 Small Loans (I' 12/4/57 Soap 0 12/31/57 Distillers JI 1/22/58 Confectioners v 1/22/58 Food l 1/29/58 Finance Cos. (l 1/29/58 Drugs Utilities 08 lJ 36585\. Office-Bus. Containers-Paper 3 58 Machinery-Agric. 7 3 Bldg. Materials 3/58 Retail Stores 8/13/58 Sugar 8/13/58 Steel 9/17/58 Auto Parts 9/24/58 Publishing 9/24/58 Containers M &G 10/1/58 Electronics 10/1/58 Auto 10/8/58 Shipbuilding 10/22/58 – -Fluor-Dover.Rugs 10-/-2915-8 Tire & Rubber 10/29/58 Elec.House Appl. 11/5/58 RadiO-TV Mfgrs. 11/12/58 Soft Drinks Printing 163 139 127 135 122 122 0 2 2 118 120 108 114 106 112 106 111 110 108 102 103 Nov.12 Nov.12 Sept. Nov.2 .12 02 (\\\ v. …Qi29 Nov. 14 Oct. 8 Nov. 12 Nov. 12 Nov. 12 Nov. 12 Sept. 24 Nov. 12 Nov.12 Nov. 12 Nov.12 Nov.12 Nov. 5 Nov. 5 110 Nov.12 101 Nov.12 101 Nov. 12 99 Nov. 12 99 Nov. 12 .-.. 98 Ar 97 c ri adl oad. 97 96 e — 95 ile Weavers 94 Fertilizers 93 Machinery 93 Paper Shipping 92 92 Chemicals Mining & Smelt. 91 91 Oil 91 Railroad Equip. 91 Textiles-Apparel 91 Railroad 89 Shoes 89 Brewers 87 Air Transport 85 Floor Cover. Hard 85 Aircraft Mfg. 82 Rayon 82 Steel – Alloy 82 —80- Metal Fabricating 80 Sulphur Machine Tools Copper Aluminum 0 Lead & Zinc. 79 74 73 71 70 May 1 Nov. Nov. Nov. Nov. Oct- 9 Sept. Nov. Nov. Nov. Nov. Oct. Nov. Nov. Nov. !,TOV. May Nov. Nov. Nov. Nov. Nov. Oct. Nov. Nov. Oct. 8 Nov. Oct. 5 Nov. A few morals may be drawn from this. The first is, obviously, that if earnings are going to regain 1956-57 levels, a number of stocks have more room on the upside. A second poi t worthy of note is the failure of some groups to make new highs in a riSing market. This, coupled with-a'sharp advance above the 1956-57 peak, could be a sign of vulnerability. It is also plain that groups that are currently making new highs, and which are still well be- nlHr MtEicl 1)1 n I'''litlllncd herem 15 not gunranteeu as to accuracy or completeness and the furnlshJnlr thereuf IS NI1flTffi & Co, Inl' All expressIOns uf opmlon nre subject to change- \Hthout notice purchn'le, 'le1l and may have an llltere-st III the securities mentIOned herem, Ttw mfrm',i (nmmE'ntary on dn to dny mdrket news and nol as n complete anah'SIS Additional fm nlbhe-II upun renuest nnyto illY Bccuntws referred to herelll The mformatlOn 'tM IN.;\' as, II replesent.lStockhoIriers and 1.Q!e!1lhtOni'lltQented merei)- a'l a general. to herem \\111 be- \\ 3Dl i (