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TREND [[image]] ANALYSIS

DOW-JONES STOCK AVERAGES

-----January 3,1955-----
HIGH LOW CLOSE CHANGE

Industrials *412.47 403.58 408.89 up 4.50
Rails *147.73 145.00 146.54 up .63
Utilities *62.87 61.97 62.44 down .03
Monday's Volume - 4,570,000 Shares *New High

1949-54 RANGE
*412.47-160.62
*147.73- 40.88
* 62.87- 33.65

--Moving Averages--
21 HOUR 28 DAY 200 DAY
403.62 392.99 345.99
146.05 138.46 116.96
62.04 61.35 59.24
Friday's Volume - 3,840,000 Shares

NEW REVENUE BOOST FOR INTERNATIONAL AIRLINES
The already favorably situated airlines are receiving another boost. The defense department is planning to divert to United States commercial airlines the bulk of postage-paid military air mail formerly carried by the Miltiary Air Transport Service. Biggest beneficiaries of the $18.4 million windfall are the International carriers such as NORTHWEST AIRLINES, TRANS WORLD AIRLINES and PAN AMERICAN WORLD AIRWAYS, although Northwest and Pan American will be benefitted to the greatest extent. The Civil Aeronautics Board estimated that Pan American World Airways and Trans World Airlines carried 13.8 million ton miles of air mail express across the Atlantic and this new air mail traffic will result in sharply higher figures. The trans-Pacific routes will probably handle the greatest volume of postage paid military mail with the largest share going to Pan American World Airways and Northwest Airlines. We have for some time recommended speculative purchase of both of these issues and feel this added profit increment makes the outlook for 1955 even brighter. For 1954, it is estimated that Pan American World Airways will show profits of about $2.50 a share compared with $1.77 a share in 1953, yet the stock, despite the recent rise still stands sharply below the high in the 1945-46 period. The earnings estimate on Northwest Airlines common stock has again been increased to $2 a share compared with $1.84 a share in 1953 and Northwest common, selling around 18 compared with a 1945-46 of 63 1/2, also appears to embody above average speculative opportunites, in our opinion.