The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-12-10
FINANCIAL NEWS
AND COMMENT
More Confident Buying of
Leading Industrials i'm
l.. Stock Market.
SPECIALTIES ARE STRONG
Professional Sentiment Con-
tinues-MOney- Situa-
ton Easier.
SPECIALTIES ARE STRONG

Although all OF the developments mar
ketwise were not uniformly satisfactory
and although various matters OF large
! Importance were still in a perplexing
state. stocks yesterday made a display Of
advancing strength. with a tendency to-
ward increased activity. Undoubtedly a
, large part Of the purchases represented
short covering by those who are becom-
| ing impatient with the failure of the
| market to reflect the persistent bearish
| efforts, but there seemed also to be more
confident buying, particularly of the
| leading industrials. The list Of individ-
ual shares, which have come to be known
! as the specialties. still displayed the
most conspicuous strength, although the
| rails and standard industrials. without
| enjoying particular favor. exhibited sat
! isfactory stability. The market. how
ever. was still very much the same pro-
! fessional affair with which Wall Street
| has become accustomed. but It was
vastly more encouraging than the aver
! age run Of recent sessions.
The fact that the market was disposed
, to be strong was due mainly to technical
considerations within the market itself
| rather than to the development of any
| fresh news. There was very little news
| OF a marketwjse bearing. and it was not
of a character that could be expected to
| stimulate activity on the constructive
| side OF the market. On the contrary, the
| statement OF the Federal Reserve Board
with respect to credits indicated that
| there would be need for banking con-
servatism for some time to come. This
| statement itself did not mention Stock
Exchange credit but the inference was
| that this was one OF the main things the
board had in mind In the statement.
Whether it was or not, it is a fair as
1 sumption anyway that the local Money
| Committee does not intend- to relax re-
! Strictions on speculative loans until the
| Government has completed the rest OF
| it's war financing. And moreover il
/ would appear that until there are some
definite indications in this direction the
/ market will continue to reflect the news
! from day to day, and it's technical con-
| ditons, which yesterday favored a fur
ther recovery OF prices rather than a
continuation of the movement which agi-
| tated the share list for the best part OF
| last week.
! There were still a few weak points.
but these were not significant, and the
great majority of issues, like Bethlehem
b, Steel common. Cruclble and other
speculative fave were strong
throughout the day. There was con-
fident buying of the marines, distillers
and other specialties again. but the most
| significant feature OF the days business
| perhaps was that IL indicated a vastly
oversold condition in the case Of the
| standard industrials against which most
| of the selling pressure had been directed
of late. This was not taken to mean
! that there would be any expansion in
business to very large proportions but
! 1t suggested nevertheless that the forces
which have been lined up on the side of
! declining prices are beginning TO realize
their position and that processes were
at work to correct this position. Lib
erty bonds were weak again. In fact
| they were about the only distracting
| features there were to the trading.
Nearly all of them lost ground during
some stage of the trading, especially the
fourth 4L.s. which made another new
| low record.
| The money situation was a trihe
easier. rejecting the Improvement in the
bank statement last Saturday. Still the
| supply of both classes OF funds was lin
! tied. and the easier tendency in the rates
probably reflected the lack of demand
rather than any large supply of money
on hand. Foreign exchange was quiet
! throughout the session and rates were
about unchanged from the preceding
days closing. Outside of Liberty bonds
| the general bonds department continued
! quiet. and discussion here centered
| mainly in the prospects for the next
| Government bond issues and the rate
! that II would have to bear in order to
| assure complete success