The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-04
FINANCIAL NEWS
AND COMMENT
After Declining, Stock Mar
ket Reyerses Action and
Gains Are Continued.
ADVANCE rs LESS RAPID
Recovery Is Led by Mexicans,
Which Aids Low Priced
Oil Issues.
ADVANCE rs LESS RAPID

The stock market was inclined to re-
verse itself yesterday TO digest profit
taking, a natural sequence of the weeks
rise. and traders reasoned that, whether
or not the trend had changed perma-
nently for the better, the markets tech
nical position had been weakened and
that stocks in consequence ought TO have
some setback. Although the reaction
worked out according to the theory of
professional interests, II did not go
nearly as far as had been expected
There was an all around decline of per-
haps a point or so in leading speculative
stocks but after IL had stopped traders
found much difficulty in bringing out
market changed in form again in the
last hour and prices continued to i'm
prove. although the rise was by no
means as rapid toward the close as it
had been.
Although the reaction came as ex-
pected in the forenoon, the rank and file
of the trading interests had figured that
whatever stocks sold at the start would
not be difficult to recover because of the
dividend action on the porphyry copper
stocks in the afternoon, which, the Street
reasoned, would provide Wall Street
with another excuse to sell stocks. as
actions but it failed to take into con-
sideration the possibility that it might
have been discounted. Instead. there
fore, of experiencing the usual decline
the market firmed up after the initial
selling, even in those stocks, and prices
started forward again. In n few spe-
cialties it was still possible for traders
TO make progress on the down side but
rather than the rule
1t was the Mexican stocks that led
the afternoon recovery. These issues
had started downward along with the
rest of the market at the outset. but
before the session was finished both
Mexican Petroleum and Pan-American
had reached new high ground for the
movement. The strength in the Mexi-
can stocks also helped the other low
priced oils, particularly Texas Com
pany. In the rest of the list stocks
went slightly above Thursdays highs or
slightly under them. but they showed
an excellent comeback from the days
low in spite of the fact that some of
them failed to go through AS on the
preceding day, Southern Pacific acted
as n brake to the rails. That stock was
the movement. Although the decline
was not as spectacular as on the pre-
ceding day II disclosed the fact that
there was strength i'm such issues as
Reading, which at one time looked as
IL traders had taken it up again. But
when the stock failed to attract a fol-
lowing in the initial runup II dropped
back in the last hour to its trading
position.
There was no change i'm the money
situation during the day. The rate was
held at per cent. all day in spite of the
fact that there was a much heavier
demand for funds in the final hour than
there was on the preceding day. AS a
matter OF fact, it looked as IL money
surely would loan higher at one stage
of the session. but the demand finally
was supplied ut the prevailing rate
without increasing the rate in order TO
attract new money into the market.
Although 10 all outward Appearances
money was firmer yesterday, bankers
did not anticipate higher rate. for
the time being at least. They looked
for money TO ease. II anything. and after
the first OF the year expected a real i'm
provement in the money situation. In
the foreign exchange market the ten
dency was toward reaction. as it was in
the share list. There was an easier tone
also in the cotton and grain markets.
but nowhere was there any indication
OF a resumption OF liquidation on a