New-York tribune., 1920-05-04
Stocks Rebound
Sh arply After
Early Weakness
Majority of Issues Sell at
New Lows for Movement
Before Afternoon Rally;
Money Closes at Z p. C..

An oversold stock market had it's
natural rebound yesterday. Specula-
tive stock prices underwent wide
fluctuations at the beginning of the
new week under the influence of highly
conflicting forces, falling with con-
siderable violence in the forenoon and
then rallying in striking manner be-
fore the close.
For more than half of the session
prices gave way under pressure of
offerings of most insistent character
While May passed without the ex-
| pected disturbances, other factors,
such as an unfavorable bank statement
at the close of last week, unsettling
reports from Mexico and a continual
tion of the bearish sentiment which
pervaded the financial district the
previous week, continued to exert all
adverse effect.
1t did not take the professional
element dominating the market long to
sense the general attitude of the spec
ulative rank and file, and after some
irregularity at the opening stocks
began to develop a sagging tendency.
This evidence of continued lack of con-
tidence in values on the part of the ma
jority of traders was reflected more than
in any other way in the absence Of buy
ing power, which made the market ex-
tremely vulnerable to the attacks of the
professionals.
Offerings from the professionals in
creased when renewal of 9 per cent
was announced for call money. From
then on through the noon hour stocks
came out in large volume and prices
receded rapidly. In certain of the
volatile specialties prices dropped a
hot o1o 1D
bottom, which was reached in the early
afternoon, leading stocks as rule
were under the low levels touched
last week
The turn for the better in the mar
ket in the afternoon came, as is often
the case, when sentiment was still
| greatly depressed and the Street was
talking still lower prices. Little sup
port had been made on the day down,
so that it looked to many observers
that the pressure of the bear element,
which was inducing scattered liquida-
| tlon, would succeed in creating even
greater unsettlement.
Announcement from Washington that
the Supreme Court refused to grant
rehearing in the antitrust suit
against the Steel Corporation came
steady the market somewhat through
its effect upon Steel common, which
rallied more than point Then money
rates began to ease off. Subsequently
report reached the Stock Exchange
that another movement of gold from
England had begun. The combination
of these factors upset the. well-laid
plans of the bears, who started to
cover. Curiously enough, they found
scant supply Of stock available for
covering purposes, making it necessary
to bid actively to cover their needs.
1t was this buying which shot prices
up SO sharply before the close. Steel
common touched 92aA on the forenoon
decline. In the afternoon it rallied
to 95%. Mexican oil shares were also
strong spots on the up-turn, as was
Baldwin Locomotive and Republic
Steel. Crucible Steel was one of the
few issues that did not recover the
ground lost earlier in the day. Royal
Dutch stood out strongly on heavy
buying based upon expectations of an
early announcement of stock bonus
Call money closed at per cent,
compared with a high of g. Sterling
exchange displayed frmer tone,
closing about a cent higher in the
pound. Francs and lire were steady