The New York herald., 1921-01-08
FINANCIAL NEWS
AND COMMENT
Stocks Continue to Move For
ward--Business Sentiment
Is Improving.

DnQtf tne leduersnlp OF lnuu5tflal
stocks. which had been weakest in the
movement of fortnight ago,
the market swept forward again yester-
day with much force. The rapidity of
the rise OF steel and other producing
company issues was almost as great as
on Thursday and the turnover expanded
izing sales caused many of the more
active shares to retrace part of the
ground gained earlier in the day. but
this movement was not extensive enough
to prevent a record Of net gains running
from / point to more than 8 points.
Northern Pacific and New York Central
advanced a point or more, but the rails
generally were inclined to hesitate. suf-
fering. apparently, from lack Of trad
ing interest which was concentrated to
a degree in such issues as Crucible Steel,
International Paper, Mexican Petroleum,
Stromberg Carburetor. United States In
dustrial Alcohol. Steel common and
Worthington Pump. The presence Of
these shares in the forefront OF the rise
suggests that short covering supplied
much OF the days business, and the
rapid upbuilding which occurred in them
indicated that the short interest was in
a hurry to reduce its commitments.
Friday is usually day in the prog
ress Of the market upward which
brings out considerable profit taking
by traders who had bought at lower
prices. The fact that the conventional
process was not followed yesterday. In
fact was reversed, promotes the thought
that a change of conditions outside the
market was having an influence upon
sentiment. Some phases of an altera-
ton of market factors were discern
able during the day as they have been
all week. but in all respects the changes
were not favorable. Additional infor-
nation about depressed business In iron
and steel is looked for in the forthcom-
ing statement OF orders received dur
ing December by the Steel Corporation.
The copper market has not yet begun to
reflect the reported intention of some
leading producers to Withhold offerings
until better prices can be obtained. The
reopening OF mills in several important
industries, after year end inventory
taking. has evidently been accompanied
by only moderate buying of goods for
future delivery, and the time elapsed
since Christmas business was completed
is still too short to. show whether re-
placement of stocks Is to be done on a
large or a moderate scale. With these
conditions in mind 1t is easier to be-
lieve that the technical status OF the
stock market has had more to do with
the advance this week than specula-
tive measures to anticipate industrial
activity in the near future. Neverthe-
less, sentiment Is a real power behind
fluctuations of securities and II IS GER
tain that sentiment in regard to in
dustry is distinctly improved in con-
trast to a month ago. The mercantile
reviews OF the week note that, as
Bradstrcets puts II. more confident buy
ing. albeit In small lots and for imme-
diate delivery" has appeared In certain
textile lines and the tone Of retail trade
has been helped by a better after
holiday distribution of heavy wearing
apparel" New England cotton mills.
II Is asserted, are gradually increas-
ing their operations. and collections in
various merchandising fields have In
creased this week.
Investment buying OF bonds con-
tinued on a broad scale, Liberty bonds
again being in as heavy a demand as
the day before. and prices rose up
ward a half point. While money rates
have not become quotably easier. 1t was
reported in banking circles that offer
ings of time funds on collateral were
increasing. The demand for accept
ances is greater than the supply coming
forward from day 10 day. which seems
to foreshadow an easing Of discount
rates In the near future. The foreign
exchange market has acted for the last
week as though expectations Of Inn
proved money conditions we're influen-
tial in directing rates. despite the quick
set back of quotations on Thursday.
Sterling yesterday recovered rs cents.
with a final sight draft rate of 3.6s14.
and other markets were firm.