The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1922-11-03
STOCKS RECOVERING
FROM REACTION OF
LAST THREE WEEKS
Downward Course Has Been in
Nature of Correction of
Over-BOught Condition.

NEW YORK, Nov. 2.-Substantial re-
covery from the recent reaction extend
ing over a period Of nearly three weeks
took place in today's stock market
prices throughout the list being bid up
in spirited fashion with the active issues
showing gains Of 1 to points.
The downward course of prices has
been in the nature of correction Of an
over bought condition resulting from
speculative excuses incidental to the
declaration of stock dividends and Iru-
mors of the same. Indications that the
reaction had been overdone, just as the
previous advance had been, were seen
in the manner in which stocks rebounded
today, buying embracing broad list and
being particularly active in industrial
shares, which had borne the brunt of
the short selling.
Short covering furnished the impetus
for the early advance but as the main
body of stocks swung upward there were
indications of new buying by investment
interests founded on the constantly i'm
proving business situation. This was re-
flected in record car loadings, increased
automobile production in October over
the previous month, better retail bust
ness as nirored in the earnings state
ment of chain stores and further talk
of extra dividend disbursements. Good
absorption took place throughout the list
despite a rather heavy volume, Of realiz
ing sales and extensive liquidation on
behalf of a bankrupt brokerage house.
1t is difficult to pick out any one group
as being the most buoyant, but some Of
the largest gains were recorded in the
oil, equipment, public utility and rail
shares.
Buying in the equipment group was
stimulated by announcement of addi-
nd -oil lie
cars and locomotives, Baldwin and Amer
lean locomotives, American Car Pull
man, General Electric and Railway Steel
Spring being pushed up to nearly 6
points. Declaration Of an IS per cent
stock dividend by American Steel Foun-
dries found reflection in a 3-point net
gain in that stock.
Public Service Of New Jersey led the
advance in public utilities, gaining IA
points, buying of this stock accompany
ing reports of an increase from SC to IS
in the dividend rate. Other strong
spots in this group were Consolidated
Gas, Brooklyn Edison, Pacific Gas, Co
lumbia Gas, Western Union and Adams
and American Express, all up 2 to
points.
Mexican Petroleum was the outstand-
ing issue in the oil division, gaining
nearly points. Other advances in this
Jersey, 2 "a; General Asphalt, Is; the
preferred, Ia; Pacific. 2 Is, and Stand
ard Oil of California, ga.
Belief that the October earnings state
ment will make much better showing
than those for September Influenced the
buying of railroad shares, the rally in
which was led by Reading, which regis
tered a 2-point gain. Other shares which
recorded advances of 11-2 points or
more included Union Pacific, New York
Central, Lackawanna, Louisville &
Nashville, Rock Island and Chicago 6,
Steel shares were not as buoyant as
some of the other standard groups, but
both United States Steel comman and
Bethlehem improved 1-2 points, while
Republic. Vanadium and Crucible did
slightly better. Reports of an increased
domestic demand for copper were re-
sponsible, in part. for gains of a point
or more in American Smelling. Utah and
Chile. National Lead jumped 1-2 points
on announcement of an increase in the
price of that product.
Total sales were 995, 100 shares.
Call money held firm at per cent !
Time money and commercial paper rates
were unchanged. Sterling was steady but
exchange rates were weak, |
German marks dropping to a new low !
record under cents a hundred.