The New York herald., 1922-04-18
FINANCIAL NEWS
AND COMMENT
Heavy Speculation in Indus
trial Stocks-Sinclair Makes
Sensational Swings.

Speculative buying OF industrial stocks
reached stage OF real violence yester-
day in the first hour of business and,
as often happened in rapidly rising mar.
kets of the past. equilibrium was re-
stored only after one or two stocks had
broken down sharply and others had
been churned about with great rapidity
for time. The large volume OF orders
accumulated over the week end attested
to the wide advertisement which last
weeks procession of million share days
had given to the market The precipi-
tate upbidding of Sinclair Consolidated
shares from 25ss to 33la last week. most
OF the movement occurring in the last
two sessions, had been accompanied by
the conventional desire of traders TO
protect themselves through placing OF
! stop loss orders. 1t was plain after a
wild opening in that stock yesterday that
the trading position had become top
heavy, and once sufficient pressure de-
veloped 10 carry the quotation back to
the first line of stop orders, the market
| caved in and the fall did not end until
more than Az points had been Topped
from the Sinclair price.
The swings OF Sinclair by themselves
marked a distinctly sensational phase
OF the days dealings. but there were
other interesting developments. The
rapid pace OF the mornings trading
slackened in the afternoon. but specu-
lation for the rise was by no means dis
couraged and had Its vent in advances
Of point to moro than 21a points by
prominent railroad issues, including st.
Paul, Baltimore and Ohio, Chesapeake
and Ohio, Great Northern preferred,
| Northern Pacific, Southern Pacific and
Wabash preferred. The upturn of the
rails at the same time that many indus
trial shares were retreating gave the mar
ket highly confused appearance and the
final lodgment of Sinclair Consolidated
at level less than point under Sat
urday's final quotation suggested that
the days reverse had meant little
more than natural correction of a
temporarily overextended speculative
position. 1t will require several more
days to determine whether or not the
quick reaction had bearing on other
stocks which lately have advanced with
a power less plainly connected with
economic influences than with expecta-
ton of market profit.
The money markets ease continued
to support operations for the rise of
stocks and helped swell the transactions
on the New York Stock Exchange to
above the 100000 share level. the lar
gest days business In nearly two years.
But the decline OF the call loan rate
from per cent. to az per cent. and
the establishment OF short dated time
loans at AZ per cent. had a decided cf-
feet on bond market dealings, new high
records being reached by a broad list
OF foreign Government issues and sew
eral home railroad bonds.
As the coal strike has come more and
more to market attention through re-
ports of slackened steel and iron pro-
duction In certain localities the state
ment by IL. III. Gary OF the United States
Steel Corporation at it's annual meeting
was read with interest. The corpora
tons mills. he stated. were being well
taken care of and voiced confidence in
the future steel output. Viewing the
longer outlook for steel, much sgnifi-
canoe was attached to Judge Gary's as
sertion that. the corpora tion's export
business was approaching the highest
pre-war level. That announcement
added new angle to many indications
that the steel trade had experienced a
remarkable recovery since February 1.