The New York herald., 1922-12-03
FINANCIAL NEWS
AND COMMENT
Stocks Up, Spurred by Three
Factors-'Good Buying
More Impressive.

Buying OF stocks In yesterdays short
session. coming from three separate
sources. was of sufficient volume to put
the general list from one to eight points
higher. In point OF volume, however.
trading was only slightly greater than
the average or the last two or three
weeks. In some stocks the advance
was very sharp and at times quite vio-
lent, but the list as whole moved up
ward in an orderly manner.
Short covering played no little part in
the advance. The customary week end
repurchasing OF stocks put out by the
professions in the earlier days OF the
week was supplanted by covering OF
other shorts who feared that the market,
for the moment at least, had been badly
oversold. At the same time pool oper-
ators recognized an opportunity to get
their favorites into action once more,
andN proceeded to do so. The third
source OF purchasing was that which the
financial community pleases to call
good buying" 1t represented purchases
for long account by operators who felt
that many stocks looked attractive
at these levels.
or course it is difficult, virtually Inn
possible. to say which of these three In
fluences was the greatest. II is reason
ably certain, however. that the last
named was more impressive than at
any time since the decline got under way
several weeks ago. With the general
list Of stocks down several points in the
averages. and with the underlying
strength Of the market demonstrated by
the sustained rallies of this past week,
courase and confidence were revived to
a sufficient extent to aid materially in
yesterdays advance.
There was no particular group to
which more attention was paid than to
the rest OF the list, unless 1t was the to-
bacco stocks. Speculation in that de-
partment Became more lively than
usual, following the circulation of re-
ports that 1t is that group which will be
the next to start a series Of big divi-
dends, either in cash or in stock. The
motor shares, led BY Studebalxer, were
also in strong demand. Special develop
ments had their effect in some individual
stocks such as International Harvester.
which dropped points at one time In re-
Election of the directors decision to
abandon for the present the policy OF
stock dividend distributions. Another OF
these was Loose-Wiles, which was run
up nearly 8 points on rumors OF big
distribution.
The outstanding feature OF the foreign
exchange market was the extra ordinary
strength of sterling Exchange on Lon
con went to new high, not only for
this year, but for considerably more
than three years. Other rates nuctu
ated within narrow limits. Tho strength
or sterling exchange was due to buying
In London prior to the opening OF the
New York market. IL is interesting ia
note that this has been true on almost
every recent occasion when sterling has
been exceptionally strong. Complete
confidence has returned to Britain, and
with the monthly trade figures with this
country showing constant Improvement
predictions are made freely that sterling
VIII be quoted at parity within very
few months.
Bonds were quiet but firm. Little x
expected in the way of activity in the
bond market until the new Government
financing. due within the next fortnight
Is announced. 1t is not anticipated that
the new financing, because OF It's prob.
able short term character, will have any
important effect on the general invest.
ment market. Nevertheless. pending the
official announcement. there is a general
disposition to hold aloof from the mar.
ket.