The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-11-03
MARKET SHOWS
UPWARD
TREND
BuIlish Tendency Cannot Yet
Be Held indicative Of
Turning Point.
BY w. S. COUSINS.
Copyright, 1928. by CosmOpolitan
News SePyfceN


NEW YORK, Nov. 3.-The buoy
ant and enthusiastic bulHsh move
ment in the stock market this week
was in sharp contrast to the shall
low and irregular markets prevail
ing since midsummer. 1t would
be entirely premature to character
lie this movement as the turning
of the market tide from the low
level Of prices now prevailing, be-
cause the short interest has been
unusually heavy and a tremendous
volume Of buying is necessary to
place the market on an even keel.
Wall Street bears, who had sold
the market short in anticipation Of
an unfavorable quarterly report by
the United States Steel Corporation,
received a double Jolt; first, from
the fact that net earnings in the
third quarter, despite the lnaugura-
ton of the eight-hour day. were
practically the same as in the pre-
cedfng quarter; second, FROM the
declaration of an extra dividend OF
a quarter of i per cent. To q
company with the resources OF the
Steel Corporation, an extra ais
bursement of Is cents a share y
insignificant, bur from the stand
point of the stock market Il inqt-
l CdI0Q a CO1l1QGlsIs OClACL Al SAAC go
bility of business for some time to
come, and it's effect was distinctly
| bullish.
Heavy Buying Movement.
/ Wednesdays heavy buying move
ment, in the course Of which the
volume of transactions exceeded a
million shares for the first time
since June, was the immediate re-
Spouse of the market to the Steel
Company's action It was generally
1 thought that the bullish statement
of Jesse Livernnore, who has been
/ the leader of the bear party since
| last March, was contributing fac
| tor to the rout of the bears. The
comparative activity of the big mar
| ket' leaders like Baldwin, Stude
baker, United States Steel and
i American Can, to the neglect Of
hundreds of high-grade stocks which
have been fairly active in normal
times, emphasized the professional
source of buying orders.
After the first wave OF short CIV.
ering had subsidized, the market set.
tied back into a narrow and pro-
i fessional affair, and few important
| gains were made in Thursdays SEES
sion by stocks which had shot Tor
ward.
i wednesday profit taking naturally
developed in the industrials, while
4 the irrepressible hears, unwilling to
4 concede the movement as being
more than a temporary furry, put
out new short lines at the higher
prices.
Railroad Activity.
A moderate forward movement in
the railroad shares featured the
later sessions Of the week. The
buying was concentrated in a small
number of active issues, including
Chesapeake & Ohio, which rose
seven points in two days; New
/ York, Chicago & st. Louis, st.
PAUL preferred, New York Central
and Southern Railway,
Reports that the Van Swearin-
gems, who have recently acquired
| control of the Chesapeake and Ohio.
would merge that road with the
Nickel Plate, increasing the diVi-
dends of the former to per cent
accompanied the heavy transactions
in the stock.
High record carloadings, and the
decision of eastern railroads to de-
| CINE TO TeQuC0 1I0tSuL IAlcS OAA
export grain. were not without eff
| feet on the railroad share market.
The Industrial and oil stocks par
ticipated only to q small extent in
the upward movement this week.
Two of the Independent oils-Mar-
land and Texas Company descended
to new low levels on report OF
contemplated financing in the near
future. Copper stocks stiffened
slightly in response to the marking
up Of prices Of copper metal;
shipping stocks enjoyed the best
i rally of the season to date. and
equipment stocks were firm.
Whether or not fundamental con-
ditions in the stock market have
radically changed remains to be
seen. The wall Of the bulls has
been the lack of public interest
in the market, and there can be no
bull movement without outside
BUYERS. Further ease in the money
| market was a helpful factor. As
! also was the better feeling in, theN
cotton and grain markets. The
exchanges were again irregular.