The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-05-03
STOCKS NJ Owe
IN NARROW
RANCE
Trading FeatureIess and DOM
mated by Professionals
During Past Week
BY w. 8. COUSINS,
Copyright, 1924. by Cosmopolitan
News Seryicel

News Servlce.)
NEW YORK, May 3.--With few
exceptions prices of speculative
stocks moved within a narrow
radius this week. Trading was de-
sultorY and featureless and domi-
mated almost entirely by profes.
sionaI activity. AS usual bearish
pressure on Monday was exerted
with vigor against Industrial, spe-
cialty and motor shares, with re-
sultant sharp declines in some &C
tive issues, including Studebaker,
'Congoleum and others. Then came
. period of hesitation, which con-
tinued until the end Of Tuesdays
session, when quarterly earnings
statement OF United States Steel was
made public.
Rediscount Rate Cut.
The rediscount rate reduction Of
the New York Federal Reserve
Bank, one Of the most important
financial events of the year, was
without particular Influence on the
stock market except in high grade
dividend and preferred stocks.
which do not make much of an APP
peal to the speculative community.
Though unexpected, the lower bank
rate is nothing more than a recog-
milton of existing money market
conditions. It will not create low
er borrowing rates for commercial
credits at time when the banks
are surfeited with cash, and seeking
outlets for idle funds rather than
new sources of credits.
United States Steel made it's best
peace time quarterly earnings re-
port, showing net income OF about
IS a share on common, and declar-
ing the extra disbursement OF 80
cents a share. The effect of this
was somewhat marred by realiza-
ton that present operations will
permit no such earnings results IN
the second quarter, since operations
are down 20 per cent since the peak
Of March.
New evidences were also forth
coming emphasizing slowing down
of industry in other departments,
and declining net earnings Of other
representative corporations. Car
loading exhibited sharp falling
off, particularly in the West and
middle West, but railroad presidents
maintain that economy in operation
will more than offset the decline in
gross earnings. Oil production in
at low levels, due to the weather
conditions. Shipping rates, on the
other hand, advanced, and steam
going cargoes.
Bears Active.
Sentiment in the stock market is
still sharply divided, and, despite
the horizontal decline in stock
prices, which continue almost with
out interruption since last October,
efforts of professionals are largely
directed to forcing downward in
dustrial shares. Bullish pools are
apparently inactive, and commission
houses report little investment buy
ing.
Railroad stocks distinguished
themselves by their strong stand
against selling pressure, and oils,
though generally failing to gain
losses sustained the last three
weeks, would not be pushed through
the level of last weeks close. The
volume of trading in the latter is
probably the largest Of any major
group of speculative stocks and
prices on the whole are at or near
the lowest of the year.
Speculative interest was concen-
trated on a small number of spe.
cialty stocks and nigh priced in
dustrials, which resumed activity
characteristic of a few weeks ago.
Cast Iron Pipe sold in large vol
ume up to "a, for a new high.
Congoleum was depressed to new
low levels at 36h, and General
Electric ran forward rapidly. Stude.
baker was forced to a new low at
8Oh just prior to being stricken
from the list in favor Of new shares
at 21s to /.
Sentiment improved as the week
advanced, and short covering help
ed the progress of a slight advance
in industrials. Foreign exchanges
were irregular, cotton steady and
fairly active, and grain prices
steady. Call money was in good
supply at Az per cent.