Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-08-02
SPEC|ALT|ES AGAIN
|. LEAD STOCKS RISE
General Motors at New Top
and Hudson Goes to
Fresh High Level.
BY STUART r. WEST.

special Dlspatch to Inc star.
NEW YORK, August 2.-Trading.
ION the Stock Exchange at the start
sof the week was characterized by fur
ether sharp advances in the industrial
sspecialties selected as leaders of the
current upward movements, an in
CREASED demand at advancing prices
yfor railway stocks and pronounced
strength in the motor group.
( s~he advance in the call money re-
gnewaI rate to Az per cent, the high
est since July Is, failed to act as
sretarding influence to the buying
(which had been carried on vigorously
throughout last week and was looked
Fupon as incidental to heavy demand
for funds for the first Of the month
requirements. The volume of bust
mess transacted during the first hour
exceeded that of the same period
Saturday, but after the initial demand
had been supplied, activity was less
pronounced
General Motors when it went
through 194a established another new
high record. Hudson Motors went
to a fresh top for the current move
rnent with no let.up in the demand.
Those who have been back of the
buying in these two stocks were
SlNcH circuit IO1 II SoOu uedl OIL the
trading in Willys-Overland. which was
more active than it has been during
the present upturn in this quarter.
The rise in Mack Trucks carried the
price up more than points. while
Nash and Chrysler bore their share
In the improvement.
There was nothing new to account
for the great strength of the motors.
1t was the motor shares which led
the bull market of last October and
November and naturally the ones TO
suffer most in the subsequent decline.
Therefore 1t was logical to presume
that a large short interest existed.
In the railway section such high
grade issues as New York Central and
Baltimore and Ohio were bid up into
new high ground for the year, while
substantial improvement took place
in the market for st. Louis-South
western, Atchison. Reading, Atlantic
Coast Line and st. Louis-San Fran
cisco. Buying of the rails appeared
TO be in recognition of the improved
outlook for the railroads and the
favorable comparisons of June opera
lions with those of the month previous
and the month year ago.
L. S. Steel common started for
ward again, but failed to make new
high. Youngstown Sheet and Tube
featured the market for independent
steel shares, crossing 30 on large
turnover. Others of the group, how
ever, were not disposed to follow up
the recovery the way they were at
times last week. No weakness de-
veloped, however. and slightly higher
prices were reached in Republic Iron
and Steel, Gulf State and U. S. Cast
Iron Pipe.
Among specialties which heretofore
established by Vitadou and American
Sumatra Tobacco certificates. Wick
Chemical was taken in hand and bid
UP sharply. The buying of Allied
Chemical kept on. resulting in another
sharp upturn. Local gas stocks felt
the effect of profit-taking at intervals,
but was disposed to work higher later
in the day under the lead of Brooklyn
Edison, Brooklyn Union and ConsQh
dated Gas.
One of the significant features
about the afternoon trading was the
manner in which stocks held the
early gains despite the substantial
falling off in the volume of business.
It was then that General Motors
reached its best figure, while the rails
were at their top for the day and a
host of industrial specialties were
taken at prices considerably above
those prevailing at the close Saturday.
The rise in call money to 5 per
cent in the afternoon after having
renewed at Az might have accounted
for the sudden falling off in the OPP
erations for the rise, but it occasioned
no weakness.