Evening star., 1926-10-20
STOCKS IN RALLY
EREARLY DROP
Bears Routed After Raids on
List in Early Part of Trad
ing Today.
BY STUART r. WEST.

Especial Dispatch 10 The star.
g. NEW YORK. October 20.-Price!
S,!ad another break in the early trading
k''n The stock Exchange today. theI
L, they rallied. There were no develop
s,lnents in the outside situation eX
x,"ept the confirmation in the Midweek
s'reviews of the iron and steel trade
stthat things are Slowing down.
q, The immediate point of interest
a,market itself. The rally Monday haC
LASTED through yesterday morning
Then the selling had broken out again
rs.leaving yesterdays close very week
- Encouraged by this. professional
&,,traders working for lower prices made
s,another drive against the market as
Isit opened today and succeeded for a
sttime in producing unsettlement.
<, Stocks like General Motors. United
Estates Steel and American Smelling
sbroke to new lows for the recent
: downward movement and sharp de
A-sclines occurred in some industrial
ssspecailties of the type OF American
: Radiator, Consolidated Cigar and
s'Commercial Solvents 3.
At the lower level buying orders be
gan to come in again more freely.
s'rhey were not apparently put in for
supporting purposes, but rather with
the idea that the market was low
.,enough for the time being for expert
; .ments to be made on the long side.
Seeing this buying professionals
changed about, covering their short
contracts and to soTne extent going
the other way. The leaders Of the
.list made fair response. United
States Steel rebounded nearly points
= land General Motors over . Mack
Trucks rallied abruptly. Buying in
~Timken Roller Bearing was resumed,
still because of the possibilities Of the
new railway business.
Among the strongest stocks on the
list We're shares of mail order and
merchandising companies. especially
Montgomery Ward. May Department
Stores and Noolworth. These repre-
scented companies in the distributive
trade which have been able to absorb
higher costs more successfully than
most other lines. Montgomery Ward
ran up over points. At the pres
ent selling price the stock is on a 6
per cent basis.
With the course of the afternoon.
prices turned downward again. The
early rally failed to hold. If. as some
people thought. stocks We're passing
into stronger hands, the process was
very gradual and the buyers were not
at all anxious. They may have been
willing to take moderate amounts
when prices were offered down. but
they were not at all keen about fol-
lowing prices up.
Steel and motor shares, which had
been fairly strong in the forenoon,
were somewhat affected later on by
the weekly steel reviews.
These empha sized the falling off in
steel production due chiefly to the re-
duced demand from automobile and
agricultural implement makers. Wall
Street has known about this falling
off for some time, but 1t got strong
er impression of it today and it also
had a clearer understanding of what
has been leading factor in the stock
market drain
Railway equipment shares were
variable, some of them lower. At
one stage quite a sharp break oc.
Cured in Westinghouse Air Brake,
~~ while Pullman was off points. An
exception was American Brake Shoe,
which ran up briskly.