Douglas daily dispatch., 1926-12-28

NEW YORK, Dec. 27-[P-The stock
market displayed a complete reversal
of form today, opening with an out
burst of strength in the high grade
industrials and then turning reaction
airy with chief selling pressure against
the morning leaders. There was moth
ing in the days news to explain this
sudden shift of speculative sentiment,
but it was widely believed that floor
traders, sensing in the inability of pools
to attract an outside following in the
early upswing, suddenly launched a
selling attack which forced many is
fsues one to three points below their
high levels of the day Final quota
tions were irregular, with losses pre-
dominating.
Optimistic forecasts of leading bank
ers and business men, symposium of
which was published this morning,
were offset at least in part by the de-
crease in manufacturing activity re-
ported for November and December by
/ the federal reserve board. Buying and
selling for the purpose of registering
income tax losses is expected to cause
considerable irregularity this week.
! While the size of the short interest un-
doubtedly was reduced in the rally
which followed the cutting off of the
United States Steel melon, the large
number of stocks 'loaning flat" indi-
Gates that the bear element is still a
s;zeable one.
Rails offered better resistance to
selling pressure than the industrials,
the publication of unusually favorable
November earnings statements by the
Chesapeake & Ohio, StMPaul and some
of the hard coal carrying roads appar-
emily dispelling the pessimism created
by the relatively poor reports of the
Union Pacific, Southern Pacific and
some of the other western carriers last
week. The fine showing of the an
thracite road largely due to the fact
that a coal strike was in progress
year ago. Colorado & Southern and
Southern Railway each closed more.
than two points higher.
Heavy selling of Allied Chemical,
which broke from 153% to 139h in
late trading and then recovered about
half its loss, was accompanied by un
confirmed rumors that no stock divi-
dend action would be taken by direc-|
Il
win dropped from 1914 to 1925 and
rebounded to 164, off 2% net. u. S.
Steel approached within small frac-
tion of its record top of 16O5 and then
eased to 1854, off Is net.
General Motors dropped from 1603s
to 1878, closing near the bottom
Oils displayed a fairly strong under
tone with good buying noted in the
General Asphalt and the Pan-American
issues About dozen issues attained
new 1926 peak prices during the ses-
sion, the list including Liggett & Mey-
ers "a" and "B", Abraham & Strauss,
julius Kayser, Dupont, Coca Cola, East
man Kodak, Chicago Pneumatic Tool,
Electric Boat and General Outdoor Ad-
vertising certificates.
The principal commodity markets
held steady. Active wheat futures ad-
yanced about u cent a buhsel.
Cotton closed 16 to % points net
higher, with some of the buying prob
ably influenced by reports of bad
weather in Texas. Coffee and sugar
prices were practically unchanged.
Call money renewed at " per cent
and held steady at that figure all day,
although banks called about $4,000, 900
in loans. Time money was shade
easier being quoted at 4 Is to AZ in
stead of on flat AZ per cent basis.
Prime commercial paper was unchang-
ed at A to 4 Y per cent.
Foreign exchanges held steady in
quiet trading. Demand sterling was
quoted around $4.S4% and French
/ francs around 3.95 cents, the recently
established "pegged price" fixed by the
/ French government. Other changes
! were nominal.