Douglas daily dispatch., 1927-01-28
MARKET TURNS
REACTIONARY
BEFORE CLOSE
(By The Associated Press)
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NEW YORK, Jan. I'D - After"
backing and filling most of the day,
the stock market today turned reac-
tionary again just before the close.
Final quotations disclosed a long list
Of net declines ranging from fractions
to two points, a sprinkling of larger
losses and about a score of one to
three point gains. Trading showed a
further contraction in volume, totals
running just above 100000 shares.
The New York federal reserve bank
rediscount rate was announced as un-
changed at per cent after the close
of the market. In view of the fact
that no change previously had been
announced in-sthe Boston. federal re-
serve and Bank of England rates, lit
tie hope was held out during the day
for a cut at this time. Credit eondf-
tons continued easy, the call rate be-
ing maintained at 4 per cent all day,
with plenty of funds available. The
days b u s in e SIS news was mixed.
Freight carloadings for the week end
ed January 10 showed increases above
the preceding week sand the cores
ponding week last year, an advance in
steel scrap prices was reported from
Chicago, but the American Metals
company cut it's quarterly dividend
from ST to IS cents and a number of
unfavorable December railroad reports
made their appearance. The federal
reserve bulletin Stated that industrial
outputs showed a further reduction in
December and that wholesale prices
continued to decline. The Bethlehem
Steel corporation reported earnings of
$1s5 a share in the last quarter, as
compared with $1.57 in the preceding
quarter and SLIT in the last quarter
of 1925. No action was taken on the
common dividend.
Recent heaviness of y. S. Steel COM
mon, in the face of the publication of
the best peace time quarterly report
in it's history, is believed to have in
fluenced the liquidation of a number
of other industrial stocks Steel closed
today at 1888 q, off 7s net. Bethlehem
closed point lower at 43 %, and Gulf
States yielded ia on a few sales.
Motors continued to offer fairly good
resistance to pressure, Hudson closing
rs points higher on the day on Detroit
reports of large sales of new models.
Mack Trucks lost all of it's early two
point gain, but the Pierce-Arrow issues
closed about point higher. Oils were
rather backward, General Asphalt los
ing a point and most of the others
yielding fractionally. Equipments
showed a porary display of
strength under the leadership of Tim
ken, which touched a new high record
at 90, and General Railway Signal,
but the early gains were reduced or
wiped out.
Pittsburgh & West Virginia broke
five points to 1870 and then rallied
three, directors announcing that only
routine matters were discussed at to-
days meeting. Wall street had been
looking for an increase from Sc to IS
in the annual dividend rate. Heavy
buying of Wheeling & Lake Erie is
believed to have been inspired, in part,
by rumors that the shorts" would be
squeezed by calling in the stock
loaned to make deliveries against
short sales. Heaviness developed in
Atlantic Coast Line and Seaboard Air
Line, as well as in wabash, New York
Central, Chesapeake & Ohio and a few
other northern and western roads.
Time money and commercial paper
rates were unchanged.
Raw sugar advanced 1892 of a cent
pound, but most of the other COM
modiey mar k is were reactionary. /
Wheat prices, which have been surging
upward lately, lost ground, the May
option dropping cent bushel and
the others yielding fractionally Cot !
ton closed one to six points net lower.
Coffee prices held fairly steady. AM
other sensational jump of over 20
points in Spanish pesetas, which sold
above 1612 cents for the first time
since last June, overshadowed all
other developments in the foreign exI
change market. French francs were
slightly lower, being quoted under