Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-03
STOCK PRICES DROP,
|. THEN RISE SHARPLY
Break at Opening on Presi.
dents Choice, Then Climb,
Some to Record Levels.

NEW YORK, August 3.-The stock
market broke 3 TO nearly 16 points
on the first onslaught of selling which
followed President Coolidge's state
ment that he did not choose to be a
candidate in 1928, and Immediately
staged remarkable recovery which
substantially reduced or wiped out
most of the early losses and CARRIED
a few issues to record high levels.
The initial break, while unusually
severe, was by no means demoraliz-
ing. Offerings appeared to come
largely from pools and professional
traders who have been sponsoring the
recent advance. So-called public par
ticipation in the market has been on
small scale in recent months, accord.
ing to leading commission houses,
with the bulk Of speculative activity
in high-pFiced issues which do not
appeal to the small speculator because
of the large margin required TO
carry them.
Opening Prices Lowest.
Opening prices, as rule, registered
the extreme declines. The subsequent
rally undoubtedly was stimulated by
shorts" who sold stocks freely at
the opening, and by the appearance
Of strong barking support for the
high grade issues.
Du Pont, which opened 15A points
lower at 2S0, rallied to a new high
record for all time at 299 before the
end Of the first hour. Timken Roller
Bearing showed an initial loss of So
points at 1872 and then scared to a
new high record at 142. General Mo-
tors rallied from 2211a to 22712, Atchi-
son from 1913 to 1877. Baltimore & Ohio
from 118 to 122, Baltimore & Ohio
from 11S to 122, Houston Oil from
1857 to 156 and United States Steel
common from 134as to 1877. Similar
recoveries took place in most of the
other active issues.
Total stock sales in the first hour
ran above 100000 shares.
Cotton futures, which broke about
| $3.50 a bale at the opening, also re-
| covered about half their loss before
| the end Of the first hour. Other COM
modify markets made little or no re-
sponse TO the Coolidge announcement,
| grain, rubber and sugar quotations
showing practically no change from
yesterday. Foreign exchanges also
| held steady.
Bet He'll BE Reelected.
The New York Times says Wall
| Street booking firms are willing to bet
real money" that President Coolidge
will be the next President Of the
| United States, despite his announce
| ment.
One firm announced it acted as COM
missioner for a wager of $4,000
against $1,000 that Mr.. Coolidge will
be reelected and said it had $4,000
more to be placed at the same odds.
| The stock market, having completed
an uninterrupted advance since June
28, which carried both the rail and
| industrial averages to record high
, levels, was in a vulnerable posi-
! ton for such an unexpected announce
ment. The current "bull' movement
! started more than three years ago and
frequently has been referred to as q
J Coolidge market" The only serious
interruption to the advance took place
in March, 1926, when a bad break
| took place on selling inspired largely
by the increase In the New York Fed.
eral Reserve rediscount rate and the
| Interstate Commerce Commissions re-
| lection Of the original Van Sweringen
merger plans.
| Small Reaction Last Fall.
Another reaction of moderate pro-
/ portions took place last Fall and there
| have been the usual minor setbacks
| from week to week, but the general
trend has been unmistakably upward.
During the current year the averages
OF 20 leading railroad and 20 leading
industrial stocks have advanced about
20 points each.
Sensational gains have taken place