Evening star., 1927-11-07
Stocks DEVELOP
HIGHER PRICES
IHAEhHh tHOAO
Most of Groups Show
Strength-8uying Motives
Regarded as "MiXed."
BY GEORGE I. HUGHES.


BY GEOKGE L. lOHES.
Special Dispatch to The Star
WALL STREET. NEW YORK, No
vember 7.-Stocks moved ahead Wig
orously today Not all groups were
strong. but most of them were. the
leaders yielding including the divi-
dend-paying rails, the merchandising
stocks. the coppcrs and some of the
motors.
Undoubtedly the motives for the
buying were mixed. The Chief IN
fuence was probably the demonstra-
ton the market itself had given last
week of its recuperative power,
Traders generally were moderately op-
timistic over the showing of stocks
and the remnant of a short interest
thought it wise to take in their con-
tracts More significant. however
was the influx of Hnvcstment money
that was reported on every hand.
With Government financing being ef-
fected on favorable terms, with the
prospect Of tax reduction bright and
with bonds no longer giving attractive
Yields. the interest in investment
stocks was easily eXplainable.
Rail Shares Prominent
Naturally the better grade of rail-
nence. Southern Railway was an out
standing feature, crossing 13S to the
highest at which that stock has ever
sold. Even with no change in the
present 81 dividend. the return at this
price was still over ) per cent and the
expectation is that the rate will be
raised to SS at the next meeting, or
at least early in 1928. Rock Island
was bid up actively. although the talk
of an increase here is not so confident.
still. earnings would justify a large
disbursement.
Aside from these instances, standard
shares like AtchisOn, Atlantic Coast
Line, Baltimore & Ohio. Chesapeake
Ohio, Delaware & Hudson, New York
Central, Union Pacific and others
were in demand from time 10 time. all
at higher prices. In the Northwestern
group, Chicago & Northwestern was
the leader. Of the lower priced non
didivend payers, Western Maryland
was among the most conspicuous, with
more interest taken in Kansas City
Southern and st. Louis Southwestern.
General Motors and United States
Steel responded to the better feeling
and so did General Electric Steel was
a little slower getting under way than
the others, but 1t made a new high
on the recovery as it touched 1877.
The coppers were consistently bought
under the leadership of Kennecott,
which made new high for all time,
above 70.
Returns Far Above Average.
Calumet and Arizona. Cerro de
Pasco and Anaconda followed along.
The return on all these stocks is far
above the average. so that as long as
the outlook for the copper metal is
reasonably good, the interest is read
lily understandable.
AS for the merchandising shares, the
stocks of both the mail order and the
department stores were in favor.
Macy, Best & Co, Kresge, Woolworth.
Montgomery Ward and Sears -Roebuck
were among the leaders. Expectation
of a prosperous holiday season was, of
course, the ready explanation.
The oils were laggards. There was
no actual weakness, but prices were
fractionally lower as a rule. Evidently
it will take more convincing evidence
than has yet been given to persuade
Wall Street that the turn in the oil
trade has come.
Hold Firm i'm Afternoon.
Activity fell off in the afternoon, but
most stocks held firm around or just
below the highs of the day. The tend
ency was to take up issues which had
not enjoyed their proportion of the
general recovery. Corn Products was
strong. up two points, and specialties
like Lehn & Fink, New York Dock,
Congoleum and Gold Dust pushed
ahead. Houston Oil gained over 3
points, while among the rails Mime
apolis, st. Paul & Sault Ste. Marie
had a rise of 3 points. Copper shares
held their forenoon gains. American
Woolen common and preferred ranged
higher