Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-08-03
STOCKS CONFUSED
ON COOLIDGE STAND
Sharp Drop Followed by Rise
Almost as SWift-Bear
Profits Small.
by GEORGE IT. HUGHES.

Special Dispatch to Tho star.
NEW YORK. August 3.--The an
nouncement by President Coolidge OF
his decision with regard to being a
candidate for reelection threw the
stock market into wild confusion. The
news had been made public after the
close of huSincS on Tuesday and there
was no opportunity for the market
TO appraise ii until the opening today.
The first result was a Wde-open
break. Opening prices recorded breaks
ct times running anywhere from to
points in the recently popular spec
ulative stocks to almost - points in
one hiGh-priccd issue. Huge blocks
We're thrown overheard for whatever
they would bring.
General Motors. having closed at
500 opened at 800. down I points:
Atchison was off more than points
at the start. General Electric almost
points. Baldwin 4 points, Steel over
3 points and so on down the list. Tn
Couhtedly stop loss orders were unCov-
ercd in volume and the decline accel-
Grated as much.
Rally Is Swift.
Then there came a rally almost as
swift as the fall. hut not cancelling
oil the loss. Nevertheless. it was
very impressive while it lasted. Gen
eral Motors, for instance, regained
four points OF its slump and Steel
came back over half the ground it
had declined. Transactions were on
q very large scale. In the first half
hour there We're over hat MIL
lion shares and the tape was Is
minutes behind business on the floor
Traders who attempted to time their
I,N- Jl,n fn1 On
ticker were subjected to heavy losses,
The severe test to which the spec
Elative position was put revealed one
pr two facts that have been sus-
pected all along. One was that while
Investment support has been the
backbone of the market all through
the rise, a huge speculative follow
Ing had been attracted. The high
grade rails sold off today just as
Easily as stocks which do not pre-
tend to any investment merit at all.
Another conclusion to be drawn was
that there still was enough buying
bower in reserve, ready and willing to
take advantage of any opportunity
buch as was afforded today.
Bears Profits Small.
There is not much use commenting
bn the action of individual stocks. In
general way, the steel shares were
well supported. not only United States
kteel, but the independents. In the
railroad group the weakness of At
thison was surprise. This is adj
baittedlv the premier investment rail-
road stock, but it was liQuidated as
readily as any other. Stocks which
bad been under pressure long time.
Iuch as the oils. were affected lnsig-
rifiCantly. United States Rubber, In
trhich there is a large short interest.
went down only fractionally.
Incidentally, it is doubtful whether
fpeculators for the declined profited
much by the days proceedings. If
tlev had been short of the market
before today. they had little opportu-
tity to cover until their orders were
n at the opening. Attempts to buy in
short contracts were almost always
Unsatisfactory. Then there was the
sase of Thinker Roller Bearing, which
rad gone up over IS points on the
FAY before against an overcrowded
thort interest. Thinker opened down
with the rest of the list at the start.
but before the day was half over. it
bad sold at a sharp gain over the pre-
.ading close and at the highest in its
history.