Evening star., 1927-04-30
STOCKS REVERSAL
FOLLOWS CLIMB
Market Turns ReaCtionary
After Hour of Short Cover
ing Brings Rise.
BY GEORGE 7. HUGHES.

Special Dispatch to The Star.
NEW YORK, April 30.-After an hour
of short covering, in which prices for
many active issues enjoyed a substan-
tial advance, tOdays stock market
turned reactionary under selling for
both accounts. While the recovery
was in progress. the stocks that were
strong were those which had previ-
ously during the week been under the
greatest pressure. All along it was
plain that demand was coming from
an overextended short interest, net
from buyers confident that the main
advance had been resumed, ami SO it
was not surprising that prices slipped
off at the close.
High grade investment issues did
not figure greatly in the proceedings.
but they were mostly lower at the
end along with the more speculative
descriptions. The steel shares were
actually weak, with II. S. Steel down
some points. A few rails, among
them Chicago Great Western and a
few specialties, held firm up 10 the
end.
General Motors was the leader of
the early advance. Crossing 1872 it
was up points from the low of the
preceding day. Obviously, this did
not represent any change in the out
look, either for General Motors or
for the industry as a whole. Once
the demand from the shorts had been
satisfied for the time being the stock
reacted Other automobile shares,
which had evidently been oversold.
rallied at first with the leader, among
them Dodge Brothers preferred and
Pierce Arrow preferred.
Some Of the oils improved moder-
fol IxrI7i no oh <
going on elsewhere. Union Oil of Cali
fornia and Standard Oil of California
moved up on this sort Of demand.
Smaller gains were recorded by pro-
ducers in the Midcontinent field.
There was no change in the news
here either. Somewhat lower produc-
ton in one field is offset by an in
crease in another locality, and relief
from excess oil is not yet in sight.
Among the rails the recovery was
most noticeable in the shares of the
roads serving the flooded regions.
Missouri Pacific common and pre-
ferred were decidedly higher, and so
at intervals were St Louis South
western, Texas and Pacific. Kansas
City Southern and Missouri Kansas
Texas. For another reason Chicago
Great Western issues We're actively
bought, with the preferred making
: new high Tor the year, ana IN the
dividend-paying class Baltimore &
Ohio and Reading attracted attention.
Hudson & Manhattan made a new
high for all time, and Pennsylvania
was evidently being quietly bought,
both on the favorable March earnings
statement and because it seemed to be
behind the rest of the market.
Special strength appeared III South
Porto Rico Sugar and prices advanced
to the highest under the present form
of capitalization. This is one stock
which can afford to ignore general
sugar conditions. On the other hand,
Continental Baking "a slumped to
a new low for the year.
United States Steel did not share in
the improved sentiment toward the
rest of the market. Most of the time
it was lower, but inactive. The same
was true of the independent steel
stocks, Crucible selling off easily on
small transactions. Admitting that
the present Sc dividend is assured
Crucible yields over per cent at the
market.
A good deal Of the early recovery
was lost in the last hour, with the
leaders coming down from their open
ing highs. This in itself gave a line
on the nature of the recovery.