New Britain herald., 1927-08-03
FINANCIAL WORLD HIT BY STATEMENT
 Wall St. Flops 3 to 16 Points l But ReCOYerS MOST LOSSES WIPED OUT


 Few of The Prominent Issues
 Climb Forward to Record High
 Levels.
 New York, Aug. 3 PtThe Stock Market broke to nearly 16 points on the. first onslaught of selling which followed President Coolidge's statement that he did not choose to be a candidate in n192S and immedi. ately staged remarkable recovery which substantially reduced, ol wiped out, most of the early losses and carried a few issues to record high levels.
 Market Not Demoralized.
 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 pub lie participation in the market has been on a small scale in recent months, according to leading com mission houses, with the bulk ol speculative activity in high priced issues which do not appeal to the small speculator because of the large margin required to carry them.
 r. ed the extreme declines. The sub- sequent rally undoubtedly was stim- ulated by short covering of profes- sional shorts" who sold stocks freely at the opening. and by the appearance of strong banking SUD- port for the high grade issues.
 Dupont, 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 5A points to 132 and then scared to a new high record at TAP. Gener- al Motors rallied from 221k to 2271s, Atchison from 193 to 197 Baltimore S Ohio from 11S to 1922 Houston Oil from 14Sk to 156 and U. S. Steel common from 1S4 3-S to 1S7. Similar recoveries took place in most of the other active issues.
 Total stock sales in the first hour ran above SO0.000 shares.
 Cotton futures, which broke abou S2.50 a bale at the opening. also re covered about hah their loss befor' the end of the first hour- Other com modity markets made little or no re sponse to the Coolidge announce ment, grain, rubber and sugar quota tions showing practically no change from yesterday. Foreign exchanges also held steady.
 into the market by professional traders who have been sponsoring the recent advance. Houston Oil collapsed S12 points on the first sale, General Motors 6. Eastman Kodak 5A, Union Pacific and scores of others including U. S. Steel common, Baltimore & Ohio. Bald win Locomotive, United Drug and Reading showed initial losses of to points.
 Trading was unusually heavby with blocks of 5000 to 10,o0C shares quite common in the early dealings Initial losses in the popu- lar issues ran from 1 to S1s points.
 U. s. Steel common opened with a block of 5000 shares at 1S41 F, of 31-4, and General Motors opened with a block of 6,o00 shares at o22 off points.
 The first sale of Atchison was a block of 5000 shares at 1eS. of 51-4. Initial losses in some of the other popular issues were: Union Pacific 5, Baldwin 4. Chrysler 3 Allied Chemical 1, Eastman Kodak 5A. Reading 31s. General Railway Signal 2. International Nickel 2 Hudson 31s, Houston Oil Sla, Cru cible Steel 2. United Drug 3 and General Asphalt ?.
 Advance Began June 2S.
 The StOCk Market. naNlnS COIL pleted an uninterrupted advance since June 2S. wrich carried both the rail and industrial averages to record high levels. was in a vulner- able position for such an uneXpect- ed announcement. The current "bull' movement started more than three years ago and frequently las been referred to as Coolidge mar ket."
 The only serious interruption to the advance took place in March. 1926 when bad break took place on selling inspired largely by the increase in the New York Fedora Reserve rediscount rate and the h. terstate commerce commissions re- jection of the original Van Swerin- gen merger plans.
 Another reaction of moderate pro portions took place last fall and there have been the usual minor set backs from week to week but the general trend has been unmistak- ably upward. During the current year, the aversg ges of 20 leading rail- road and 20 leading industrial stocks have advanced about 20 points each.