Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-08
UPTURN IN STOCKS
IS RESUMED TODAY
Market FORCES Ahead Despite
Increase in Call
Money Rate.
BY STANLEY w. PRENOSIL,


NEW YORK, July "a slight firm
ing of money rates prompted consid-
cradle profit-taking on the stock market
in the early transactions today, but the
market strengthened by midday with
vigorous bullish operations in the in
vestment rails and some of the spe-
cialties. Early losses were reduced as
practically the entire list turned up
ward. a wide assortment of issues
reaching still higher record territory.
Call money renewed at per cent,
unchanged from Friday, but soon rose
to 8 as banks called loans, presumably
to meet midyear settlement checks re-
turning for collection, and TO pay off
borrowings at the Federal Reserve,
which were heavily increased during
the strain incident to the turn of the
half year The undertone of time
money was slightly firmer. but bankers
acceptances moved readily, despite the
recent cutting of rates.
Firmer Tone in Credit.
A firmer tone in credit had been
widely forecast for early this week, so
it was not particularly disturbing.
Bankers look for improved conditions
before the end of the week and expect
them to be maintained for several weeks.
A number of traders, however, regarded
the time as ripe for profit taking, owing
tc the sharp advance of recent weeks,
which has carried several high-priced
issues UP from 80 to 100 points since
early June, and the consequent weak
ened technical position.
There was little in the days news to
influence the market, although the news
coming to hand was generally favor
able, including more June sales reports
and a few first-half earnings state
mentS
Although call money mounted to g
per cent before the close, United States
Steel got above 200 for the first time
to a record price at 2009s, and some of
the independent steels, notably Youngs-
town and Newton, made substantial
gains. Several industrials, including
Wick Chemical. Snider Packing prefer
red. Mullins. American Telephone and
National Cash Register were sent up 3
to 6 points in the last hour. The clos
ing tone was strong.
The market again moved irregularly
higher at the opening. American Can,
Allied Chemical. New York Central,
Westinghouse Electric, American &
Foreign Power and Michigan Steel sold
from ! to a points higher. A block
of $4,000 shares of Loft was taken at
1912, up "a. General Electric, however,
slipped back a point.
strong buying came INTO the market
as trading progressed, in expectation
of definite improvement in credit this
week, with the midyear settlements out
of the way. The sag of one-eighth OF
l per cent in bankers acceptance rates
on Saturday was regarded as a def
mite indication of more comfortable
credit conditions. Also, the calm re-
ception of the large increase in broker5'
loans on Saturday was encouraging.
Steels were well bought from the
start, in response to the week end trade
reviews describing mill activity as still
maintained near capacity. Michigan
Iteel jumped points to a record price
at 113 and United States Steel sold up
2 points in response to unconfrmcd
rumors of an extra divid md declara-
ton at the forthcoming meeting. Beth
lehem advanced more than point.
Case Threshing was again buoyant,
advancing 315 points. and Union Car
bide made a like gain. American Car
& Foundry gained 3 points. National
Biscuit, du Pont, American Telephone,
Briggs. Columbia Gas, Lambert and
Western Union climbed a point and
more Union Pacific, Atlantic Refining
and Corn Products reached new high
ground in fractional advances The
rails were again under accumulation,
Lackawanna, Canadian Pacific, New
Haven and Chesapeake Corporation
gaining a point or so.