Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-08
TREND IS UPWARD
ON STOCK MARKET
Bulls, Confidence Restored
by News Factors, Bidding
Up Favorites.
BY STANLEY w. PRENOSIL,
Associated Press Financial Editor.

NEW YORK, August s-Speculatiye
sentiment turned bullish in today's
stock market on subsistence of fears
over the credit situation. Retention of
the 5l2 per cent discount rate by the
Bank of England and a lowering of call
money from to z per cent helped to
revive confidence, which had been
badly shaken by the drastic break in
some of the public utility stocks earlier
in the week. A few soft spots cropped
out here and there. but prices generally
moved upward. although trading showed
marked reduction in volume.
The sharp decline in prices earlier in
the week apparently had corrected the
markets weakened technical position
and relieved the strain on the money
market which large-Scale bullish opera
tons invariably entail. The borrowing
demand for stocks also indicated the
existence Of large short position
which had been built up on the theory
that the break in Middle Western utili-
ties would undermine confidence and
that the expected increase in the Lon
don rate would draw funds away from
New York and accentuate the credit
strain here.
Except for the usual batch of favor
able earnings statements and the
changes in the credit situation, there
was nothing in the days news to in
f1uence the price movement. Cotton
broke sharply on the unexpectedly large
Government crop estimate, although
call money dropped to Z, but time
money held firm.
United States Steel common. which
Wall Street expects will be split up in
the year. ran up 55s points to new
high at 221. and then sold off on realiZ-
ing American Tobacco issues. which
are also mentioned in stock split-up
rumors. also ran UP about 5 points to
new high records.
Steel at New High.
Establishment of a new high record
by United States Steel common at 217i2.
an overnight gain of DIS points. featured
the opening of today's market. East
man Kodak showed an initial gain OF
points and General Public Service gig.
Opening gains of point or two we're
registered by Bethlehem Steel. Wright
Aero. Radio, Columbia Graphophone.
American Tobacco, New York Central
and New Haven. A. NJ. Byers dropped
American B /.
Retention of the 512 per cent discount
rate by the Bank of England. following
recurrent rumors that the rate would be
raised and draw funds from the New
York market, brought a flood of buying
into the market in the early trading.
Bears who had sold stocks freely
earlier in the week. rushed to cover and
were forced to compete with buyers of
long stock who had held off until the
rate uncertainty was removed.
Centers in Selective List.
Early buying centered largely in
selective list of public utility. steel, cop
per. motor, motor accessory and rail-
road shares. Trading was in fairly
heavy volume. United States Steel
quickly crossed 218 to another new top.
and the so-called independent Steels"
rallied in sympathy.
The rise in the power stocks received
much of its impetus from short selling.
which had assumed large proportions
following the break in the public utility
stocks in Chicago earlier in the week.
American and Foreign Power. American
Telephone. International Telephone,
Western Union, international Hydro
Electric and General Gas and Electric
recorded early gains of to points.
Coppers we're in brisk demand on re-
ports of an increasing foreign demand
for the red metal and subsistence of
fears that the domestic price would be
reduced. Anaconda. Kennecott and In
ternational Nickel were the early lead
erS.
American Machine and Foundry
| quickly ran up 5 points, International
Harvester 4 and Hartman Corporation.
B. Johns Evansville, American Steel
Foundries, Marmon Motors and Bethle-
| hem Steel showed early gains of 2 to
! 312 points.
Foreign exchanges opened irregular.
with sterling cables quoted slightly low
er, at S4.85.