Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-17
STOCKS co HIGHER
| IN BROAD ADVANCE
Market Responds to Favor
able Turn in Credit
Situation. 81
BY STANLEY w. PRENOsIL.


NEW YORK, May 17.-Favorable de-
velopments in the credit situation pro-
vided the background for a general
advance in prices in today's stock mar
ket. Buying orders were distributed
over fairly broad list, a sprinkling
of high-priced specialtieS soaring to
nearly IS points, while long line OF
industrials and public utilities moved
up l to 5 points. A score or more is
sues moved into new high ground for
the year.
Trading was only moderately heavy
in volume, tending to confirm reports
that Arthur w. Cutten and other large
operators temporarily had withdrawn
from active participation in the mar
ket. High carrying charges on mar
glnal accounts have had restraining
effect on speculative operations.
Stock prices pointed upward at the
opening, with the standard induStrialS
and rails again in the forefront of the
advance. Union Pacific showed an in
itlal gain of 81 points and American
Water Works and General Electric 2
each. General Motors. selling ex-divi-
den $1.05, opened at 82A, as contraSted
| with yesterdays close of BIS. Initial
gains of point or more were recorded
| by Packard Motors, Columbia GRAPHIC
phone, ChrySler and Packard. Westing-
house Electric opened point lower.
Bullish Factors.
Retention of the per cent redis-
count rate by the New York Federal
Reserve Bank and the relatively small
increase in brokers' loans contributed to
more cheerful speculative sentiment.
Wall Street also found bullish encour-
agement in the announcement that
General Motors had entered the avia-
ton industry through the purchase OF
| substantial interest in Fokker Air
craft and in the excellent 1928 report
of the Standard Oil Co. of New Jersey.
Auburn Auto, which sold as low as
22l yesterday. ran up II points to a
new top at $50. New peak prices for the
year also were established by General
Electric, North American Co., General
| Asphalt, common and preferred; Hayes
Body, Lorillard and Detroit Edison.
Warner Bros. Pictures resumed its
advance in the face of the announce
| ment that the proposed merger with
United Artists was definitely off. The
stock opened with a block of 5000
shares at 1872 and then crossed 1873 to
within fraction of the years high.
Pathe, Loews and Fox advanced in
sympathy.
The invasion of the aviation field
by General Motors probably inspired
the resumption of buying operations in
Gardner Motors, which also has an
aviation program. the stock quickly ris-
ing 4 points. Allied Chemical moved
up points, and early gains of points
or more were recorded by Borg Warner,
Simmons, youngstown Sheet & Tube,
Hershey Chocolate, International Com
buston and United Aircraft.
Many Issues Bid Up.
Goodyear fell back point, presum-
ably on selling inspired by the turning
back of the Graf Zeppelin, as the stock
always has been quick to respond to
important developments with lighter
than-air craft, which the company
manufactures.
Foreign exchanges opened steady.
with sterling cables unchanged at
$4.85 Lie.
Bear traders found little comfort in
the market action this morning, when
a number of prominent issues were
bid up as call money renewed at 8
per cent. General Electric, as a lead
err advanced ~ points to 1881. Amer
lean Waterworks &c Electric was up
nearly as much, reaching 1894, IA of
point below this years high. Lorillard
advanced 5l2 points TO- new high at
9712. r. H. Macy, Safeway Stores,
Motor Products, Anaconda Copper and
Columbia Gas & Electric all advanced
from to points.