Evening star., 1929-06-03
STOCKS co HIGHER
|. IN VIGOROUS RALLY
Sharp Recovery in, Wheat
Prices Has Favorable
Effect on Market.
BY STANLEY w. PRENOSIL,
Associated Press Financial Editor.

NEW YORK, June 3.-Speculative
sentiment had decidedly bullish tinge
in today's stock market, due to the
sharp recovery in wheat prices, the
relative ease of call money rates and
the publication of series of excellent
May earnings and sales reports. Buy
ing orders embraced fairly wide list
of stocks, with the oils and rails in the
forefront of the advance and the public
utilities rallying briskly after an early
period of heavineSs.
An opening bulge of about cents a
bushel in wheat prices, based on Wash
ington advices that immediate action
would be taken to relieve the depressed
market, brought a flood of buying
orders into the farm implement, mail
order and Western railroad stocks
which had been under pressure on the
theory that their business would suffer
by the reduced purchasing power of
the agricultural regions. The rally was
stimulated by the announcement that
May sales of Montgomery-Ward were
about 25 per cent above the same month
last year.
Gail money renewed unchanged at 6
per cent, indicating that the sharp drop
in loans last week had released sufficient
credit to ease the expected month end
credit stringency. With about a billion
dollars worth of stock rights to be
taken up within the next 80 days,
bankers are not too sanguine over the
continuance of per cent money for
the rest of the month.
Opening Is Higher.
Prices moved irregularly higher at
the opening. General Electric showed
an initial gain of 23s. Opening gains
of a point or more were recorded by
American Can, Johns Manville, Column
bia Graphophone, Motor Products,
Chesapeake g. Ohio and st. Paul pre-
ferred. United Aircraft dropped ll2
points and Radio and Cerro de Pasco
each yielded point.
Further irregularity developed as the
session progressed, with trading largely
of a professional nature. UneasinesS
over the course of money rates this
month apparently offset the bullish
influence of a sharp drop in brokers
loans last week.
Brooklyn Union Gas ran up nearly
points, but most of the other public
utilities were heavy, presumably on
profit-taking after their recent spirited
advance. Commonwealth Power, North
American, American Water Works,
American Power & Light and American
g. Foreign Power all recorded early
declines of l to 2la points
Atchison quickly fell back points on
the statement by President Storey that
there is no early prospect of stock
dividend and that the roads earnings
this year probably will fall short of the
record year, 1926. New York Central
also turned heavy. On the other hand,
Norfolk E Western ran UP points to
a new high at PIT and st. Louis South
western recorded similar gain.
Brisk recoveries were registered in
the early trading by such issues as
Montgomery-Ward. International Com
bustion, Westinghouse Electric, Good
year, Wright Aeronautical and Column
bia Carbon, which were under pressure
last week.
Foreign Exchanges Steady.
Wide fluctuations took place in West
waco Chlorine, in which the Chicago
Investment Banking firm, which sus-
pended Saturday, was reported to have
had a large interest. The stock which
fell back 32H points last week to AN
opened eh points higher at 5SA,
slipped back to SO and rebounded to 81
in the first half hour of trading. r.,
Foregn exchanges opened steady,
with sterling cables unchanged at
$4.84fs.