The Washington times., 1930-02-03
MARKET SOUND
AS FEBRUARY
ISSTARTED

NEW YORK, Feb. 3 UsJ-
February opens with the stock
market having achieved virtu.
ally every objective expected of
1t since the break.
Industrial stock averages dur.
ing the last week exceeded the
peak Of their December rally.
Public participation has been
gained in moderate degree, as
evidenced in the rising tendency
In the volume of daily transac
tions.
The betterment in the stock
market has induced a I1oticeably
more favorable sentiment with
regard to general business pros.
poets. the theory being held that
the markets performance is in
anticipation of enlarged business
activities to be disclosed In the
relatively near future.
From the purely technical cor
Siderations, the markets ability
to recover above Its last rally
ing point--in December-merito
optimistic comment. Yet 1t carl'
not be said with accuracy that
best.informed speculative opinlc1
is as optimistic over the tmlne
diate prospects for the Stock
market as it was q month OF so
ago.
This lessened optimism is nat
urally inspired in part by recoe
milton of what the market a.
ready has accomplished. Its I'M
provement. it is held. was dlS
counting the somewhat more
pleasant reports concerning gen
eral industry and trade, as eW.
denced particularly IN the news
from Washington. -,
Employment figures, as gwen
out by President Hoover. form the
basis for the optimism with re,
srect to the outlook. The steel
industry, with the employment
trend thus far constitutes the most
promising development OF the past
month. The gain in operations
in this leading industry has been
both consistent and substantial.
It's activity reflects greater de-
mand for sIee. products ana per
haps an expression of the steel
executives opinion that prospects
promise continuance Of active
business. In general, OF course,
industry has not demonstrated an
aggressive turn for the better.
The markets betterment is an
expression Of it's hope and antlc1-
patton of ;ndustry's expansion
after the sharp reduction IN &C.
ttvity prior to and Immediately
following tine stock market col
lapse.
February has always been con-
sidered q difficult month for stock
market bulls For one thing, 1t
is the month during which indus
try and trade normally come out
of the year-end adjustments.
This year February assumes a
greater Importance than ordinar-
lily. The month Is expected to
bring about additional betterpent
in the general industrial situation.
although few are anticipating a
substantial increase in industrial
activities.
Rather, the hope is that this
month will register further prog
ress toward adjustment in indus
try to the end that within few
months the prosperous condition
of a year ago can be re-estab-
lished.
In the stock market itself
there are many crosS-trends still
existing, Notwithstanding the re-
cent betterment in prices. Tech
nical factors, such as the large
short interest and the intense
professional activity. constituted
q leading element i'll the mar
ket's recent performance.
This is not to say that profeS-
sional activity was exclusively on
the constructive side. Bear pools
were aggressively active in various
stocks. However, one develop
ment of the past few weeks which
may have a far-reaching influence
on the course Of stock prices was
the renewed stock market activity
of powerful groups primarily in
terested in industrial develop
mentS.
In certain industries, of which
the automobile trade is most
prominent, the executives appre-
ciate the Importance of the stock
market fluctuations in relation to
their own business. Thus, it Is well
known that the General Motors
and Chrysler organizations have
at various times found tremendous
advertising value in rising prices
of their securities on the stock ex-
change.
Some observers have gone so far
as to declare this advertising is
the most valuable of all. Natur-
ally. only a constructive campaign
in the market can be of trade
value. For this reason, it is said
that greater market interest will
be displayed from now on by ex-
ecutives Of various enterprises
whose stocks are among the most
prominent on the exchange.
For some time the United States
has. been singularly free from
fluctuations in the price level and
this has permitted industrial activ-
tty with reasonable degree Of as
surance that profits would not be
wiped out by severe inventory de-
probation.
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