Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-30
STOCKS ARE HEAVY
. ON PROF|T-TAK|NG
Early Advance Followed by
Declines in Leaders.
Shorts Are Active.
BY CLAUDE A. JAEGER,
Associated Press Financial Editor.

NEW YORK, July 3O.-The bulls APP
peared to have struck out in today S
stock market, and the bears had their
inning. for after yesterdays perform
ance it was apparent that the bulls had
failed for the third time to break
through the resistance points establish
ed at the end of the technical rally on
July 10.
Although there was momentary up
turn in the morning, the market soon
turned emphatically downward, with
even General Motors, strongly defended
bull outposts during yesterdays bear at
tacks, losing ground substantially.
Weakness i'm Commodities.
Renewed weakness in the commodity
markets appeared to have unnerved
spectators for the rise. With wheat
breaking to new lows, the July option
going under IS cents bushel and corn
and cotton under pronounced pressure,
there seemed little room for bullishness
in stocks.
The statement CT the finance COM
mittee of United States Steel, indicating
that the recession in that industry had
reached bottom, an extraordinarily
bulliSh announcement to come from so
conservative and reticent quarter,
failed to cause more than brief up
turn IN that leading issue. Bears made
regular dividend had been declared, al
though early rumors of an extra had
not been taken very seriously.
On the whole, the days business
news was a little more favorable than
it had been for a few days, although
it continued of an indeciSive charac-
ter. Car loadings turned up about
$4,000 cars during the latest week, and
gasoline stocks were sharply reduced,
while crude production was curtailed
substantially last week. Furthermore,
there was moderate working off of re-
fined copper stocks as reported for
June. Building contracts, as reported
for the week ended July 25, however,
were somewhat disappointing.
Trade Reviews.
The steel trade reviews pointed to
weakness of pig iron as sore spot
Iron Ages composite price dropping Is
cents to $16.96 ton, the lowest in Is
years. Steel quotations held steady,
however, and Steel pointed out that
developments lend moderate encour-
agement to the expectation that with
the end of July is passing the worst OF
the present lull Iron Age, however
felt that the stimulus from increased
industrial operations may not be felt
by the steel companies until the middle
or end of August.
Despite the fact that most leading
corporations have reported fairly salts
factory earnings for the first quarter
bears were able to seek out the weak
spots with considerable success. Safe
way Stores was again depressed to new
lows, and it was learned that the first
half report will show net of only about
So a share, against $4.31 in the like
period of last year. The possibility OF
new financing, or stock rather than
cash dividend, for Warner Bros. brought
further selling into that issue, and
Southern Railway continued to drop.
In brokerage circles frequented by
the bull crowd it was said that the de-
cline represented mere temporary
suspension of aggressive operations fol
the rise pending better situation III
| the commodity markets. Losses, how
ever, reached substantial proportions
Such issues as U. S. Steel, General Mo-
| tors, American Can, Warner Bros.
North American, American Telephone
General Electric, Safeway Stores, All
Reduction and du Pont dropped to
and shares losing S to 10 included such
| shares as Vanadium, Standard Gas
| Western Union, Eastman, Byers, u. S
Industrial Alcohol, Allied Chemical
| Worthington and Case.
Money was a little firmer, rejecting
| month end requirements, although cal
loans held officially at 2 per cent.
Shorts Cover Near Close.
Short covering was instrumental in
hating the downward turn in the fina
| hour. Gillette Safety Razor showed
exceptional strength, selling more thar
points above yesterdays final figures
Recoveries of point or so from the
days lowest were common, with trading
diminishing on the rally. The closing
was heavy. Sales Appropriated $780,
| 600 shares.