New Britain herald., 1930-05-07
Price Trends Shift Frequently In Stock Market Along More Orderly
 Lines as Establishments Are Made
Heavy Profit Taking Fol lows Moderate Extension of Gains - Rally Occurs After Some Short Selling Is Forced by Slump,

New 1Ork, May LF) Price trends shifted frequently in todays stock market, as trading became more orderly. and further readjust- ments after it's recent upheayal were completed.
 After moderate extension of yes- terday's gains at the opening, the market was subjected to heavy profit taking, encouraging moderate re- sumption Of short selling, during the morning, but prices stffened after the realizing was absorbed and spec ulation for the rise was resumed with yigor around midday only to run into further profit taking and short selling as trading progressed.
 Cheaper Credit Helps
 The rally was aided by further cheapening Of credit, refecting last weeks reduction of the New York rediscount rate, There had been some hesitancy about posting a 5 per cent renewal rate for call loans, as 1t Was feared this might prompt the withdrawal Of funds to the in terior where reserve rediscount rates are higher Funds were so abundant today. however, that the F per cent renewal rate could not be justi- fled, and after renewals at ,, funds were abundantly offered in the out side market at F,
 The weekly steel trade reviews re- ported that signs Of d stiffening Of steel prices were still lacking. and in consequence steel shares wsre subjected to f7urres Of liquidation. Iron Ages weekly survey said, Buying remains exceedingly cau- tious and production shows further slight curtailment, with ingot out put for the country averaging v per cent as compared with 78 per cent last week. Freight car ioadings, as reported for the Hek ended April 2s, showed an increase Of t4293 cars from the previous week. but were 14471I under the same week O. 1929, and lowest for the period in six years.
 Speculative Trend Seen
 Speculative sentiment appeared to have improved considerably with the major market reaction appar- rntly completed. Brokers, however, stressed the possibility Of 8 sub stantial secondary reaction deYelop- ins during the next few days. Re ports to banking institutions gen. orally are said to indicate that May earnings will show some improve ment over April, and the second quarter appears to be making fair progress in business recovery, but speculative optimism IS somcU hat qualified. as second quarter earnings are likely 10 be far below the same period of last year, when new high records Were being made. IL is pointed out that comparison with such an abnormal period as the second quarter ot 1929 Is scarcely Iustitiable but nevertheless likely 10 have adverse psychological effects.
 Tn the steel shares, |. s. Steel, Colorado Fuel Nanadium, \. N, Byers and Crucible lost 7 to 1 points, the last named touching a new low for the year. American Tobacco "B' and J. I. Case. spectacularly buoyant yesterday lost about s and S points during the morning, Mack Truck and Canada Dry dropped to new low levels, refecting unfaVor- able earnings statement for the first quarter. Electric Auto Lite sagged q few points. despite d favorable review Of the company's position by it's president,