The Washington times., 1930-06-11
WAITING GAME
SHOULDBE
PLAYED
Market Expert Says Trend
of Business Must Be
Seen Before Recovery
BY THE SPECTATOR

BY THE SPECTATOR
Spectator looks for the rally
that started yesterday to carry
through today. / base this on the
markets technical and overSold
condition as on any bullish en-.
thusiasim.
One Of my Wall Street friends,
Q keen market prognosticator.
predicts stocks will recover about
half the ground lost in the last
week. This recovery, he thinks,
viii culminate by tomorrow. After
this, watch your step. I advise
tightening long positions and
waiting development.
can see no sustained advance
IN the market in the offing until
there is a definite turn In the
business situation to give stocks
their cue for bulliSh detnonstra.
ton.
Sentiment in Wall Street Is
more cheerful today, based mainly
on the markets rally in which
practically all the ground lost in
Mondays break was recovered,
but this feeling is extremely eau
tious, and divided as to the long
range outlook for stocks.
The Tariff
The Street will breathe q sigh
Of relief when the tariff is out
Of the way. Action. is hoped for
this week. Defeat Of the bill will
be hullish bit Of news. based on
the fear of foreign retaliation and
injury to American export bust
ness If the measure passes and Is
signed by President Hoover. But
whether the bill passes or not it
will be q relief to have the un-
certainty over and Congress ad-
journ.
An official Of a large motion
picture producer admitted to me
that. were showing a drop and
that the second quarter would be
disappointing forecasts Of record
earnings for film companies this
year are now being revised.
The Oils
The oils look good to spectator
for the long pull. Despite re-
peated setbacks, producers are
making decided progress on cur
tailmet1t Of output, and are even
using the. :'big club" on recalci-
trant independents, as evidenced
by Humble Oil's action in one Of
the prolific Texas fields. STAN
dard Oil Of New Jersey is the
leader of this list. I like it be-
cause Of its position in the chami-
cal and natural gas industries.
as well as petroleum. There was
good buying both in Jersey and
in Sinclair during the break yes
terday.
I hear that Danforth and
Livermore covered heavy short
lines yesterday, and that DAN
forth has taken q big long posi-
tion in New Jersey Standard.
The Foods
The food stocks showed stub
born resistance all during the
reaction. They have many friends
in the street. Earnings Of leaders
are making q fine comparative
showing with a year ago. I like
General Foods. Borden, Natonial
Dairy Products and Hershey Choc-
olate the best. Standards Brands
has been disappointing market
wise. Unless q decided upturn
in it's profits takes place, it will
again fail to cover its $50 divi-
dend this year. Standards Brands
made q new low in the break.
] would not be in any hurry to
buy.
Coca Cola is in for a squirt, I
hear. The company is benefitting
from low sugar prices. whereas it
is still getting the same price
from the consumer. There are
also rumors Of split-up.
Motors and Coppers
There / sno reason to rush in
and buy the stocks in these
groups. Earnings of the motors
will be well below a year ago in
addition most plants will shut
down completely for a few weeks
this summer, as announced by
Ford and others recently.
Automobile manufacturers seem
to be clearing the deck for a
better year in 1891. AS for the
copperS, though APPARENTLY thor
oughly liQuidated, more dividend
cuts are. coming, with Anaconda
expected to slash its rate To "a
from 81 this month.
Cigarette stocks are regarded
well. American Tobacco is my
first choice. I expect 1t to earn
from SIS to $40 share this year.
A split ups I hear, is near. ]
have q high regard for Ligget
and Myers. Earnings are ex-
pected to set q new record in
the first six months.
The Utilities
There was the best grade Of
scale buying in the leading utility
stocks ths last few days, eSpe-
cially in United Corporation, Pub
lie Service Of New Jersey, United
Gas improvements and Consoh-