Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-06
STATUS OF MARKET
STILL UNCERTAIN
Traders Are Taking Long
Fourth Holiday With
Their Fingers Crossed.
BY the Associated Press,

by the Associated Press,
NEW YORK, July 5.-The stock mar
ket is taking its Fourth of July vaca-
ton with fingers crossed. Many astute
observers believe that further tests of
present levels are to be made in the
weeks lust ahead, and although all
but the irreconcilable bears are ex-
pressing hope that the recent lows
will not be punctured by fresh selling
few are willing to commit themselves to
definite forecasts. In short, the situa-
ton is still regarded rs uncertain.
Trading this week has been mostly
| professional and at all times quiet
Spasmodic efforts to mark stocks down
met with rather impressive resistance
and the smaller short interests were
satisfied to cover on the other hand
profit taking quickly followed the rallies
However, with the market duller than
in two years., operation in either di-
rection were insignificant and it is
toward the next fortnight that all eyes
are turned
Bears Have Plans.
There are reports that strenuous efforts
Will be eXerted to break prices through
the lows of last November. Unfavor-
able second quarter earnings, the in
stability OF commodity prices and the
| sagging trade indiceS are cited as
weapons with which the bear element
Is likely to arm itself. In addition,
there is apathy of the investing public
Investment buying is doubtless increas-
ing, but most Of the support from that
quarter seems to be awaiting confirma
ton OF scattered assurances that the
market has struck bottom.
Despite the quiet confidence of many
bears, the other side is not defenseless.
One of its strongest weapons is the
enormous extent of liquidation during
June. Stocks, it is pointed out, have
passed from weak hands into strong
as was evinced by the June decrease
of more than billion dollars in stock
exchange members borrowings on secur-
ity collateral.
Also for two consecutive weeks the
commercial loan total reported by Fed
eral Reserve members banks has shown
an increase amounting in the fortnight
TO Sl70000,000. 1t is impossible to dis
! Germ definite trend in so short a time
but continuation of this upward
movement would be interpreted as a
| sign OF increasing business activity
Furthermore, banks investments are
! still gaining and are up nearly $780,
| 100000 since February This. it is
pointed out. must ultimately help the
bond market, and at present strong
| bond market would be warmly well
! coined by the financial community A
rather definite advance was made BY
fixed income Securities this week.
Grain Market Irregular.
The grain markets were highly ir.
regular, opinion on the long-term pros.
| pect in wheat seemed 10 be bearish
with attention directed particularly t
| the increasing competition in produc.
ton from abroad. The Department OF
Agriculture pointed out that adjust.
mentS in acreage were necessary /!
American growers were to profit in the
next few years and added that worlc
wheat prices over the next seven-yeal
| period would average considerably lower
than the last seven. Standard Sta.
! tistics Co. placed the hypothetical value
| of this years crop, OH the basis oi
| tentative estimates, at about 20 per cent
below that of 1929, amounting to de-
| crease in money of $189,000,000. This
analysis also said, in connection with
the short term outlook, that improve
ment in export demand and resumption
of Farm Board activities should result
in an average price level during the
next few months at least equivalent tc
| that now prevailing"
The stock market as always. Is closely
watching the steel industry for signs OF
a revival which so far have been lack
ing. Some experts suggested that the
holiday shut-downs affecting many
| plants would tend to move stocks OF
materials, thereby stimulating pur-
| chaSes. In view of the weekend lay
| off, next weeks steel ingot production
| figures are expected TO show a sharp
decrease