Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-06
|BULL|SH TENDENCY.
IN MARKET IS SEEN
Action of Last Week Believed
to Presage Moderate
Advance.
BY EDWIN NEWDICK.
(Irving Fl her Service.)

Special Dispatch 70 Inc star.
NEW HAVEN, Conn, January e.
Professional but significant is a brief
characterization of last weeks stock
market movements.
The most encouraging developments
were the failure of bear drives to I'M
settle the list seriously. the tendency of
activity to dry up on receSSionS, the
gains scored in the face of rather heavy
short operations and the driving of the
short to cover In numerous instances.
which accounted for some of the good
rallies.
Market comment is inclined to be
moderately bullish in most instances.
Optimism does not go SO far as to say
that the business recession has passed
its worst point, or to assert that
recovery has set in, but majority
opinion is quite agreed in looking for
no further severe or long continued
depression.
Upward Movement Forecast.
If that estimate turns out to be cor
rect 1t seems reasonable to believe that
by and large the lows of the crash will
not again be reached. January seems
more likely to show generally upward
than generally downward movement of
stock prices, but any marked advance
may easily be followed by substantial
recession in which half or more of the
gain in the indexes is Cancelled. 1t is
to be borne in mind that the worst of
the earnings statements rejecting
effects of the recession on profits are
normally not out until recession has
been some considerable time under way.
If, by the time such diScouraging state
ments are appearing astute observers
see good evidence that business recovery
has actually set in, spirited advance
can easily get under way after the set
back Such a combination Of events is
hardly to be looked for any less than
several weeks hence.
It is rumored that several very strong
pools are ready to begin operations and
that they are of such character and
aStuteneSS that their commitment to
the up side is very close to a guarantee
that success will attend their efforts.
It is further inferred that their entering
actively into long operations means that
fundamental conditions are deemed
favorable to their success.
The most notable group weakness last
week appeared in the stores stocks,
which broke through their low of a
week ago by two index points to new
low since the break. Four of the stores
stocks we're among the so most heavily
traded common industrials. They were
Sears and McCrory, which we're each off
about $40 a share, Montgomery Ward,
which was off about So, and KreSS,
which gained about So.
Motors in Slight Gain.
The motors showed encouraging signs
for the first time in blue moon. Price
gains in the group were very slight, but
| there were six motors stocks among the
| so most heavily traded industrials and
more gains in price than losses in the
group as a whole. Hudson, Mack,
Studebaker and WHY'S all made gains
of about 81 a share. The opening of
the New York show today is doubtless
involved in the better action of the
motors group stocks.
The Compact survey of New York
Stock Exchange movements of common
| industrial shares is given below in price
| indexes (1926 - 1000. There are two
| indexes of market price movement. The
| first ("shares outstanding"O represents
all common industrial shares listed on
| the Exchange, the Importance of each
stock being considered according to the
| shares in existence or outstanding. Inc
second index ESQ leaderSD shows the
| price movement of the common in
| duStrial stocks most heavily dealt in
| during the week, this list changing
weekly with the shifts in trading popu-
! larity.
The shares outstanding index shows
what a substantially representative 500
worth of stocks in 1926 would now
amount to if held unchanged since that
year. The 80 leaders" index shows
| the result of reilvesting the 500 every
week in the market favorites of that
week.
The last column of the table gives
| the rate of return on the weeks so
leaders at current prices.