The Washington times., 1930-05-02
Market Gossip

|
The abrupt fall in the railroad
stocks and such prominent indus
trial speculative leaders as United
States Steel and American Roll
ing Mills on Thursday was the
stock markets reaction to the
easy money" panacea repre-.
sented by the drop in rates in
London, Paris and New York. The
New York Reserve Bank cut It's
rediscount rate to 3 per cent, On
event clearly foreshadowed BY
the continued softening Of the
| outside money markets.
/ Not easy money, but q more
/ rapid pace Of business recovery
and q better earnings record for.
the country's major industries ID
now imperatively needed. To
that only will the Stock Market,
respond. The reaction clearly,
foreShadowed by Spectator. has.
carried the rails down to q new
I low for the year and broken the
| industrial and composite average
IL points each. In o week or.
two leaders in the Stock Market
win discover that business and
industrial conditions have turned
the corner and that the picture
even now Is not as bad as 1t s.
painted in some quarters. ~
| Stock selections should now be-
| made among the industries and
specific corporations which prom
iSe to improve better than the
average In the balance Of the
year. In some cases last years
records may be broken. 80
Preference should be given %
| the utility, natural gas, aEnnsS- :
ment, foodstuffS and tobaCC0c
stocks, with oils, electrical equip
ment, motor car and steel cloSe
second. Opportunities TO buy the
high grade dividend rails should
not be overlooked.
/ UTILITY STOCKS
The present market unSettle-.
ment has forced the leading ut8s
ity issues down TO o level which
makes them more attractive than
for some time. Although the
possibility has not downed that
still lower quotations may be
evidenced, there is no question
but that the members Of this
group will be in the forefront Of
the recovery. Outstanding stocks
in this division include American
Power and Light, American Water
works, Columbia Gas and Electric,
Consolidated Gas, North AmeFis
can, Public Service Of New Jersa
sey, Standard Gas and Electric:
United Corporation, and United
Gas Improvement. "a
FOOD STOCKS
This group has given one Of .
the most buoyant performances !
of any section of the market this.
week. General Foods. in par.
cular has been well bought with
indications that the clearing away
of the present uncertainty in the
market will find this issue at new
high levels for the year. Other
well sponsored stocks in this list,
include Gold Dust, Borden, Her
shey Chocolate and National
Dairy Products.
| WARNER BROS. 1E
This stock was one of the
select number which closed yes.
terday's reactionary session on
the upside of the price pendli-
lum. Expansion into other fields
has been rapid and its outstand.
ing position in the ever-groWa
ing amusement industry assures
consistent progress in earning re-
suits. The company is expected
to report earnings close ~ 90 per
common share for the current
year, and with the stock on 0
regular 81 annual dividend basis
its market prospects appear dis
tinctly favorable. ~
NATIONAL BISCUIT -
Earnings for this leader In the
speciality baking field have been
holding up well, and despite the
close margin of earnings over
dividend requirements in the first
quarter, interests usually familiar
with this cornpany's operations
confidently expect that an extra
dividend will be paid on the conls
mon stock later in the year,
when results have picked up.