Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-17
Brokers' Comment
BY the Associated Press.

NN9SN1hokCA
NEW YORK. August l7-Commis-
sion houses advices to customers today
indicated a widespread feeling that the
recovery in the stock market will carry
further. subject to interruptions from
prof1t-taking. Comments follow:
Charles D. Barney & Co.-The
weight of past experience, therefore,
Indicates the necessity of regarding an
August rally in a bear market with
some degree of skepticism. If general
business activity fails to show def
nitely sustained pickup from the low
levels of the past several months 1t is
questionable whether the market can
avoid another period of discouraged
liquidation. Therefore, until there is
more definite evidence of fundamental
improvement in business We believe it
is well to regard the current recovery
as an intermediate movement, with
speculative commitments made on that
basis. We would not yet increase
long-pul holdings beyond approximate
~ one-third Of amount ultimately de-
sired.
Hornblower & Weeks-There is little
doubt that a market such as we have
been witnessing has probably elm
mated some of the short interest and
as a consequence the technical position
Of the market has in this respect been
somewhat weakened. However we be-
lieve that any prof1t-taking on renewed
selling for a decline which might
occur during the early part of this
week, will encounter strong resistance
and do not look for any reaction to
carry beyond technical proportions.
Frazier. Jelke & Co.-The amusement
shares and the more speculative bonds
Of the moving picture companies have
shown quite an improvement during
the past 10 days This may be at
tributed to very large cut in overhead
costs and 10 the belief that the quality
of the new films released this Fall will
be much higher than the quality of
those released a year ago. In theater
circles 1t is insisted that one of the big
troubles with the amusement business
during the past year has been the large
number of Door or indifferent films pro-
duced In the Summer Of 1880.
jackson Bros, Boesel Il Co.-The
main hope for a better stock market in
the near future is based on expectation
OF the normal seasonal trend in bust
ness WHICH is upward at this time Of
the year We have seen some signs
that this normal trend will show itself,
but there Is nothing to indicate sud
den pronounced recovery III business
and Internal ionai finance. There has
been conspicuous absence of favorable
news, both domestic and foreign, which
might help the market but this should
not cause undue anxiety.
Redmond e. Co.-Under favorable
conditions a rally of 20 or 80 points
from the recent lows would not be UNI
reasonable, but at the same time there
is still no assurance that the June lows
in the recognized averages viii hold in
the event OF renewal of liquidation
based on disappointing Fall trade and
more dividend and wage cutting, or in
the event of turn for the worse in
the European financial situation. Third
quarter reports probably will begin TO
make more favorable comparisons with
the same period last year than those for
the FIRST and second quarters The
rapid.ty OF the advance last week Sug-
geSts the possibility Of a secondary re-
action within the next 40 hours and
we would be inclined to defer new long
trading commitments until that setback
takes place.
Shields e. Co.--Sentiment in the steel
and railroad worlds-as well as In
Wsshington-is very pcssirlistic and
talk Of a hard Winter" is Widespread
AS these are the same folks responsible
for the ill-Judged sunshine talk" a
year ago, they are net 10 he taken too
seriously, but their feeling VIII tend to
slow up improvement. Despite seasonal
influences the good companies continue
10 make the best showing. AS was the
case with the false stock MARKET moves
OF last year there are too many option
operations gcing en- 70 permit Of much
faith in the present b2llish activities.
The further advances that seem IL.
prospect VIII afford good ira ding oppo--
tunities, but the utmost caution is nee
/ tsSary.