Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-06
STOCKS ARE FIRM
AFTER EARLY Loss
Market ResiStS Selling Pres
sure, With Only Small
ReCeSSionS.
BY GEORGE T. HUGHES.

Special Dispatch to The Star.
NEW YORK, January 6.-Dun and
irregularly lower in the early trading,
today's stock market hardened Subse-
quently, as spectators for the rise gath
cred courage from the failure of liquida-
ton to develop during initial weakness
Overnight orders were predomtnantly
on the selling side, but the market ac-
cepted them with only slight receSsions.
Aside from one or two specific issues,
the losses were unimportant Most OF
the first two hours, however, were perl
DDS of sagging prices and of great IN
activity. In the first half hour the
turnover was only 176,700 shares, the
lowest since December 6. 1t was this
persuaded the bear element they were
working on the wrong side.
American Tobacco Strong.
The outside news was meager. The
daily average production OF crude OIL
was down on the week, and in the
Northwest an increase in gasoline prices
was reported. Decreases in sales re-
ported by chain stores and mail oroer
! houses seemed to have been thoroughly
discounted marketwise Neither Sears,
Roebuck nor Montgomery Ward was I'M
der pressure because OF the losses tney
had reported in business.
An unofficial estimate OF approx
| mately SO cents for Warner Pros. PIC
| lures in the first quarter, ending NO
vember 80, 1880, on the other hand,
brought some buying into that stock.
| One issue that stood up While the
rest of the market was dragging was
| American Tobacco. 1t was estimated
| that the shareholders might expect
something additional to the regular
rate at the next dividend meeting
| although nothing official could be
learned Continental Baking shares
were moderately higher. Theoretically
! the baking company ought to profit
! from the low price of raw materials
| but investors have hesitated TO puy
| the stock because of the proposed IN
vestigation by washington authorities
| as to why the price of bread had not
been lowered proportionately to the
| drop in wheat.
Motor Stocks Rally.
Motor stocks were heavy in continue
ton of the reactionary trend in evil
dence in that group Monday. They
rallied. however, when the rest OF the
| list turned around. United States Steel
opened almost point lower, made uI
| the loss before noon. The electrical
manufacturing stocks were steady
| American Can f1uctuated in narrow
range and the railroad stocks held well
with special buying of Missouri Pacific
Among the two or three cases Of
weakness were Goodyear Rubber anc
Matheson Alkali. Price cutting, botE
actual and prospective, was the reason
in each case Matheson Alkah made O
new low for the bear market and Good
year slumped over points on top Of
its loss of the day before. Goodyear
| directors are scheduled to meet fol
dividend action Wednesday.
Trading Volume Decreases.
The market, after opening lower
| continued irregular, but the volume
| of offerings decreased as prices declined
Sales in the first half hour were only
176,700 shares against 2l4,400 in TIT
same Monday period. Call money re-
newed at IL per cent.
| Renewed weakness in cotton anC
wheat, which was partly offset by ex'
| pected cheerful news from the steel in
| dustry and further declines in crude OF
output, brought about some early selling
| of stocks.
United States Steel common showed
signs of rallying after hitting 1411z
American Can recovered somewhat aftel
getting down to 1922. Chemical share:
remained under pressure despite the re-
| ported termination of the price war
Mathesion Alkali broke to a new low al
| 27hs. Allied Chemical dropped 134
| Possible price cuts caused heavinesS ir
| the tire shares, with Goodyear at a new
| low On the present movement at AZ.
American Smelling, whose directors
meet for dividend action today, opened
slightly higher at 4312, while Cerro dc
| Pasco whose board also meets, started
unchanged at 2412.