Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-10
UPTURN EXPECTED
DURING THIS WEEK
Wall Street Hopeful Markets
Downward Trend Is Ap-
preaching End.
BY CHARLES W. STORM.

Special Dispatch to The Star.
NEW YORK, August 10 (N.A.N.A,).--
A study of the general course Of the stock
market over long period OF years shows
that the trend OF prices has usually
been upward. II is for this reason that
Wall Street Is hopeful the downward
trend in the stock market viii be halted
this week and forward movement
started, based on buying in anticipa-
ton Of seasonal Fall improvement in
general trade and industry
Seasonal improve nent in business
during the Fail last year was disap-
pointing. August usually witnesses
dullneSs In general business, but the
stock market. as a rule, anticipates inn
provement until events show the abb
sence of such a development.
Inasmuch as the steel industry is
considered the barometer OF general
trade, the Street viii direct consider
able attention to the statement of un-
filled tonnage to be made public by
the United States Steel Corporation
General opinion is that notwithstand-
ing the low rate of operations during
July, the statement of unified tonnage
viii show but little change one way or
the other. Should the figures. however,
considered as favorable
Market Debated.
Another reason why the Street looks
for possible improvement in the stock
market this week is the fact that the
general run Of stocks have been thor
oughly debated. This is emphasized by
the low level of average prices for stocks
and the record breaking low figure for
| brokerage loans. The small volume of
stocks being carried on margin also
shows that securities are now lodged
in strong hands.
A second reason for expecting q turn
ior the better in the stock market is
the unusually attractive Yields that NAV
be obtained on dividend-pay stocks
at this time. The average yield on 323
active cash dividend-paying common
| stocks listed on the New York Stock
Exchange is now S.l6 per cent, ac-
eording to Moody's Investors Service
At the beginning of July the average
yield was 1853 per cent.
Ordinarily such high yield would
attract Investment buying, but the in.
vestor with surplus funds at this time
IS apprehensive owing to the possible
ity OF further reductions In dividends.
Heaviness Of Rails.
The continued heaviness of the rail-
| road stocks. especially issues which
heretofore have been considered high
grade investments, Is one Of the most
depressing factors of the stock market
at this time. The fact that such inn
portant issues as New York Central.
New Haven and Atchison touched new
low prices for this year during the last
week has been source of, much dis
couragement. Selling of the rails is due
70 the continued poor earnings being re-
ported by the common carriers.
Figures for the first half of this year
show that dividends paid during that
period were largely out of surplus. Fail
uIe Of the car loadings to show q sea-
sonal increase usually witnessed at this
time OF year would seem to strengthen
the belief that number of the i'm.
portant transportation companies viii
md 1t necessary to reduce disburse-
ments to shareholders
1t had been expected that the trans
portation companies would receive
some relief from the Inter state Com
merce Commission in the immediate
future, but hope in this direction has
been somewhat dissipated by the length
OF time being consumed by the hear
ings.
The beginning of hearings from on
ponentS to the application for the rate
! advance is scheduled to start today and
will continue into September so that
the Street does not believe the commits
sion viii render decision until late In
the year, or too late for the common
carriers to receive any appreciable ben
efit in earnings should they receive only
part of the is per cent advance re-
queSted.
Less activity on the part of the pro-
fessional bears is expected this week
for the reason that number Of the
members Of that group have gone on a
vacation while others maintain that
there Is little incentive to sell stocks
short at this low level
With Wall Street in its present APP
orehensive frame of mind, the time
would be opportune for resumption Of
aggressive short selling and raiding,
were 1t not for the fact that many Of
the former professional shorts have re-
ceived limitations that destructive tao
ties in the stock market are not de-
sired by people in high places.
(Copyright. 1891. by the North American
Newspaper Alliance, Inc,)