Evening star., 1932-07-29
STOCKS HOLD OWN
IN ACTIVE SESSION
Leaders Reach New Highs,
but Close Day Slightly
Below Peak.
BY GEORGE 7. HUGHES,

Special Dispatch TO The Star.
NEW YORK, July 29-The stock
market today gave another reaSsuring
performance. 1t was reactionary. but
only slightly so during the morning:
turned sharply upward in the early
afternoon. when trading was most
active; quieted down, but without much
setback. and clcssd only slightly under
the rest of the day.
During the course of the session new
highs on the current movement were
set up by the leaders.
The turnover was not as large as
yesterday. although at one time the
tape fell behind business on the floor.
The market did not have the stimulus
OF strength in wheat as was the case
on Thursday. Grains reacted under
realizing. Rubber advanced again and
cotton was higher. Silver was up 10
to Is points but otherwise commodities
we're unimportantly changed. The one
thing that stood out in all markets was
the determination to take the most
optimistic view possible.
The feature in the stock market dur
ing the last few minutes of business was
the strength in Auburn Auto, in U. S.
Steel preferred in some of the oils,
which were bought on reports of a
probable increase in the price of crude,
and in the utilities generally.
The market opened irregularly lower.
in continuation of the trend shown in
the last hour on Thursday. Realizing
went on in the issues which had en-
joyed the sharpest recoverieS and frac-
tional declines predominated. 1t was
still true, however, that the market
quieted down on the reaction, volume
falling off and no important iquida-
Wiz
the pace invariably quickened.
The deplorable conflict between the
authorities and the So-called bonus
army in Washington was not market
influence. 1t is doubtful whether that
incident caused any selling most of
which came from traders anxious to
cash in profits on the long side before
| they vanished. Most Of the other news
was constructive, particularly the show
| ing in the Federal Reserve weekly
statement. the drop in circulation and
| the rise in the Reserve ratio. It was
also significant that brokers' loans
! should decline, even though the drop
was negligible, in the face of rising
/ prices for stocks. The inference was
! that the buying had been for account
of>strong interests.
| After the early irregularity. prices
| hardened, a good deal of the first
hours loss was recovered and some
| stocks pushed through the highs of the
advance. Among the latter were Allied
Chemical and American Tobacco "B."
Both stocks are understood to have
/ been heavily bought by foreign in
vestors. Short covering went on in
American Telephone, not far from the
| high of the movement. Except for
U. S. Steel common and preferred
telephone has been the favorite sale
for those bearishly disposed, whether
amateurs or professionals.
The steel news has not been Of
character to intimidate shorts, so far
as least. The Bethlehem report was
better than anticipated, but omission
Of the dividend on the preferred stock
had depressing effect. II there should
be some favorable news from the iron
and steel trade. the position of the
shorts in the steel stocks would be un-
comfortable to say the least
I