Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-08-03
STOCKS ADVANCE
TO NEW HIGH PEAK
TRANSACTIONS ON THE NEW YORK STOCK EXCHANGE SIOCN
Market ReverSeS Trend Of
Yesterday and Ends Day
at Better Levels.
BY GEORGE t. HUGHES.

Special Dispatch to The Star.
NEW YORK, August 3.-Reversing
completely its course of yesterday, the
stock market today advanced buoyantly
into new high ground for the recovery.
Buying was cautious in the morning
and bold in the afternoon and the
close was around the best Volume in
creased on the advance and the move
ment gave a good imitation Of a real
bull market
1t is easier to state the facts than
to give the reasons for the almost spec
tacular strength. One powerful influ-
ence was the revelation that the period
covered by the recovery was one of
falling totals for brokers' loans, demon
strating that the buying had been in
unusual proportion for cash and that
stocks consequently had been going into
strong hands. That leaves unexplained
the motives controlling these buyers,
but they must have believed that busi-
ness, if not actually improving, was
certainly near the turn.
Commodities followed stocks today
instead Of the other way round. The
grains were heavy all the morning, but
they swung into line before the close,
with wheat up l x to 134 points. Cot
ton also went higher in the late trad
ing.
Features at the close in the stock
market included American Telephone,
up around points; General Motors at
a new high on the movement just be
fore the directors met for dividend ac-
ton; the food stocks, all strong and
active; J. l. Case, in which shorts were
struggling vainly to extricate them
selves from an untenable position;
United States Steel common and pre-
foFrnd fokoT1 In Ia hIarlre NJ
ing prices, and Consolidated Gas, with
gain running TO around points.
AS far as the news went the most en-
couraging thing was the progress made
In cutting down production in the oil
trade. Daily output of crude was down
sharply, while simultaneously gasoline
stocks in storage declined. A few of
the metals showed signs of firmness but
commodities for the most part were re-
dictionary. The bears argued that stocks
could not make much progress with
wheat and cotton as weak as they have
been of late.
The market, however. all through the
morning displayed no doubts. Net
changes were irregular at the opening
but thereafter prices crept forward with
no large gains but with fair uniformity.
The oils were prominent the first hour,
when Ohio oil made a new 1882 high.
Dividends were recently resumed on the
common stock with payment of 20
cents a share, after having been omitted
since March, 1881.
The situation in American Telephone
attracted attention. The stock had
reacted rather easily yesterday and
doubtless the short position was in
creased. The put" and call" men
were offering puts points down, but
were reluctant to quote calls. 1t was
said that IL up was bid for 30-day
privilege, which would indicate that
these judges of the market thought the
chances of advance were greater than
those of decline.
Gains of / to points in active
stocks were the rule during the first
half of the day. Consolidated Gas rail-
lied, recovering from the disappoint-
ment over the showing in the earnings
statement. J. I. Case advanced despite
the lower prices for wheat Air Re-
ductiCn was strong. Allied Chemical,
American Can and Westinghouse were
fractionally higher. Eastman Kodak
made larger gain. All of this was &C
comphShed on small volume
Railroad shares moved with the in
duStrials under the leadership of Union
Pacific and Atchison. but in a mar
rover range. Drug, Inc, declared the
regular quarterly dividend of 81 a share
and the stock went up a couple of
points Regular dividends were also
ordered paid on Homestake Mining and
western Dairy products preferred.