Evening star., 1932-07-28
STOCKS co HIGHER
IN ACTIVE SESSION
New Levels Reached Despite
Late ReaIizing-Trading
Best of Year.
BY GEORGE t. HUGHES.

Special Dispatch to The Star.
NEW YORK, July 2S.-In the most
active trading of the year stocks to-
day extended their recovery into new
high ground. Realizing in the last
hour reduced the gains, but still left
the market much higher on the day.
The pace was so fast at times aS
to give the market a sensational ap-
pearance. However, that rate was not
maintained uniformly, and while the
rally went far enough to encourage
realizing. it did not seem to have under
mined the technical position.
The shorts were punished severely
in such stocks as Allied Chemical and
American Telephone and in some of
the rails. The short interest in United
States Steel common was not disturbed
seriously.
For the display of buoyancy there
was no new reason. The strength was
merely the result Of forces at work
for long time-an improved foreign
situation, scattered signs Of business
improvement at home and, above all,
convincing evidence that LIQUIDATION
had been completed, for the present
at least.
Wheat advanced today and that
helped stocks. Cotton was higher
Rubber went up again The weakness
in the foreign exchanges indicated
buying from abroad Of American Sc
CuritieS.
The market opened irregularly high
er, then advanced vigorously, slowed
down and reacted once more moved
ahead. Probably the most encouraging
feature was the buying In the railway
shares. The June earnings statements
showed no Improvement over those of
earlier in the year, with only one or
two exceptions. So far as figures are
available there is little or no better
ment in car loadings.
Nevertheless, railroad stocks were
outStandlngly strong, suggesting that
important interests are convinced that
the turn In traffic is at hand. In any
event there was hurried short covering
in all the leading issues, with a propor-
ton OF speculative buying, a good deal
Of 1t said to be coming from abroad.
During the morning new highs on the
movement were made by Atchison
above 80, by Union Pacific around As.
by Norfolk & Western, Delaware a.
Hudson and many lower priced stocks.
Bangor & Aroostook staged an inde-
pendent demonstration of strength.
Closing at l715 yesterday 1t was up
between and points before noon to-
day. responding to the six months
earnings statement In the first half
of the year the road earned $6.77 a
share, against $456 a share a year ago.
The oils were reactionary, subject to
profit taking. but they had started the
recovery and their setback was to have
been expected. Otherwise the indus
trials were in active demand at higher
prices. American Can, Allied Chemical
and du Pont were among the leaders.
General Motors was turned over in large
volume at the best of the rally. Gen.
eral Electric was in active demand also,
while United States Steel common was
steady and the preferred higher, dis
regarding the official warming that un-
less business improves the full rate
would not be maintained on the senior
issue.
Short covering was fairly large among
the utilities. 1t centered around Amer
lcan Telephone, Consolidated Gas and
Public Service of New Jersey At the
same time. according to the best infor-
nation, new short contracts were be-
ing put out by traders still unconvinced
OF the genuineness of the recovery.
This element argued that the improve
ment in the market was artificial" {"
whatever that may be. They main
tanned that there had been no CORE
spending improvement in business and
that this rally would prove as abortive
as all the others during the past two
or three years. However, adherents
to this view were not as numerous as
yesterday and their commitments were
not on as large scale