Evening star., 1937-05-30
STOCKS REGISTER
M0DERATEL0SSES
IN THEIR TRADING
Opinions Divided Sharply
on Near.Term Trends
for Equities.
EFFECT OF COSTS RISE
ON EARNINGS WATCHED
Second Quarter Likely to Show
Uneven Notwithstanding
Buying Power Cited.
81 the Associated Press.

Ey the Associated Press.
NEW YORK. May 29.-Unable at
times to make up its mind, the stock
market declined slightly last week.
Thinness was the prime character
ktic of trading, and brokers said,
reflected indecision on near-term
trends.
How sharply opinions diverged on
share values was shown by trends
in the final session: 277 issues rose,
260 declined and 1852 were unchanged.
Observers who stressed the bullish
aspect Of the business and financial
scene were able to cite rising steel
operations. slightly more than sea-
sonal gain in carloadings, higher
electricity output and improved motor
production.
They found other supporting argu-
ments In estimates of higher farm
buying power and continued vitality
In retail sales.
Point to Strikes.
Those who found bearish influences
in the ascendant pointed to strikes
affecting some 10000 employees Of
independent steel companies, higher
operating costs and disappointment
over April railroad earnings.
With markets heading into the
final stretch Of the second quarter, a
good deal was heard of earnings
prospects for the full three months.
Consensus was that they will be mixed
and will show effects of higher wages
and operations done on a basis Of
raw materials bought at higher levels.
Tending to restrict operations in
markets toward the end of the week
was the approach OF the three-day
holiday. The New York Stock Ex-
change and other leading exchanges
were closed today and will be shut
Monday In observance of Decoration
day.
Bond Market Quiet.
Awaiting the June announcement
OF the Treasury's quarterly financing
plans, investment circles were content
to let loans mosey through a quiet
bond market.
Consequently, most OF the daily
movements were directionless and re-
suits appeared to be scrambled. Prices
held about even in the rail, industrial
and low yield corporate sections and
lifted bit in the utility and foreign
quarters. United States Government
issues were higher as group.
The latter showed advances over
the previous Saturdays levels ranging
from 5-32 to q of point. Treasury
4i2s Of 1852, the 3lss of 1949, the IS
Of l948 and the 22.s of l947 moved
up 20-32 Of point or more. That
this showing was made without any
appreciable demand. demonstrated the
hesitancy Of holders Of relinquish their
bonds pending the marl.ct test to be
afforded by the June financing.
Low Interest Apparent.
Indicating the lack of interest dur
ing the holiday-shortened week, was
the daily average turnover of little
more than $7,000,000, face amount,
for all bonds The volume OF gov
ernments traded averaged less than
$l,000,000, face value. daily and the
amount of foreigns traded was cor
respondingly small
Under such circumstances outstand-
ing movements were virtually lack
ing. Bonds Of rapid transit and trac-
tion companies serving New York City
backtracked most of the week as C.
l. o. organizers intensified drives
their activities in the Interborough
Transit Co, campaign resulting in q
settlement late in the week.
Allegheny Corp. SIS of l949 and
stamped SIS bounded upward Friday
after the new owners of the Van
Sweringen system announced the ton
holding company would be merged
into the Chesapeake Corp. Such an
operation would move Allegheny loans
one step nearer to properties, holders
agree.