Evening star., 1938-07-24
MARKET LEADERS
HIT BEST PRICES
IN MANY MONTHS
Rousing Rally on Exchange
Lifts Numerous Issues
More Than 2 Points.
BUSINESS OPTIMISM
CAUSE OF UPSWING
Buying in Motors Spreads to Most
Other Departments in Saturday
Trading.
What Stocks Did.
BY FREDERICK GARDNER,
Associated Press Financial Writer.

NEW YORK, July 23.-Stock mar
ket leaders finished the week today
with a rousing rally that lifted nu-
merous issues fractions to more than
two points to new high for 10 months
or longer.
The list shuffled along indifferently
until near the end of the final hour
when burst Of buying in motors
spread to virtually all other depart
ments. The belated run-up was fast
enough to put the ticker tape 2
minutes behind at the close.
The days recovery wave was at
tributed mainly to broadening of busi-
ness optimism which prompted con-
siderable short covering and purchas-
ing by speculative and investment con-
tingents that had missed the boat"
on the June-July upswing.
Averages at New Peak.
The Associated Press average of so
stocks was ahead .06 of a point at
507, new peak since october 9, last
year. On the week the composite
showed net advance of 25 points.
Transfers totaled 776,24O shares,
against 627,270 the preceding Satur-
day.
Amusements, weak recently follow
ing the Government antitrust suit
against the principal film companies,
came back strongly. Steels, coppers,
rubbers, farm implements, oils, rails
and specialties were in the forefront
Of the push.
Prominent on the sprint were Gen.
eral Motors. Chrysler, Yellow Truck,
United States Steel, Bethlehem, Ana
conda. Kennecott. United States Rub
Der, Goodrich. j. I. Case, International
Harvester. Standard Oil of New Jersey,
Texas Corp, Santa Fe, New York Gen.
trail. Great Northern, Westinghouse.
Du Pont, Loew's. Paramount, National
Cash Register. Eastman Kodak, Johns
Manville. American Tobacco "B" and
Owens Illinois.
Utilities Lack Support.
Most utilities managed to edge for
ward, but the majority still lacked
a great deal of support.
1tdh lOdIlS dSdlIl CdIllt VI tllt UOp Ia
the bond department. Commodities
were mixed. Wheat at Chicago lost
"a to l cent bushel and corn was
down "a to rs. Cotton was up As
to so cents bale Foreign currencies
were higher in terms of the dollar,
sterling recovering y cent after its
recent sag to the lowest of the year.
Curb market gains about equaled
those on the big board" Conspicuous
on the advance here were Aluminium
Of America, Pantepec, American Cyan
amid B." st. Regis Paper and Tech
nicolor. Sales were around $4,000
shares against $4,000 week ago.
The weekly news gist was in favor
of the recovery forces, although there
were few developments that were
hardly pleasing to Wall street.
Motors had the benefit of brighten
ing prospects for this industry. While
the weeks automobile output fell about
0,OOO units. due mainly to suspensions
in preparation for new models, OBJ
servers in this field predicted that,
with used cars being absorbed rapidly,
an actual shortage of new vehicles
might be encountered later in the year.
Steel Outlook Improves.
Climbing mill operations provided
the impetus for steel shares. With
the automobile makers getting ready
to re-enter the market, steel produc-
ton next week was expected to tilt
sharply higher to the best figure of the
year to date.
Coppers were bolstered by Friday s
boost in the domestic rate of hs-cent
pound to 97s cents and talk OF a
further raise to the 10-cent level. The
foreign price recently has been above
10 cents as European demand showed
little signs of slackening.
A more than seasonal increase in
last weeks freight loadings kept the
rails on the upgrade, although most
we're without particular buoyancy
Revenues of Western and Sol. lwest-
ern roads, 1t was thought, would turn
upward as the result of heavy grain
shipments. There were still hopes OF
| wage cut compromise for the car
riers, although an apparent manage
ment-labor deadlock at the Chicago
conference led to the belief of some
Federal mediation would be requested
soon.
Power and light company stocks
were somewhat depressed by the move
of the S. E. c. to impose the death
sentence" clause on utility holdings
companies and the pot-shot taken by
the governmental agency at the As
ISOLATED Gas, Friday, in the form of
a United States District Court COM
plant charging violation of both the
securities and holding company laws
in connection with the extension of
debentures maturing in November.
Considerable foreign selling was re-
ported during the week from those
who got in at the start of the baby
boom" and desired to cash profits.