Evening star., 1948-12-05
Stock Market Extends
Recovery Fractions TO
Around 81 a Share
Rv The Assoeiatsd Press

NEW YORK, Dec. 4.-WaI Street
had its December rally rolling at the
week end. >,
In today's short session gains OF
fractions to around 3 points were
added to the advances of the previ-
GUS three sessions.
The market still has long way
to 20 to recoup its post-election
losses, but at least a stab IN that
direction has been made.
Oils, steels, rails and motors did
better than most, although demand
was well spread throughout the list.
Upward tendencies were accented In
late trading and the market closed
Just about at the top levels OF. the
week.
Volume expanded on the way up.
Turnover of $4,000 shares compared
with $4,000 a week ago and was
the largest for two-hour session in
the past month.
Average Up Fraction.
The Associated Press average of
60 stocks advanced 0.4 of one point
to 64.4. The average now is back to
where it was on November %.
OF the 79l issues which appeared
on the tape 461 advanced and 125
declined.
Among the best performers were
skelly Oil, Seaboard Oil. Standard
Oil of California, Superior Oh OF
California, United States Steel,
YOUNGSTOWN Sheet g. Tube, Chrys-
Ter, Santa Fe, Southern Pacific,
Phelps Dodge, American Woolen,
Dow Chemical and American Tele-
phone.
MONTGOMERY Ward drifted lower
for a while, but came back to end
higher after release Of a favorable
earnings statement.
In the Curb Kaiser-Frazer jumped
III to 10A. Buying was evidently
stimulated by news from Detroit
that the company has purchased the
S10O,000,000 Willow Run Plant for
$15,100000. The company has been
paying 81, ,406, 400 annually under
lease.
During the week the market
chalked up one Of the best rallies OF
the year. On Wednesday the AP
average jumped a full point in a
sudden reversal OF trend which
had been downward. with minor
Interruptions, since before the elec-
tions.
Tax Selling Smaller.
The ahr1lrt advance was credited
mainly to a let-up in the usual
seasonal selling to establish tax
losses. The same factor, brokers
reported, was at work helping to
boost the price level during the bal
ance Of the week.
That was not the whole story
though. Normally yearend tax sell
ing Is pretty well out of the way
soon after mid-December and. ac-
cording to Wall Street tradition, a
rally gets under way. Many flnan-
cial men thought that this weeks
gains were premature and that siz-
able tax selling would have to be
absorbed next week.
Nevertheless many traders oper-
ated on the theory that December
advance had started and they wanted
to get on board at the outset.
Persistent investment buying also
helped to support the price list.
More than a few long-range traders
are taking the stand that the Nation
isn't going to the dogs because the
Democratic Party will be in COM
mand again and that q recession
depression isn't inevitable for any
other reason.
Post-election selling. which rocked
the market on its heels, was blamed
on fear of what the new admins
tration would do to profits. That
fear is on the wane, partly because
Of what appears to be a concerted
effort on the part Of the admins
tration to reassure the businessman.
Good Earnings Ignored.
Earnings and dividends have ex-
panded to historic highs this year,
a fact which the stock market has
almost consistently ignored. The
Yields on scores Of top-notch stocks
are far out Of line with what con-