Milford chronicle., 1948-01-16
Wall Street TWiddIed
Thumbs AS Bears
Retained Control
By VICTOR EUBANK

NEW YORK - Imitation hit
throughout the economy, commOdi-
ties and living costs scared to rec
ord levels, but the stock market did
little more than twiddle it's thumbs
during the past year, and generally
on a lower trend.
There were both buying and SELL
ing intervals from January on, al
though the latter had the best of
tIhe argument. Bullish cOntingents
derived some comfort from the
years volume which was more than
100000 shares under the 1946
aggregate of 363,709,312. In other
words, the liquidation of the year
before tended to dwindle.
Reinvestment demand and the re-
ductiOn of margins from 100 to IS
percent helped the market show a
net advance in January. Hopes for
labor peace also were a factor. The
months activity, though, was the
smallest for any like period since
1914. The comeback proceeded in
to the early part of February when
the average top for 1947 was recOr-
ded. The upturn attracted offerings,
and prices, on balance, finished the
month under water. Talk of a busi-
ness recession later in the year,
which failed to develop, served to
put brakes on enthusiasm.
PeSsimism on Casts
The blackslide continued through
March, April and May with pessim-
ism stemming from mounting COM
mercial inventories, rising costs to
corporations, the labor outlook and
murky international picture. The
stock composite hit the 1947 low on
May II. Prices stiffened then,
through June and July with the
June rally predicated partly on the
theory the list was OversOld and
that business worries had been ex-
aggerated.
The dog days of August wilted
the list. There was not a single mil
liOn-share session for the month, a
record for several years. Actually,
the August volume of 14,153, ,485
shares was the lowest of the year
and a minimum since April, 1914.
The direction was downward dur
ing most of September as doubts
regarding the Importance of Eu-
rOpean relief stalled buyers. Com
mOdities jumped, but high grade
bonds and preferred stocks began to
weaken.
Revival i'm October
October witnessed a modest re-
vival as the outlook for larger dol
lar grants to Europe frightened
Steels and motors improved as de-
mand in these fields expanded. Oc-
tOber markets were among the
brOadest of the year.
The list resumed the retreat in
November, which turned out to be
the slOwent November since 1912
COincidentally, the market started
the month with an increase in bro.
kerage commissions, but there was
considerable argument as to wheth.
er this caused the contraction Ol
trading. SOftening trends were at.
tributed partly to the cOnvening O
the special congressional session Il
provide European succor and stem
imitation. The utility index record.
ed a series of 1947 lows.
December began with a milo
comeback credited mainly to tech.
nical buying. The rise was short.
lived with heavy liquidation hittins
4 the market on the first Friday anC
putting the average back to the hot.
tom of June. There was selling fol
income tax purposes and skeptica
unloading on the thought that tbe
administration would press defia.
ton moves and unsettle business
The darkening foreign situation
was bearish factor. Subseuuenr
rallies appeared as reinyestmen
demand made its appearance
The majority of stock broker,
operated in the red during the wear
Only those who also dealt in com
modities were able to show profits
!