Evening star., 1948-10-31
1imid Buying Boosts
Some Stock; Slightly
In Quiet Dealings
Rx the Asseeioted Press

NEW oxSG&y wv wv - AAA4d 0NJ =
Ing gave the stock markets October
advance a little lift today on this
hast day.
Most traders wanted results of the
presidential election behind them.
The result was moderate sprink-
ling of small gains in the slowest
week end session of the month.
Numerous issues were unchanged or
moved a trif1e lower.
The Associated Press average Of
90 stocks remained at 70.l, with
the industrial component little
higher and the railroad section
down a bit.
: OF the 703 issues traded, 2S4 ad-
vanced and 203 declined. Sales Of
$4,000 shares compared with $780,
600 a week ago.
Wall Street has had its pre-elec-
ton advance and Is pretty well sat-
tsfied with the results. Not until this
week did any serious opposition de-
velop to a forward move that was
maintained for the first three weeks
of the month with scarcely an IN
terruption.
Worst Drop in Midweek.
In midweek the market took the
sharpest spill of the month. Com
paratively severe losses conceded
with Premier Stalin's denunciation
Of the western powers.
The market had been shaken
earlier in the week, though, by fail
ure of a rumor to come true. A
large bloc of opinion in the financial
district had predicted that United
States Steel Corp. directors, after
taking look at what were expected
to be excellent earnings for the
September quarter, would vote a
special dividend. Big Steels earn
tngs were all right but apparently
the board did not even consider an
extra payment to stockholders.
The street evidently had some
kinkling, Just before the Steel board
met, that a special dividend was not
inevitable. The market declined
Monday and steels declined again
Tuesday when many other issues
moved upward. Steels moved lower
with the market Wednesday when
traders had their first chance to ap-
praise the steel company's action.
Good Earnings Ignored.
A luxuriant flow Of earnings and
dividends were almost consistently
ignored during the week. Individual
issues responded, but only in some
cases. while the effect on the mar
ket generally was almost negligible.
Political considerations came more
TO the fore in plotting market
strategy. Two ideas gained ground
in Wall Street during the week:
First, will o Republican admin
istration affect the changes in the
Nations business life that many had
anticipated? The possibility OF tax
relief has been mentioned in hope
full tones. But hard-headed observ-
ers have pointed out that far and
away the biggest item In the budget
is for military expenditures. 1t
seems unlikely that this type OF
spending will be cut-and not i'm
possible that it will be increased.
The administration, Republican or
Democratic, has to produce the
money, in taxes or deficit financing.
Other Doubts Appear.
Second, the vote has not yet been
cast. Business might benefit from a
change In parties, If only through
q new relationship between govern
ment and business. Governor Dewey
is still favored as the winner but
many have expressed doubt that his
victory will be overwhelming.
The market finished the week be-
low its starting point. The AP 60
stock average closed today at 70.1.
This compared with II a week
cartier which was a peak since mid
July and within firing distance OF
the 194S top.
At the end Of September the
average stood at 66.9, which indi-
Gated an impressive gain.
The stock market observed one Of
It's bitterest anniversaries this week.
Nineteen years ago the market
crashed with violence that echoed
around the world.