Evening star., 1949-05-29
Stock Market Resists
Bear Pressure While
Trade Still Declines
By chorIes r. Speore

py SVottSs y. SVeQfS
North Amerieon Newspaper Ahiones
NEW YORK. May 28.-The fact
that both the industrial and rail-
road stock averages this week
dropped slightly below the lows OF
last February failed to disturb
Wall Street.
For several months the line of
price resistance has been thin
one, but so far it has held firm
in spite OF the dominant bearish
atmosphere in financial centers.
The technical position Of the
stock market Is strengthened by
the largest short interest in years
supplemented by the generous
dividends and income returns on
shares of companies whose we'll
being powerfully affects all bus
iness in this country.
1t is significant that while such
commanding stocks as United
States Steel, General Motors.
Atchison and American Telephone
sold lower than in the decline of
last winter there was very little
reaction from it on the rest of the
list. Business on the New York
Stock Exchange was curtailed by
the approaching long Memorial
Day holiday.
Trade News Unfav0rabIe.
Trade news was unfavorable
Fresh liquidation occurred in the
markets for lead and zinc. Copper
was sold to Italy at 175s cents a
pound, a startling change from
the price situation not many
months ago.
The Iron Age reported a drop
of 81 ton on No. steel at Chi
cago and commented to the effect
that people in the steel business
view the situation with anxiety.
They are afraid" this journal
stated, that in the process of
trimming inventories the trend
may gather too much momentum
on the downside."
Numerous important industries
announced layoffs of employees
because Of poor business. General
Motors was able to reduce its wage
rates by a nominal amount and
to complement this with a small
reduction in the prices of two of
its cars.
Decisive Move Expected.
NEW YORK, May % P.-The
stock market moved into the Me-
mortal Day recess this week in
foggy apathy-and with the price
level a mere breath from the 1949
low.
Almost everybody said the mar
ket was on the verge of taking
o decisive swing up or down.
The market started out the
week with a decline, second larg-
est Of the month. which carried
prices on the average, to a low
since late February. Losses were
extended on Tuesday as quota
tions were marked down for the
sixth time In the past seven ses-
sions. ,.s,,ss =. .s.- go. .f.a. .
The Associated Press average
Of go stocks at the close Tuesday
stood at 62.2, lowest since Febru-
ary 26. Low for the, year was
61.A. Low for 194s is 6o.3. 4 80.
No more than a nudge of selling
was needed to break the 1859 low
possibly the 1948 low. -.c
Next day the long losing streak
was broken. A rally developed
pretty much on the languid side,
It's true, but enough to boost the
price level and raise the hope that
q turn for the better had finally
arrived. Buying activity spilled
over into the next day for a few
hours but that was the end Of it.
On Thursday the market just
about held its own and on Friday
fell back to the Tuesday low. The
last two sessions of the week were
among the slowest of the year,
with turnover each day around
100000 shares.
Bituminous Coal Output in the
week ended May 81 approximated
11,130,000 net tons VS.. 13,712,0 900
in the like 1948 week-National
Coal Association. For the year to
date, output was FOG, 1853 900 tons
VS.. 218, ,096 900 a year earlier.