Evening star., 1962-05-29
EXCHANGE
Continued From Page Al

making session.
Blue chips were clobbered to
losses Of 3 or 4 points at the
start but began to meet support
in the afternoon.
Gains Posted
A few stocks posted early
gains in a heroic stand against
sell orders. Chesapeake g. Ohio
advanced about Q points, Good
year more than q point, Camp
bell Soup about 2.
Here and there, 1t seemed
apparent that stocks were find
ing bottoms-even If tempo
rary.
But the general run of stocks
showed big losses and some
Stocks-such as International
Business Machines = were so
swanped with orders that in
early afternoon they were still
not being traded.
The decline brought the Dow
Industrials down through the
support level' represented by
the start of the Kennedy bun
market" In October. 1860. -
Imitation Anticipated
The so-called Kennedy bull
market began from a low fof
566.05 as his election appeared
more and more likely and In
vestors anticipated a more in
flationary atmosphere in the
event of the Democratic victory.
Prices also toppled on the
American Stock Exchange
where volume for the first two
hours scared to 2.6 million
shares-close to yesterdays
total for the whole day, 2.9S
million. The ticker tape Jagged
five minutes behind transac-
tions on this exchange.
Corporate bonds declined
with rails hard hit. Govern
ment bonds were firm.
The markets long, sharp de-
cline swelled to titanic propor-
tions yesterday as trading
rocketed to the highest level
since July 81, 1888, and prices
suffered their Sharpest drop on
average since October %, 1929
the day before the climax of
the crash.
Yesterdays plunge wiped out
an estimated $19.5 billion from
the quoted value of stocks listed
on the New York Stock Ex-
change, based on the fall of the
Associated Press 60-stock aver
age, This cut the total value
to $30l.5 billion from 1888
billion at the end of 1861.
The Associated Press average
fell 1910 to 211.20. The Dow
Jones average plummeted 34.95
to 576.93. These were the big
gest tumbles taken by these
averages since October 20, 1929.
"a Finish Higher
OF 1875 issues traded fthe
most ever in one day., only "a
finished higher and a whop-
ping 1912 declined. Five
somehow managed to reach
new 1862 highs and 9S7-well
over half the issues listed-fell
to new yearly lows.
American Telephone, the
most actively traded issue on
282, 900 shares, was particularly
hard hit by margin calls. A
technicality allowed stockhold-
ers with rights to buy addi-
tional stock to carry the pur-
chaseS on Is per cent margin.
What happened to bring on
the stock price debacle while
the economy is rolling along
at a rapid pace?
Market Unraveling"
"The market is unraveling
the speculative excesses of the
past three or four years when
anticipations Of values far ex-.
ceeded the realization of earn
ings and sales GROWTH sug-
gested the big brokerage firm,
Bache & Co. Il
1--WE cannot say that this
will be the low because who
knows where emotion goes, but.
on the figures, the statistics,
the earnings, the dividends and
the general healthy state of
the United States economy,
stocks are rapidly becoming
realistic"
Others blamed the great rush
to get rid of stocks on a wide
spread belief that initiation is
over. When initiation is in
force, investors feel that their
money will grow in stocks.