Stock prices today moved to further new highs on prospects of continued business recovery. Investment buying and demand by traders who had "missed the Boat" were contributing factors to the rise. Favourable business news brought heavy buying orders, while it was noted that there were heavy dealings in leading motors, steels, coppers, electrical equipments and rubbers. All issues listed gained above $1,000,000,000, while the list has risen nearly '$9,000,- 000,000 since the September 26 war scare lows. The reported plan for a $1.000,000,000 utility "expansion programme has been favourably received. Pittsburgħ steel operations are scheduled for a further rise. crease -of the dividend of the Maschinenfabrik Augsburg - Nuernberg from six to eight per cent. which would otherwise have given the market a powerful stimulus, remained without effect.
The fixed interest securities market was also quiet but the tendency remained friendly. State loans were slightly down while gold mortgage bonds tended to be firmer.
Call money stood at 214 to 2%.—Trans-Ocean. minor changes.
Quiet but steady conditions prevailed in wheat markets. Cotton futures were early depressed by liquidation, but subsequently rallied on higher Liverpool advices and New Orleans buying and covering. Bears were discouraged by the necessity of competitive trade bidding above loan prices to keep cotton from the loan. It is generally believed that the increase in the yield, according to the Government estimate, will be absorbed into the loan and that the holding movement will not be disturbed. Rubber ruled quiet. Operations consisted principally of dealers hedging against shipments. Expanding trade, coupled with outside buying, is absorbing a fair. increase in producers' hedges. Stagnant but steady conditions were witnessed in the sugar market, where quotations were virtually unchanged.
Steel mill operations continued upward, latest figures touching a new 1938 high and exceeding expectations. Automobile sheet steel at Detroit has been reduced by $4.00 a ton, but a further rise in the steel operating rate, it is generally believed, will offset this cut. The Federal Reserve Board noted a sharp rise in industrial activity, while business failures moved to a new low. Unfavourable factors were: growng uneasiness over the European situation, the unsatisfactory statistical position of the petroleum industry and worry in connection with the labour problem in the motor-car industry.
The Market in Figures Thursday Oct. 6 Oct. 13 Change D.-J. Average for 30 Industrials 148.10 152.46 up 436 D.-J. Average for 20" Rails 31.50 up 1.62
D.-J. Average for 15 Utilities D.-J. Average for 20:71 up 1.86 257
40 Bonds D.-J. 11 Commodity Index 48.13
89.94 up 39 up 17
Text read from the printed page and cleaned; old type leaves the occasional error.