On the Stqck Exchange today utilities, aviation\and coppers touched new highs for the year in a session of active trading. Later in the day. however, the list met with profit taking and business slowed down on the reaction. Aviations responded to the prospect of higher income and dividends dye to the Government armament programme. Favourable factors today included: indications of an appeasement in regard to the Government and utility situation; an improvement in the automobile labour situation; and, the strong earnings outlook for tire companies. However, we believe that railroads will be unsuccessful in their efforts to cut By courtesy of S. E. Levy & Ca.
On Thursday the first flagrant public participation in the market marked the commencement of a phase where emotional mass thinking began to play a role. Leaders, in many case: were capitalizing 1938 earnings from 30 to 60 times.
This week's off-market stock offerings of Crane Company and General American Transportation in pre-Securities and Exchange Commission days would have been regarded as distribution.
More disturbing, or at least perplexing, is the imperviousness of the market to the break in oil prices and further demoralization in steel quota tions.
Washington utility and armament developments have caused a radical. change in market leadership.
An increasingly large volume of trading is required to lift the list. With the conviction so unanimous that the market will be, safe until election day, it would seem wise, during the next week, to assess quotations against tangible business developments.
Borron's Index, adjusted for trend. is placed at 652.
Text read from the printed page and cleaned; old type leaves the occasional error.