Prices on the New York Stock Exchange plunged to the year's lowest point today amid the most active trading since early November. Losses ranged above five points on the general list and some issues were off as much as the points. Hundreds of new lows for the year were set.
The break started shortly after moon following early steadiness. Selling. clogged the tickers. Some analysts said the market definitely was entering a bear phase.
High grade issues were hard hit. US. Steel, Bethlehem, American Smelting, Anaconda, General Motors, US. Rubber, DuPont, Santa Fe, Douglas Airoraft, and Standard Oil of New Jersey all hit new lows for the year. All divisions declined but utilities less than others.
First response to the speech in the House of Commons by the British Prime Minister, Mr. Neville Chamberlain, was favourable, but traders later decided that the speech merely complicated "e European situation. The automobile production decline also was depressing.
Wall Street hears there was some short selling on today's initial rally. There has been some long pull buying of machine tool stocks on the scale down. Investment trust selling has been small recently. Lee Rubber earnings probably will exceed $3 per share for the first half of 1939.
Favourable market factors today included:
1. Retail trade is expanding and most business executives are hopeful.
2 Bankers generally believe that fundamental business conditions are sound.
3. Some analysts believe the market is oversold Among the were these; unfavourable factors 96 cum, Loci Aircraft Libby-Owens-Ford Glass
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