Courtesy of Swan, Culbertson & Fritz, Quotations by Reuter Shanghai, Aug. 31
Sharp breaks on Saturday and Tuesday caused the stock market to show a net loss for the week's trading fand the averages are once more back their approximate levels of a month ago. Ullities were by far the heaviest losers due to the gradual realization that the Weeler-Rayburn Bill as enacted is much more drastic its provisions than had been originally assumed. The recession In rails was also appreciable on a percentage basis, while industrials after establish ing a new high on Monday eased in the subsequent trading on the collapse the "war baby" issues which had Jpreviously been strong because of the Political situation in Europe. The cause of the general underlying weak-ess appeared twofold—political and technical. President Roosevelt's address on Saturday night indicated that his programme of legislative re~ form is by no means complete and supplied additional evidence, is any were needed, that as long as his administration "retains ofice business. will be exposed to unsettling political Influences. Prom the technical point of view the market structure after the Tong advance was evidently honeycombed by stop loss orders. placed by traders to. protect their Paper profits, and when quotations failed to move upward following the adjournment of Congress, disappointed selling touched off these stop loss orders and precipitated a sharp break despite generally encouraging busi-ess news. Trading was at the rate of more than 2,000,000 shares a day during the Saturday -and Twesday setbacks but receded to less than 1,400,000 shares on Wednesday and to only, 900,000 shares on Thursday, which suggested that liquidation was completed.
The Market in Figures:
Aug. 22 AUE29 Change D.J. Average for 30 fedustriste' 1202 ideas 157 Average for Day. Average for 9 Outs are. tas 213 uJ. Average for Bande 0 580—00 modity Index $980 S860 137 com de South 12% oft 4
Chicago Wheat Winnipes Wh Corn Cotton Rubber Silk Mides Business:
63 Steer operations (Ge Of capacity) as Carloadings (carloads) 584,000 Electric Power Automobite Output (cars) Som ses Average daily reduction bbls.)
"000 omitted.
Stock Outlook: As a technical reaction the recent recession could proceed somewhat further without exceeding normal proportions. Such corrective movements ordinarily retrace from 1/3 to 2/3 of the ground previously covered and the pertinent figures for a calculation of this are a8 follows Indus. Aver. Rail Aver Recent Low 16936
Recent High 1299) 368 Advance in points 10:30, 1/a Retracement of Advance 2/3 Retracement of Advance The more important question is whether the hitherto promising. prospects for an expansion in. business activity this autumn have been injured by apprehensions as to the effects of the recent hastily adopted legislation. For clarification of this point the course of the major busi-hess indexes during the next few weeks must be carefully scrutinized.
Text read from the printed page and cleaned; old type leaves the occasional error.