Stock prices early declined when the Czech negotiations were reported estimating production at 11,825,000 bales had little effect on the cotton market. The closing was quiet, with prices slighty higher. the business picture was brighter. Major lines and buildings responded to Government predictions of a boom. Construction awards were 42 per cent. above the level for the corresponding period of last year. Unfavourable factors were: prevailing utility problems and the precarious position of some railroads.
By Courtesy of Swan, Culbertson & Fritz The stock market was unable to muster much enthusiasm during the current period? when prices moved higher on small volume. Turnover in the opening session of the week on Tuesday, following the Labor Day holiday, was the smallest since June 17, and tthe action of the market meaningless. Losses up to one point were recorded. Little attention was placed on domestic news as traders awaited developments from abroad. When favourable European reports were received early Wednesday, stocks rallied briskly and after a period of brief hesitation, finished near the day's highs, which observers interpreted as a substantiation of the belief that business improvement justified better prices. Again responding to less favourable developments from Czechoslovakia, the market drifted lower on Thursday, with trading apathetic, Wheat, both at Chicago and Winnipeg, corn and cotton, declined. With world exporters competing for a small demand and importing countries indicating little interest, wheat futures at Chicago and Winnipeg slumped on pronounced weakness in Liverpool and Buenos Aires. Later reports that the subsidy under the Government plan had been raised only temporarily steadied prices, following which new lows were touched on heavy liquidation. Corn dropped on flat export demand and reports that the Argentine was underselling. When cotton prices by the middle of the week had declined to 8 cents due to increased nervousness over the European political situation, and the drop in Sterling, trade price-fixing, foreign and local buying was in evidence, However, aggressive operations were checked as traders preferred to await the bureau report, which was issued Thursday but failed to have any influence. Rest-rioted activity in the rubber market reflected the unwillingness of operators to assume fresh commitments pending the outcome of the International Rubber Restriction Committee Meeting September 12. Price movements were small, with factories continuing to exchange futures for actuals. Stagnant and featureless conditions prevailed in the sugar market.
The drop in steel operations for the current week was due to the Labor Day shut-down. An optimistic outlook for the industry persists with, reports that costs have been reduced further. Car-loadings pointed higher and the prospects of the automobile industry improved with late cables indicating that prices for 1939 models may be cut. Building news was good and construction awards 42 per cent. above the level for the corresponding period of last year. The weakness of grains continued to attract much attention and unfavourably influenced sentiment, while it is feared that the Wage-Hour law, shortly to become effective, may cause hardship in some lines, Prevailing utility problems and the precarious position of some railroads were additional disturbing factors, The market in Figures:
Thursday Sept. 1 Sept Dow-Jones Average for 20 industrial 19836 1219
Dow-Jones Average for
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