Profit-taking land pre-holiday selling brought about an irregular trend on the Stock Exchange. The action of the market today conformed to the typical pre-holiday pattern, whilst holiday considerations, combined with the fear that the market has advanced too rapidly. dampened speculative ardour, which precluded attempts to follow gains and enter into any new commitments. Business news continued to be favourable: reports indicate that retail sales are improving; building returns have also improved, compared with those of October last year; automobile sales have touched a new monthly high since April; and," indications of further gains in steels operations which influenced a demand for steels.
By Courtesy of Swan, Culbertson & Fritz By the middle of' the week, prices on Wall Street, as measured by the Dow-Jones 65 composite stock index, had reached their best levels of the year. Following the announcement of a 4 point jump in steel operations, the market advanced impressively and the Industrial Averages moved into now high ground, as industrial issues led the. upward trend on pre-election short covering and buying. Exchanges throughout the United States were closed Tuesday when the nation went to the polls in what resulted in the largest off-election year voting in the history of the country. Wednesday, stock prices gained from one to three points in heavy trading, attributed mostly to buying by operators who had placed a favourable interpretation on the election returns. Better than expected Republican victories were construed as being very favourable to Wall Street. All sections participated in the broad advance and due to the heavy volume, exceeding three million shares, ticker machines early in the session fell behind. Favourable trade and industry news further aided sentiment. The advance which lifted the Dow-Jones industrial average to their highest level since October 21, 1937, attracted realizing and broad scale profit-taking, but by the close of the market, gains of from one to more than three dollars had been recorded. Pre-holiday selling featured trading Thursday, but the undertone was firm.
Commodity prices, gauged by the Dow-Jones 11 Commondity Index, advanced. Frost reports in the Argentine and smaller world shipments were not sufficiently important market wise to offset the continued dullness of exports and favourable weather in the Winter wheat belt at the beginning of the week. Following the holiday, futures at Chicago moved fractionally higher on the pronounced strength of foreign markets, short covering, some new buying and better export and mill inquiries. Later, prices eased with the softness in foreign markets. Corn reacted favourably to the smaller movement and improvement in the cash situation. Less country selling was in evidence and the firmness in south western markets bolstered sentiment. Pending the publication of the Bureau report, cotton traders 2] were cautious.
Better mill demand for spots was reported and textiles more active. Rubber futures advanced. Factory demand for actuals and the firmness of primaries, together with the strength of security prices, were bullish influences. Active and strong conditions prevailed in sugar trading. There was scattered trade covering on the continued advance of London and the absence of first hand sellers of both actuals and contracts.
Steel mill operations for the third consecutive week forged into new high ground. At 61 per cent. of capacity, latest figures were at their best levels since October 11, 1937, and it was freely predicted that next week's report would show still further gains. Washington dispatches reported that the Government Utility Expansion Programme would shortly be under way. The Federal Reserve Board estimated industrial production for October at 95 per cent, of the 1923/1925 average. compared with 90 per cent. for September. Motor car production touched a new high peak for the year.
The Market in figures:
Thursday Nov 10 3 Nov Change D.-J. Average for 30 Indust.
152.31 15741 up 5.16 D.-J. Average for 20 Rails 3256 33.17 D.-J. Average for 15" Utilit 23.95 2412 D.-J. Average for 40' Bonds 89.96 90.88 9 D.-J. 11 Commodity Index 48.08 48.92
Commodity Prices: Thursday Chicago Wheat Winnipeg Wheat Corn Cotton Rubber Hides Sugar Business:
Previous N.Y, Times Index Steel Operation (c; of capacity) 568 Carloadings (carloads) 707,000 Electric power production (kw.hrs.) Average Daily Oil Production (bbls) Automobile output (cars)
*060 omitted.
Stock Outlock:
The impressive manner in which prices on Wall Street have recently reacted to large scale profit taking confirms the general feeling that still higher levels area distinct possibility. Trade and industry news continues good and so long as this situation exists, stocks will be more attractive than cash.
Text read from the printed page and cleaned; old type leaves the occasional error.