U.S. Economic News (10-5-40 – 11-5-40)


#1

Reading Eagle (October 5, 1940)

LATE BUYING HELPS STOCKS
New York, Oct. 5 (AP) –

Late buying of selected industrials helped the stock market regain its balance today after another early profit taking stumble.

Although dealings were relatively light throughout, prices were no worse than mildly mixed at the close of the brief session. There were scattered strong spots and weakness was rare in any department. Transfers were around 200,000 shares.

Among stocks accorded support were Youngstown Sheet, Crucible Steel, Chrysler, Montgomery Ward, Sears Roebuck, United Aircraft, Douglas Aircraft, New York Central, Great Northern, American Telephone, Western Union, General Electric, Union Carbide, Westinghouse, Standard Oil of New Jersey, Eastern Airlines and Pan-American Airways.

Lagging most of the time were U.S. Steel, Bethlehem, Dow Chemical, du Pont, U.S. Gypsum, U.S. Rubber, General Motors and American Smelting.

Thompson-Starrett Preferred was given a life on word shareholders would be asked to vote on a recapitalization plan which would take care of back dividends on the senior stock.

Resistant in the Curb were American Cyanamid “B,” Aviation & Transportation, Pennsylvania Central Airlines and Pennroad. Faltering occasionally were Electric Bond & Share, Pepperell and Royal Typewriter.

DOW JONES AVERAGES

High Low Close
Industrials (off $1.30) 134.48 138.38 133.79
Railroads (off $0.20) 29.35 29.10 29.17
Utilities (off $0.07) 22.05 21.83 21.93

Total – 47,000 shares.

NEW YORK STOCK CLOSING PRICES
By The Associated Press

Air Reduct 42
Al. Ch. & Dye 165
Am. R. & St. S. 7.375
Am. Smelt & R. 42.375
Am. Tel. & Tel. 163.50
Am. Tob. B. 78
Anaconda 22.875
Atch. T. & S. F. 17
Ati. Refin. 21.375
Bald Loco. Ct. 16.875
Balt. & Ohio 4.50
Bendix Avia. 31.875
Beth. Steel 81.25
Boeing Airplane 16
Borden Co. 19.875
Briggs Mfg. 22
Budd Mfg. 4.50
Ches. & Ohio 41
Chrysler Corp. 79.75
Col. G. & El. 5.375
Com. & South 1.25
Cons. Edison 26.375
Cons. Oil 6
Curtiss-Wr. 7.75
Del. L. & W. 4
Doug. Aircraft 78.75
Du Pont de N. 177.50
El. Auto Life 36.25
Gen. Electric 35.50
Gen. Foods 41
Gen. Motors 49.375
Gen. Refract. 27.50
Greyhound Corp. 11.375
Illinois Cent. 8.375
Interlake Iron 9
Int. Harvester 48.25
Int. Nick Can 27.875
Int. Tel & Tel. 2.125
Kennecott Cop. 30
Kresge S. S. 25.375
Leh. Val. R. R. 2.375
Loew’s Inc. 26.25
Montgom. Ward 42.25
Nash-Kelvinator 5.25
Nat. Biscuit 19.375
Nat. Dairy Pr. 13.25
Nat. Distillers 22.50
NY Central R. R. 15
North Amer. Co. 19
Northern Pacif. 7.125
Packard Motor. 3.50
Param. Pictures 7.25
Penney (JC) 90
Penn. R. R. 22.875
Pub. Svc. NJ 33.375
Pullman 24.75
Pure Oil 7
Radio Corp. of A. 5
Repub. Steel 18.25
Reynolds Tob. B. 35.50
Sears Roebuck 81.75
Socony-Vacuum 8.25
Sperry Corp. 41.75
Stand. Brands 6.25
Stand. Oil CA 17.50
Stand. Oil IN 25.25
Stand. Oil NJ 33.375
Studebak Corp. 8
Texas Corp. 35
United Airlines 18
United Corp. 1.75
United Gas Imp. 11.375
U.S. Rubber 20.25
U.S. Steel 59.75
Warner Bros P. 2.50
West Union Tel. 20
West El. & Mfg. 108.25
Woolworth (FW) 33.875
Tel. Tr. & Coach 15.125
Youngst. Sh. & T. 34.375

METALS
New York, Oct. 5 (AP) –

Copper – Steady; electric spot, Conn. Valley, $12; export, f.a.s., New York, $9.90.
Tin – Steady; spot and nearby, $51; forward, $50.75.
Lead– Steady; spot, New York, $55.05; East St. Louis, $4.85.
Zinc – Steady; East St. Louis, spot and forward. $7.25.
Pig Iron, Aluminum, Antimony, Quicksilver, Platinum, Chinese Wolframite and Domestic Scheelite – Unchanged.

PHILA. CLOSING STOCKS
Philadelphia, Oct. 5 (AP) –

  • Lehigh Nav., 2.375
  • Penna. R. R., 22.375
  • Pennroad Corp., 2.375
  • UGI, 11 3/4

GOVERNMENT BONDS
New York, Oct. 5 (AP) –

  • Treasury 31/8s, 49-46, 111.28.
  • Treasury 27/8s, 60-55, 109.
  • Treasury 23/4s, 65-60, 107.24.

SALARIES OF CARPENTER STEEL EXECUTIVES LISTED
New York, Oct. 5 –

The New York Sun reported today that according to a proxy statement made public at the Stock Exchange. Fred A. Bigelow, president of the Carpenter Steel Company, Reading, Pa., received $87,306 in salary during the year ended June 30. J. Herbert Parker, vice president, got $80,029 and Joseph S. Pendleton, secretary and treasurer, received $44,000. Seven directors are proposed for reelection at the annual meeting to be held October 28.

Among the nominees owning the largest amounts of common stock on June 30 and their holdings were the following:

  • Mr. Bigelow – 16,000 shares
  • Mr. Parker – 5,860 shares
  • Mr. Pendleton – 8,000 shares
  • Edward K. Warren – 25,336 shares.

Other nominees owned blocks ranging from 606 to 30 shares. A proposal will be made at the meeting to indemnify directors against suits brought against them because of their position in the company. The company paid its officers and directors $212,835 during the past fiscal year.

U.S. TREASURY REPORT
Washington, Oct. 5 (AP) –

The position of the Treasury:

Expenses $2,408,929,584.21
Receipts $1,707,633,021.14
Gross deficit $857,172,754.60
Net deficit $835,767,386.09
Cash balance $2,377,726,496.04
Working balance $1,642,138,340.50
Public debt $44,059,521,675.34
Gold reserve $21,276,392,765.76

#2

The Pittsburgh Press (October 13, 1940)

Week’s Market Summary –
JAP SITUATION CAUSES DIP IN STOCK PRICES

Equity Decline in All Sessions Except Friday’s; Trading Dries Up

By Elmer C. Walzer, United Press Financial Editor

New York, Oct. 13 –

The stock market received a fall this week when the United States government recalled its citizens in the Far East. Prices declined in all the sessions except Fridays and trading dried up to a daily average of 424,000 shares.

Injection of the Japanese incident came on Tuesday when the industrial average lost more than 2 points. Thereafter the list was steadier, finally rising on Friday.

As the week wore on, the Japanese difficulties seemed to be less potent than at first believed. But, experts asserted they will play a big part in coming markets along with the European war uncertainties.

Business News Is Bullish

Offsetting in part the war troubles during the week was a mass of favorable business news which was considered a sustaining influence for the market. Heavy industries again led the way. Steel operations rose toward 95% of capacity, just under the record set last November. Iron Age estimated that if the present pace continues, it will bring the year’s total steel production to an all-time record high.

Auto production, according to Ward’s, totaled 108,457 cars and trucks during the past week, a new high since January 20, and the second highest of the year. Ward’s anticipates further gains this season. The Automobile Manufacturers Association announced production of cars and trucks for the 12 months ended September 30 at 4,285,000 units, against 3,587,000 in the corresponding period of a year ago.

Rail Earnings Mount

Building operations held near their recent highs and greater construction is anticipated for this remainder of the year as industry expands to cope with defense needs. Car loadings declined because of a reduction in coal shipments. Electricity output had a small decline from the previous week, but held week above a year ago. Retail trade held 6-10% over the 1939 levels and wholesale trade improved.

Wide gains being reported in railroad incomes for the first eight months of the year sustained the railroad shares. For example, New York Central’s net income for the period was $1,007,452, which is about $10,000,000 better than a year ago, when there was a deficit of $8,900,019. Railroad employment at mid-September was reported at 1,066,612, a new high since October 1937, when it was 1,115,588.

Thanks to a good recovery on Friday, steel shares closed the week with only small losses. Coppers had declines ranging to more than a point in American Smelting, Chrysler lost a point and General Motors a fraction. Sears Roebuck was down 2.5 points in the mercantiles.

Oil Shares Weaken

Oil shares had a period of weakness when Standard of California sank to a new low for the year. The declines were mostly in the issues which have a big business in the Far East. These stocks rallied partially on Friday along with the other major groups.

Utility issues closed the week unchanged to slightly lower. The average lost only 0.43 point.

As in recent weeks special issues were wide movers. Gains of 5 points or more were noted in Vulcan Detinning and Sharon Steel preferred. Pirelli of Italy rose 5 points to a new high. International Salt gained 4. Southern Railway-Mobile & Ohio certificates broke 10 points on the week when stockholders were notified the stock had lost its value. American Tobacco issues were down several points and declines of 2 points and more were noted in most of the farm shares. J. I. Case preferred, an exception, rose 4.5 points.

DOW JONES AVERAGES

High Low Close
Industrials (off $1.30) 131.42 130.60 131.04
Railroads (off $0.20) 28.79 28.69 28.74
Utilities (off $0.07) 21.62 21.31 21.58

Total – 44,260 shares.

NEW YORK STOCK CLOSING PRICES
By The Associated Press

Air Reduction 40 1/2
Allied Ch. & Dye 163 3/4
Am. Can. 96
Am. Rad. & St. S. 7 1/4
Am. Smelt & R. 40 3/4
Am. Tel. & Tel. 162
Am. Tobacco B. 74 3/4
Anaconda 22 1/2
Atch. T. & S. F. 16 1/2
Atl. Refin. 21 3/8
Bald Loco. Ct. 16 1/2
Balt. & Ohio 4 1/8
Bendix Aviat. 31 3/8
Bethlehem Steel 80 1/2
Boeing Airplane 15 1/8
Borden Co. 19 3/8
Briggs Mfg. 21 3/8
Budd Mfg. 4 1/4
Ches. & Ohio 2 3/4
Chrysler Corp. 78 3/4
Col. G. & El. 80 1/3
Com. & South 1 1/8
Cons. Edison 25 1/4
Cons. Oil 17 3/8
Curtiss-Wr. 7 3/8
Del. L. & W. 3 3/4
Douglas Aircraft 77 3/4
Du Pont de N. 171
El. Auto Life 35 3/8
Gen. Electric 34 1/4
Gen. Foods 41 1/4
Gen. Motors 49 1/4
Gen. Refract. 26 1/4
Greyhound Corp. 10 3/4
Illinois Cent. 8 1/4
Interlake Iron 8 3/4
Int. Harvester 47
Int. Nick Can 26 7/8
Int. Tel & Tel. 2
Kennecott Cop. 29 1/8
Kresge S. S. 25 1/8
Leh. Val. R. R. 2 1/8
Loew’s Inc. 25 3/4
Montgom. Ward 40 3/4
Nash-Kelvinator 5 1/8
Nat. Biscuit 18 7/8
Nat. Dairy Pr. 13 1/8
Nat. Distillers 21 1/2
NY Central R. R. 14 1/2
North Amer. Co. 19
Northern Pacif. 7
Packard Motor. 3 1/8
Paramount Pictures 7 3/8
Penney (JC) 89 1/3
Penn. Railroad 22 3/8
Pub. Svc. NJ 32 7/8
Pullman 24 3/8
Pure Oil 7
Radio Corp. of A. 4 3/4
Repub. Steel 17 3/8
Reynolds Tob. B. 35
Sears Roebuck 79 1/4
Socony-Vacuum 7 3/4
Sperry Corp. 41 1/8
Stand. Brands 6 1/2
Stand. Oil CA 16 3/4
Stand. Oil IN 24 3/8
Stand. Oil NJ 32
Studebaker Corp. 7 3/4
Texas Corp. 33 3/4
United Airlines 18
United Corp. 1 3/4
United Gas Imp. 11 3/8
U.S. Rubber 20 1/4
U.S. Steel 59 3/8
Warner Bros P. 2.5
Western Union Tel. 19 1/8
West El. & Mfg. 106
Woolworth (FW) 33 1/2
Yel. Tr. & Coach 14 1/2
Youngst. Sh. & T. 34

Reading Eagle (October 14, 1940)

METALS
New York, Oct. 14 (AP) –

Copper – Steady; electric spot, Conn. Valley, $12; export, f.a.s. New York, $10.25a40.
Tin – Steady; spot and nearby, $51; forward, $51.8.
Lead– Steady; spot, New York, $5.25a50; East St. Louis, $5.10.
Zinc – Steady; East St. Louis, spot and forward. $7.25.
Pig iron – No. 2, f.o.b. Eastern Pennsylvania, $24; Buffalo, $23; Alabama, $19.38.
Aluminum – Virgin, 99%, $18.
Antimony – Chinese spot, $14.50.
Quicksilver – $173a176.
Platinum – Pure, $36.
Chinese wolframite – Duty paid, $22.50a24.
Domestic scheelite – $23.

PHILA. CLOSING STOCKS
Philadelphia, Oct. 14 (AP) –

Lehigh Nav. 2 3/8
Penna. R. R. 22 1/2
Pennroad Corp 2 3/8
UGI 11 3/8

GOVERNMENT BONDS
New York, Oct. 14 (AP) –

Treasury 3 1/4s 45-46 108.41
Treasury 3 1/4s 46-44 109.10
Treasury 2 3/4s 47-45 109.17
Treasury 2 3/4s 51-48 109
Treasury 2 1/2s 53-49 108.11
Treasury 2 1/8s 60-55 108
Treasury 2 3/4s 65-60 107.20
Federal Farm Mtg. 3s 49-44 107.28
Home Owners Loan 3s 52-44 107.16

U.S. TREASURY REPORT
Washington, Oct. 14 (AP) –

The position of the Treasury:

Expenses $2,603,698,251.17
Receipts $1,634,950,884.10
Gross deficit $968,747,867.07
Net deficit $951,906,517.07
Cash balance $2,257,716,231.00
Working balance $1,521,543,290.68
Public debt $44,073,179,431.29
Gold reserve $21,363,594,351.51