[Note: Your regularly scheduled 1930 news will be along later in the day, but first a commemorative special. This day in 1929 was roughly the start of what's known as the Great Crash, which lasted about a week. I'm going to give a quick summary for each day, to give an idea of how it played out. As with the 1930 news, the summary is from the WSJ on each day in 1929, so it describes the action from the previous day. So the following describes Wednesday, Oct. 23 - note this is not one of the legendary “Black” days yet.]
Market wrap: Bears resumed aggressive operations, “combed the list during the morning for issues in a weakened state,” attacking Bethlehem Steel, Hahn Dept. Stores, Hayes Body, and others. Selling spread to the main trading stocks in the noon hour, picking up momentum on increasing volume as the afternoon progressed; many stop-loss orders hit; leaders including Radio, US Steel, GE, and Westinghouse broke sharply. “Selling took on a panicky character” in the final hour; “pandemonium reigned around the posts at which active stocks were traded”; 2.6M shares were traded in the final 50 minutes, or about 40% of the total day's volume of 6.4M; the tape ran almost 2 hours behind and price breaks were exceptionally wide.
Prof. I. Fisher of Yale Univ. defends stock market rise of 100% since 1923, says based on increasing prosperity due to many factors, including more stable money, new scientific management, new inventions, Prohibition [Note: huh???]; believes public speculative mania is least important factor in the rise. Concludes by criticizing capital gains tax.
Bond market has been rallying as stocks decline recently.
Some commodity prices: Wheat over $1.25, corn over $0.90, cotton 19 cents, copper 18 cents.
Rail freight loadings for the week ended Oct. 12 were down 11,121, or about 1%, from 1928, vs. 7,985 decline prev. week.
Steel trade reviews report decline in production appears to have hit bottom, with all departments except automotive active.
Senate refuses to classify avocado as pear for tariff purposes.