Stocks Rise Sharply as Volume Slumps: Widest Gain in 3 Months
NEW YORK, Aug. 30 WÛÓWall' Street handed itself a surprise today in slow pre-Labor Day trading as the stock market quietly staged its widest gains on average since May 29, 1956.</br></br>At best, a slight recovery was expected from yesterdayÛªs decline but the advance completely wiped out the weekÛªs losses and put the market well ahead of its position last Friday.</br></br>The advance, however, had none of the brisk trading and excitement of typical rallies similar to it in scope. In fact, volume was the lightest of the week as it dwindled to 1,600,000 shares from 1,630,000 yesterday.</br></br>It was the narrowest market in nearly seven months, with only 1091 issues traded of which 769 rose and 144 fell.</br></br>Reasons for the rise, analysis said, in-, eluded a tendency to rebound from yesterdayÛªs drop and a considerable amount of short covering in view of the long weekend ahead and the international uncertainties. They noted that most of the pre-weekend liquidation of speculative positions took place yesterday. The Thursday rise of aircrafts, missile-makers and other defense stocks because of RussiaÛªs attitude -toward disarmament was 'resumed today. Further bullish sentiment was generated by reports in financial quarters of an upturn in steel orders for the 1958 auto models.