Motors Lead Vigorous Market Recovery: GM Forecast Is Factor
NEW YORK, Aug, 22 (AP)ÛÓhi a vigorous rally today, the stock market crossed an important milestone, wiping out all its losses since the ÛÏblack MondayÛ of May 28.</br></br>Much ground still remained to be recaptured before the record heights of last December would be seen again, but in the eyes of Wall Street chartists an important psychological victory had been won for those who want higher prices.</br></br>In the midst of the session, the Dow industrials lopped their May 31 recovery peak of 613.3(1, drawing in a host of new buyers. The average was up 6.90 to 615.54 at the close. This left it roughly midway between the 1962 closing low of 535.76 reached June 26 and the historic peak of 724.91 attained Dec. 13, 1961.</br></br>The Associated Press 60-stock average rose 2,4 to 226,1 with industrials up 3.8. rails up 1.3, and utilities up .9, making its biggest gain since July 2 when it rose 3.7.</br></br>Motors paced the rally. Brokers credited a glowing 1963 forecast by General Motors for inspiring the advance. GM, on its way to record profits this year, forecast that 1963 would be just as good a year as 1962 for the auto industry, even though other companies have predicted a sales decrease. The GM production came as it staged a preview of its new ear models.