Show Stock For most of August and much of a drifting pattern prevailed in the stock market with a net trend on the The Dow Industrials and Rails followed this while the Utilities displayed surprising strength for a only to drift downward Volume was average until near Labor Day when investors turned to recreational activities and trading dropped off AS WE move along in the early part of the fourth it appears that more vibrant stock market action lies At the present there is a good deal of among apparently a result of the numerous uncertainties existing in his country and throughout the world Chief among these are the war situation in Vietnam and the uneasy psychological mood that always precedes a Presidential While a peace settlement in Southeast Asia is possible before the it is unlikely that the North would hand President Nixon a gift like this to support his ON THE other if the continue to show Senator McGovern lagging the Vietnamese might not feel any further need to withhold their trump if they sincerely want they might adopt a more reasonable posture toward Investors of eye the election While President Nixon would seem to be far the possibility still exists that McGovern might come out on Though he has modified some of his his position on a number of questions is still somewhat unpalatable to especially investors and share IT IS difficult to correlate numbers as expressed by the Dow Jones averages with the stock market as a These are widely followed and carry considerable psychological the Research Department of Babson's Reports suggests that the indexes for the fourth quarter will show more backing and filling by the stock This will probably persist until election if Nixon turns out to be a we would expect a strong post-election rally-one which might join forces with the traditional upward move often seen at ear ONE FLAW that has' characterized stock market performance in 1972 has been lack of In other price trends have been dictated by comparatively few principally in the high-flying These have risen to exceptionally high as expressed by their price-earnings On the other the so-called experienced less may be termed issues selling on the basis of their relationship to the state of the economy or separate parts a vitalized economy could generate more interest in these Rather than anticipating vigorous improvement for the stocks in the fourth we would expect that a great of attention will be directed toward the basic with some of market leadership among industry groups from time to |