Betting on the Future

With a show of independence from the tribulations of the economy, the stock market last week climbed to a new high for the year, closing the week at 459.56 on the Dow-Jones industrial average, up 5 points for the week and 23 points above the year's low. The market was boosted by those who kept their eyes on a bright future, rather than the grey present.

Corporations continued to feel the bite of the recession in their first-quarter profits. U.S. Steel reported first-quarter earnings off 46% ($1.04 a share v. last year's $2.09), and Inland Steel was off 46% ($1.40 a share v. $2.59). Steel production was down to about 47% of capacity last week, only about half of last year's production for the same period. The fact that steel continued to show a worthwhile profit while operating so low was a strong tribute to the industry's efficiency.

But a few bright patches showed through the clouds. The Commerce Department announced that as of mid-April the number of jobless had dropped to 5,120,000, down 78,000 from the month before. It was the first drop since October, though less than seasonal. The Federal Reserve Board reported that department-store sales for the week ending April 25 were 4% above the same week last year --proof that the consumer has by no means lost his will to buy.

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