Rosy Glow

As the first big group of second-quarter earnings reports came out last week, the rosy glow they exuded brightened up the stock market. The Dow-Jones industrial average rose to a new bull-market record of 343.48 at week's end.

Of more than 250 companies that reported for the second quarter, three out of five reported bigger profits than a year ago. Earnings were often up, because of the expiration of the excess-profits tax, even where sales were down. For example, General Electric's half-year profits were up 24% from a year ago to $1.08 a share, despite a 7% sales slump.

Douglas Aircraft showed why aviation stocks have been soaring. Quarterly sales were up 11% to $253 million and earnings up 79% to $4.20 a share. Except for the textile, steel and auto industries, most big corporations did well. General Foods reported the biggest second-quarter earnings in its history: up 90% to $1.88; Du Pont's first-half earnings were up 33% to $3.22 a share; National Gypsum (building materials) up 48% to $2.09; Allis-Chalmers up 18% to $3.94.

Even the tobacco industry was not hurt badly by all the cancer talk. American Tobacco (Lucky Strike) netted $1.56 in the second quarter, the same as a year ago. Liggett & Myers, with earnings of $1.20 a share, was down 14%.

The big drop was in steel, where production has been sharply cut. Allegheny Ludlum's profit was down 65% to 44-c- for the second quarter, Youngstown Sheet & Tube's down 39% to $2.71 for the half, and Republic Steel's first-half earnings of $4.01 were off 15%.

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