WALL STREET: Reasons for the Rally

With encouragement from the pickup in business, the stock market rose to a new 1958 high last week. Stocks hit 478.97 in the Dow-Jones industrial average, then recovered from a sharp sell-off to close the week at 473.60. Encouraged by the Senate vote to repeal the 10% passenger and 3% freight taxes, rails closed at 119.17, a whisker under the year's high. But while the confidence of many investors returned, the skepticism of others increased. The short position, which has been rising for five months, was reported last week at 5,795,105 shares, highest...