News stories from Tuesday January 4, 1977
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- President Ford proposed a tax program basically the same as the one Congress turned down late last year. It includes a permanent $10 billion cut in personal income taxes, a $2.5 billion cut in corporate taxes and an increase in Social security tax rates. With only 16 days left in the Ford administration, the move was seen as a statement of principle, not a plan for enactment. [New York Times]
- Carter administration guidelines to limit conflict of interest were issued by the President-elect. Policy-making officials in the executive branch must disclose their net worth and must promise that for one year after leaving the government they will not lobby for pay, before the agency in which they have served. Mr. Carter said he would try to avoid any personal conflict by placing the bulk of his financial holdings in a trust. [New York Times]
- Senator Robert Byrd of West Virginia was chosen majority leader by his fellow Democrats without opposition, as Senator Hubert Humphrey of Minnesota withdrew his candidacy. The Republicans chose Senator Howard Baker of Tennessee as minority leader in a surprise 19-18 victory over Robert Griffin of Michigan. [New York Times]
- A surge in manufacturers' shipments in November while inventories remained steady was reported by the Department of Commerce. Earlier there had been concern about the rising ratio of inventories to sales. New orders also increased, by 1.2 percent. [New York Times]
- The stock market plummeted as traders and institutions rushed to take profits following the advance in prices since Nov. 10. The Dow Jones industrial average dropped 11.88 points to close at 987.87, following Monday's loss of 4.90 on the first day of the new trading year. The American Stock Exchange outperformed the New York Stock Exchange. Credit markets declined fairly sharply as dealers lightened inventories of fixed-income securities acquired late last year. [New York Times]
- Harmful effects of PBB, a toxic chemical that accidentally contaminated farm products in Michigan in 1973, have been found in nearly one-third of the more than 1,000 state residents studied by a medical team headed by Dr. Irving Selikoff of Mount Sinai Medical Center. Their preliminary findings presented to Michigan's governor contrasted sharply with the state's own 1974 findings. [New York Times]
- Rupert Murdoch, the Australian publisher, appeared to have gained a controlling interest in the New York Magazine Company, which he joined as a director at a stormy six-hour meeting Monday. But the takeover was surrounded by challenges and controversy on almost every side. [New York Times]
- The New York Jets promoted Walt Michaels to head coach, the fifth man to hold the post in 15 months, following two losing seasons for the once-glamorous professional football team. With last week's death of Phil Iselin, the president, Al Ward was given broader responsibility than previously as general manager. [New York Times]
- The Westway proposal for a six-lane Interstate System highway replacing the crumbling elevated West Side Highway between the Battery and 42d Street, but largely on a below-grade roadway, got a $1.15 billion federal green light. Secretary of Transportation William Coleman called the controversial project sound and vital to New York City's future. Construction could begin in about a year unless delayed by lawsuits. [New York Times]
- Higher coffee export taxes in Brazil and Colombia drew an attack from Representative Frederick Richmond, Democrat of Brooklyn. The House Agriculture Committee member accused the two largest exporting countries of unfairly exploiting the worldwide shortage and called for an investigation. A Brazilian coffee industry spokesman countered that the purpose was to slow exports and would not affect the price of green beans. [New York Times]
- Iran's spending on armaments, in excess of $15 billion since early 1972, is raising concern about the ability of its armed forces to absorb so much new equipment. Foreign critics find the heavy arms purchases excessive and ill-advised. Iran has allocated $200 million for the training of air force ground personnel by American experts, and plans have been made for 1,000 Americans to help maintain the advanced F-16 fighter-bombers now on order. [New York Times]
- Soviet citizens will pay more for travel by plane, boat and taxi, less for a range of ready-to-wear clothing, some refrigerators, television sets, tape recorders and electric razors. Carpets, silk fabrics, crystal, custom clothing and some books will cost more. The announcement of price changes stressed the reductions and gave little more than hints of the increases. [New York Times]
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Stock Market Report
Dow Jones Industrial Average: 987.87 (-11.88, -1.19%)
Arms Index is the ratio of volume per declining issue to volume per advancing issue; a figure below 1.0 is bullish. | |||||||||||||||
| Market Index Trends | |||
|---|---|---|---|
| Date | DJIA | S&P | Volume* |
| January 3, 1977 | 999.75 | 107.00 | 21.28 |
| December 31, 1976 | 1004.65 | 107.46 | 19.17 |
| December 30, 1976 | 999.09 | 106.88 | 23.70 |
| December 29, 1976 | 994.93 | 106.34 | 21.91 |
| December 28, 1976 | 1000.08 | 106.77 | 25.79 |
| December 27, 1976 | 996.09 | 106.06 | 20.13 |
| December 23, 1976 | 985.62 | 104.84 | 24.56 |
| December 22, 1976 | 984.54 | 104.71 | 26.97 |
| December 21, 1976 | 978.39 | 104.22 | 24.39 |
| December 20, 1976 | 972.41 | 103.65 | 20.69 |