News stories from Tuesday January 10, 1978

Summaries of the stories the major media outlets considered to be of particular importance on this date:

Job guarantees for teenage students will be tested in six cities that were awarded more than $15 million each by the Labor Department. According to Congress sources, the six winners were Baltimore, Boston, Detroit, Cincinnati, Denver and Seattle. The pilot project is designed to test a program that seeks to guarantee a job to all teenagers who want to work and agree to stay in school. [New York Times] Welfare rolls have dropped in New York City to the lowest level in almost eight years, according to the Human Resources Administration, which reported the current total as 933,987 recipients. That's a sharp decline from the city's peak total of 1,002,847 in June, 1976, and further drops can be expected, H.R.A. officials said. They attribute the decline largely to sharpened procedures to detect ineligible recipients. [New York Times] Interest rates rose as more major banks raised their prime rates to 8 percent following further action by the Federal Reserve to tighten credit. The nation's 20 largest banks have now moved their prime rates up from 7¾ percent to 8 percent, following the pattern set by Citibank last Friday. [New York Times] Stock prices declined to a 33-month low as measured by the Dow Jones Industrial Average, which closed at 781.53 after dropping 3.03 points during the day's trading on the New York Stock Exchange. Analysts attributed the day's decline to investor concern over the weakening dollar, which declined again on European currency markets. [New York Times] Canadian unemployment rose to a post-Depression record of 8.5 percent, according to December figures released in Ottawa. That's a rise of one-tenth of 1 percent from the November figure and means that 882,000 Canadians were out of work last month, 42,000 more than in November. Officials attribute the rise to a lack of confidence among consumers and investors, and see little room for improvement this year. [New York Times] More New York City "sacrifices" will be needed before Washington will consider a financial plan for the city, Secretary of the Treasury Michael Blumenthal told Mayor Koch at a private meeting in Gracie Mansion. Neither official disclosed details of the talks, but Mr. Koch said he agreed with Mr. Blumenthal that the city had "to sacrifice." [New York Times] Age discrimination in federal aid denies many children and older people desperately-needed services and benefits, the United States Civil Rights mission charged. Declaring that the elderly were primary victims of age discrimination, the commission called for eliminating age as an eligibility criterion for federal benefits. [New York Times] Petty corruption in the F.B.I., including some cases of criminal conduct by top officials, was detailed in a Justice Department report following a two-year inquiry into the Federal Bureau of Investigation. Despite the findings of alleged misconduct, the report ruled out prosecutions because of a five-year statute of limitations. [New York Times] Daily periods of silent meditation would be mandated for all New Jersey public schools under a measure that won final legislative approval from the outgoing state Senate. Governor Byrne has not indicated whether he will sign the bill, which is similar to laws passed in other states since the Supreme Court ruled that prayers in public schools were unconstitutional. [New York Times] Italy's government is fighting to survive amid widening street violence and Communist demands that have threatened to topple the 18-month-old Christian Democratic government of Prime Minister Giulio Andreotti. The Communists touched off the political crisis last month by demanding direct participation in a new unified government to replace the minority Christian Democratic administration. [New York Times] Egyptian-Israeli military talks will begin in Cairo today with Egyptian officials hoping to find out just how serious Israel is about maintaining settlements in Sinai after peace. The talks were advanced by a week because Cairo wanted the issue cleared up before the parallel Political Committee's meeting next week. [New York Times] A Soviet promise not to deploy its Backfire bomber against the United States may be sought by the Carter administration in exchange for dropping United States demands that the bomber be included in a new strategic arms accord. Arms talks have been stalled for almost three years over the question of whether the Soviet bomber poses an offensive threat. [New York Times] Two Soviet astronauts rocketed into space to join the crew of the orbiting Salyut 6 research station. If the second two-man craft is linked to the space station, a Western expert said, that will indicate that the Russians believed they had the ability to send up fresh supplies and switch crews. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 781.53 (-3.03, -0.39%)
S&P Composite: 90.17 (-0.47, -0.52%)
Arms Index: 0.79

	Issues	Volume*
Advances	438	7.32
Declines	1,029	13.62
Unchanged	423	4.24
Total Volume		25.18

* in millions of shares

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 9, 1978	784.56	90.64	27.90
January 6, 1978	793.49	91.62	26.15
January 5, 1978	804.92	92.74	23.57
January 4, 1978	813.58	93.52	24.09
January 3, 1978	817.74	93.82	17.72
December 30, 1977	831.17	95.10	23.56
December 29, 1977	830.39	94.94	23.61
December 28, 1977	829.70	94.75	19.63
December 27, 1977	829.70	94.69	16.75
December 23, 1977	829.87	94.69	20.08