News stories from Monday January 11, 1971

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

President Nixon approved tax reductions for businesses, hoping that they will invest more in new equipment. The new regulations allow businessmen to deduct the depreciation of equipment from their taxes at a faster rate. Treasury Secretary David Kennedy stated that the move doesn't mean the administration is giving up fighting inflation in order to fight unemployment. Members of congressional committees approved the plan. [CBS] There was more fighting in Jordan between the Jordanian army and Palestinian guerrillas; gunfire broke out in parts of Amman. United Nations mediator Gunnar Jarring conferred with Arabs concerning Israel's new peace proposals.Port Taufig, Egypt, is the primary danger area for a new Arab-Israeli confrontation. It is just 300 yards across the canal between the Arabs and Israelis. The population of the area is down from 300,000 to 5,000. [CBS] Defense Secretary Melvin Laird stated that he is confident of more troop withdrawals from Vietnam and he is impressed with "Vietnamization." Laird said that although the threat in Vietnam has decreased, he is concerned about the situations in Laos and Cambodia. [CBS] The Bolivian government put down a right-wing military revolt. Fifty officers who took part in the revolt have fled the country. [CBS] Eight Italian crewmen are feared lost in the English Channel after a Texaco ship collided with a Peruvian ship. Survivors were rescued by a Norwegian ship which was close by. [CBS] The Supreme Court agreed to hear Muhammad Ali's appeal of his conviction for refusing induction into the Army, but refused to hear Jimmy Hoffa's appeal. The refusal adds five years to the sentence that Hoffa is already serving for a different conviction. The Court also rejected a suit to stop the drilling of oil wells off the coast of Santa Barbara, California. [CBS] The trial of Lt. William Calley resumed. One witness stated that he refused Calley's order to punish villagers at My Lai. Paul Meadlo agreed to testify in exchange for immunity. Meadlo's testimony about Calley's involvement in the My Lai incident was thorough and detailed. [CBS] Senate Armed Services Committee chairman John Stennis is preparing legislation to require congressional action before U.S. forces can be committed to extended hostilities. Stennis said that in the future there must be a declaration of war by Congress, and he believes that an all-volunteer army is unrealistic. A presidential commission has proposed switching to an all-volunteer army as early as July 1. [CBS] The U.S. protested to the Soviet Union about the harassment of Americans in Moscow. The USSR replied that harassment of Russians is taking place in the U.S., where they are not being protected from militant Jews.The Jewish Defense League intends to make life miserable for Soviet diplomats in New York City. JDL leader Meir Kahane insists that he knows nothing about the recent bombing incidents but he supports those actions. Established Jewish organizations have condemned the JDL, and the Nixon administration is considering action to curb Jewish Defense League activity. [CBS] Surgeon General Dr. Jesse Steinfeld stated that a new government report relates smoking to unsuccessful pregnancies and fatalities to newborn babies. Steinfeld said that there is evidence which shows that smoking during pregnancy harms the unborn child. One study showed 20% more unsuccessful pregnancies in smokers. The number of women smokers is increasing. [CBS] Senator Richard Russell suffered a setback in his attempt to overcome a respiratory infection. Russell has been hospitalized since December 8. [CBS] President Nixon is reportedly considering a reorganization of the executive branch. Restructuring executive departments affects congressional committees and could become a President-versus-Congress situation. [CBS]

Stock Market Report

Dow Jones Industrial Average: 837.21 (+0.20, +0.02%)
S&P Composite: 91.98 (-0.21, -0.23%)
Arms Index: 1.38

	Issues	Volume*
Advances	736	5.99
Declines	624	7.01
Unchanged	309	1.72
Total Volume		14.72

* 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 8, 1971	837.01	92.19	14.10
January 7, 1971	837.83	92.38	16.46
January 6, 1971	837.97	92.35	16.96
January 5, 1971	835.77	91.80	12.60
January 4, 1971	830.57	91.15	10.01
December 31, 1970	838.92	92.15	13.39
December 30, 1970	841.32	92.27	19.14
December 29, 1970	842.00	92.08	17.75
December 28, 1970	830.91	91.09	12.29
December 24, 1970	828.38	90.61	12.14