News stories from Wednesday October 19, 1977

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

The compulsory retirement age was raised from 65 to 70 by the Senate, but its bill included major exceptions, making it different from a similar House measure. The Senate excluded college professors with tenure and executives and other employees with a retirement income of $20,000 or more not counting Social Security. Neither would its version ban any mandatory retirement for federal workers. [New York Times] A marked slowing of the nation's economy was reported by the Commerce Department for the third quarter of 1977. The output of goods and services rose less than the expected 3.8 percent, reflecting smaller consumer purchases and only slightly bigger business investment. The major strength came from government outlays. The figures raised doubts whether the Carter administration's growth target for 1977 could be reached, and intensified pressures for a 1978 tax cut. [New York Times] Stock prices fell as new evidence of slowing economic growth touched off a selling wave. The Dow Jones industrial average plummeted 8.31 to close at 812.20, its poorest reading since Oct. 2, 1975. Glamour issues incurred losses, and shares of American Telephone and Telegraph registered their lowest price of 1977. [New York Times] The North is losing in the energy debate in the Senate where Sunbelt is pitted against Snowbelt in a confrontation that has been less visible to the public than has the confrontation between the oil industry and the administration. Northern senators have been less militant than have the region's House members in pressing the case for narrowing the energy price gap facing their consumers. [New York Times] The Concorde's maiden flight to New York after a 19-month battle brought a modest noise output but no organized demonstrators opposing its landing at Kennedy International Airport. For its British and French builders and operators, the test flight was symbolically important as a foot in the door of the market they say it needs for any prospect of profitable operations. [New York Times] The House ethics committee hearings on its investigation of the South Korean government's covert plans to influence Congress produced new details such as identifying former Ambassador Kim Dong Jo as the courier who delivered plain white envelopes stuffed with $100 bills on Capitol Hill. [New York Times] A bill to require that 9.5 percent of imported oil be carried in American ships was defeated by 257 to 165 in a chaotic session of the House of Representatives. Opponents had repeatedly raised allegations of political payoff because 215 members received $449,410 in campaign contributions from maritime-related unions in 1976. George Meany, head of the AFL-CIO, supported the bill as a "modest but significant step toward restoring the health and strength of the American merchant marine." [New York Times] A South African crackdown banned black protest groups, closed the leading black newspaper and arrested its editor. At least 50 persons were arrested in raids and served with orders barring them from political activity and curtailing their freedoms for five years. Opponents of apartheid were stunned. Reacting with unusual harshness, the Carter administration said it was "deeply disturbed." [New York Times] Hostages were spared by a ruse before they were rescued by West German commandos from a hijacked plane in Somalia, according to an American woman who was a passenger on the plane. She said the hijackers had been tricked into ignoring a massacre deadline by a false assurance that 11 jailed West German terrorists whose release they had demanded were free and on their way to Somalia. [New York Times] The body of Hanns-Martin Schleyer, the West German kidnapping victim who had been held by terrorists since Sept. 5, was found in the trunk of an abandoned car in Mulhouse, France, after an anonymous call to the police. The death of the leading industrialist deepened shock among West Germans agitated by the violent events. [New York Times] Egypt insists that the formula for reconvening the Geneva conference on the Middle East must be amended to specify that the Palestine Liberation Organization should be a participant, according to Egypt's Foreign Minister, Ismail Fahmy. He hinted that he and President Anwar Sadat might have promoted some softening in the P.L.O.'s position. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 812.20 (-8.31, -1.01%)
S&P Composite: 92.38 (-1.08, -1.16%)
Arms Index: 1.61

	Issues	Volume*
Advances	426	4.10
Declines	962	14.88
Unchanged	475	3.05
Total Volume		22.03

* 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*
October 18, 1977	820.51	93.46	20.13
October 17, 1977	820.34	93.47	17.34
October 14, 1977	821.64	93.56	20.41
October 13, 1977	818.17	93.46	23.87
October 12, 1977	823.98	94.04	22.44
October 11, 1977	832.38	94.93	18.11
October 10, 1977	840.26	95.75	10.58
October 7, 1977	840.35	95.97	16.25
October 6, 1977	842.08	96.05	18.49
October 5, 1977	837.40	95.68	18.30