News stories from Wednesday May 5, 1971

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

The government banks of West Germany and four other European countries have stopped buying U.S. dollars. The West German bank is attempting to scare off currency speculators by halting the purchase of U.S. dollars. American tourists now find the value of the dollar falling in relation to the mark.Europe wants the U.S. economy to cool off at the very time President Nixon wants it to heat up. Treasury Secretary Connally says that he sees no need for a change in the value of the dollar. Devaluation is unlikely, but the dollar's value can be reduced if other countries let their currencies float; a cheaper dollar would make American products more competitive internationally. [CBS] U.S. Steel announced price increases of 6% or more effective in June and July.The rest of the world doesn't believe that the U.S. dollar is worth as much as our government claims; international bankers are demanding that the U.S. devalue the dollar by raising the price of gold. If the U.S. won't devalue, the rest of the world may increase its own currencies. [CBS] Secretary of State William Rogers met with Egyptian leaders to discuss the resumption of diplomatic relations between the United States and Egypt. [CBS] South Vietnam claims that North Vietnam is attacking civilian centers instead of military bases in order to avoid casualties, and has filed a protest with the International Control Commission. [CBS] Antiwar demonstrations continued in Washington, DC. Protesters marched to the Capitol, where police arrested over 600 of them for unlawful assembly. Protesters claim that some were arrested just because they are young and have long hair. President Nixon is pleased with the way the police are handling the situation.There were antiwar demonstrations on college campuses throughout America. A welfare protest in Brooklyn turned into a riot with looting and buildings being burned. [CBS] Republican national chairman Robert Dole accused the news media of giving a distorted view of Washington, DC protests; NBC president Reuven Frank declared that television news will no longer apologize to its critics. [CBS] A federal judge told government lawyers to show cause why they should not be held in contempt, and released the contents of letters in the "Harrisburg 7" case. [CBS] A mud slide in St. Jean de Vianney, Quebec, destroyed 40 homes; two are known to have died and 28 are missing. [CBS] Senator Abraham Ribicoff will offer an amendment to the auto safety bill which will require yearly pollution inspections. [CBS] An attempt to clean up litter around Catalina Island, California, has begun; 300 divers are cleaning up the ocean floor. Diver Ernie Rodriguez said that the area below boat moorings is particularly bad; diver Brigg Franklin said he would enjoy diving in an area where he doesn't have to worry about getting cut by junk. Two tons of garbage were collected in hours. [CBS] A Soviet newspaper accused U.S. embassy's cultural affairs counselor McKinney Russell of espionage, and stated that he tried to recruit Soviet citizens as U.S. spies. [CBS] A satellite has been designed to give the U.S. advance warning of launched missile attacks. [CBS] Today is the tenth anniversary of the first U.S. sub-orbital space flight, "Freedom 7", with astronaut Alan Shepard aboard. [CBS]

Stock Market Report

Dow Jones Industrial Average: 939.92 (+1.47, +0.16%)
S&P Composite: 103.78 (-0.01, -0.01%)
Arms Index: 0.79

	Issues	Volume*
Advances	588	7.50
Declines	782	7.86
Unchanged	310	1.91
Total Volume		17.27

* 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*
May 4, 1971	938.45	103.79	17.31
May 3, 1971	932.41	103.29	16.12
April 30, 1971	941.75	103.95	17.49
April 29, 1971	948.15	104.63	20.34
April 28, 1971	950.82	104.77	24.82
April 27, 1971	947.09	104.39	21.25
April 26, 1971	944.00	103.94	18.86
April 23, 1971	947.79	104.05	20.15
April 22, 1971	940.63	103.56	19.27
April 21, 1971	941.33	103.36	17.04