News stories from Tuesday August 3, 1971

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

The fear of increases in the prime interest rate and new wage-price spirals from the railroad and steel industry settlements caused the stock market to drop nearly 15 points. Three steel companies have raised their prices, and the railroad settlement may cause increases in freight costs. [CBS] The White House announced that it will continue the current economic policy. The July unemployment rate is expected to jump from 5.6% to 6%; President Nixon believes that the economy will eventually improve despite discouraging figures now. [CBS] Former economic council chairman Leon Keyserling said that the Nixon administration's economic policy can not work because slow growth and high unemployment generate inflation, not cure it. [CBS] The Nixon administration says that local areas are expected to pay the majority of the cost of busing in school districts that have been ordered to desegregate; Attorney General John Mitchell appealed the busing ruling for Austin, Texas, in which the Health, Education and Welfare Department plan was rejected.Judge William Taylor ruled that desegregation in Dallas, Texas, will include two-way TV between racial groups, integrated weekly field trips, and an incentive plan giving children in a school's minority group Fridays off. [CBS] The House is expected to vote on a new draft bill tomorrow; the Senate is not expected to vote until September. The Selective Service will hold a draft lottery on Thursday even though the draft law has expired. [CBS] Three former POWs told of horrors in a North Vietnamese prison camp. Sgt. Dan Pitzer says that he had no shoes to wear as a POW for four years; he was placed in a solitary confinement cage and fed only rice and fish. Pitzer said that the prison camp was moved after being destroyed by U.S. bombing, but he couldn't attempt to escape due to the terrain and his poor physical condition at the time. [CBS] UPI reports that South Vietnamese officers are investigating rumors of torture, rape and stealing by South Vietnamese soldiers in the village of Kompong Trach, Cambodia. [CBS] A communique from China and Algeria called for rapid U.S. withdrawal from South Vietnam. [CBS] East German doctor Peter Debler escaped to West Germany by swimming 28 miles from Rostock to Fehmarn Island. [CBS] Apollo 15 starts for home tomorrow; astronauts are mapping the moon today. [CBS] Railroads began running again today following yesterday's strike settlement. Lettuce growers in Salinas, California, said that the strike cost them up to $35 million. The settlement may result in shipping cost increases. [CBS] The new president of Kent State University, Dr. Glenn Olds, said that he will use force if necessary to quell campus violence. [CBS] The Senate voted to limit campaign spending for the 1972 election to $8.3 million per political party, and voted to eliminate the equal time provision for candidates on broadcast media. [CBS] An appeals court threw out an FCC order stating that broadcasters may not ban editorial advertisements. [CBS] President Nixon asked Congress for funds to begin the declassification of World War II documents. [CBS] Tradition-shattering changes are sweeping the military. Jeanne Holm is the first female Brigadier General in Air Force history. Holm joined the Air Force to help during World War II and now directs 12,000 women. Holm says that recruiting women should become easier, and women will play a larger role in the military structure in the future. [CBS] Federal agents found a mass grave for eagles in Wyoming; James Vogan told a Senate committee that hunters have killed 800 eagles from his helicopter since last September. [CBS] Kenneth Anderson and his son Gary were forced to crash-land in an Alaska mountain stream between Anchorage and Juneau on June 24th. Gary was found after 38 days; his father was swept downstream after the crash. Gary lived in an abandoned hunters' camp for 35 days and says that he prayed every day. [CBS]

Stock Market Report

Dow Jones Industrial Average: 850.03 (-14.89, -1.72%)
S&P Composite: 94.51 (-1.45, -1.51%)
Arms Index: 2.26

	Issues	Volume*
Advances	218	0.90
Declines	1,263	11.81
Unchanged	191	0.80
Total Volume		13.51

* 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*
August 2, 1971	864.92	95.96	11.87
July 30, 1971	858.43	95.58	12.97
July 29, 1971	861.42	96.03	14.57
July 28, 1971	872.01	97.07	13.94
July 27, 1971	880.70	97.78	11.56
July 26, 1971	888.87	98.67	9.93
July 23, 1971	887.78	98.94	12.37
July 22, 1971	886.68	99.11	12.57
July 21, 1971	890.84	99.28	11.92
July 20, 1971	892.30	99.32	12.54