News stories from Wednesday December 14, 1977
Summaries of the stories the major media outlets considered to be of particular importance on this date:
- The Social Security impasse ended when Senator William Roth, Republican of Delaware, severed from the Senate version his proposed tax credit for college tuition, which had held up House-Senate conference committee approval of the Social Security tax increase. Both houses are expected to pass the bill tomorrow and then adjourn until Jan. 19. [New York Times]
- The Carter goal in 1978 will be plans to strengthen the nation's economy, the President told the Business Council, a group of major corporation executives. He said his plans for a substantial permanent income tax cut and for income tax reform would be ready for Congress in January, saying that the reforms would be "moderate but adequate," indicating that plans for sweeping reform are off. [New York Times]
- Sales of new cars slumped in the first 10 days of November, according to announcements by the domestic makers. It was sharpest for General Motors, which reported a 13.6 percent drop in unit sales compared to the corresponding period last year. Strong sales of the Fairmont and Mercury Zephyr helped Ford increase its unit sales compared with last year when it was recovering from a strike. [New York Times]
- Stock prices, despite unpleasant news about the slipping dollar and slow car sales, posted their first noteworthy gain of the week. The Dow Jones industrial average rose 7.45 points to close at 822.68. Strength was shown by oil and gas exploration issues and the glamour sector. [New York Times]
- Japan announced details of its proposed trade liberalization package, which government leaders say represents the maximum concessions possible at this time. Quantitative restrictions on imports of 27 categories of agricultural and manufactured goods remain. The plan falls far short of demands for import liberalization made by Japan's trading partners in the face of its $13.36 billion trade surplus so far this year. [New York Times]
- A sharp cutback in building Navy F-14 jet fighters has been ordered by Defense Secretary Harold Brown as part of a reduction in the Navy budget. Industry sources say that could mean the loss of 30,000 jobs in New York state, mostly on Long Island. It is uncertain whether President Carter will reverse the decision as pressures build over many aircraft programs.
New York City's solvency is a firm commitment of the Carter administration, Treasury Secretary Michael Blumenthal told the Senate Banking Committee, but he added that any continuation of federal loan programs beyond July 1 would have to be on "a declining basis." He said that allowing the city to fall into bankruptcy would create "the most serious difficulties" for the federal government and New York state as well as the city, its commerce and its people.
[New York Times] - The cancer hazard of hair dyes is significant, the General Accounting Office has concluded, because they contain coloring chemicals that are known or suspected causes of cancer in man or in laboratory animals. It recommended in a report released today that Congress repeal the statute exempting hair dye chemicals from federal safety regulations. [New York Times]
- Negotiators of Egypt and Israel met in Cairo, with Americans looking on, in a meeting to work out a satisfactory framework for a Middle East peace settlement. Although the United Nations sent a representative, four other Arab parties that had been invited -- Syria, Lebanon, Jordan and the Palestine Liberation Organization -- stayed away, as did the Soviet Union. In the formal opening statements the Egyptian delegate said the world was waiting for a reciprocal move from Israel "without delay" in response to the recent dramatic initiatives by Egypt's President, Anwar Sadat. [New York Times]
- New ideas connected directly with the peacemaking process are what Israel's Prime Minister Menachem Begin is taking to his Washington meeting with President Carter, he said at an airport news conference before leaving Israel. When difficult territorial questions concerning the Palestinian Arabs and the West Bank of the Jordan River came up, he replied: "I don't think that you are going to propose a search of my luggage" for maps. He arrived in New York tonight. [New York Times]
- Low growth rates for the Soviet Union's economy, including the smallest increase in heavy industrial production since 1945, mark its plan for 1978. In a fairly gloomy speech outlining it to the supreme Soviet, the economic planning chief listed goals that include a virtual leveling of steel output, and reductions in the pace of expansion for consumer-oriented production. [New York Times]
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Stock Market Report
Dow Jones Industrial Average: 822.68 (+7.45, +0.91%)
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* |
| December 13, 1977 | 815.23 | 93.56 | 19.19 |
| December 12, 1977 | 815.75 | 93.63 | 18.16 |
| December 9, 1977 | 815.23 | 93.65 | 19.21 |
| December 8, 1977 | 806.91 | 92.96 | 20.40 |
| December 7, 1977 | 807.43 | 92.78 | 21.05 |
| December 6, 1977 | 806.91 | 92.83 | 23.77 |
| December 5, 1977 | 821.03 | 94.27 | 19.16 |
| December 2, 1977 | 823.98 | 94.67 | 21.16 |
| December 1, 1977 | 825.71 | 94.69 | 24.22 |
| November 30, 1977 | 829.70 | 94.83 | 22.67 |