News stories from Monday May 21, 1979

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

The administration is urging refiners to help ease the gasoline shortage by increasing production and tapping existing stocks. The administration had been giving priority to rebuilding stocks of heating oil by fall, even if it inconvenienced summer drivers. Meanwhile, the White House said the supply situation would have been significantly better "if Congress had passed the proposals we sent up in 1977."Deep pessimism over the energy crisis was expressed by the Secretary General of the Organization for Economic Cooperation and Development. He warned the industrial nations that the present oil shortage might already have condemned them to a prolonged economic downturn, with rising unemployment and high inflation, that will last until the mid-1980's. [New York Times] Algeria raised the price of its oil by $2.45 a barrel, or 13 percent, to $21 a barrel for its best crude, making it by far the most expensive oil in the world. Industry sources said they feared a new round of similarly sharp price increases in all oil from Africa. [New York Times] Nuclear development will be slowed by the Nuclear Regulatory Commission. Officials said there would be a delay of at least three months in issuing licenses and permits for new generating plants until safeguards against a repetition of the accident at the nuclear plant near Harrisburg, Pa., could be incorporated in new reactors. [New York Times] A landmark anti-pollution accord is expected to be announced soon between the United States Steel Corporation and the Environmental Protection Agency, according to government officials. They said that the company would be required to spend hundreds of millions of dollars to reduce air and water pollution from nine of its older plants in western Pennsylvania. [New York Times] A verdict in the slayings last fall of San Francisco Mayor George Moscone and Supervisor Harvey Milk was reached after a jury deliberated for six days. Former Supervisor Dan White was convicted of voluntary manslaughter and faces a prison sentence of five years to seven years, eight months. [New York Times] Carter cabinet meetings have changed markedly since the early days of the administration. A member said in an interview that President Carter used to call on each Secretary "to speak his piece," but that "now he has his own agenda, which none of us sees in advance, and he sets the pace and tone." An aide said that the present approach prevented Secretaries from preparing speeches on pet projects, and that "it saves a lot of time." [New York Times] A suit challenging a plan to aid blacks will be reviewed by the Supreme Court. The Justices agreed to rule whether it is legal and constitutional for Congress to set aside a fixed percentage of government construction funds to be awarded to minority-owned contracting companies. [New York Times] Reassurance on Rhodesian policy was given to Washington by London, which said in effect that the first major shift, if any, was up to President Carter. Lord Carrington, the Foreign Secretary, also told Secretary of State Vance that Britain's new Conservative government would move slowly before making a decision to recognize Rhodesia or lift sanctions against Salisbury. [New York Times] Aspects of apartheid would be eased under proposals made by the South African government, but some blacks believe that the policy may not be fundamentally affected. [New York Times] Plans for limited Arab self-rule in the occupied West Bank and Gaza Strip were approved by the Israeli government. Prime Minister Begin and the majority of the cabinet persuaded Defense Minister Ezer Weizman and Foreign Minister Moshe Dayan to serve on Israel's negotiating team. [New York Times] Cairo must depend on Washington to re-equip its armed forces, according to Western diplomatic sources. With financing from Saudi Arabia cut off, Egypt is expected to seek additional American military aid. [New York Times] Conciliation toward Iran was continued by Washington, which expressed hope of sending a new ambassador to Teheran soon despite the Iranian government's opposition to his arrival. The State Department again deplored summary executions in Iran and voiced concern about Iranian criticism of Senator Jacob Javits, but the overall approach was friendly. [New York Times] The Soviet Union's emigration curbs have been substantially liberalized for Jews, but dissidents say that other ethnic and religious groups, including ethnic Russians, are usually turned down when they seek to emigrate. [New York Times]

Stock Market Report

Dow Jones Industrial Average: 842.43 (+0.52, +0.06%)
S&P Composite: 100.14 (+0.21, +0.21%)
Arms Index: 0.69

	Issues	Volume*
Advances	838	15.10
Declines	610	7.55
Unchanged	445	2.90
Total Volume		25.55

* 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 18, 1979	841.91	99.93	26.59
May 17, 1979	842.95	99.94	30.55
May 16, 1979	828.48	98.42	28.35
May 15, 1979	825.88	98.14	26.19
May 14, 1979	825.02	98.06	22.46
May 11, 1979	830.56	98.52	24.01
May 10, 1979	828.92	98.52	25.23
May 9, 1979	838.62	99.46	27.67
May 8, 1979	834.89	99.17	32.72
May 7, 1979	833.42	99.02	30.49